Below on this page is an internet survey of typical penny stock investors. Each person’s opinion of the best online broker has been recorded and summarized under the stockbroker’s name, and a few random user comments about that brokerage appear in the rightmost column.

Don’t condemn any of the online brokers listed in our penny stock survey because of one random negative comment. The same applies to reading one positive comment and thinking your brokerage problems are all solved. Not everyone knows what everybody else needs – your own judgement of who the best online broker is could be quite different.

In the center column is the price per internet trade, taken from the stockbroker’s website. Caution! Visit the website of any online broker you have an interest in, and read all the fine print, especially where fees are concerned. This applies doubly to the ultra-low-priced brokerages, as they have to make a living off of you somehow!

Online penny stock brokerages below are listed in approximate order of popularity, according to the numbers of votes each attracted from our pool of penny stock daytraders. Popularity does not necessarily equate to being the best online broker, but popular brokerages have withstood the judgement of many, many customers. Each brokerage name in our survey is linked to their website.

Underneath the tabulations of positive and negative votes is a summary representing the percentage of positive votes that brokerage received in our penny stock broker poll. For the online penny stock brokerages that didn’t receive very many votes, you should consider this assessment with a grain of salt – approval/disapproval numbers should more accurately reflect average user opinion as we gather more votes.

If you are a serious day trader, you should absolutely consider opening accounts at several different brokerages. Opening accounts doesn’t cost you anything – and this will allow you to leverage the strengths and work around the weaknesses of each brokerage by distributing your trades to the best online broker for each transaction.

You can contribute to our informal (and probably unscientific) penny stock broker poll by entering your own comments at the bottom of the page. New stockbrokers will be added to our survey as they accumulate votes.

Broker and User Score Commission per Trade Sample User
Comments
Zecco

Positive: 19

Negative: 3

Score: 86% positive

$4.95, or $6.95 for shares priced under $1.00 Zecco has the lowest transaction fees and
also is willing to deal the greatest number of penny stocks.

Zecco has been plagued by reports of poor
customer service.

Trades are usually executed in 10-15 seconds or less, so don’t let the cheap price fool you.

TD Ameritrade

Positive: 19

Negative: 3

Score: 86% positive

$9.99, unlimited shares via internet. Happy Happy Happy! No BS charges!

Had to wait three additional days after the settlement for the funds to become available.

Ameritrade because you can get a licensed copy of QuoteTracker, maybe the best free charting app out there.

ScottTrade

Positive: 9

Negative: 7

Score: 56% positive

$7 plus 1/2% of the principal value for shares under $1.00 Can do 10 to 15 second trades.

They have several glitches here and there that will get on your nerves quick.

OptionsHouse

Positive: 9

Negative: 3

Score: 75% positive

$3.95 plus $0.005 per share for shares priced under $2.00 Best for “Ease of use” .

What I didn’t like is that they don’t have a real time streamer.

They have no minimum, and come with a virtual account so you can test strategies without even funding your account.

E*Trade

Positive: 9

Negative: 3

Score: 75% positive

$9.99 OR $7.99 for over 150 trades per quarter. They do 10-15 second trades.

Won’t let me short anything under $3.

Questrade(Canada)

Positive: 7

Negative: 3

Score: 70% positive

1ยข per share, $4.95 minimum / $9.95 maximum. I trade exponentially more often when transactions costs are that much lower.

Last week I had a limit buy order entered, and the system would not let me cancel it.

You only need $1000 to open an account.

SogoTrade

Positive: 9

Negative: 1

Score: 90% positive

$3 plus 1/2% of the principal value for shares under $1.00 You can order all on line very nice.

Does not trade Bulletin Board, pinks.

Interactive Brokers

Positive: 6

Negative: 3

Score: 67% positive

$0.005 per share, minimum $1.00, maximum 1/2% of trade value. This broker can short penny stocks.

Not suited for penny stock traders as there are cheaper alternatives.

TradeKing

Positive: 4

Negative: 3

Score: 57% positive

$4.95 plus $0.01 per share for shares under $1.00.

Broker assisted trades are the same cost.

#1 in Customer Service from Smartmoney magazine in 2010.

Higher cost for stocks under 1.00

Think or Swim
(Now part of TD Ameritrade)

Positive: 6

Negative: 1

Score: 86% positive

$9.99 unlimited shares. Best part of thinkorswim is their software.

Now that they are a part of TDA, they
suck.

Customer service is fantastic.

MyTrack

Positive: 6

Negative: 1

Score: 86% positive

$5.00, or $15.95 for bulletin board/Pink sheets. Executions take seconds, not minutes.

Gave up on them because their telephone service is the worst.

ChoiceTrade

Positive: 5

Negative: 1

Score: 83% positive

$5.00 – No penny stock surcharge up to 500,000 shares. Then,
add 1% of the value of the order over 500,000 shares.
Seems to have the nicest trading platform (for stop loss orders).

Much more basic than Ameritrade.

FirsTrade

Positive: 4

Negative: 1

Score: 80% positive

$6.95 plus $.005 per share for shares under $1.00 They have a guarantee that trades occur within 3 seconds.

Only problem with Firstrade is that they charge 0.005 for stocks under $1.00.

Fidelity

Positive: 3

Negative: 2

Score: 60% positive

$7.95, internet trades. Refund of commission if trade not
executed in one second.

I’m switching from fidelity because their fees are too high. Best customer service.

Just2Trade

Positive: 2

Negative: 2

Score: 50% positive

$2.95 for internet trades. No fee for stock less than $1.

Just2Trade.com interface was pretty bad.

OptionsXpress
(Charles Schwab)

Positive: 3

Negative: 1

Score: 75% positive

$9.95 + $.01 per share over 1000 shares. I’ve been very satisfied with them.

When I tried to place a limit order, it nixed the trade saying “No limit orders on penny stocks allowed.”

ShareBuilder
(ING Direct)

Positive: 3

Negative: 6

Score: 33% positive

$9.95 plus $0.007 per share under $1.00 They do cost a lot if you are penny trader as I am.
NobleTrading

Positive: 3

Negative: 1

Score: 75% positive

$7.95 for internet trades. I can buy anything, even canadian shares for 7.95 per trade.
LowTrades

Positive: 2

Negative: 4

Score: 33% positive

$4.95 for internet trades. Ticker is completely unreliable.
Merrill Lynch /

Bank of America

Positive: 2

Negative: 2

Score: 50% positive

Varies from $0 to $8.95 depending on cash balance and number of
trades
So far, my vote goes to Bank of America.

Great but horrible for microcaps.


Contribute to our penny-stock broker poll

You many contribute a positive or negative vote, a comment, or both for the penny stock broker of your choice below. I’m only taking names and email addresses to discourage ballot box stuffing (I will never publish your contact info.) Make up a fake name if you want to be anonymous – there’s no reason to investigate names/addresses unless vote fraud looks likely.