Hi guys. Can you please give me a suggestion of the best brokers for mid-long term trading. Like for weeks to months. I am looking to trade mainly equities and possibly options in the future but it is not important right now. I am curious because I have been day trading until now so am not well educated on other types of brokers. What are some factors I should look for when choosing a broker? Also, when you put money in with a broker, do they hold it for a year no matter what like is the case with prop shops? Thanks for any info you can give me!
I don't know if this matters but I am mainly interested in pharmaceutical stocks, some of which are priced under $1. Do all brokers allow penny trades?
thats long term? any broker will do. for my personal investments i use a broker with kind of high commissions and crappy website mainly so I dont churn myself.
Thank you all for the help. Can you please tell me if my definition of penny stocks is correct? The way the SEC describes it is a stock under $5 correct? It seems when I Google it, the definition means over the counter pink slip stocks. So, going by my definition, would any broker of good quality be okay with stocks under $5 that are listed or are there caveats to watch out for with these low priced listed stocks too? Thanks again for all of the help!
The Caveat for sub $5 equities is many/most Fund Managers will not hold them in their portfolios. Lose the Fundies, lose a significant amount of interest and daily volume. Not sure why you are focusing on $1 stocks, I personally filter for >$5 & > 1MM "ADV" average daily volume, [exception being for volatility events, earnings, etc... when the volume can be 2X/3X an equites normal "ADV" and I take the relative volume into consideration. Any good Broker should be fine for sub $5 stocks as long as you stay away from the pinkies. Interactive Brokers is a safe broker [as safe as one can be in this current environment]. Caveat here being you qualify, minimum acct balance, experience etc... IB isn't known for hand holding...
The reason I am asking about sub $5 stocks is to play the biotech industry and it's huge leaps from penny's to $20+ dollars with minimal risk. Of course that is not a very tried and true way to trade and will not be my main focus but I want to have a few biotech stocks on deck before I believe they will begin to soar in the short term.