Warning About Using These Wrong Brokers

Wrong Brokers

I still get TONS of daily questions about the best/worst brokers so I am writing this blog post to settle everything once and for all! TO help you avoid using the wrong brokers

Download a PDF version for this post.

Despite my posting this video last year of the ONLY 2 brokers I’m using in 2016:

And this video warning about the most dangerous broker I know of:

Sadly, choosing the right broker is NOT just about finding one with good commissions, software, executions, customer service, borrows, low minimums like too many people believe…unfortunately for all of us, the path to choosing the best broker is a bit more complicated so pay close attention.

The other day I answered 20 FAQs here and you can see a common theme among questions I get asked such as “what is the least amount of money I can put into a brokerage account?” and “what’s the least amount of time I can study and still be successful?” and “do you guarantee profits if I study your lessons?” and “what’s the least amount of intelligence needed to be a millionaire?”

OK, OK, that last question was made up, but it’s utterly pathetic that SO many people want to earn money and “become my next millionaire student” putting in the bare minimum in terms of money and time spent when in fact your outlook should be the opposite.

EVERYONE wants to become successful, but do you know what so few actually do? Because it’s damn hard work and even if you put in a ton of hard work, you’re STILL not guaranteed seven-figure profits and great success.

Sure, sure, I have several millionaire trading challenge students who now help mentor other trading challenge students too, and dozens of students earning five and six figures/year** in this industry where 90%+ continually lose, but before worrying about the right broker and how “little” money you will risk in that account, you NEED to have the right mindset going in or else the whole journey is worthless and you waste my time which I will not allow.

Sadly, too many people only want hot stock picks and not put in the incredible amount of time required to study and actually invest in their own education/knowledge…that’s a surefire way to becoming part of the 90% of losers out there.

I don’t want that and hopefully you don’t want that either.

On top of having the right mindset, you should be aware of the risks — my rule #1 out of 100+ rules listed HERE is to cut losses quickly, a rule my top Millionaire Challenge students and I have gotten better and better at following/being disciplined, as even on the day of the scariest short squeeze in the past decade on KBIO which went from $2 to $10+ in one after-hours session both my first millionaire trading challenge student and I were short big and we each lost only a few thousand dollars** as most others who did not follow this rule lost six and seven figures), but sometimes, these crazy stocks we trade move faster than we can execute our orders, no matter what broker, prop firm or hedge fund we use, so if you get into this game, be prepared to lose EVERYTHING!

That’s the risk so you must be aware of it…but then again, life is risky, even mutual funds which were thought to be so safe, lost 40-60% of their value just a few years ago. So deal with it and accept it.

Also, some brokers, especially off-shore brokers and prop firms and hedge funds and all the sketchy, small firms out there, sometimes have terrible executions so even if you put in an order to try to “cut losses quickly”, you might get screwed by your broker, prop firm, hedge fund and guess what? It’s not a coincidence…that’s how a lot of sketchy/small firms make their money, by screwing over their customers!

Welcome to Wall Street where I remind you 90%+ of traders lose, and even in bull markets, 70% of stocks go down every year…it’s best you be aware of these stats BEFORE risking your hard earned money.

And let’s say there is a good broker, prop firm, hedge fund out there that wants to do right by its customers, companies with big hearts…well, big hearts often die ugly deaths on Wall Street, often times these do-gooders go bust and no matter the size of their hearts or quality of their service, your money can be tied up for months, or even years, and it’s just a messy situation, although if the startup is US based, if it’s offshore you’re pretty much screwed….all the while you’re missing out on potential solid plays every damn day.

Did I scare you away yet?

If so, it’s for the best as one of the main benefits of my being real in an industry full of snake oil salesmen is that I get to choose my students and I don’t need to BS you like so many others will. If you have any doubts or you’re not sure about trading my strategy, don’t waste my time or yours, just close my website now and go back to your safe, but boring 9-5 job and likely say goodbye to any big dreams you’ve ever had…that’s fine…for a lot of people.

