MunchkinMan
Registered: 03/26/08
Posts: 1
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Reply with quote | #1 |
The Munchkin Man uses Scottrade for his penny stock trading and investing.
This is not because the Munchkin Man considers Scottrade as any better than the other discount brokers.
Instead, it was just the first one the Munchkin Man happened to choose.
There was also a local Scottrade branch office in the Munchkin Man's area -- but no local office for any of the other discount brokers.
When the Munchkin Man opened his Scottrade account, the Munchkin Man wanted to do it in person, so he could meet the brokers and watch how they go about their daily business.
The Munchkin Man usually drops in for a visit about one a week. There's a pretty girl working there the Munchkin Man likes. They also always give the Munchkin Man a free Diet Coke.
The Munchkin Man is very glad that Charlottebandit gave you a good description of Ameritrade. Comparing the two, Ameritrade actually sounds like a better deal than Scottrade, especially if you like to buy a lot of stocks on foreign exchanges with proxy U.S. Pink Sheet symbols.
For example, Scottrade charges a base commission rate of $27 for a broker assisted purchase of a stock trading on a foreign exchange which has a proxy U.S. Pink Sheet symbol. This applies to a lot of stocks trading on the Canadian and the Australian exchanges.
If the Munchkin man is not mistaken, the commission for the purchase of such a stock with Ameritrade is $9.99. That's a mighty big difference.
In fact, the Munchkin Man believes that $9.99 is Ameritrade's baseline commission fee for all of their penny stock purchases.
In contrast, the basic commission rate for the purchase of domestic bulletin board (OB) and pink sheet (PK) penny stocks through Scottrade is $7.00.
However, if the penny stock is under $1 a share, Scottrade tacks on an extra commission of 1/2% or 0.005 of the principal to the baseline $7.00 commission. If you buy a lot of shares, that can really add up.
The Munchkin Man does not know, at what point, or if there is any point all, when Ameritrade charges a similar extra fee their baseline $9,99 commission rate for the purchase of a penny stock.
Whereas Scottrade charges a smaller commission fee for regular domestic and pink sheet penny stocks, they tend to kill you with that $27 commission for those foreign stocks with U.S. proxy pink sheet symbols.
So, if you like to buy a lot of those foreign stocks with U.S. Pink Sheet symbols, you are definitely better off with Ameritrade.
The Munchkin Man will probably stick with Scottrade, primarily because he is too lazy to switch, and also because he likes that pretty girl working in their office.
The Munchkin Man will close for now by wishing that both he, and his colleague, Charlottebandit, have given you enough information to assist you in your final decision.
Good luck to you.
Best Wishes,
Munchkin Man |
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