The Best 2017 Marijuana Penny Stock Brokers
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The Best 2017 Marijuana Penny Stock Brokers
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<strong>The</strong> <strong>Best</strong> <strong>2017</strong> <strong>Marijuana</strong> <strong>Penny</strong> <strong>Stock</strong> <strong>Brokers</strong><br />
<strong>Marijuana</strong> <strong>Penny</strong> stocks brokers are now becoming cheaper thus making it easier for retail investors to invest their<br />
savings. It can be frustrating to find a good trading platform and depends on the type of stocks you plan to trade<br />
(whether pinks sheets or OTC), the amount of capital available to you, and how frequently you trade. Each week I<br />
receive dozens of emails inquiring about which brokerage to use but it is a challenging question to answer since it<br />
involves multiple factors.<br />
3 Important Things to Look Out For<br />
Surcharges: Depending on your broker, most add surcharges to shares less than a dollar. TradeKing charges an<br />
additional 1 cent for every share below $2 meaning that if you buy 5,000 shares it will cost you an additional $50. If<br />
you don’t keep close watch on those small charges they can easily add up and eat into your potential profits. You<br />
should choose a brokerage with a flat commission rate or one that offers sizeable discounts on large orders. For<br />
instance eTrade, Charles Schwab, and TD Ameritrade all offer either flat fees or massive discounts and no hidden<br />
fees.<br />
Trading Restrictions: You should be capable of trading shares through an online platform and be wary of firms that<br />
force you to make your trades over the phone. Some brokers have restrictions in place especially with regards to<br />
issues such as short selling your penny stocks.<br />
Volume Restrictions: <strong>The</strong> number of shares you are ideally allowed to trade is unlimited.<br />
Different brokers have different account minimums, trade restrictions, commissions, and fees. Other important<br />
considerations include market maker routes, executions, software/trading platforms, and the quality of customer<br />
service. <strong>The</strong> greatest hindrance is not having sufficient starting capital and brokerages don’t like to deal with poor<br />
traders. If you live outside the U.S. in a country such as the U.K. or Australia, finding a penny stock friendly broker will<br />
be harder.<br />
<strong>Penny</strong> stocks have had a negative reputation over the years and for good reason. <strong>The</strong> vast majority (90%) of those<br />
companies represent poor investments that are not something anyone would like to put in a 401k. Most of them are<br />
simply shell companies created with a sole purpose of ‘pump and dump’.<br />
<strong>The</strong> <strong>Best</strong> <strong>2017</strong> <strong>Marijuana</strong> <strong>Penny</strong> <strong>Stock</strong> <strong>Brokers</strong><br />
Etrade<br />
Etrade is an obvious top choice overall since it charges a flat fee and offers outstanding trading software. Currently,<br />
Etrade has a promotion where traders with accounts of over $10,000 can trade free for the first 60 days.<br />
<strong>The</strong> minimum deposit for a cash account is $500 and $2,000 for a margin account. Discounts are offered on large<br />
orders and penny stocks have no surcharges. Great research investment tools are available and the executions are<br />
very fast.<br />
It is best suited for traders that trade frequently due to the tiered pricing structure, meaning that it is not<br />
recommended for non-active investors since they will have to pay additional commissions. <strong>The</strong> customer service is<br />
below average when compared to others while 24/7 phone and email support is available. <strong>The</strong> basics of the stock<br />
market are taught through video lessons.<br />
<strong>The</strong> major limitation is that it does not accept traders from some countries. It is currently Tim Sykes favorite broker.<br />
Interactive <strong>Brokers</strong><br />
Interactive <strong>Brokers</strong> might have poor customer support but are still your best bet if you plan to short shares priced<br />
below $2. <strong>The</strong>y have some of the best borrows for stocks even though shares for shorting go fast.<br />
<strong>The</strong> trading platform is hard to learn and is not recommended for beginner investors. <strong>The</strong> $10,000 account minimum<br />
locks out most retail traders. Interactive <strong>Brokers</strong> has a plat pricing structure of $0.005 for every share traded<br />
depending on volume.<br />
Fees are levied for canceling or modifying an order and a monthly inactivity fee of $20 is charged. Unless you are a<br />
day trader, the commissions can be expensive. Interactive <strong>Brokers</strong> traders comprise mainly of massive institutions<br />
and high net worth individuals.<br />
Unlike Etrade, Interactive <strong>Brokers</strong> accepts international traders and does not discriminate against particular countries.
