Many online brokers are suited quite well for penny stocks, others, however, are horrible. The first and foremost feature to check is share limitations.
With penny stocks you will be purchasing as many as a million shares or more at a time. A half a penny extra per share over say 1000 shares doesn't sound like much, but a million shares will cost you an extra 5000 dollars, and that’s just to get in. Most brokers that offer no share limitations typically charge a tiny bit more per trade, but it is definitely worth the cost.
At the present time, there is no need for the average day trader to spend tons of money on software.
The next necessity is to have a good trading platform. Most online brokerage firms offer perfectly sufficient real-time, streaming customizable charts, watch lists, time and sales, some screening ability and the all important level II for free as long as you’re an active trader.
It may appear as though you have to trade heavily for a quarter or so to get all of the features, but most of the time if you call and tell them that you’re an active trader they will let you install right away for free, or at least a nominal fee.
This goes hand in hand with trade minimums.
Do not be too concerned with how many trades you make a month to save a few bucks, as long as you get the software.
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