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I'm trying to trade penny stocks and I'm trying to determine which is profitable in terms of commissions. If I have 10 companies, each of them is priced at 2$ and I need to purchase 100 shares in each company. I have 2 brokers. If one charges $0.0035 for each share and other charges 5$ per trade, which is better and how?

5

I'm pretty sure everyone considers a single trade as buying stock in one company, so you're talking about 10 separate trades.

If one broker charges $5 per trade, that's $5 x 10 = $50.

If the other broker charges just 0.35 of a cent for each share, then 10 x 100 x $0.0035 = $3.50 is much cheaper. You'd actually have to trade over 1,428 shares to equal the $5 fee of the first broker.

4

Well using simple maths, at $5 per trade you would make 10 different trades so your total would be $5 x 10 trades = $50.

At $0.0035 per share you would be trading 10 x 100 = 1000 shares, so the total commission would be $0.0035 x 1000 = $3.50.

If your numbers are correct, then the one offering $0.0035 per share would be the cheaper value one, but you should also check whether there are other fees involved and what level of service you are provided with both brokers, including the types of order available on their platforms and whether you would use any of those in your trading.

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