online penny stock broker Tag

Before you begin trading penny stocks online, you should understand that they’re not a simple means for getting rich and they’re not the inexpensive, risk-free profit potential some online resources want you to believe.

The SEC (Securities Exchange Commission) simply defines a penny stock as a stock which trades for between 1 and 5 dollars.

You will trade penny stocks via something called an Over-the-Counter Bulletin Board — often simplified as the OTCBB — or perhaps via Pink Sheets. The low value of these stocks indicates either brand new corporations or corporatations which are in a struggle to survive. New companies sold on these boards haven’t yet proven themselves ready to be traded on the NYSE or NASDAQ. Older companies traded as penny stocks may have been penalized and removed from those major exchanges.

Despite the misleading hype you may find on the Internet, trading penny stocks online may be more risky than trading normal stocks. This is not a get-rich-quick scenario and if you treat it as such you could very well suffer the consequences.

Read Penny Stocks Online

Using this list and brief descriptions of the best online brokers may help you find the right broker to fit your needs. Since Day Trading Penny Stocks focuses on independent trading of penny stocks, I emphasize brokers that provide cheap online trading. However, I will also provide some full service brokers (which usually cost a bit more) for comparison’s sake.

Please note that I provide the web address for each broker, but I did not make active them web links (so you need to either type them manually into your web browser or copy and paste them into your browser’s address bar).

This is because brokers often offer commissions for referrals, and I wanted to make it clear that I am not making any commissions for identifying these brokers as the best online brokers. You can easily copy and paste the provided addresses into your browser to reach their sites.

Read Best Online Brokers