As there are an increasing number of people interested in penny stocks, We thought we should put together a page talking about the best penny stock brokers. They have a demo trading platform that you can use free to test out your penny stock trading strategies without risking any real money.

My Brokers For And My Plan For You - Timothy Sykes

And a nice touch to get you started, they let you trade free for the first 90 days. Click here to visit Optionshouse.

Tradeking have been around for more than 10 years now and are well known for being a low-cost broker. There is no minimum account size to worry about either. Other useful features including a busy forum, a great trading platform and decent customer service.

Click here to visit Tradeking. What does all of that mean? You can buy shares of a company for a penny. Plus, the price of penny stocks often fluctuates drastically. So, while penny stocks offer great upside potential for profit, they are also risky and prone to speculation.

You can actually find penny stocks on virtually all major exchanges, although rules vary on how long a micro-cap gets to stay listed on the exchange. For any stock listed on a major exchange, you can use one of the penny stock brokerages above. There, you can put in a symbol to find quotes just like with a major exchange, or can look through their lasting listings.

Home Stock Tutorials Stock Brokers Reviews Optionshouse Review TradeKing Review TD Ameritrade Review ETrade Review Scottrade Review Penny Stock Brokers Binary Options Brokers Contact More.. OptionsXpress Review Alternative Investments About. Top 2 Penny Stock Brokers Tweet Tweet As there are an increasing number of people interested in penny stocks, We thought we should put together a page talking about the best penny stock brokers.

A penny stock is characterized by: Low market capitalization Low share price Relatively-low liquidity High volatility Relatively-low volume What does all of that mean? So How Do You Buy Penny Stocks Online? Other places you can find penny stocks include: The OTC Over-The-Counter Bulletin Board is an electronic quoting system for buying and selling stocks outside of a formal exchange.

This is a way to combine quotes from brokers and market makers operating over various electronic communication networks ECN in one location for investors to see.

Penny stocks are commonly found here because they cannot meet the listing requirements for major exchanges. Similar to OTCBB, with even fewer filing requirements.

This system is operated by a competitor to OTCBB, OTC Markets Group, Inc. This tier contains companies that meet certain standards and are reviewed by OTC Markets Group.

This tier is for companies that are registered with the SEC or another banking regulator and regularly file reports. No financial standards are required to be met.

This is the least regulated tier of the three; many companies have little to no public disclosure. Tips for Trading Penny Stocks The most important thing to do, by far, when buying penny stocks is to conduct thorough research. Take your time when choosing a broker for penny stocks, or any type of stock for that matter.

Best Brokers for Penny Stock Trading - NerdWallet

Your broker can have a serious effect on your bottom line when trading. Also, keep in mind that trading penny stocks means dealing with assets that can be very illiquid.

The potential for big gains is there, but so is the potential for big losses. Exercise caution and do your research before trading.