I get this question sooooooooooo much, it’s time I have this one all-encompassing broker post.
I use and recommend Thinkorswim (tell ‘em I sent you!) as my main broker ($3,500 minimum to open an account, great software and executions, perfect customer service, and quality borrows to short penny stocks…and yes you can short under $5 and under $3, unlike some other crappier brokers…commissions are basically $10, gotta pay a bit extra for quality, but any one decent trade makes up for an entire year of higher commissions) and I just opened an account with Interactive Brokers (minimum is $10,000, same $8ish commissions) because while they have the worst customer service in the world, they have great borrows on hard-to-borrow stocks so they’re especially great for short selling penny stocks.
Also, highly recommended are Sogotrade and SpeedTrader…Scottrade absolutely sucks for short selling penny stocks, as does E*Trade, as does most big brokers like Schwab…
Here are some past articles I’ve written on various brokers to help you better understand the broker playing field:
A guide to penny stock brokers
And ode to the broker I use and recommend
Is Thinkorswim now charging fees for short selling?
What to do now that Thinkorswim got acquired
My experience with Interactive Brokers (I’m now up $2,000 or 20%-ish in 2 months on that account)
How to borrow in order to short sell hard-to-borrow stocks
Posted in Brokers