Question: "Which Broker is Best for Me?"

Before reading any further, please take a moment to review my first post on brokers. I will do my best to update this post anytime there is a significant change.

I am often asked by new traders to give my opinion on which broker would be the best fit for them given their circumstances. Since I can't take the time to reply to all of these questions individually, I thought that I would rank brokers I have used based on certain criteria. Of course, this is all my opinion only. Keep in mind this only covers brokers I have experience with; there may be other options out there. If you don't see a broker on this list, you'll have to try it for yourself, because I will have no opinion on it.


Brokers I Would Use for Short Selling:
1. Centerpoint Securities
2. Interactive Brokers
3. Speedtrader

If you want locates, these are the only brokers that will be able to get them for you. By far, Centerpoint has the best borrows - it isn't even close. Even if a stock isn't easy to borrow there at the start of the day, there are other ways to get a locate on it. To short-sell pump and dumps, these are the only three brokers I would consider.

Brokers I Would Use for OTC Executions:
1. Centerpoint Securities
2. Speedtrader
3. Etrade
4. Interactive Brokers

Speedtrader recovered most of their OTC routes, and they added CDEL to their list which is a huge help. Centerpoint has the best executions, mostly because I feel their NITE route offers better executions than Speedtrader's. They also offer routing options to CSTI, ATDF, CDEL, ARCA, and a few others. Etrade won't let you pick specific routes, so that definitely limits your ability to get a fill sometimes.

Brokers I Would Use for Trading Cheap Stocks:
1. Etrade
2. Speedtrader
3. Interactive Brokers

If you want to trade sub-penny stocks or anything even remotely cheap, you need a broker that won't eat you alive with routing fees and commissions. Speedtrader and Etrade don't charge on a per-share basis for their routes, which helps keeps fees cheap and under control. Centerpoint does charge per-share though, so fees add up VERY quickly on the cheaper stocks you need to trade large amounts of shares with. Interactive Brokers makes this list because their commission structure is .005/share OR 0.5% of total trade value, whichever is cheaper. At the end of the day, they will also be a cheaper option than Centerpoint.


Please let me know if there are additional categories you'd like to see me break down. I will also do my best to update this post as I gain experience with new brokers. Hope this helps!