Some people say if I was nicer, I could have a lot more students, but I don’t want a lot more students, I’m already overwhelmed…and I’m not here to be your friend, I’m here to be your mentor and to help you learn and profit, those who are overly nice usually don’t prepare their students for the ugliness of trading and Wall Street and their “friends” get crushed as a result…not on my watch…you can call be a jerk all you want, that’s fine, I can take it, I’m here to see my students succeed, not win a contest on how to be the most polite/politically correct.

I’ve been trading for nearly 20 years so I’ve seen all kinds of scams, shams, along with quality brokers, good people, and everything in between and I’ll tell you right now with this market just 4 days ago turning into the second longest bull market in history, winter is coming…so you had better be prepared.

I’m not saying we’re definitely heading into a bear market, if it happens, that’s cool, my strategy actually does better in bear market, but I’m prepared either way.

Most importantly, I’m secure with where the money I trade stocks with is being held.

It’s time to buckle down, look at where your money is and think about how safe that place is and find ways to trade safely, above all else right now I think it’s GOOD to be OVERLY conservative and put yourself in a position to ride out all the potential dangers on the horizon.

I’m not going to get into all those dangers or all the brokers I think likely to close or collapse; I could write a whole book and probably still not be accurate as to what actually does vs doesn’t play out, and it might take years for all the risks to become reality little different from the upcoming war in Game Of Thrones, but I’ll tell you it’s not random that I went with E*Trade and Interactive Brokers as my brokers this year as both are multi-billion dollar companies and in a brokerage industry filled with potential risks, these are safe choices at least for me and my money.

No off-shore accounts, no hedge fund brokers, no prop firms, no startup brokers, no small brokers with very little cash on hand, as little danger and risk as possible is my motto for 2016 and the next few years too…and Interactive Brokers while having some of the worst customer service I’ve ever experienced is best for shorting stocks under $2/share and I use E*trade for stocks over $2/share despite them sadly limiting themselves to only accepting people from certain countries and not others.

I’m sorry for all the negatives associated with each, I don’t work for them, I don’t get paid by them, I’m not an affiliate, I just use them as my safety brokers in this dangerous environment because when the shit hits the fan, I still want to be able to trade as that’s when the best trading opportunities show themselves…when everyone else is panicking.

You probably don’t remember when this scumbag took a lot of his customers’ money when his prop firm shut down without warning, and from what I hear, many STILL haven’t gotten their money back, but I do and I don’t want to see that happening to ANYONE again…I lost several students that day due to no fault of their own, only because they were too trusting of a sketchy prop firm.

I don’t trust ANY prop firms, off-shore brokers, hedge fund brokers, startup brokers or even on-shore brokers that are just small and don’t have a lot of excess capital…I’ve tried pretty much every broker in existence on my search for finding shares to short of penny stock pumps and I’ve come to the realization that putting my money into and trusting ANY questionable firm just isn’t worth the risk.

(Besides shorting hasn’t been as amazing as buying some of these Supernovas like PRGN, GLBS, ULTR lately!)

I know, I know, all this talk about risk and safety coming from a seemingly risky penny stock day-trader/short seller who has already turned $12,000 into $40,000 in 2016** in a basically flat/unchanged overall must sound crazy, but as I often say in DVDs, video lessons and webinars, I’m the safest, most cowardly trader out there and somehow I still have made millions from trading and now you can see in real-time as I exponentially grow my account thanks to incredible days like this below so ignore me and my warning about dangerous brokers at your own risk…you can do whatever you like with your money, that’s the beauty of my educational business, I’m not a financial advisor, I’m not a broker, I don’t want to touch your trading account at all…I’m just here for some hopefully helpful guidance and to share my experience so if you’ve read this whole blog post, please consider yourself warned and I’ve done my job for today.

Posted in Bear Market, Brokers

Trading Challenge

I Turned $12,415 into $4,838,000 Trading Penny Stocks**. Now it’s your turn to learn from me.

