Buying Penny Stocks
Trading penny stocks require a brokerage account fit for trading such high volumes of stock shares. Preferably you want a reliable broker that does not have the high commission costs. In no particular order lets go over some information about penny stock brokers.
Not necessarily the best broker around, Zecco is used by a lot of traders. They do have ten free trades each month but the small print concerning this is: you must have $2,500 in your account. I have experience with this broker and they get the job done without a lot of bells and whistles. They even pretty much tell you flat out they’re a bare bones operation to keep costs to their end users, traders such as you and I, to as low of a cost as possible.
If you do happen to go with Zecco to buy penny stocks, they do have an easy account sign up process and no account minimum. You can actually do the paperwork through eMail using PDF files as your documents, if you have to.
Another penny stock brokerage is Low Trades. I have no experience with them, but last I looked their commissions are just under five dollars per trade. Unfortunately there is an inactivity fee associated with Low Traders, this may be unattractive with some traders. You need to place as least a couple trades per year to get around it. I would not imagine this would be much of a hassle for most traders interested in buying and selling penny stock shares. They do have a streaming quotes system but with most bells and whistles there is a cost associated with this feature. Thankfully to their benefit, there is no account minimum balance.
Scottrade is a very popular brokerage in buying penny stocks, some people are surprised they even deal with penny stocks. Some people I know have a lot of success with using Scottrade as a penny stock brokerage. They do have a ranging commission setup you get to abide by, but if you are consistently making profit people could usually care less. Scottrade charges you seven dollars minimum on penny stock shares of companies. It does cost more than some other penny stock brokerages to open an account (500 dollars minimum) but on the flip side there is no inactivity fee. Large bonus is that Scottrade is a large reliable company. Great way in Buying Penny Stocks.
Other companies that are worth investigating:
- Charles Schwab
- Trading Direct
Disclaimer: Trading stocks is risky. You can lose all your money if you are not careful. I am not advising you to purchase any stocks. All the content on this web page is only my opinion and is not to be regarded as any advise.