How To Choose A Good Penny Stock Broker
Penny stocks are one of the greatest ideas for beginning investors because they only require small capitalization. In fact, their affordable rates are one incentive to explore the stock market with little capital. According to the Securities & Exchange Commission, penny stocks are stocks which are not listed in the official national exchange and trade below $5. As cheap as they seem, when well traded, they can earn you a lot of money. However, the risk involved in trading penny stocks are very high; therefore, you should be very careful in your approach in this particular field. The FBI released a statement that the penny stock market is home to a very large number of fraud cases. Therefore, you should be really careful before jumping into the market. You have probably heard the saying ‘cheap is expensive’ so if you really want to engage in trading cheap stocks, you should seriously consider what type of discount broker or penny stock broker you want to do business with. You are always compelled to have a broker when it comes to trading and the type of broker you choose should be determined by your experience in the market. You need the best penny stock broker deals and to get one you need to be conversant with deals which various brokers offer
Things to look for when choosing discount brokers
There are various things that you should always consider before you choose a broker. Although different brokers have different offers, there are certain offers which are considered fundamental in penny stock trading:
- Minimum required amount to open a brokerage account.
- Commission charged per trade and any additional special commissions.
- Easy to use platform and trading account which guarantees convenience.
- The type of customer service offered and the available trading tools.
- The speed of the execution of trades.
Penny/Discount stock brokers with the best deals
A discount stock broker is a broker who offers shares at extremely low price; therefore, if you want to trade penny stocks you have to deal with a discount broker. Here are brokers with the best initial deals:
- Accommodates international investors.
- Allows international money transfer through wire transfer.
- It has over 220 commission free Exchange Traded Funds.
- It has relatively cheap charges of $4.95 per trade.
- It does not charge to open or maintain a trading account.
- Access of cash in the brokerage account is swift and convenient.
- It also offer monthly statements to their client.
- Its services is not limited to customers of Bank f America.
- It has a flat fee and shares trade at around $6.95.
- It has an excellent banking and customer services.
- It has a flexible and easy access cash managed account.
- It has easy to operate investment tools.
- It offers free investment education program and it also has one on one guidance which is usually considered customer friendly.
- It has a good customer service which is available 24/7.
- It does not charge any account opening fees and has no minimum balance.
- It offers market analysis tools which give in depth analysis of the market which support a wide range of strategies.
- 5) TD Ameritrade
- It has a powerful and convenient trading platform which is built for different levels of investors
- It offers interactive education courses which aims at informing clients more about investing
- It offers free commission on the first 60 days.