TD Ameritrade<br />
This broker has been operating for more than 40 years. In 2009, Ameritrade took over Thinkorswim. <strong>The</strong> broker has a<br />
solid trading platform with helpful charting tools as well as tutorial options to help you get started. In spite of this, their<br />
trading platform has experienced minor technical errors in the past leaving those customers that were looking to exit<br />
trades quite angry.<br />
<strong>The</strong> broker has great, 24/7 customer support. You can have your emails replied to within as little as 30 minutes. TD<br />
Ameritrade has no minimum account deposit and no surcharges are levied on shares priced less than $5.<br />
TD Ameritrade has no inactivity or monthly fees making it perfect for long term investors. Trade execution is great<br />
and the borrows are decent if you would like to short penny stocks. <strong>The</strong> broker offers free paper trading demo, which<br />
is great for beginners looking to test strategies and get a feel of the market.<br />
<strong>The</strong> main drawback of TD Ameritrade is the $9.99 fee, which is much higher than that charged by other brokers. It<br />
can be argued that by charging more than the competition they are able to offer better customer support or it could be<br />
that they are greedy like the rest of the players on Wall Street.<br />
SureTrader<br />
One of the best things about SureTrader is the chance to bypass the pattern day trader rule since it is located<br />
offshore in the Bahamas. <strong>The</strong> pattern day trader rule is a rule set by the SEC that does not permit traders with<br />
accounts below $25,000 from executing over 4 or 5 day trades over a 5-day business period. This can be quite<br />
annoying and makes it hard for traders to grow their accounts fast but still protects day traders from losing money.<br />
SureTrader has relatively poor customer support since it has very few customer support representatives to service all<br />
of its clients many of whom are inexperienced that don’t even know how to place orders. SureTrader is a small<br />
company and according to their LinkedIn profile, the have only about 6 employees.<br />
Recently, SureTrader’s CEO, Guy Gentille was indicted by the SEC for manipulating penny stocks. It should be noted<br />
that while SureTrader was not involved in the schemes this scandal has tainted their reputation. Hearing such news<br />
about a company’s CEO would make any trader feel uneasy and for this reason, trading over $2,000 with them is not<br />
recommended.<br />
<strong>The</strong> account minimum is $500 and the charges are $4.95 for every trade for up to 1,000 shares but an ECN fee of<br />
.003 is charged for routing. <strong>The</strong> leverage currently offered is 6-1 and future plans are to increase this to 20-1.<br />
Hard to short stocks enjoy good borrows and a massive short sell list of 10,000 symbols is available. It is a great<br />
option for the penny stock traders outside the US who have limited capital and who cannot afford or are not able to<br />
open accounts with the more reputable brokers such as Etrade.<br />
ChoiceTrade<br />
<strong>The</strong> information pertaining to this company available on Google is very limited and while the company was<br />
established in 2000, it does not even have a Wikipedia page.<br />
ChoiceTrade is better suited to OTC stocks and only costs $7 for every OTC trade. <strong>The</strong> broker has a volume<br />
surcharge of 1 percent for any trade over 500,000 shares. <strong>The</strong>re is no account minimum but an inactivity fee of $30 is<br />
charged for every quarter.<br />
ChoiceTrade’s free web platform is a bit too basic and you have to pay $15 monthly to access the advanced platform.<br />
ChoiceTrade offers promotion codes to new clients on rare occasions.<br />
Scottrade<br />
Simple: Scottrade offers access to online tools and solutions designed to meet help short-term and long-term goals,<br />
including investing for retirement. No Min start an account in 10 minutes. Direct deposit into new account (need to<br />
wait 3 days for clearacne before purchases stock under $3). Low fees per trade. Simple clear dashboard and #1 for<br />
user ability for newbies.<br />
Final Thoughts<br />
Too many people are eager to start day trading and especially teenagers. People will see Instagram photos of<br />
successful traders advertising their lavish lifestyle, traveling to various beautiful and exotic location and want to be<br />
like them. <strong>The</strong>y want to start making money immediately.
However, this is not how it works. Patience is needed and you should paper trade for not less than 3 months. Keep in<br />
mind that you need to learn before your earn. Once you are ready, it is advisable that you start trading with not less<br />
than $2,000. Interactive <strong>Brokers</strong> and Etrade are the top 2 online <strong>Marijuana</strong> penny stock brokers with great<br />
reputations.
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