Penny Stocks Discount Brokers
When most people think of a stockbroker they imagine a small office with a friendly gentleman in a sharp suit planning for your long term future investments portfolio. Then dispensing a goodly amount of advice on your purchases based on his years of experience handling other people’s money. Penny stocks however demand a little rethink of this idea.
The new breed of investor who is trading in penny stocks needs to be able to move quickly as the market moves. And these shares tend to change their positions much more quickly than the monolithic traditional "blue chip" companies that many brokers have always deemed to be the best place to put their money.
Discount brokers are, if not essential, then at least a very good idea if you are going (as most people do) to be trading their penny stocks frequently as the market moves and want to keep your costs down. After all there's no real point in spending your afternoon watching the screens until your share has peaked in value so that you can sell just the right time. Then finding that the first hard won profit that you are so proud of has been all but wiped out by trader’s fees and commissions.
Especially if you are just starting out trading penny stocks with a couple of thousand, or even a few hundred dollars; to have to pay large commissions whenever you make a successful, or even worse unsuccessful trade, can make the whole thing seem rather futile, if not completely pointless.
After all a traditional broker trading you penny stocks for you can cost up to and over a hundred dollars for a single transaction. This is where discount online traders come in. They seem almost to have been made for the fast moving world of penny stocks.
Although they will still help and advise you their service is not as comprehensive as a traditional brokers (no leather armchair and coffee here) but their fees are considerably less. Working online through automated systems they can trade your penny stocks quickly and cheaply for you with fees as low as $10 dollars or even less if you are lucky.
Another advantage of an online broker is that you have instant access to all your penny stocks dealings. This makes it much easier to monitor how your investments are doing and to judge when is the best time to buy or sell. You can move almost instantaneously when the penny stocks market rises or falls you can also work from anywhere in the world with just as much ease as if you were sitting at your desk at home.
The best way, as with most things, to find a good stockbroker is to go on the recommendation of someone you trust. But if you don’t have that luxury then a good alternative is to go to:
They provide a very helpful comparative guide of prices and services provided by the different firms that deal with penny stocks and traditional stocks and shares.
When you have decided who you are going to trade your penny stocks with you will need to start an account. The whole process is fairly straightforward. You just a few forms to fill out and give them your initial deposit of cash and you are ready to start trading.
Remember never to trade more than you can afford as the penny stocks market is a very volatile one and is subject to very large swings, very quickly. This, of course, is what gives it such huge potential and of course also the potential for big losses.
A good stockbroker can help alleviate this risk with good sound advice an plenty of frequently updated information assist you in making your decisions and this is why a great deal of care is needed when choosing one. Although Price is important it is not the only consideration. Quality both of service and information should also be considered and will help to make your penny stocks trading both enjoyable and profitable.
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