Penny Stock Guide

There are many websites out there designed to help you with your research on penny stocks. The internet today has opened the doors to many profitable trade ideas and the access to trading them.

There was a time when you had no choice but to call a broker in order to place a trade. With the internet you can now trade on your own through a brokerage such as Scottrade or Ameritrade. It just takes a few clicks to be able to buy a penny stock today.

Choosing a penny stock broker is very important because it can have a profound affect on your trading results. There are many factors to consider which include the cost per trade and the minimum account size needed in order to trade. Brokerages vary in many ways and you will have to do your research on finding which one that works for you. Some brokerages even have inactivity fees!

Cost per trade is one of the most important considerations when choosing a broker because fees can range from around $4 to even $50 a trade! If you make a large number of trades you want a brokerage that costs less of course. If you only plan to trade a handful of stocks and hold them for years, then the cost per trade will not significantly affect you. Most investors who trade penny stocks make a large number of trades.

Another thing to consider is the kind of trading platform the brokerage has to offer. You must feel comfortable where you are trading. Many brokerages are set up differently in the trading platforms they offer. You would hate to lose money because you are still figuring out how to use the platform, or accidentally place a big trade you didn't mean to!

Here are a list of the sites we think may help you get started:

BigCharts.com
AllStocks.com
otcmarkets.com
finance.yahoo.com

Here are some brokerages to explore:

Ameritrade.com
Zecco.com
Scottrade.com
CharlesSchwab.com
ShareBuilder.com