Penny Stock Market Quotes

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{Find The Right Stock Broker}~{The Best Stock Broker For You}

You feel comfortable with your knowledge of how penny stock trading works. You’ve invested imaginary money and developed an investment strategy through seeing the results of the paper trading exercises you’ve been doing for a few months. Now it’s finally time to put some cold hard cash into the penny stocks you’ve been monitoring and have confidence in.

Once you’re ready to enter the market, your first move should be to find the right stock broker for your needs and open up a trading account.

Don’t become mesmerized by pricey mass marketing and advertising campaigns by brokerages or fall victim to hype-filled sales pitches, which may be too good to be true and can’t live up to what they promise.

Talk to friends and see who they’ve had good or bad experiences with, but remember that everyone’s brokerage needs are different.

You should take time to conduct extensive research on your own and shop around to see what discount and full service brokers have to offer before deciding what suits your trading style and budget best. Some of your key considerations should be:

  • commission fees;
  • policies;
  • accessibility;
  • customer service;
  • and the speed at which orders are executed.

There are two types of brokers to consider when investing in penny stocks: full service and discount.

Full service brokers deal one on one with clients and are accustomed to working with traders with large portfolios. While they’ll come to you with investment ideas, advice and guidance, the commissions they charge are high – and many of them have no interest in dealing with penny stock companies anyway. But if you find one that deals with penny stocks, and you’re still wary of making investment decisions on your own, this may be the safest way to enter the market with a clear conscience. Just be sure to ask where the firm gets its information from and how it chooses its stocks.

If you’re satisfied with how much you know about the ins and outs of the market and don’t want an analyst and are just looking for someone to buy and sell stocks based on your instructions, your best bet probably is to open an account with a good discount broker so you can receive quotes and information about stocks that interest you and monitor your trades and trade history. Commissions will be much lower than with full service brokers.

Commissions and Service Fees

If you’re not starting with a lot of money to begin with and plan on making frequent trades, commission and service fees are very important to consider. You may also prefer to find someone willing to work on a flat rate as opposed to a per-trade basis. Look to see if there are price differences between trading by phone and online.

Create a checklist of things you need and want, try to find licensed and registered brokers willing and able to package services together for a discounted rate, and then find the best rate for those applicable services. You’ll find that it’s easier to manage and track your portfolio by working with one trusted broker than by sharing the wealth. Just make sure you read the contract carefully before you sign. You don’t want hidden charges to start appearing after you’ve made your commitment.

Policies

Check to see if your brokerage requires a minimum balance that needs to be invested, and make sure that you can meet it if it does. Also check to see if the broker is willing to work with shares trading under a dollar, if that’s the price of the stock or stocks you’re investing in, since many of them don’t.

Accessibility and Customer Service

While it shouldn’t be an issue these days, having a broker with consistently fast and reliable Internet service and no website crashes will save you lots of headaches. If you have problems with a trade, something else goes wrong or you have a question, you want someone you can reach quickly by email or phone to have your concerns or questions addressed. There are few things more frustrating than sitting on hold on the phone doing nothing while valuable minutes tick by.

Once you reach your broker, are their replies prompt and accurate and handled in a polite and professional manner? This is something else you may want to consider.

Speed of Order Execution

While most brokers should take approximately the same time to process trades, make sure you’re not dealing with a laggard. Penny stocks can be volatile and any hesitation or delay in entering and exiting at the prices you decide could potentially mean the difference between taking a profit or a loss.

 

After considering all of these issues, the bottom line is that you have to find someone you feel comfortable working with and think you can trust. While there may be brokers who use fraudulent practices or are more interested in beefing up their commissions than in looking out for your best interests, taking these steps should help you avoid such shysters.

Level 2 (“L2″) Quotes Explained in Plain English


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