Penny stock allows investors to trade at less than 5 dollars per share. However, some investors may vary the price to trade at a lesser amount. One advantage of buying penny stocks is that the investor will stand the chance of enjoying massive profit gain for every small increase in price.
The reason why most investors prefer to invest in penny stock is that they can purchase more shares that can turn around their financial gains within a short trading session.
When you compare penny stocks companies with other companies that trade as high as 500 dollars per share, you will discover that you have a lot of gains, if you’re a small time investor. The reason why penny stock price per share is small is that they are issued by small companies that are yet to be established.
Despite all odd, some investors still achieve success on penny stock trading platforms. Since the penny stock may be difficult to sell on some platforms, the investor is expected to make a lot of research to discover the best trading platforms.
Before you consider trading on the penny stocks, you must understand the market very well, to avoid risking your investment. You may be wondering, what’s the best platform for trading penny stocks? The following platforms will help you to accomplish your goals as a penny stock investor;
The first trade platform happens to be one of the best trading platforms for penny stocks as it allows investors to trade without commission. Although there is no 24/7 customer support on the First Trade, the trading platform still requires zero dollars contract-free for several trading options.
First Trade is a good trading platform for options traders, native Chinese speakers, beginning investors, free commission, and mutual fund investors. The First Trade platform enables retired investors and a day trader to enjoy a massive brokerage experience. The platform is also designed for mobile app, which makes it friendly to all users.
Investors that use this trading platform enjoy a $0 trading commission. The fidelity investment option has a wider range of research providers to make trading easier for investors. Fidelity Investment is the best trading option for premium research, low fees, retired investors, options trading, and active traders. The platform enables its users to enjoy a massive selection of no transaction fee funds and also offers investors fidelity zero index funds with no minimum investment and expense ratio required.
This platform is a free-trading app that allows investors to have several trade stock options, exchange cryptocurrencies without paying commission, and execute exchange traded funds. Investors on this platform enjoy both mobile and web trading options.
Robinhood is a unique trading platform as it offers free trading options for investors. The platforms stood out as the best options for individual taxable accounts, cryptocurrency, mobile users, and margin accounts. The trading platform is designed to be simple and easily accessible to all investors.
Generally, the Charles Schwab platform is there for all investors to help them accomplish their penny stock goals. Every investor on this platform is entitled to a benefit from the company. For example, the beginner investor liable to enjoy the company’s $0 minimum account.
Charles Schwab platform is the best trading platform for advanced traders, investors relying on premium research, investors looking for commission free traders, beginner investors, and investors looking for no minimum index fund. Charles Schwab does not require investors to pay any form of commission in all the trading options. The platform offer access to over 4000 funds with a minimum investment requirement of $100 or at a lesser amount.
This trading platform is meant for professional investors seeking the advanced trading platform to practice their expertise. Previously, beginner investors boycott the platform since it is meant for money managers and professional brokers.
However, the company recently reduces its minimum investment, and trading cost to $0 for its new TS GO offering. This policy made by the Trade Station has given regular investors access to the company’s high-octane tools. The trade station is the best trading platform for cryptocurrency trading, futures traders, active and advanced traders.
The Merrill Edge trading platform allows its users to access commission-free online stock, options trade and ETFs. The Merrill Edge trading platform is integrated with Bank of America, making it possible for the users to view their Bank of America account on the platform. Options trades on this platform are offered at a $0.65 per contract fee which makes it competitive with other trading platforms.
Selecting Penny Stock Trading Platform
What’s the best trading platform for penny stocks? Most brokers in the penny stock business have different terms and conditions for their clients. You must consider the terms and conditions to see if they meet up with your investment plan. Therefore, you should note the following before finding the best platforms to trade your penny stocks.
Some trading platforms tend to limit the type of trade you execute per day. You should watch out closely and understand every terms and condition mapped out by a trading firm, before trading with them.
Some brokers limit your free trading capacity to a certain amount of shares. Once you exceed that amount, the amount of charge will depend on their terms and conditions. However, some trading platforms can allow you to trade without paying additional charges.
Ensure that your choice of penny stock platform serves your purpose before making an investment. Having said that, it is important to know that there are platforms where you can copy more experienced traders on recommendation and get good results as they do. You really don’t have to do all the heavy jobs if analysis and trading if you can copy great trades successfully.