What is a Penny Stock Broker? You can see my favorite penny stock brokers HERE and all I can do is warn you about these bad brokers, but below is also a cool infographic that explains what a penny stock broker actually does: If you want to buy stocks, you can\u2019t simply call a company and buy its shares. You must deal with a broker. A broker is a middleman who specializes in selling these shares. A broker can be an individual, a brokerage company, or an online platform. So what is a penny stockbroker? A penny stock broker runs the account that you\u2019ll use to log in and trade and is responsible for making sure that your shares are bought or sold after you place your orders. Who can be a stockbroker? Not just anyone can be a stockbroker. To become a stockbroker, one must pass two exams which are administered by the Financial Industry Regulatory Authority, Inc (FINRA): the Series 7 and the Series 63 exams. Types of brokers There are two key types of brokers: full-service brokers, who provide services such as investment advice and retirement planning, and discount brokers, who offer more limited services but charge much less. How do you choose a penny stockbroker? Some stock brokers will try to charge you with hidden fees, including: \tMandatory Frequency of Trading \tAnnual Maintenance Fee \tCharges Toward Withdrawal \tInactivity Fee \tMinimum Brokerage Per Share Charges \tLarge Order Surcharges \tMinimum Account Balance \tMinimum Brokerage Per Order Charges \tSurcharges For Low-Priced Stocks Either be sure to read the fine print, or be sure to ask about these fees before you commit to a broker. It\u2019s best to ask right away, rather than being unpleasantly surprised later on. Other considerations when choosing a penny stock broker In addition to price, consider these things before signing on with a broker: \tVolume Restrictions \tResearch and Analysis Tools \tShort Selling Restriction \tCustomer Service Phone support Finally, don\u2019t forget to ask around for reviews of particular brokers! Do you have a penny stock broker?