If you have little capital but you want to invest in a market with huge potential for growth and profit, you should consider buying penny stocks. So what is a penny stock? In general, penny stocks are delineated as any stock that is being traded under $5 each share on NASDAQ or on pink sheets. In penny stock investing, you can generate and then lose money instantly. You should realize that a difference by even .05 cents can be the overall stock value. This is the chief factor why you should get quality stocks with the assistance of penny stock brokers.
Best Penny Stock Brokers
When searching for a broker to perform your trades and serve your purpose, then by all means get one who has extensive experience in this field. Choose a broker who can provide you the best judgment and recommendations. These are important components of broker services aside from just trading the penny stocks. If you plan to trade penny stocks, you must pay attention to the penny stock broker’s commissions and transactions fees since they will eat away at your returns.
Here is our list of the best recommended penny stock brokers:
For over 25 years, Scottrade has been the leader in the stock brokerage industry – and it’s for a reason. Scottrade provides a wide range of investment products to meet your investment needs and financial goals. They keep their customers happy by avoiding unnecessary fees for things like IRAs, large orders, after-hours trading, account maintenance or inactivity.
Scottrade is an excellent choice for beginners, those who invest in mutual funds, and long-term (buy and hold) investors (mainly because of no account inactivity charges). Because Scottrade is a stable, seasoned brokerage firm with a good reputation, it is the natural choice for people who don’t trust their money with newer companies but also don’t want to pay $10+ for trades with other established brokers.
- Commission per stock/ETF trade: $7
- $500 to open account
- 400+ local branches
- Great support for beginner investors
- Open your Scottrade account today
TradeKing is an online broker providing low flat trading fees with no minimum account requirements and no hidden fees. TradeKing online brokerage accounts offer easy-to-use investment tools with low flat trading fees and no minimum account requirements.
- Commission per stock/ETF trade: $4.95
- Low commissions
- No minimums or hidden fees
- Great investor community to watch and interact
- Open a trading account with TradeKing
OptionsHouse is an online stock and options broker that provides a professional trading platform with a flat-rate commission structure for low-priced stock and options trades.
- Commission per stock/ETF trade: $2.95
- Lowest flat-rate commissions
- No account minimums (minimum opening deposit is $1,000 for a cash account and $2,000 for a margin account)
- No surcharges for large orders, penny stocks and extended hours trading
- Open an OptionHouse account
Penny Stock Investing
First and foremost, you should write down your own list of top 10 up to 20 penny stocks, which you deem have the most potential for high return. This will permit you to administer and assess your portfolio efficiently.
A significant component of your investing should be formulating a proficient stock trading plan. Look for affirmative single day movers with a higher than mediocre volume. Search for companies that manufacture new technology, or offer services or products, which will do well in the market against their competitors when trading stocks.
Aside from getting the services of experienced penny stock brokers to buy penny stocks, you must obtain good stock firms and charts to trade. Examine the stock price history as well as the stock chart patterns of potential value or increasing value while investing. Note that penny stocks that are known for odd trading activity and patterns will most probably not sell in the stock market because of their unpredictable character.
Broker for Penny Stocks
Most brokerage firms and brokers let you discern flat-out whether they can grant you the services you are looking for. Once you find the firms or professionals that suit your needs, compare and contrast them accordingly to determine which company can give you the best offerings at the lowest possible fees.
Most of the time, the most skillful and dexterous brokers have the highest demand, thus they are not available at the time you need them. However, if you are persistent and you do your own research, you will eventually get a broker who can work based on your requirements.
But, even though you are recompensing their advice and services, you can’t be sure that what they perform is best for you, so you should be extra diligent and study the market on your own. You should always be in control of your investments, so making the right business decisions is critical.
To get the best penny stocks in the market, consult with practiced and skilled penny stock brokers. These people will walk you through the investing and trading process the most profitable way.