Shorts/Commissions/Brokers

[Janati]

Can you recommend a broker that allows shorting stocks under $2, has low commissions on large bulk shares.

I've transfered out of Bank of America to Interactive Brokers and would probably be happy with them except:

If I'm interested in stocks under $2 - the .005 per share commission hurts you more than if the stocks were $50. The fee is .005 per share.

ie:

For 1,000 $50 stock the fee is $5
For 10,000 $50 stock the fee is $50
Total : $500,000 plus $50.

For 1,000 $2 stock the fee is $5
For 10,000 $2 stock the fee is $50
total: $20,000 plus $50

What if I'd like to invest $500,000 in $2 stocks.
That is 250,000 shares would cost me $1250 a trade.

From what I've read IB is great on fees but many brokers charge nothing on unlimited shares. The set back is they don't allow shorting stocks under $2.
The above example only illlustrates stocks at $2 - if they are significantly under $2 then I may be in trouble.

Any help, suggestions?
Thanks

 

[Janati]

I'm a novice trader with alot of questions. As it goes sometimes they don't get answered. This should be expected when I post on the discussion forums of craigslist. I'm testing my luck here.

I'm not aware of many forums like this one. So if you have any suggestions of forums/websites that have informative discussions on investing/trading please fire away.

Thanks