New trader, Penny Brokerage chrages

[WSU-Cougs]

Hi, I'm new to the forums. Im a college student, with limited income. I've read Cramers book and watch his show, and he has got me really interested in trading . I've got most of my money in a Spyder, and then a little in a few speculative stocks.

I use the online brokerage Firstrade.com. They charge $7 a trade, but thye add 1/2 a cent per share for stocks under $2.

I see that you talk a lot about some of these stocks under $2 that trade for pennies. I actuall had one that a wanted to buy with some of my left over cash.

Anyway, With these fees its basic impossible to buy any stocks under .10. Do you guys use a broker that doesnt charge for these?

[roy]

Ameritrade - $10.99 flat fee

[GDFLS]

I use Scottrade and they charge $7 for a market or limit order. And For stocks priced under $1, they charge 1/2% of the principal value.

[roehrigs01]

maybe IB might be what you are looking for...

http://www.interactivebrokers.com/en...?ib_entity=llc

[Bman409]

Originally Posted by roehrigs01

maybe IB might be what you are looking for...

http://www.interactivebrokers.com/en...?ib_entity=llc

I concur


I don't want to sound like I'm a paid ad for IB, or something.. so I try to keep my enthusiasm under control.... but I'll simply say this

I traded for a few years with a small balance using power Etrade and it was 2 steps back for every step forward... I was paying like $15 each way.. to get in and get out.. on every trade!

I realize commissions have come down a bit now, but for me, once I switched to Interactivebrokers.com , I was able to start REALLY making money.

at 1/2 cent per share commission, I could make 50$ on a trade and only have to pay $1 to $2 in commission!

that simply wasn't doable using Power Etrade.

I run a swingtrading newsletter now (see my signature if you want to check it out), and the FIRST THING I say to small account traders, just looking to get into the game is

HAVE YOU OPENED YOUR Interactivebrokers.com account yet??

If not... go back and do it.

The downside is you need $2000 ... they won't let you in with less than that.

Bman