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Top online broker for beginner day traders

Best online broker: key takeaways

  • Forget the fallacy of finding the “best online broker”-find out more important things…
  • Things to consider before signing with a broker and things you should always remember…
  • Why is the right broker important? If you can’t answer this question-you must read this now!

See what I did with a broker for the first time in more than 20 years of trading!

New to trading? Finding the best online broker should be your first priority.

Here comes the tricky part. There is no best broker. You need to find the best broker for your trading style and goals.

If you trade low-priced stocks like me, finding the right broker is even more important. Why is this and how do you do it? Let’s start with the big picture.

What is an online broker for penny stocks?

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Penny stocks online brokers are brokers that you can access online and allow you to buy and sell penny stocks.

Low-priced stocks Trade at a price of $5 per share or less.These are not Blue chips Your grandparents told you to invest…

These are the stocks of rough companies that often fail. But you can make money by trading them. I am living evidence.I turned the $12,000 into USD 7.3 million Mainly through low-priced stock trading.

Some of these stocks are listed on major exchanges such as the New York Stock Exchange and Nasdaq. Any broker will give you access to these…

But many of the penny stocks I trade are Over-the-counter stocks. Robin Hood Don’t even let you trade them!

If you want to enter the entire market, you must find a broker who can give you access to the stocks you want to trade.

Investment and trading company

The market is huge. Everyone is different Strategy, Goals and areas of expertise.

Online brokers can also have expertise. Some are mainly focused on long-term investment strategies…

That is not my bag.Instead i Day trading penny stocks. My transaction usually only lasts a few minutes.

Top brokers have their own trading platforms. The quality of these varies greatly.

Let us briefly look at your options.

Top online stock brokers for beginners

I never recommend a broker. I always say to find the one that is most unfavorable to you. In other words, here are five I have a lot about…

Do your own research and find the one that suits you best.

Stock trading

Before we discuss traditional online brokers, let’s talk about how to find stocks to trade…

For me, there is only one answer: Stock trading.

This is a low-pressure, high-data platform. It provides you with everything you need for a successful transaction.

It is not an online broker. This is a stock screener, news scanner and chart, comparable to any brokerage platform!

Many new stock traders are overwhelmed by all the information there. This is confusing and frustrating… and it takes up a lot of time.

StocksToTrade is designed by traders like me to help simplify the process. It puts all the most important tools in one place.

Take part in the StocksToTrade two-week test drive here.

Now, let’s continue to discuss online brokers…

Robin Hood

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Robin Hood In the past few years, a huge user base has been established…

I personally don’t think this is because it is the best broker.

If you compare their platform with other platforms on this list, you will find that it is quite limited. Many new traders like this simpler method…

I do not.

Trading is the battlefield. If the opponent has a better weapon than you, you are not ready to win.

TD Ameritrade Securities

I used TD Ameritrade Securities And know a lot of people who have been using it. It is one of the most famous online brokers in the world, which gives it some direct credibility.

Its main trading platform is called thinkorswim, which is currently one of the most highly rated platforms.

In 2020, Charles Schwab, also a large broker, acquired TD Ameritrade.according to Schwab’s website, Which means Schwab users can also use thinkorswim soon.

Electronic trade

Electronic trade It is the broker I use most often when I do long. This is not the only broker I use…

It just gave me the least problem in my recent memory.

Remember, your broker is a tool. So I use them in a way that suits me. And I am always willing to continue to use the next best trading tool.

Interactive Brokers

I do not short Selling a lot these days… but if we get one Market crash in 2022, This may change. (Take a look at the number one agent I worked with this year, it is very suitable for shorts.)

I used Interactive Brokers Short before. The broker has a lot of assets, which is great if you are looking for short stocks.

They are also good for international traders. They allow traders in more than 200 countries to trade U.S. stocks.

How to choose a penny stockbroker

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When you make this choice, remember the most important things…

The online broker you choose may not be your final answer.

Some traders change brokers.

Others use multiple brokers.In addition to allowing you to compare brokers, if you are in PDT.

The best way to find out which broker is right for you is to research and experiment. let’s start.

What to consider when choosing an online broker?

There are a few things to see. Let’s start with what most novice traders see first.

transaction cost

Most brokers have adopted a “commission-free” model. But for over-the-counter transactions, you can still pay commissions.I do not think so Commission Is a bad thing.

In fact, they can be very good…

If there is no transaction, you can earn 20%, 30% or 50%, Don’t trade.

