It’s no longer like it was back in the days when you had to deal with a small brokerage firm to be able to trade penny stocks and accept whatever fee they were going to charge you. Even in the beginning of the online stock brokers, you weren’t able to trade but a few stocks valued under $1.00 and to trade sub-penny stocks (< $0.01) was out of the question. Today most of the popular online brokers like, TD Ameritrade, Scottrade, Zecco and E-Trade will take orders for penny stocks.

So the question is, which one? In my opinion, I prefer to use TD Ameritrade. They were recommended to me by a friend and I’m glad I did. I have also dealt with E-Trade as well, but the tools and the customer service I receive from TD Ameritrade surpasses E-trade, so now I only use them. Their fees per trade ($9.95) are more on the higher end than their competitors, but since I do so many trades per year, when I mentioned that I was thinking of going somewhere else, they lowered the fee for all of my accounts to just $7.00 per trade no matter how many shares I purchase.

Scotttrade is just as good as TD Ameritrade with their tools, but from a few traders I talk to say their customer service leaves something to be desired. Their transaction fee is less than TD Ameritrade at just $7.00 per trade. but for trading penny stocks they charge an extra fee. They refer to it as a Low Price Stock Fee. Scottrade will charge ½% for stocks under $1.

For those of you who have your own Stock market software, you might not need to use one of the mentioned websites. So in that case you need to look at Zecco. This online stock broker only charges $4.50 per trade, no matter the size. They also have the least amount (actually none) of fees. Zecco doesn’t have a minimum balance requirement either. Great for investors who are starting out with a small portfolio. Zecco also offers 10 free trades per month providing you do a certain amount of trades per month.

There are so many that I really can’t list them all here in this one post. Look for yourself and you will see more choices than you were really looking for. Everyone is different and so are their lives, so you are the only one that can make this decision for you. Most of these penny stock brokers applications will only take you ten minutes to fill out and transferring money is easy too.

Like I said there are many that are listed on the big board, most of them are alternative energy companies that are trying to hit it big. When you want to buy penny stocks online there are many places that you can go.

The one that I like the most is TD Ameritrade, a online broker that I’ve used for some time now. Their customer service is beyond great, which is to me the most important part of choosing a online broker. Since I’ve used them for so long and so much for my trades, I now pay only $7 a trade no matter how many share I decide to puchase.

Zecco is another company that is out there to use. They offer you 10 free trades per month with a $2500 minimum equity balance, after that it’s $4.50 per trade. their customer service is not as good as Ameritrade, but they do have a community board where you can talk to other traders for ideas (rule #1- there’s no such thing as a good stock tip).

Another company that I’ve not used is Scottrade. They charge $7 per trade, but they do have a lot of other fees that are listed on their site for other services that they provide. I never used them because of that reason. I feel that if you are there to provide a service of trading stocks, then that is where that only charge should be.

If you look on the internet for an online broker, you will find that there are many more, but do your research on these companies before using any of them.