Investing in penny stocks attracts both seasoned investors and beginners willing to invest some spare cash in hope to earn some money on the side.
Penny stocks are somewhat risky, but the low costs make them appealing and exciting. If you acquire enough shares of a successful stock, a small increase in price (a few cents) can bring you a lot of money.
However, you should always know where to start your penny stock trading business. We’ve picked a few trusted places for you.
The E-Trade stock website is rated as the best penny stock broker by a lot of reputable websites.
This trading stock platform has a wide range of available tools. It offers three different trading platforms that are completely free and easy to learn. There’s always a huge selection of options and you’ll have all the required tools for a thorough exploration and analysis.
In addition, the prices will make you happy, too. The trade commission was recently removed and the first-time investment (when you set up the account) isn’t required. Furthermore, you’ll encounter various bonuses, discounts, and promotions on the website, allowing you to add even more cash to your investment fund.
The web platform allows you to track your account as well as real-time quotes and other essential market info. The desktop platform has additional tools aimed at planning your future investments, and the Power E-Trade web platform has all features used by experts, such as drawing tools, trading ladders, and more. Also, their mobile app is probably the best out there.
The Interactive Brokers is an option for those that already know a fair share about the world of penny stock investment. However, this shouldn’t discourage the beginners. There’s also the Lite version of the platform for those who need to learn the ropes.
Both the Lite and the Pro platforms are filled with all the essential features. Understandably, the Pro version has a bit more to offer. For example, you’ll get a Trader Workstation – a desktop trading app that’s rated among the best in the business. It contains all the essentials, such as real-time data stream, customized watchlists, dashboard, and a lot more.
One of the main reasons why Investment Brokers isn’t such a favorable option for beginners is the fact that it targets active traders. This is enhanced by “inactivity fees,” where you’ll be charged if you don’t meet a designated monthly minimum in trade commissions. Moreover, the web site is complex and less user-friendly than other websites from the list.
Touted by many as the perfect place for entry-level investors, Ally Invest is basically an investment branch of Ally, a well-known online bank. The user-friendly interface gathering all essential items in one place makes this website a beginner-friendly place.
The website has a bunch of other features such as bonuses, and a wide range of different ETFs including some top-dogs like Vanguard and iShares. So, if you want to go bigger than the OTC-stock, you can do so here. Since recently, there are no commissions on any exchange-listed stocks in the US, and the option trade fees were lowered to only half a dollar per contract.
Once you set up your investment fund, you’ll gain access to various personalized tools to track the changes in the stock market. The smartphone app will allow you to keep track of the quotes and fluctuations, and the analytic tools will allow you to track your progress and make adjustments along the way.
On top of this, the website offers a learning hub with a bunch of articles and studies covering various aspects of the stock exchange – how it works, where to invest, what to keep in mind, etc. As if you needed any other answer as to why this is the most beginner-friendly of all websites.
TD Ameritrade blends all the upsides of other mentioned broker websites. For those who are just starting, the $0 account minimum allows anyone to seamlessly get into the business. Add to that the zero trading commission fees and you’ll get a perfect starting point for your penny stock investment.
When you set up your investment account, you’ll encounter plenty of tools that will help you learn your trade. The website is filled with educational content in various forms – audio, video, articles, games and quizzes, and even live seminars – so you’ll constantly learn through your own trial and error and with the help of seasoned experts.
Moreover, there’s a virtual trading simulator that gives you $100,000 of virtual money to practice your investment strategies. Everything mentioned is available on one of the two platforms – mobile and desktop. What’s more, if you have trouble accessing them and you need to perform an emergency trade, you can do so via other platforms such as Messenger and Twitter.
Don’t Get Carried Away
If you’re just starting out, it’s best to pick a user-friendly site. Preferably, the website should offer some insight and educational content, and provide you with a simplified version of the trading platform.
On the other hand, if you’re already a seasoned trader and investor, you may choose a website with complex tools and a feature-packed platform. Whatever you choose, make the most of the tools and analytics at your disposal. Otherwise, you may end up disappointed.
Which penny stocks trading website would you use? Do you have any advice for the first-timers?