Nevertheless, you still don’t want to use online brokerage services that charge higher than your competitors. This is especially true when it comes to hidden costs.

Again, do your research. Read the fine print. Know exactly how much online brokers charge and how much they charge.

Trading tools

Top online brokerage platforms provide trading tools and resources. They have tutorials, newsletters and trading platforms.

Some are more suitable for investors—rather than the kind of day trading I teach here.

Some won’t even let you trade the rough penny stocks that I care about Trading challengeTherefore, you must first know what you will be trading, and then find the most suitable tool for you.

Mobile transaction

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Desktop trading platforms are almost always better…

But like I said in the previous section, Everything has to do with the life that suits you.

If you need to go somewhere when doing intraday trading, your broker would better allow you to visit. This means a powerful mobile application.

Unfortunately, for me, many applications fail to meet the requirements.That’s why i like StocksToTrade mobile phone application…

Its graphs are as accurate as the desktop version.Its top shelf Stock screener Let me also track other transactions that are taking shape.

Mobile transactions provide other benefits, such as alerting on the go.

customer service

The discount broker will discount as much as possible. There is nothing more obvious than the customer service department.

This is one of the things you won’t care about until you really need it. But if you have a problem, you need to be able to contact a living person. This is not the choice of every online broker.

Don’t learn this the hard way. Pick up the phone or live chat and see who is on the other end.

Stock analysis

Transaction mode type
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Big brokers like TD Ameritrade have performed well in this regard. They usually ask analysts to rate stocks and conduct a more extensive analysis of market trends…

This is not always helpful for the stocks I like to trade.

I try to keep things simple.

Tools like StocksToTrade are perfect for me. I have access to clean charts, where I can observe price movements in real time. The breaking news chat feature will remind traders like me to pay attention to the hottest stock news. I owe this service a lot of great deals.

No matter which platform you use, make sure you have the best tools to make the most of your time and energy.


There are two types of regulations.

First, regulatory agencies such as the SEC and FINRA have established rules. Then there are the rules created by your online broker.

You need to be aware of both.

Unlike some traders, I don’t hate PDT. This is just one of the main rules of the first category. For US brokers, there are other regulations, such as minimum margin requirements.

Your broker may implement further requirements. These are the rules to protect your safety…

But if you don’t pay attention, they will cause you trouble.

You can restrict, cancel or restrict your account.Make sure you know Terms and rules Before you start trading.

account security

You want your broker to treat your money as seriously as you.

This should involve two-step verification, data encryption, fraud protection and firewalls. Every reputable online broker will take all these protective measures.

If your funds are lost due to “unauthorized activities”, most brokers will guarantee your funds. Please note-transactions made by the person who shared your password are not included.

Order execution

Speed ​​of execution is important-especially low-priced stocks. They move fast. If you decide to trade, you need to be able to act immediately.

Your online broker should be transparent about its execution speed.Every U.S. broker is subject to FINRA rules Best execution. According to this rule, the broker must strive for the best price possible for your order.

But brokers do not always do this.As we all know, Robin Hood has problem With this…but it’s not the only one.

Not long ago, E-Trade generated nearly one million dollars beautiful.

So how do you find an agent who will not deceive you? For me, it boils down to experience.

If it feels that the transaction execution time is too long, it may be.

international trade

Some online brokers allow international transactions, while others do not.

Interactive Brokers has a reputation for international access. Other brokers may also work. Do your research and see if they are suitable for you.

Key tips for choosing an online broker

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When you choose an online broker, I have two key tips for you to remember.In my opinion, they may be complete deal breakers-so Take them seriously.

Understand the broker and terms and conditions

Online brokerage Change their terms and conditions at any time. Again, do your research.

Never let anyone trade for you

You will never learn How to trade penny stocks If you let other people make your decision or execute your transaction. Practice makes it almost perfect.

Focus on expanding your education on the stock market and make your own decisions.

This, not your broker, will be a huge difference in your trading.

Bottom line

Choose an online broker It’s a personal process.

I tried many different Trading software Programs and online brokerage tools over the years…

It all boils down to preference. You won’t know this until you start researching or even try some.

Are you ready for the next step in your trading journey? Apply for my trading challenge. I have now helped educate more than 20 millionaire traders-and I am always looking for more dedicated students. Will you be my next success story?

What are you looking for in online brokerage? Let me know in the comments!

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