Where to Buy Penny Stocks Online

So you’re all excited about the world of penny stocks and all the profit potential they hold, but there’s one daunting question left to answer. Where to buy penny stocks online?

Buying Penny Stocks Online – The Wrong Way

The absolute worst thing you can do is opening up an account to buy penny stocks with a shady or little-known online stock broker.

If a deal (or fees in this case) seem too good to be true, they probably are. Let’s be realistic here. You can afford to pay the fees from a good, well-known online broker and still make money.

The Internet is littered with online stock brokers that have no history, no reputation and are not stable. This is your money we’re talking about here. Don’t take on more risk than is necessary. Use a good broker.

Penny Stock Broker – Who to use?

If you recall, the focus of Penny Stocks Capitalist is on what the “real” term of penny stocks implies: “penny stocks are low-prices (below $5) speculative securities.” Now, we can continue on and add “of very small companies” to that description, but I tend to look more at stock prices than company size.

There are many reputable stock brokers online. I recommend you use one of them that best suits your overall investing needs. Scottrade is an example of on good online stock broker. The fees are decent and their system is solid.

If you want to focus your trades on stocks under $1, Scottrade’s fees are a little more than their advertised $7 a trade fee.

Basically, when deciding where to buy penny stocks online you want to make sure your trades are executed fast and more importantly that your money is safe.