All About Penny StocksUnderstanding Penny Stocks

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Where to Research Stock Brokers

Do not take your broker decision lightly. A bad broker may not only cost you time, money, or aggravation, but may spoil your entire trading experience.

For penny stock traders, Lowtrades.com beat all the other brokers hands down.

You should trust word of mouth from people you know, and look into your own trading needs versus their policies. So where do you begin?

Just remember that what may be a good broker for one investor’s needs may not necessarily be the best for another. The broker best suited to you depends on your preferences in terms of commission fees, service and support, reliability, speed of service, trading restrictions and other factors.

In other words, you need to come to your own decision based on your personal criteria.

Everyone's brokerage needs are different.

A powerful tool to help you find a new broker, or perhaps rate your current provider, is called US Online Brokers Ranked. It is a web site rating just about every brokerage house out there.

This web site is excellent on all accounts. All the information is free, and it provides several different discount broker guides.

Detailed reports on each brokerage house are provided, including in depth information on commission fees, services, and comments from happy and unhappy clients. Ratings are provided for overall service, and brokers are ranked based on criteria such as limit order commissions, and market order commissions.

If you are in the market for a broker you should consider visiting the US Online Brokers Ranked web site. It could save you a great deal of time and hassle, and most likely a good deal of money on commissions as well.

You may want to contact the brokerages, if not to have questions answered, then just to see their response times and accessibility.

Word of mouth is an excellent source. Keep in mind that your personal trading requirements may be different from those of your friend.

TD Waterhouse

My personal word of mouth referral to you: TD Waterhouse. I have been trading for a long time, and they are the only broker I have ever used. That says something in itself, and I have had very few issues with them over hundreds of trades. They are also available online, or on the phone (automated or in person). While their commissions are higher than most, it is offset by their reliability, the security of being backed by a big bank (TD Canada Trust), and excellent accessibility.

Television and Media

We discourage paying any attention to broker advertisements and marketing schemes. It is generally the big 'assembly line' brokers that have the most convincing, and most frequent advertisements. They are not well equipped to handle the volume of clients that their marketing and low commissions generate, and are hard pressed to offer competitive reliability, accountability, or accessibility.

Changing Brokers and Transferring Accounts

This process is simpler than you may think. Inform your new broker of your intentions to move your account to them, and they will handle the rest. They will have you fill out the authorization form that allows them to move your assets from your old brokerage account into theirs. Approximately three days later you will find all of your shares and money in your new account.

Now we are finally ready to get to the really important stuff. In Chapter Three of Understanding Penny Stocks, I reveal how to discover winning penny stocks using Leeds Analysis, and how to get in early to ride them all the way up!

So, Let's Proceed!

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