Blog - Online Penny Stock Trading

Penny Stock Brokers

One of the important aspects of any type of online stock trading involves finding the best online stock broker for your needs. Keep in mind you may not want to use the same brokerage account for long term investments and penny stock trading because they are two very different types of investments. Choosing the right broker can help you save money and maybe even make more money.

There are full service brokers, discount brokers and a little of everything in between. As the name suggests full service brokers provide more tools and services, but these tools and services usually come with higher account fees or trading costs. Discount brokers are cheaper in terms of fees but they don’t offer much in the way of help. There are also options in between, that offer a few services without high fees. It is important to evaluate everything from fees, minimum balances and services provided as they all add up to create a good or not so good overall trading experience.

This guide will discuss ten of the top online brokers from big names, like Charles Schwab and Fidelity to lesser known players like MB Trading and Scottrade, offering a summary of the services provided, account fees, account minimums and trade fees.

What Are Penny Stocks?

by Charles

Sometimes known as micro-caps, nano-caps, small cap, or OTCs, penny stocks are securities of small private companies, often with less than a penny per share, that generally trade at low prices. They may be purchased and held for short periods and then delisted by the market where they’re listed, and then traded in again. Some penny stocks are overvalued, while others are undervalued. Many investors,

Buy Stocks Online

by Charles

One of the most common — if not the outright most common — questions I receive is, “How do I buy stocks on line? I think one of the most important ways to answer this is not with a direct answer but rather with a series of questions that helps the questioner understand the complexity and weight of that question.

In all likelihood, if someone is asking this question they are new to online investing. That can be a very precarious and vulnerable role to play these days, as these Internet waters are infested with fraud-perpetuating sharks. So come along with me as I examine what someone asking about how to buy stocks on line is really asking. Keep in mind the answer to this question can also vary based on what type of stocks you are considering, for example someone looking to get into online penny stock trading may use different tools than someone trying to diversify their retirement portfolio.

Buying Penny Stocks

by Charles

Like so many things, advances in the Internet and in technology have made buying penny stocks online accessible for anyone from the savvy stock investor to the casual day trader. You no longer need the education or attire of a stock trading professional now that you can buy penny stocks or any stocks from the comfort of your own home.

While it is great that this market has opened up to a wider range of people it is important to know that buying and selling penny stocks can be a risky business. You need to prepare and arm yourself with knowledge in this field if you want to increase your chances of success. Sure there is money in this market, but keep in mind the other side of this. Many people lose a lot of money on penny stocks, but with the right tools and knowledge you can decrease your risk and increase your chances for success.

Day trading software and stock newsletters are among the tools available, but it can be difficult to know where to begin.