RSSWhat is the best online broker for penny stocks?
Monday, June 28th, 2010
Hey Guys,
So, I have been playing fantasy stock market for awhile, and I have a really good grasp of penny stocks. I am ready to invest with real money, but I want to start with a small amount of money. Like $100. What is a good online broker to use? I heard Zecco. Does anyone know anything about this company? Thank you for your help!!
Adam
Thanks David, I will make sure to sign up for your scam letter, and lose all my money on your pump and dump schemes. Lets be ethical here.
This is not going to be the answer you want to hear, but it is 100% accurate.
Investing just $100 is not advisable. Even cheap online commissions ($7 each way) would be far too large a percentage for your trading to ever be profitable.
Fantasy trading is not the same as real trading. Bid/Ask spreads on penny stocks are huge. Your live returns would be dramatically lower than play returns.
Penny stocks are full of scams. Your question will probably draw responses from some regular spammers like pennystockprophet, killerpennystocks, *notlong*, *tinyurl*, onelinebusinessmall.
To be blunt, penny stocks are a stupid speculation, not an investment.
Best advice is to read a few books to learn about investing. Here are a few classics.
The Intelligent Investor – Benjamin Graham
A Random Walk Down Wall Street – Burton Malkiel
One Up On Wall Street – Peter Lynch
You wont like my response but it’s based on years of industry experience
All brokerage firms offer their clients on-line capabilities and services but none of them specialize in penny stocks.
To brokerage firms, penny stocks are not profitable, exposes the firm to a great amount of risk, the expense of providing market access is extremely expensive, the clearing and storage of such securities can be cost prohibitive most of the time.
The majority of the public that “trade” in such stocks are not knowledgeable of the rules and regulations governing the markets and have little or no knowledge of how a market operates.
Very few firms, if any, would permit the opening of a “trading” account with a deposit of $100.
All that said, here are some websites that you will find helpful in trying to find a broker who will want to service your account
http://www.smallcapinvestor.com/
http://www.stockwire.com/
http://alphaking.com/
http://www.otcstockexchange.com/
http://www.mcapstocks.com/Default.asp
http://www.pinksheets.com/pink/quote/index.jsp
http://ragingbull.quote.com/cgi-bin/static.cgi/a=index.txt&d=mainpages
http://www.swingtrades.com/
Do you have a better grasp on gauging the profitability of a company that you can get by reading Jim Cramer’s “Real Money?” If so, I’d like to hear it.
You need to see quarterly earnings reports together with Assets and Liabilities. You don’t see many penny stocks reporting that, even fewer reporting in the black if they do.
Besides you’re looking at a full blown audit with Zecco. Scottrade is $7 in and $7 out. Keep looking around for brokers.
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