Online Penny Stock Trading Review

Online Penny Stock Trading

Online penny stock trading is viewed by many as a way to become a millionaire almost overnight, but this is a big mistake. Penny stocks are stocks that trade for less than five dollars a share, and often for just pennies a share. Sub penny stocks trade for a fraction of a penny, and many penny stocks are not traded on the major exchanges and markets but are traded in the pink sheets instead. Online penny stock trading can be done with stocks on the major markets as well, because some penny stocks meet the market requirements for listing with the exchange.

To buy penny stock online you must have a broker, and these stocks can be found in a number of different ways. There are many places where online penny stock trading can be done, but certain markets are better and more trustworthy than others. NASDAQ does allow some penny stocks to be listed, but the guideline is that these stocks usually offer for at least one dollar per share. If the price goes lower the stock is commonly removed from listing and sent back to trading in the pink sheets. Penny stock brokers may have different fees, commissions, and other charges, so it is a good idea to compare and evaluate each broker before choosing one.

Online penny stock trading occurs on the over the counter bulletin boards, the pink sheets, and also on the American Stock Exchange, as well as the NASDAQ small caps market. Many websites offer listings of penny stocks to watch, but the source of the information needs to be very carefully considered. There are many scams online offering to help make you a penny stock millionaire, but the truth is that more people lose money on these stocks than those who profit instead. It is possible to be successful with penny stocks if you take the time to learn the ropes, and manage to avoid all of the scams out there.