A few months ago I wrote this post about the best brokers for short selling penny stocks, but as usual the list has changed.
Because as my students know the stock market is a living breathing organism that’s constantly changing so in order to be successful, you can’t just memorize (although these 7 free lessons help tremendously)…you must understand how the market works, the motivation of all the players, the mistakes most people make, the odds and risk/reward of various opportunities, the ability to choose the best ones and then constantly adapt in the pursuit of success.
Then make a ton of $ so you can enjoy a crazy $235,000 car like I do:
This is how my students have now made over $5 million in trading profits, all detailed here, and over a dozen of my students have made $100,000+ each in just a few short years since I began teaching.
So here’s a rundown on the best penny stock brokers for the start of 2013:
1. when you open a new account HERE you can be sure you’ll be getting the best borrows for short selling penny stocks which is my main source of predictable steady income…you can read my initial review of Suretrader from several months ago, but they are far and away my favorite broker due to a low required minimum of just $500, no pattern day trader rule, increased leverage (for those who use it) and a recently added list of 10,000 shares to short since they added a new clearing firm to their arsenal. Sure, sure they have customer support, website and software issues since they’re still new and small and yes they are offshore (hence why their customers aren’t subject to the absurd PDT rule), but the beauty of their business model is that they have multiple clearing firms which means better borrows…and as someone who has made millions shorting the worst companies in the world, I’ll tell you much of my success is due to finding borrows. Unlike other brokers with great borrows, ‘s minimums are low so the borrows are accessible by everyone…and understand they specialize in having shares to short of stocks between $2-5/share…not necessarily the ultra-low-priced ones which isn’t the end of the world though because it’s scary to short stocks under $1/share as the risk/reward stinks.is by far my favorite broker in 2013 as
I am a proudcustomer and affiliate and I am truly grateful for their existence, especially for all the international people who email me every day asking for a quality penny stock broker.
2. Interactive Brokers has the single worst customer service of any company, financial or otherwise, that I have ever dealt with and if you have any issues with trades, executions or software glitches, expect them to screw you…because they only care about their bigtime hedge fund clients, not about anyone with less than $1 million and certainly not anyone with less than $100,000. I applied to be an affiliate weeks ago and they sent me an email saying they will let me know within the next month. (Conversely, we accept Profitly affiliates same day HERE and we paid out nearly $50,000 last month in affiliate commissions)
That said, they have great borrows to short sell penny stocks, especially on stocks under $2/share and even stocks under $1/share. Some of my ignorant haters mistakenly believe it’s impossible/illegal to short sell stocks under $1-2/share…nope, IB has been allowing me to do it for years.
3. I’ve also made millions buying penny stocks so you don’t always need to trade through these customer-service-challenged brokers that specialize in finding good borrows…I’ve had an account at Thinkorswim, which is now a part of TD Ameritrade, for years and their customer service is top notch.
4. Speedtrader is another online discount broker I use for my long positions as they are competent and their commissions are extremely low.