Brokers account to trading penny stocks
Here is a quick guide on how to get started with penny stocks. Trading tips will be below brokers. The first thing you will need is a brokerage account, this will allow you to buy and sell stocks and can be set up online and managed by yourself right at home.
I don't get paid for recommending these brokers, they are just downright the best brokers out there expecially for penny stocks. So if you have an account somewhere that is not listed below make sure you call them and ask if they allow you to trade stocks on the OTCBB and Pinksheets.
They're constantly winning awards for their amazing customer service, ease of use, and trading platform. Trust me these commissions are nothing. Especially with the platform you'll have access to literally the pros use it. The reason i like speed trader so much is because thier platform is geared towards penny stock traders.
They allow you to route your order through tons of different market makers which is not neccesary but sometimes this means you can get your order filled quicker. Thats my top 2 for US brokers for penny stocks. If you already have an account at the following firm's they are fine as well. I don't recommend Ameritrade sometimes buying and selling penny stocks with them can be difficult. Sorry for grouping all of these together.
This just is the best brokerage for all of them. Residents of a few countries are blocked from buying US stocks. However, we have recently discovered an offshore brokerage, based in the Bahamas, that will accept clients from nearly every single country on Earth who wish to trade US stocks. Opening an account with this broker will require some extra paperwork, and it will be more expensive than our other recommendations, but it may be the only option some of you have to trade our stock picks.
We have researched this company extensively and believe it to be a safe and reliable place to have an account. After you get your account set-up and funded, the next step is to make sure you understand how to place an order within that account. When using a limit order to sell a stock, your order will only execute at the price you specified or higher. Limit orders automatically give you the best opportunity to buy low and sell high.
Usually, most brokerages will give you an option on how long you want your order to remain open as well. These are two trading terms every investor should know. Weather you are looking at a daily basis, weekly or monthly.
Support and resistance is easily identified. PREVIOUS high's would be identified as a potential "resistance point" that the stock needs to break through to show strength if it is currently trading lower than that point. You will notice when trading stocks will approach the resistance and kind of trade sideways aroudnd it before it is determined if the stock is going to break through or not.
If a stock successfully breaks through a resistance point it can now be considered a "support" any price the stock has consolidated at that is lower than the current price can be considered a support point. Nobody likes when a stock fails to hold support. For alot of good trades this is where they set their stop loss right below a support point. The image above is an example of what a real time level 2 quote should look like. But level 2 is basically where you watch a stock trade in real time.
The left side is the "bid" where investors are currently willing to buy the stock. The far right is the actual buy and sell orders going through in real time. It is easy to see intraday support and resistance points by watching level 2 and seeing what prices the most investors want to buy or sell at. While level 2 is not neccessary and by no means do you have to be someone that can sit home and watch level 2 all day.
If you are someone that lives at home or is starting to see alot of profit from trading. I recommend having real time quotes like this. Your profits will exceed the small price in my opinion and it is charged right out of your brokerage account so it is not like your bank account is depleting.
Here are some tips specific to penny stocks. If you are a penny stock trader and have traded them in the past i'm sure you've seen a stock move so quickly by the time you placed your order the stock has already went up, and you were left having to buy at a high price.
Clients can establish that the shares are registered by providing the SEC Edgar system File number under which their shares were registered by the company and any documents necessary to confirm the shares are the ones listed in the registration statement. Customers are free to transfer out any shares we have restricted at any time. Prime customers may clear U.
Microcap Stocks at IBKR but those shares will be restricted unless we confirm the shares are eligible for re-sale under the procedures discussed above. To remove the restriction for shares purchased on the open market, please provide an official Account Statement or Trade Confirmation from the executing broker or have the executing broker provide a signed letter, on company letterhead, showing the IB account name and number, stating that the shares were purchased in the open market, along with the details of the executions date, time, quantity, symbol, price, and exchange.
Or if the shares were acquired through an offering the letter must provide documents or links to the relevant registration statement and state that the shares were part of it. Sell Long trades will be accepted if the long position is no longer restricted.
Sell Short trades will be accepted. Buy Long trades will be accepted and the position will be restricted until Compliance is provided with sufficient information to remove the restriction. Buy Cover trades and intraday round trip trades will not be accepted. What happens if a stock you purchase gets reclassified as Grey Market or Caveat Emptor?
If you purchase a stock in your IBKR account that at a later date becomes classified as a Caveat Emptor or Grey Market stock, you will be allowed to maintain, close or transfer the position but will not be able to increase your position. Where can I find additional information on Microcap Stocks?