Need a new broker for trading penny stocks, plz help!

Discussion in 'Retail Brokers' started by Janitor, Jun 18, 2003.

  1. Janitor


    Hi, I am a small time penny trader, but I'm good at it and enjoy it a lot.

    However, I am now convinced that I have to leave my broker, Ameritrade. The ONLY reason I'm still there is the simple reason that they charge a flat commish regardless of # of shares bought. So I can buy 1M shares of a .001 stock ($1000 worth) and pay $10.99 commission.

    However, Ameritrade has instituted a bunch of new policies, recently, that seemed designed to drive penny traders like me away. My 2 main gripes are 1) they now restrict specifying limits on BB stocks .0001 place, and Nasdaq stocks to .01 place; and 2) they 'pend' any order over 60K shares for review, which takes up to 2 minutes and has cost me THOUSANDS of dollars in lost profits. I routinely miss great calls just because my order sits there 2 minutes before it opens, meanwhile the stock takes off without me.

    If anyone knows of any broker that will not charge me $500 or more to buy $1000 of a $0.001 stock, PLEASE let me know. I just need a broker that will let me buy these cheapies without babysittinng me with 'reviews' and restrictions and limitations.

    Thanks for any help ETs!

  2. After finding which penny stock you want, find out who makes a market in it, and then see if they have a retail brokerage operation. Then call that firm and tell them what you are interested in.

    If your trades are large enough they can get you in and out without commission ( they make the spread, which is large in % terms ). If they refuse its probably because you don't have enough cash. If you drop $100,000 cash that is considered a large acct. for those types of firms and if they are smart at all they will do it, since they can easily make $5,000 on the spread from one trade of that size.
  3. Janitor


    not remotely relevant, but thanks anyway. I am a *small time* *trader*, not a wealthy investor. I don't have time, once I spot a good trading opportunity, to call up an MM and discuss setting up a brokerage account.
  4. maxpi


    MyTrack might work for you. They have a lot of per-share charges but if you can dodge that stuff you might be good to go.

  5. You are not understanding what Dot is telling you....If you hook up with a good firm with it's own trade desk, you can probably trade for FREE as long as you enter limit orders then can work with.....