Stock Trading and Other Things

Why do many online brokers charge higher fee for penny stock transactions?

Are these harder for a broker to acquire or more complicated to report? Apart from a higher base transaction fee, I see some brokers charge up to $0.015 PER SHARE for stocks valued under $1 making these transactions effectively meaningless.

Public Comments

1. they do not make it meaningless but do cut into profits a good deal. they may be more difficult for the broker to obtain and to try and get their customers to avoid riskier stocks