Online penny stock trading on the stock market has now really come of age. It is now possible for virtually anyone to trade penny shares on the stock market from the comfort of their own homes. You still need a broker but most of the major brokers now have an online presence. And in general, as much of the process is automated, commissions will be lower. Very important for online penny stock trading.
Virtually all investment vehicles can be traded online. From ordinary shares on all the major World Stock Exchanges to Government Bonds (or Treasuries), penny shares or options. Whatever your chosen investment vehicle you can be pretty sure that you will be able to trade online.
There are a number of advantages to this.
Investors can place an order at any time and from anywhere (provided they have access to an internet connection.
There is an enormous amount of information available to assist with investment decisions, often provided by the brokers themselves.
Dealing costs can be very low, under $10 per transaction. Definitely an important consideration if you plan to be an active penny share trader.
There are many brokers to choose from which ensures healthy competition on the cost of commissions charged and a broad knowledge base to draw from.
However, because of the anonymous nature of the web it is, arguably sometimes difficult to gage the reliability of broker you are dealing with. With that in mind it is probably best to stick to the more well known broking firms initially. Firms such as Fidelity and Charles Schwab have online presences and there are now many established online brokers like www.zecco.com , www.scottrade.com and www.trademonster.com
Visit our sister site www.marketcapmania.com for full reviews of these online stock brokers.
Charges vary widely and some brokers charge annual or monthly fees on top of any actual trade commissions. Some brokers also require that you maintain a minimum sum on deposit with them.
Another important point to note about online trading is that any ‘shares’ held are held electronically in the broker’s nominee account. This is fine and perfectly normal but it can mean changing brokers may incur some cost and inconvenience.
So, if you are looking to do online penny stock trading, you need to first decide what your investment strategy will most likely be and research the broker that best suits your needs. If you are happy to make your own investment decisions and wish to trade frequently, one of the deeply discounted brokerage services would be the way to go.
If, on the other hand, you would prefer advice on your investments, one of the more traditional brokers may suite you better. You will of course pay more for this kind of service.