Investor Help (NO Ihub questions)

[cintrix]

Find out who they clear with. I can tell you about some nightmares using these small firms and penny stocks. Like choicetrade - they used to be great for trading pennies. They charged only $5 a trade. But then their clearing firm started getting really picky. Their former clearing firm was Apex (formerly Penson). When the non-dtc eligibility came into effect everything changed. They not only would stop you from selling things that you bought through them, but they would not let you buy or sell thinly traded stocks. Some stupid minimum volume rule they went by. And their new clearing firm, vision, is not much better. Even at tax time their 1099's were all screwed up. If you go with a firm like Etrade, they clear their own trades. They have a very small amount of penny stocks they don't allow trading on. And if you become an active trader you can negotiate a smaller commission. I don't know anything about tradingpennys.com but I would ask a lot of questions before opening an account with them. Don't just go for low commissions.