Online Investing: Where to Buy Penny Stocks

You learn where to buy Penny Stocks specifically, if you plan to venture into a niche of the market share of stocks trading at low prices.

Many traders will start automatically Penny Stocks trade in their existing brokerage account, not realizing that there is a different program for the Committee of the price of many stocks online brokers. This program is different commission usually in small print or noted by an asterisk or something else that can be easily overlooked.

I wrote a previous article on Where NOT to buy Penny Stocks, which goes into more detail about the effects of various commission structure that may be encountered.

Besides considering the fees, you can also check each broker on-line customer service track record speed of trade execution, the availability of stocks of the purchase price and the availability and the ability to short shares at low prices. Be sure to check each of these and other important features or capabilities are possible with any broker, as they relate directly to low-priced stocks.

Here are a couple of reasons for controlling each of the items listed above:

Customer Service: Just because you may have experience trading stocks, you may find yourself in unfamiliar territory when trading Penny Stocks and need assistance from time to time as your trading account. Be sure to check things such as 1) the number of ways to contact customer service, 2) the time required for a response and 3) knowledge of customer support, among other things.
Priced Availability of stocks: brokers can provide different access to different shares on the cheap, and at different times.
Willingness and ability to short shares at low prices: Some online brokers have a minimum price in order to short stocks with low price, while others do not.Moreover, the number of shares available to short can vary widely from broker to broker.
There are basically three different options when choosing where to buy penny stocks: discount brokerage firm, a full-service brokerage firm, and a money manager or investment adviser.

Discount Brokerage

A lot of people just go with a discount brokerage firm because it is cheaper. I think this is good for experienced investors, but not if your new stock trading, penny stocks trading above all, because of its highly volatile. There are many good discount brokerage firms and almost all are accessible online. A discount brokerage account will allow you to buy and sell stocks online with the click of a button. Normally charge a fee per transaction with a lot lower if the commission, if you are a high volume trader. Some coupons are brokerage firm Interactive Brokers, TD Ameritrade, E * Trade and Charles Schwab. Just make sure to compare the services offered and their scale fees that depending on the type and amount of transactions performed, a firm may be more convenient than another.

As a Full Service Brokerage

Despite the growing popularity of discount brokerage, there are still a good number of investors who prefer full service broker when deciding where to buy penny stocks. Full Service Broker although usually more expensive, offer a much higher level of services to investors including the general investment consulting, performing operations on its behalf, and also recommendations on which stocks to buy and when to sell them. For investors with limited knowledge, especially those who want to buy penny stocks, a full service brokerage may be a good choice. Just be sure to go with a reputable company is a stock broker you can trust and who has experience buying penny stocks. Some of the best full-service brokerage houses are JPMorgan, AG Edwards, Merrill Lynch, Morgan Stanley and UBS Financial Services.

Money Manager / Consultant for Investments

Finally, for those who do not even want to think about what jobs to do and when, you can find a manager also known as investment adviser. Although most people think of money managers, such as those that manage mutual funds, fund managers can effectively manage any type of investment. A money manager is someone who manage your account, make trades based on their experience, and keep you updated on the progress of your account. Even if some money is tied to the director of brokerage houses, there are still many who are completely independent. Now, since our goal is with penny stocks, you want to find one that has a proven track record of trading them. Finally, if you choose to have a money manager, is very important to find one you can trust and who has a solid reputation in the financial sector.