The fact that you are even asking this question, tells me that you probably already know a little something about trading stocks. If you didn’t, I highly doubt it that you would be asking this question “Can I Trade Penny Stocks With Most Brokers?“. Well, with that said; let’s go ahead and get to the good stuff. Your question answered below..
This Answer has been taken out of the Ultimate Guide on How to invest in penny stocks for beginners.
Can I Trade Penny Stocks With Most Brokers?
The answer is Mostly. Similar to any other stock that you would purchase, you should most definitely be able to purchase shares of the micro-cap / penny stock that you like through a regular stock broker. Even if the penny stock doesn’t trade on big exchanges like NASDAQ or NYSE, you can still purchase it through the big brokers like Charles Schwab, TD Scottrade, E-Trade etc.. There are however some brokers out there that do discriminate against penny stocks. Luckily these are far in between, small in organization size, and really insignificant to penny stock trading when compared to the big power house brokers.
Something to consider, is that some of the stocks that are currently trading on the big boards like NASDAQ & NYSE, trade under $5/share and are not considered penny stocks. Even though they are in the same price range as a penny stock, these stocks do not trade over the counter like the pennies do. However, with all of that said; you should definitely consider taking a look at some of these cheap stocks on the NASDAQ and NYSE exchanges. Big Board stocks provide low-cost shares, tremendous value and are at times less riskier when you compare them to your everyday penny stock. The NASDAQ and NYSE have rigorous conditions, requirements and rules around them. Even, if these stocks down have huge up-side potential when compared to the penny stocks, they do have a tendency to be from a bit more reliable and trustworthy companies.
On the opposite side of the Big Boards, Blue Chips and Big Exchanges, is the the Penny Stock world. The Penny Stocks trade on the “OTCBB” and in Pink-Sheet form. The OTCBB and the Pink Sheets don’t enforce strict rules and regulations like the NASDAQ and NYSE exchanges do. Due to this, the Penny Stocks that trade on the OTCBB and via Pink Sheets do not have much regulation around them. Due to this reason, some investors would say that Penny Stocks are very risky and dangerous. This how to invest in penny stocks for beginners guide has been crafted to go together with the Find Online Jobs From Home Without Investment guide.
So you see, the proper answer to the “Can I Trade Penny Stocks With Most Brokers” question is mostly. Not all brokers allow it, but most do.
If you have found that the information on this page has been beneficial to your journey to becoming an expert in Penny Stock trading, then please go ahead and visit our Ultimate Guide on penny stock trading for more learned gold.