Apply To Work With Me


Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Stan Koga

    Great informative post Tim. I wish I would have seen it BEFORE I funded a SureTrader account. Which let me make a buy, but then while the stock was up about 25% and I put in a Buy order, denied me the sell with a message that i was not authorized to trade. When I contacted Customer service they said I needed to pay 15$ month for the ability to sell same day?! I authorized the fee and sold, but by that time I was losing about 10%. I closed that account shortly afterwards.
    I decided on ST based on a recommendation from a video of yours, due to no PDT and no minimum. I appriciate your teachings and will probably go with Etrade…but in the mean time, it would surely be helpful to other newbees if you deleted or retracted any favorable references to ST on your site, especially since their main man is in trouble with the feds at the moment. Also, having your name pop up first on the “how did you hear about us” drop down menu doesnt look right. Not meaning to offend at all, just expressing my opinion, for what its worth.
    Thanks again for sharing your knowledge.
    Aloha, Stan

  2. Stan Koga

    so , meant to say “when I put in a ‘sell’ order, it wouldnt let me sell “etc..

  3. Jeremy price

    IB is the best in my opinion, also having Etrade I run them side by side and IB updates faster and executes faster, granted on 50,000 share orders a pay more with IB, I don’t care because of the speed of execution, also if you like to trade futures I find the quotes to be almost identical to Tradestaion and other FCM’s that I’ve tested. Just my 2 cents, you get what you pay for.

  4. Jeremy price

    Wow, I share a good experience with one of the brokers you use also and you delete my post?

  5. Stan Koga

    understood. Fairly new silver subscriber, and as such came across an older video that endorses/promotes them on your site and so went with them ( and when I opened up with them, came across the drop down menu with your name still on it). This was maybe a couple months ago? So I’m just suggesting that out-dated videos with content that no longer reflects your current thinking maybe be amended or deleted to avoid similar situations from re-occurring with other newer members in the future.
    Thank you again for sharing and for taking the time to reply to me.
    All the best, Aloha

  6. Timothy Sykes Post author

    LOL no I have 4,000 video lessons now, gotta stay up to date, if you’re lazy its your own fault, shit moves fast in this industry, catch up

  7. The_bearded_trader

    Great post, Tim. Almost opened my second account with Suretrader! I am very skeptical of off-shore brokers and glad I found this article to clear any doubts. ?

  8. eda uong

    Tim … I really want to successful like you.
    I just bought http://www.stockstotrade.com account software. However,
    I don’t know what to do with you. Do I need to buy your plan first to be your student?
    Can you tell me step by step? I need to know what requirement you want me to do .
    because I don’t know where to where and how to start it.

  9. Chase Shaw

    one more paycheck and your DVDs shall be mine Tim! Ugh can’t way to get into the market!

  10. Jonathan Sawyer

    Hey Tim,
    thanks for all of your training and video lessons! Learning a lot from all your videos and just finished your How to make millions DVD! I also signed up for your trade alerts as well! I wanted to know if you have put out when the broker integration will be finished on the stocks to Trade platform yet? If so, what brokers will be integrated first? thanks again!

  11. Roger

    What do you think of TD Ameritrade, as opposed to ETrade, for a beginner like myself? Thanks.

  12. Anonymous

    Hi there I have applied to be one of your students and was curious to when will be notified of your decision until then I have been reading as much information as I can,

  13. Brandon serafin

    What do I need to do to get started asap, I also applied to be one of your student can’t wait to hear from you and be your next success story

  14. Graeme

    What do you think of Questrade as a broker in 2016 ? I am using them currently should I be worried.

  15. Bert Overbeek

    Hi Tim yr the best,yr old school honest teacher,everything you say and blog is so true.Yr a conservative
    trader and that s great.i I love yr vids.Take care Bert

  16. Sleyvin

    Hey Tim, I am very very new at this (been only 5 days since i started) and i started by reading your beginners guide (which I am proud to say that no other guides could make any new comer get so easily introduced to penny stocks like yours) Since you literally have so many videos and posts etc, I have the faintest idea where to go to from here. Not taking too much of your time, could you possibly suggest the next couple of steps to follow to keep learning according to the newer findings of yours or any other basics i still have to learn.

    Thank you heaps for already changing my life.

  17. Jao pinto

    Hi there Tim, I have been closely following your posts and must say u are an inspiration.

