Do you think IB is good for trading penny stocks? I saw many brokers offer unlimited shares, but some charge additional fee for stock less than $1. Which broker has the lowest fixed commission for stock less than $1, unlimited shares and all the ECN fees inclusive? Thank you
IB charges 0.5% for stocks less than $1, that is pretty high, around $20 commission average trade, Looking for brokers has lower commission.
After research, zecco seems the lowest price. $4.5 per trade + 10 free trade / month. Unlimited shares and no additional fee for stock less than $1. Any brokers can beat zecco?
Wow, find another one. just2trade, only $2.5 per trade without share limit and no fee for stock less than $1
Hi Tony, this is my humble opinion about penny stocks ( 13 years ago I used to work for a company which specialized in trading penny stocks): Penny stocks are exclusively defined by the SEC as stocks with a share price less than $5, and are traded over the counter (OTC) through quotation services such as the OTC Bulletin Board or the Pink Sheets. The financial industry will often use terms like penny stocks, small caps and nano caps interchangeably to call any stock that is traded OTC and the Pink Sheets. According to the SEC definition, sometimes even Large Cap companies can fall in the definition of Penny Stocks. Penny Stocks have the same advantages as the Small and Micro Caps, as they have potential for high profits, and high losses. Investors must be extremely careful when planning to invest in Penny Stocks, as it is difficult to find truthful information, as well as truthful quotations. An investor must keep in mind that the dollar amount used for the classification is only an approximation that changes over time.
When I talk penny stock, I mean penny. I do not trade OTCBB or pink sheet unless that stock moves there from NYSE, NASDAQ and AMEX. My main target is stock under $5 on NYSE, NASDAQ and AMEX. Due to the crisis, we have many financial stocks under $1, which is what I pursuit and bet on.
$6.95/trade seems higher than just2trade's $2.5/trade. Maybe you can look at just2trade for lower fees.