SOGOTRADE : This is the brokerage I use when it comes to short selling penny stocks. You receive 25 free trades whenever you sign up, and from that point on it's just $3 a trade! BUT what I really love about SogoTrade is that they have an extensive easy-to-borrow list. Once you get involved, or are involved in short selling penny stocks you will run into times when your brokerage doesn't have shares available to borrow to short in a certain stock. Well, with SogoTrade I rarely run into any problem of this kind because they're a self-clearing brokerage meaning they don't have other brokerages to compete with when trying to fnd shares to short. Believe me, there's nothing worse than watch a stock on your watch list plummet only to be sitting on the sidelines watching because you couldn't fnd shares to short. It's very easy to open an account, for me it only took 4 days. I'm loving it here!
SPEEDTRADER : Another brokerage that I highly recommend and am afliated with. They specialize in short selling penny stocks and have a great platform to trade from! Commissions here are a little higher at around $7-8 but what many don't realized is that you can bargain with them. Consider asking them to lower your commission because you're a poor penny stock trader. Chances are they will do it!
Thinkorswim : Their customer service is absolutely amazing and they ofer a great platform to trade from. Although their platform is geared more towards an options trader many short sell penny stocks with it. They do have steep commissions in $10 which doesn't help the cause. Another downfall with Thinkorswim is that a lot of times it's very hard to fnd shares to short of your chosen stock mostly because they're not self-clearing so they compete for shares to short with other brokerages. This diminishes your chances of getting your highly prized shares.