Choosing the right online stock broker can make a world of difference when investing and trading in penny stocks. Fast execution, low commissions, quality charting software, mobile trading, access to information and minimum deposit requirements are just a few important considerations when selecting the right stock broker.
The best online broker for one person might be completely different for another person, therefore it is important to research the different brokers to ensure you are using one that meets your individual requirements.
I have used and researched many brokers over the years, and have compiled a list of my favorite online stock brokers.
E*Trade is the #1 choice for many retail investors and ranks as the best all-around best online brokerage. E*Trade has an advanced web based trading platform with good charting software, free level 2 access, and mobile trading access. The minimum deposit requirements are low compared to other brokers, with just $500 required to open an account. The commissions are relatively low (although not the lowest) at around $9.99 per trade.
TD Ameritrade is another very popular option for retail traders and investors. Like E*Trade, TD Ameritrade has an excellent web based trading platform. The commissions are also similar. The advantage of Ameritrade is the access you receive to comprehensive research and access to information. TD Ameritrade also has a solid mobile trading platform, and there is no minimum deposit requirement.
Scottrade is probably best known for its legendary customer service, which can be very important especially for newer investors. Scottrade also has a lower commission than the above brokers, at just $7 per trade. Its web based platform is comprehensive, however access to information and research does not quite match the above options. Also, Scottrade’s mobile platform and charting software is not quite up to the same level as other brokers, however it is more than adequate for beginner investors. If low fees and quality customer service are of particular concern, Scottrade is a very solid option.