Buying penny stocks is a lot easier than you might think. There are some retail brokerage firms that cater to small caps and lower priced securities more than others. Ultimately, you will have to decide which firm fits your needs more than the other(s).

Some of the most popular brokers for trading small cap penny stocks ranging from .0001c to $5.00 include Charles Schwab,  E*Trade, Sharebuilder, and Speedtrader.

Certain brokerage firms believe that the known risks involved by trading penny stocks are too great for their clients, and restrict them from trading these types of low priced securities, preventing you from having the ability to even trade some of our alerts.

They may also prevent you from trading a stock that, on average, has a relatively low amount of share volume or liquidity.

What if a Company that had no volume or interest before, then announced a merger into a multi-million dollar company?

The share volume could pick up rather quickly and you could be left on the sidelines, disallowed from trading the stock because it’s volume on average has been light.

We scour the markets every single day for the most exciting small cap companies and it is extremely important to pick a broker that gives you the ability to trade how you please.