Trading in stock exchange is an easy way to make money, if done smartly. However, dealing in stocks is risky and include luck to succeed at times. Therefore, many newcomers or even experienced bidders are turning to buy penny stocks. This is because it involves less money and ultimately less risk. However, a major question that strikes everyone is where to buy penny stocks, because this is newly emerged concept and people are less aware about it. Below you can find some description of certain resources, where you can buy penny stocks.
Discount Brokers (Online):
Due to online trading, brokers incur very less overhead cost. The cost benefits are passed in the form of reduced transaction fees. However, only because your stockbroker is quoting fewer prices for you it does not mean that you would not go for better bargain. You need to check out many things before deciding transaction fees such as cost of bulk trade, single trade, and interest rate on cash, minimum balance requirements and options for trading requirements. Again, you need to consider how much money you have for trading, how often you will be trading and what options of trading account they offer.
Full-Service Brokers:
Compared to discount brokers, full-service brokers are a bit more effective. Here, they provide you services such as investing advice and assisted trades. For these services, you are charged with extra fees. If you wish to invest bulk, you can certainly give thought to such investors. However, if you need a broker just for executing trades, you will end up wasting huge sums on these brokers. Some people also take advice by calling on customer service number.
Informal Advice:
There are some brokers, who will themselves advice you regarding penny stock trading. This will normally happen when you are completely involved into business and are doing well. They come up with lucrative offers. It is not like that, all such brokers are fake, as some of them really want you to progress and even they will get some share. Again, in penny stock, less money and risk is involved, so there is not a big deal to give a try. However, if you think that you are being cheated, you always have option of changing your broker.
Thus, now, the question of where to buy penny stock will no more be a hurdle for you, while you plan to invest in penny stocks.
