Penny stock has a high investment risk with a small share price. Investors must have the ability to see the market and to analyze all the things about the stock well. Investors who like challenges, penny stock may be a very challenging to invest. In fact, investors can get double the many just by giving a small capital. A large risk causes investors to have accurate tactics to avoid fraud. Then how to buy penny stock? There are several top penny stock traders that can be found on the main exchanges.
How to get shares in a penny stock?
Penny stocks are usually not traded through the regular stock exchange as we usually know, such as NASDAQ and American Stock Exchange. The reason is penny stocks has a large risk with low prices and low liquidity. Penny stocks is an over-the-counter (OTC) trade that can only be found in OTCQX, OTCBQ and Pink Sheet. Investors must be able to decide on the right investment place. If investors choose the wrong stocks, there will certainly be a risk to lose the shares have been invested. Penny stocks is generally owned by small companies whose reputation is not widely known by many people with poor company information. Usually there are some parties use penny stocks to make a lot of money. They will buy most of the shares so as if the shares are at the highest point and makes the investors are interested to invest. Experience and knowledge are the most important things to have by investors when they want to invest their shares in penny stocks to minimize the risk of more losses.
Choosing the right place to trade penny stock
The following are the best online brokers for penny stock trading.
Fidelity is one of the best brokers to trade penny stocks with offering $ 4.95 and become top penny stock traders. Fidelity provides many conveniences for investors, one of which is the ease of using applications for investors. Another convenience of fidelity is the high service to consumers. Investors who have problems with trading with penny stocks can contact customer service Fidelity.
2. Interactive Brokers
Interactive Brokers is an online broker that offers prices starting at $ 0.5 per trade. Currently, interactive brokers has been equipped with various latest features which will certainly make it easier for investors to use it through a trading platform that can be accessed via desktops and mobile phones. One of its features is Ibot makes it easy for potential investors to find information even by voice.
3. Charles Schwab
Charles Schwab makes it easy for investors to find complete information about a stock that can be accessed through various digital platforms. Charles Schwab has a trade value of less than $ 1 per trade. This site is the most recommended site for investors with various conveniences offered.
4. TD Ameritrade
Wanting to invest with low costs and easy access, TD Ameritrade’s can be the best digital platform for investors. TD Ameritrade’s is equipped with various advanced features and with account minimum $ 0 per trade. per trade. Investors will also be presented with interesting videos that contain information about stocks to make the investor easier making decisions.
Tips for avoiding fraud
Since penny stocks are an investment place that is quite risky to invest, it is important for investors to know about top penny stock traders. Investors must be sensitive to the form of fraud. Penny stocks is easy to manipulation for investors in various ways, one of which is to offer attractive penny stocks via email or message on mobile phones. If you are interested in investing in a penny stock company, trying to get complete information about the company’s history and financial condition of the company.