Penny stock day trading requires that you have a brokerage account to trade.
Shopping around for a good broker is a must. Fortunately, you’ll find a pretty large number of stockbrokers to pick from
Since most of them are not ideal for penny stock day trading, it’ll be up to you to make the right choice.
With this in mind, I write this post to share three of the most used for penny stock day trading.
Hopefully, you’ll find this post helpful to you.
Shopping for the right broker for your investment is crucial as you’re taking steps forwards to stock trading.
One of the most important things you’ll have to look for besides whether or not a broker is penny stocks friendly is the cost.
Commission fees may look insignificant with your first glance at them, but once you start trading they rapidly give a different look. The few couples of dollars you saw do add up as you’re day trading.
It becomes crucial you pick the right stock broker as this decision will have a significant effect on your portfolio as a penny stock day trader.
For this reason, a stock brokerage with no commission fees should be ideal for you for penny stock trading.
I’ve come up with the following three brokerage firms with no commission fees to help you with your research.
Penny Stock Day Trading: TradeStation
TradeStation is a well-recognized broker for penny stock traders. But many people are concerned with its tools.
If you’re a beginner it may not be your best pick as their educational side isn’t as powerful as it should for new traders.
Nevertheless, it’s still one of the brokers that you can count on when you’re looking to invest in penny stocks and not have to spend any more money on fees.
“At TradeStation, we believe in empowering traders to claim their financial edge. Whether you are new to trading or a seasoned professional, through a full suite of powerful trading technology, online brokerage services, and trading education, we are committed to empowering you to unlock your trading and investor potential.” (TradeStation)
A little breakdown of their fees is as followed.
Stocks & ETFs $0 commission $0 commission.
Stock Options $0 commission+ $0.60 per contract.
Penny Stock Day Trading: Robinhood
This financial company makes it very easy for investors to invest.
If you haven’t checked their mobile platform yet, you should do so and see how much valuable information they have on there.
According to TechCrunch, “The astronomical value growth shows that investors see Robinhood as a core part of the mobile finance tools upon which the next generation will rely.”
Starting from this generation, technology has become a strong pillar in almost everything we do.
Robinhood sees it in its advantage to adapt to the technology as quickly as possible because many investors will soon spend more time on their smart mobiles than having to glue on a chair in front of a PC.
Another interesting thing about Robinhood, they have an active promotion going on right now.
Not only Robinhood is free of commission charges when you register to them using someone else’s promo code you’ll receive one free share.
Use this link if you’re going to register, you’ll receive one share for free from any stock, not limited to penny stocks.
Penny Stock Day Trading: Fidelity Investments
Similar to the previous brokers, Fidelity Investments is one with no commissions charged.
“$0 commissions on stocks, ETFs, and options trades plus zero account fees, zero minimums and zero expense ratio index mutual funds.”
According to Barron’s and Investor Business Daily, Fidelity Investments is ranked number one for this year so far.
Fidelity has been known to provide great customer service. It also offers in-person guidance as well as free seminars to its customers.
The company’s active trader pro-platform is available for everyone to use and it’s a completely free tool.
You would want the use the pro-platform as it provides much more information.
Oftentimes, being able to find the information you’re looking for before your investments can be a little difficult.
The design of a platform can be helpful in itself to its users. No one is looking for a complex platform to conduct his or her research.
As long as the information is there nothing else really matters.
Anything that can give you a little edge investing in penny stock is immensely important.
Given that shares are so cheap the more you save from your broker’s fees the more money you’ll have at your disposal to buy your shares.
More importantly, being able to save just a couple of bucks per transaction doesn’t just stay there.
It adds up, if you were to check your expenses at the end of the year you’d be surprised to see how much money you’d be giving away to a broker.
For this reason and more, picking a broker with no fees is the best choice for you.