| Are you an investment newbie who is intrigued by | | | | E*Trade, and Scottrade. |
| the idea of penny stocks? If so, you may be | | | | Follow your broker's instructions about opening an |
| wondering exactly how to buy penny stocks. What | | | | account and make sure your account has enough |
| do you do first? | | | | money to cover the cost of your trade plus the |
| Well, first you must locate a broker who will be a | | | | commission fee. When you want to acquire shares of |
| middleman between you and the market, or the | | | | a stock, you give your broker a buy order. Your buy |
| other investor/buyer/sellers. You tell the broker what | | | | order should state the ticker symbol of the stock, |
| you want to buy, how many shares of what | | | | the market the stock is trading on, the number of |
| company, and the broker tries to fulfill your order. | | | | shares you want to buy, the price you are willing to |
| Brokers can be full-service or discount. Brokers | | | | pay for the shares, and how long your order should |
| charge a commission fee for each fulfilled trade, but | | | | be considered active. |
| with a discount broker, you can place your trades | | | | Where do you get the information needed for a buy |
| yourself through a computer interface so the | | | | order? That's where the research part of investing |
| commission fees are much less. | | | | comes in. You can read and review several of the |
| There are pros and cons associated with each type | | | | many penny stock newsletters available, join and ask |
| of broker, and you may be more comfortable at first | | | | questions in an on-line forum, or subscribe to a good |
| with the hand-holding you can get from a full-service | | | | recommendation service. Remember, though, that if |
| broker. Maybe you want to consider the higher fees | | | | you want to be a real penny stock investor, at some |
| as a sort of educational expense. However, once you | | | | point you must take the leap and back your research |
| feel a bit less lost, you will probably want to switch | | | | with your money. That's where the exciting part of |
| to a discount broker for trading penny stocks. Some | | | | investing comes in. |
| well known discount brokers include TDAmeritrade, | | | | |