Penny Stock Broker Ratings Comparison

We have looked at a lot of penny stock brokers and there are three of them that stand out:

A) Zecco

Zecco offers 10 free trades per month for those with more than $25000 in their account. If you carry out more than 25 trades in a month you could also be eligible for this trade. The good part is that if you aren't eligible for the free trade you are still eligible for the $4.50 per trade. They have a easy and fast signup process. We think its a great place to get your feet wet in the world of penny stock trading.

2) LowTrades

If you are looking for a discount broker who has low commissions combined with fast execution, then look no further - LowTrades could be what you're looking for. They offer all the services a discount brokerage should offer. They charge $4.95 per trade but there is an inactivity fee. If you trade biannually or every six months you will not have to pay this fee. Otherwise you will need to pay $50 annually. We dont expect you to run into this fee unless you are using LowTrades for a 'Buy, Hold And Pray' strategy instead of trading penny stocks. On the bright side, they don't have a minimum balance required. If you are looking for some nicer features such as real-time streaming quotes you can get that (at a small additional fee).

3) Scottrade

Nearly everyone is familiar with Scottrade as a discount broker. This is a great broker because its commission structure is ideally suited for penny stock trading. The only problem is that their structure is a little complicated. You have to pay a flat fee and a small percentage of the trade executed. Please refer to their website for crucial details. They have a account balance minimum of $500. But, they don't have an inactivity fee so that's nice.

Have a look at the table below for a snapshot of other brokerage fees:

Broker Commissions Inactivity Fees Minimum Funding Additional Fees
 Zecco  $4.50 or Free  None  None  None
 LowTrades  $4.95+  $50 biannually  None  Large Order Charge - 100K+ shares, 1%
ChoiceTrade $5 Flat! None $2000 None
TDAmeritrade $9.99 Flat None $2000 None
SogoTrade $3+ None $500 Low Price Stock Fee - <$1, ½%
ShareBuilder $9.95+ None None Large Order Charge - 1,000+ shares, $0.025
Scottrade $7+ None $500 Low Price Stock Fee - <$1, ½%+

*** The above prices are subject to change anytime by the brokerage firms mentioned. Please read ALL the fine print on the brokerage website before you make your decision.