How to Find the BEST Penny Stock Brokers

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What are the best penny stock, brokers? What are the worst brokers? I’ve tried them all… SUBSCRIBE: to get INSTANT alerts when I post a new video outlining my penny stock trading techniques.*

I’ve had dozens of brokers in my life, maybe even hundreds at this point. I think I’ve probably tracked over 100 because I tried different brokers for different things. In the past, I’ve made money going long penny stocks, buying them. Lately, I’ve been dip buying them, so for that strategy, pretty much any broker is fine. I use E-Trade and Interactive Brokers, but you can use Schwab, or Fidelity, or TD Ameritrade, or even Scott Trade for dip buying penny stocks, because it frankly just doesn’t matter. You want a big, well-known broker that has decent executions, very little commissions, and you know, basically does the job of what a broker should do. I would caution you, though, even if you are taking one of these brokerage accounts, don’t over trade, okay?

I also would caution you against using a prop firm, or these hedge funds, or Robin Hood. You know, Robin Hood offers no commissions. Everyone’s like, oh, I’m saving so much on commissions! But you’re getting screwed on terrible execution. So, you’re saving $5 or $10 on a commission, and then you’re losing $50 or $200 due to bad executions and fewer services than a regular broker. It’s just a marketing scheme, so don’t fall prey to that. Also, if there are no commissions, you feel no responsibility whatsoever as to how much you should be trading, and I see a lot of people over trading who had Robin Hood accounts because they’re like, oh, I’ll just put $5 in this stock, I’ll see, I’ll put $10, I’ll put $50, and they’re just throwing money out because it’s fun, because they like the action. That’s a very dangerous thing, okay?

You do not want to give into the addiction that the stock market offers you, that trading offers you, that penny stocks offer you. You have to be in control really, so I like the commissions. I don’t mind paying commissions. I don’t mind paying a lot of commissions if there’s a good enough trade, you know? I don’t mind paying double commissions if the broker can find me shares to short of a hot penny stock that I think is going to tank. It’s all about what is your overall profit and loss. Don’t be so cheap as to think you need to save money on commissions. I have never met anybody who became a millionaire based on saving commissions, okay?

People become millionaires because they have the right strategy, they have the right process, they have the right discipline. Commissions are, you know, negligent. Commissions are such a small part of the game, but these commission-free brokers appeal to the masses, and they appeal to coupon clippers who think they’re going to get rich saving on commissions. You will not get rich that way. Focus on learning useful strategies. Focus on the real things that matter instead of being so cheap. These are like the same kind of people that are so cheap they refuse to invest in their education.

The same thing to brokers. Don’t cheap out on a broker. It will cost you so much more in the long run. I use E-Trade and Interactive Brokers, two decent brokers, nothing great, nothing outstanding, but it’s safe, and frankly, reliable. That’s what I think about brokers. You are warned, if you use one of these off-shore brokers, or these hedge funds, or these prop firms, or these startups, you might do a little better in the short run, but in the long run, trust me, it’s going to be vastly more expensive.

* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here:


Mr ChaosTech says:

All you do is blah blah In this video. Why didn’t you cover actual good trading platforms like speed trader and light speed?????

Slow-MOE says:

Commissions are important when you're starting and you don't have a lot of money to trade. Sure, if you're trading 20K, 50K, etc… that commission is nothing to you. Robinhood is good for beginners with small accounts. Stop being so close minded.

Róbert Nagy says:

a jogdijam változatlan :)) segitsek számolni :)))

foley2k2 says:

I've had decent execution on Robinhood, but data lag, sometimes multiple seconds compared to think or swim.

Interactive Brokers has since removed their $10k account minimum. Do they have a good mobile platform with OCO brackets, trailing stop orders, sms alerts, a level 2 summary and a time & sales feed?

Brian Uribe says:

I understand the point you make about commissions, but for small accounts it really hurts. If for example I made $50 profit (5%) on a 1000 dollars account I would have to pay 14 dollars in commissions (Ameritrade), that's 28% of my gains!

Eric Miller says:

tim i found a binary options auto trader thats works and can make me thousands of dollars a week what do you think about it and its not a scam

The Stoelk says:

Have you used TEFs/CFDs? What’s your thoughts?

swm122758 says:

Great Point Tim, I see it as no different then tipping for other services. My grandfather taught me to always tip your bartender well… the good ones always treat you well in kind and look after you! Same goes for other service providers. Contractors who work on my home get lunch every day and a beer before they leave if it's the end of the day. I had a contractor with a crew of 12 do a tear off on my roof. Bought them lunch everyday and on the 5th day catered lunch in for them. The contractor pulled me to the side and told me to contact the shingle manufacturer of the old roof because they had experienced premature failures and were prorating refunds for premature failure. I would have never known that and he probably wouldn't have told me!? I Pay a monthly flat fee for unlimited use of an automated car wash. There are one or two attendants at the entrance who spray the vehicle down before entering. I'll slip a couple of bucks out my window before going through and I noticed they spend extra time on the grill work and my wheels before they start my car through. I tip my pizza delivery person 20% every time. If I used a coupon for the order he tells me to keep it and use it next time. You get my point.

Omar Elias says:

Yes I will!

Muscle and classic cars says:

great video lesson I learned this the hard way now I am on the right track with your expert mentorship and a lot of long hours of me studying the past to help me in the future thanks again

JJ Malvarez says:

Great Advice. Thank You, Master Sykes!!!

Danny Gomz says:

Great advice Tim, Thank you for the video.

Melbourne Shorts says:

great video buddy!

Jonathan Berg says:

Awesome video

Vlad Budryk says:

the profit is 100-150% per month. drawdown of 10-15%. history of trading and copying positions here:

mehdan2 says:

Never a truer word spoken-don’t be cheapskate

Website guy says:

There will be alot of dumps soon . Trading them is probably the best strategy for these times. Shorting is going to become profitable soon. Dow Jones stocks have to go down soon.

Nima Pars says:

What about for Canadians, which brokers do you recommend?

Website guy says:

FDIC is not really very safe any more. TD Ameritrade offers something else. . I havent reserched it . FDIC is going to be tested soon.

Tartempion Hector says:

What about CRON ticker past few minutes ? 🙂

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