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Originally posted by box:
Hello everyone. I'm new to the online trading scene so bare with me. My question is. Which Online Brokers do you recommend for penny stocks. I see people in the forums buying 100,000s of shares, but when I look at these brokers they want .005 commission for each share over 5000 shares. So, correct me if I'm wrong, if I buy 42,727 shares for .0003 each I have to pay .005 commission for each share over 5000 I end up paying the broker 188 dollars for a 13 dollar order?

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TDAmeritrade is IMO maybe the best for sub-pennies because you can buy as many shares as you want for the flat fee of just shy of 10 bucks. Check out Etrade also. Some other online brokers might have a lower advertised commission but then add charges like you mentioned (ECN fees, or 1/2 % of the principle, or even $.005 per share) for orders over a certain # of shares or PPS under a certain amount (like $1.00 PPS). They will love it if you use them to buy 100's of thousands or millions of shares through them! If your're going to trade in the OTCBB or pinks I recommend using one of those two. One downside to TDAmeritrade is you cannot trade OTC in the pre or after market. But then the pre and after hours market in the OTC isn't very liquid anyway, so that should't be a problem. TDAmeritrade normally uses USBB as the MM for OTC. You should be able to check them all out online. GL

Vagabond

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You are what you do, not what you say!

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