When I think of Scott Trade, I think of the movie Elf. Before I get too far on this unrelated path let me say that Scott Trade is a penny stock broker. You can trade OTC / Pink sheets to your hearts content. Back to my story. When Buddy the Elf arrives at his estranged father’s office, he meets his father’s secretary and says, “Morning Sarah, that’s a very nice purple dress, it’s purpley.” Now go to the Scott Trade website and see the purple.
Scott Trade offers penny stocks for $7/trade plus 0.5% of the principal balance for any securities trading for less than $1. If Scott Trade provides on-demand research and excellent tools to help you filter through the hype and find out if the latest hot penny stock tip is worth pursuing. The tools provided by Scott Trade include real-time price quotes, commentary on penny stocks, market information, and analyst reports. Compare their analyst reports to the best penny stock newsletters to get an alternative viewpoint and to cut through the hype.
Many times, penny stock trading requires broker assistance. Issues such as low trading volume or obscurity force you to pick up the phone and call for help. Scott Trade charges $27 for a broker assisted trade. If you successfully execute the majority of a trade online, but have to complete it with the assistance of a broker, Scott Trade will give you the online rate.
Most online penny stock brokers make their money on the fees. The simple statement is that you pay only $7/trade, but when you look at the fine print you see that confirmation mailed to you Internet account costs $1. A statement mailed to your Internet account costs $2. Sell out or buy in notices are $20. You get the idea. They also will make sure that an order executed over a number of days gets multiple commissions. This is part of the game. Don’t think for a moment that the other penny stock brokers aren’t doing the same thing.
A few more good things about Scott Trade are their knowledge center and the stock quote section. The Knowledge Center is free and is an excellent resource for any trader. The research section is more robust for subscribers and yahoo finance has more information than Scott Trade’s public site.
On the whole, Scott Trade will provide what you need. They are one of the best penny stock brokers and compete well with E Trade, Charles Schwab, and Ameritrade. Their still purpley. I’ll get over it.