    Thank you for teaching us to make money and be self sufficient. Inhave saved up enough to buy your DVDs. I will follow your rules and teachings to the T 🙂

    I would like to know how does a non US citizen who is not a US resident open an account to trade in U.S. Stocks. I’m in Portugal.

  18. Steve L

    I am on Sure Trader and for my position of less than $5000, they are great. Their customer service is very competent and the DAS Pro platform they supply is completely sufficient for a trader of my caliber. Although they offer 6:1 margin on most stocks, I do not go over 2:1 if at all possible. I personally recommend Sure Trader for anyone starting out i trading. Try out their free paper money platform. It allows you to trade for a week with a paper account on the DAS Pro platform.

    OK, now my message to Tim…

    First let me say how I greatly respect you for your knowledge of the markets and your straightforwardness when it comes to dealing with the many questions you get and the patterns you explain.
    I started trading on March 1st 2016. I initially signed up with Jason Bond, then Steve LeBlanc, got nowhere with them and lost some money, then followed Ross Cameron and Cameron Fous for a bit, but didn’t buy into them and lost some more. Then I discovered you in late May. I started watching your videos on Youtube and then borrowed “How to Make Millions” from a guy I work with. I watched that twice so far. I am convinced you are the man. No doubt. So I signed up for your Millionaire Challenge.
    Then I got a nice reply from you with homework assignments which I did religiously a few times too I might add. I specifically remember in the video you said to learn this homework because I will be asked questions about it when the representative calls. When I was finally contacted by your rep, who is Val from Colorado, he did ask me if I know about you. So I’m thinking, do I know about you? Of course I know about you, what kind of question is that? All Val seemed to be interested in was getting me signed up. He didn’t seem to have a concern to really speak with me about much. He told me what was involved with the 3 day a week chat room and home study material and the commitment needed to be successful. Then he hit me with the fee. He was very blunt with the $6500 fee up front. To paraphrase him, “No bargaining, $500 a month for a year is cheap for what I’d be getting.” First of all, my math is 500 a month for 12 months is 6000 not 6500. I explained it is difficult for me because I had already lost about $9000 since I started trading and my words to Val were,” Damn, if I give you 6500 that will about wipe me out.” His response to this was a real turn off. He said,” Just throw it on a credit card, that’s what most people do.” Well I can’t do that. I have a responsibility to support myself and my disabled wife, who gets no disability I might add, and which I spend a ton of money on doctors and meds for. So just throw it on a card is not an option. He also told me that he would email me a Trading Challenge Overview within an hour for me to review. This email came to me the next day, about 17 hours late. Also I need to mention this phone call was about 12 minutes.
    The point I most want to make here is not the fee, all you guys have big fees. It is the lack of this representative in trying to get one on one with me as a person. He was simply looking to make the sale. That’s it. Get the hook in this guy is what it seemed like to me.
    So it seems unlikely I will be part of your millionaire challenge. I wanted to, and was excited about it, but your rep turned me off. I will continue to trade and I will succeed. I have no doubt because I will follow your rules. I am on Profitly although I haven’t posted any trades yet because Sure Trader doesn’t have a direct download.
    Thank you in advance for reading this Tim. I will continue to follow you and study you whether on the inside with you, or on the outside on my own and keep you updated on my progress.
    Steve L

  19. Tom

    Since you don’t recommend SureTrader anymore, do you just recommend dealing with the PTD rule at one of your preferred brokers until I reach $25,000?

  20. Vinx

    Hi Tim,
    i’m a newbie trader and I was looking for a good stock advisor service and finally I found you. I’ve a question , with your TimAlert service you are advising only for short trading or even long trading too? I’m asking because my current trading account doesn’t allow short selling trading.

    p.s.: sorry for my english, that’s not my main language lol

  21. Fredy

    Tim, how about for non-US resident, is there any brokers available for me ? I’m from Indonesia.

  22. SA matthew

    Hey tim! great post!

    What broker would you recommend that offers low account minimums, admits non-us citizens, has below 10$ commission per trade, and has a competitive short list (besides SureTrader) ? I am not interested in leverage for the moment.


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