Choosing the best penny exchange broker is absolutely the key to your long-term success in trading penny stocks. Your broker will play an important role in helping you find and trade with stock tabs in an accurate and precise form. But how do you determine who is the best online penny broker?
Different brokers for different traders
Honestly, it’s not easy because brokers and brokerage commissions are constantly changing, and what you personally need to succeed with nano-stocks or micro-stocks can be very different from what another person requires. You should read my comprehensive review of more than a dozen different penny brokers. But for now you need to figure out how to choose the best online broker for his or her situation.
If you really know what you’re doing and you’ve been studying stocks with a mic for quite some time, you probably don’t want to lose a good percentage of your profits on brokerage fees. But don’t rely on this desire to be frugal to make your decision.
If you’re new to penny fundraising, you really should first pay a little more for a full-service broker. They can help you learn the ropes and develop good habits for trading nano cap stocks. Sometimes the best online broker is not the one who can give you the cheapest services, but the one who can guide you to good habits in the long run. Services such as Fidelity and Charles Schwab provide excellent options for online brokerage services.
Discount brokers for experienced traders
Then, perhaps in a few months, you will be able to connect to a discount broker such as Zecco or E * Trade. They give you the functionality to trade stocks with a microphone without many research bells and whistles (although both services are growing and evolving, providing more and more tools for research). Over time, you can make big money with these discount brokers simply because the fee for each transaction is 5-25 percent less than what you could pay for a full-service broker.
No matter who you choose, you definitely need to work with one of the best online stock brokers. These brokers connect to the latest information from Pink Sheets to OTCBB. They establish and maintain relationships with market makers, other third parties that are simply not available to you.
But if you’re a newbie, again, don’t skimp on penny brokers. Don’t let some cunning sales convince you that a newsletter or software “robot” will give you all the winning choices and you just need to make them. This, my friends, is snake oil.