Penny Stock Brokers
Are you looking for a penny stock broker? You have come to the right place. I personally buy and sell stocks and very quickly became fed up of so many brokers charging extra fees for these stocks.
As you may be aware, even many of the trusted reputable penny stock brokers charge extra fees for stocks priced less than a certain amount, commonly $1 or $2.
These extra fees make it very difficult to be successful trading lower priced stocks.
Penny stocks are generally defined (at least by the SEC) as stocks priced less than $5.
Fortunately, after spending a lot of time searching, I have found a few of the best brokers for penny stocks.
My first choice is Zecco. In my view this is the best penny stock broker. They charge $4.50 per stock trade. The fee is the same completely regardless of the price of the stock. A stock could be 20 cents or it could be $100,000 the charge is still $4.50.
They also have a have a promotion on at present where if you have an account balance of over $25,000 you get 10 FREE stock trades per month. You also get 10 free trades if have a smaller account balance and make 25 trades per month.
My second choice would be choicetrade. This discount stock broker charges a flat $5 per trade. Like Zecco, the $5 is a flat fee, regardless of the price of the stock bought.
Below I will show why I use these brokers for penny stocks by comparing the costs of other important trading features such as minimum account size, inactivity fees (I hate those) and the cost of trading over the phone, also known as broker assisted trading.
All the data for these online penny stock brokers is correct at the time of writing. I do my best to keep them up to date. If you notice an error please let me know. Thanks!
| Broker | Cost Per Trade | Min Account Size | Inactivity Fees | Fees for Penny Stocks | Broker Assisted Trades |
| Zecco | FREE* or $4.50 | None | None | None | $4.50 |
| ChoiceTrade | $5 | $2,000 | None | None | $5 |
| OptionsHouse | $2.95 | none | None | $0.01 per share if priced under $2** | $2.95 |
| Low Trades | $4.95 | none | $50/6 monthly | Big Order Charge – 100K+ shares, 1%*** | $25 |
| Optionsxpress | $14.95 | None | None | $14.95 or 5% of total order, whichever is highest | $14.95 |
| TradeKing | $4.95 | none | none | $0.01 per share if priced less than $1**** | $4.95 |
* As mentioned above, if your account is over $25,000, you are entitled to 10 FREE stock trades per month. The offer is also available to smaller accounts if more than 25 trades are made in a month.
** Optionshouse charge a flat fee of $2.95, plus $0.01 per share, if the stock is priced under $2.
*** LowTrades charge a fee of $4.95 per trade, plus $0.01 per trade, Only if more than 100,000 shares are purchased. So this broker might be an option, but hardly ideal.
**** TradeKing charge a fee $4.95 per trade if the stock is priced more than $1. If the stock is priced less than this, there’s an additional charge of $0.01 per share purchased.