Is TD Ameritrade a good broker to short penny stocks on?

Asked 3 years ago

I'm looking to try out a new trading strategy and short-sell penny stocks. Would TD Ameritrade be a good place to do it, or would you recommend another broker?

Andia Rispah Igobwa

Tuesday, September 14, 2021

Penny stocks are firms whose shares change hands for less than $1 each. They're a type of speculative stock that's often seen as a haven in bad economic times. To assist investors in selecting the best brokers for penny stock trading, compared the pricing and trading platforms of 11 firms.

Their top choice for 2021, TD Ameritrade, earns 4.5 stars overall, including 5 stars for its trading experience and education tools.

Among the 11 brokers reviewed, TD Ameritrade received their highest marks in all but one category; the broker only earned 3 stars for its apps, to tie for second place with three other firms.

Before you can short sell a stock, you must be able to obtain shares from TD Ameritrade. They do not permit short-selling of over-the-counter stocks (i.e., penny stocks).

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