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Brokerage account for Penny stocks?

post #1 of 14
Thread Starter 

I haven't traded penny stocks for years because I lost a bunch of money back in the day and kinda gave up. I decided to get back into it but my firstrade account charges a whole bunch of extra fees if you trade more than 5000 shares. My big requirements are that I can trade almost unlimited amount of shares without any extra fees, the cost per trade is less than $10, the service has an pretty good android app, and it has a good web interface. Real-time stock info would be nice too.

 

I looked at etrade, TDameritrade and Fidelity and they all seem like they meet my requirements, but not sure which would be best or if there's something else better.

 

Thanks for your help!

post #2 of 14

TD gets good reviews, scottrade is also a favorite.

 

Try them out, worst case is you move to another.

 

post #3 of 14

Look into ChoiceTrade and Zecco, emphasis on ChoiceTrade. I don't trade pennies anymore, but those two are probably the most popular for pennies. 

post #4 of 14

why dont you trade pennies anymore?

post #5 of 14

Etrade seems to me like a poor choice for penny stocks. It seems to cater to very few low-range stocks.

post #6 of 14

Can't recommend Zecco.  They will scam you.

 

I bought $350 worth of shares last week with their $6.95 brokerage fee.

 

Tried to sell, kept saying rejected, with no explanation.

 

Tried again, some error.

 

Wrote their CS, was told the stock can no longer be traded online and I must call and pay $200-700 to trade the stock over the phone.

 

Biggest scam ever!

 

Does this happen with other brokerages?

post #7 of 14
Quote:
Originally Posted by Logic View Post

why dont you trade pennies anymore?



Because I switched to forex. No day trader rule, liquidity is always there, I can trade 24/5, I don't have to research companies, etc etc etc. Plus there's no message board drama. LOL

post #8 of 14
Quote:
Originally Posted by jasonck08 View Post

Can't recommend Zecco.  They will scam you.

 

I bought $350 worth of shares last week with their $6.95 brokerage fee.

 

Tried to sell, kept saying rejected, with no explanation.

 

Tried again, some error.

 

Wrote their CS, was told the stock can no longer be traded online and I must call and pay $200-700 to trade the stock over the phone.

 

Biggest scam ever!

 

Does this happen with other brokerages?



I traded with them for over a year and never had any problems. Why was it so expensive to place a broker assisted trade? I thought it was like $25 or something...

post #9 of 14
Quote:
Originally Posted by NoJobRob View Post





I traded with them for over a year and never had any problems. Why was it so expensive to place a broker assisted trade? I thought it was like $25 or something...



This is what they said....

 

"We understand the frustration you must be feeling and we do apologize. No one likes to be the subject of a business practice change, but unfortunately we have very little control over this facet of the business model. At this time, our clearing agent, Penson Financial Services, Inc., (and most other brokerage firms) have stopped clearing trades for these securities through their standard settlement process as the costs of manually settling have increased substantially 


It is possible to open new or liquidate your positions by settling trades with delivery of physical certificates however the fees associated with such a transaction (buys and / or sales) in this security. (est. range: $200 - $700 for each leg).

Zecco Trading does not financially benefit from the charges of physically settling these securities. These are strictly pass-through fees. We appreciate your understanding in this matter."

post #10 of 14

That is terrible. Definitely not going with Zecco

post #11 of 14

Forex? Keep in mind that i'm new

post #12 of 14


 

Quote:
Originally Posted by jasonck08 View Post





This is what they said....

 

"We understand the frustration you must be feeling and we do apologize. No one likes to be the subject of a business practice change, but unfortunately we have very little control over this facet of the business model. At this time, our clearing agent, Penson Financial Services, Inc., (and most other brokerage firms) have stopped clearing trades for these securities through their standard settlement process as the costs of manually settling have increased substantially 


It is possible to open new or liquidate your positions by settling trades with delivery of physical certificates however the fees associated with such a transaction (buys and / or sales) in this security. (est. range: $200 - $700 for each leg).

Zecco Trading does not financially benefit from the charges of physically settling these securities. These are strictly pass-through fees. We appreciate your understanding in this matter."



That's crazy. Maybe it has something to do with the Dodd/Frank bill that was implemented... 

post #13 of 14

I'm looking into the possibility of transferring all my assets in Zecco to E-trade or Scottrade.  Both confirmed that they allow the trade of CGFIA at their online rates.  The $100 fee or so, for transferring would be a lot less than paying $200-700 to sell off $350-400 worth of stock.

post #14 of 14

Looks like Zecco said they will waive the ACAT transfer fee of $50, so I can transfer and trade this security at another brokerage.

 

Why don't brokerages like Zecco have an alternate clearing agent they can use?  Crazy to ask a customer to fork over $200-700, when the same stock can be traded at other brokerages at the standard rates ~$5-10.

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