Penny Stock Brokers – Good or Evil?

Penny stocks are the home of brilliant traders and gamblers, honest entrepreneurs and scammers, honest value driven penny stock brokers and broker pond scum. The dichotomy of risk and reward are the greatest in the penny stock investments. The siren call of huge returns brings many investors who are looking for fast riches.

Just because this niche draws some less than reputable types doesn’t mean you shouldn’t invest in it though as there are great reasons for trading and investing in micro caps. If you’re looking to get into penny stocks you just need to learn how to pick your penny stock broker wisely.
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Where to Buy Penny Stocks

If you are just getting started in the business of penny stock trading you’ll need to know where to buy penny stocks. But before you even ask this question it is important to understand more about this specific market and these stocks to see if this is something you really want to consider.

There is a simple and a not so simple answer to the question of where to buy penny stocks. There are a number of brokers who can help you buy and sell penny stocks, but to get the most out of your time and money you want to choose the right brokerage company. Each of the online stock brokers offers different services, has a different minimum balance and charges different fees for each trade. You may initially want to go with the cheapest broker but this isn’t always the best way to go, at least in the beginning.

Besides choosing a broker you need to know where to go to find and research these stocks so you can monitor them and determine which ones to buy. Continue reading

3 Things To Consider When Choosing A Penny Stock Broker

Choosing the right penny stock broker can help make or break your successes and your profits. You want to watch out for certain red flags that are a sign of a questionable broker all while considering some of the basics like required minimum account balance. In this equation there are three specific things you should research before you commit to a broker. Understanding these three things and why they are important will help you increase your profits in this fast-paced niche of stock trading. Continue reading

How to Trade Penny Stocks

In this segment I will offer an abbreviated summary of the actual penny stock trading process. Learning how to trade penny stocks is not that challenging from a technical perspective, however it is important to consider a number of things before you begin investing your money in this risky niche market.

The first step is to create a stock trading account with one of the online penny stock brokers. You will find many online brokers offering different services and charging different fees. The most common online brokers happen to be E*TRADE, TD Ameritrade and Scottrade but this does not mean they are the best brokers for each and every situation. Some contend that Zecco is a decent choice for novice traders because it is so inexpensive, but you need to look at each of the brokers to make your own decision of who is best for you.

Once you have your trading account set up you can start getting into the fun part of penny stock trading. Continue reading