Wednesday, May 8, 2013
Best Online Trading Platforms for Penny Stocks
Perhaps you are new to the stock market game or you may be a seasoned veteran in how trading works. Penny stocks can be a great investment and a fast way to boost your money which has made them popular, especially in uncertain times. However, with the upswing in the economy and the stock market at an all-time high, now is the time to get back into the trading game.
So when it comes to penny stocks, which online trading platforms are the best? There are three that stand out from others that you will want to check out. Again, these are for both new investors or those that have been doing this for a while that haven’t learned of these great platforms just yet.
Trade King is the first of the three. While it is aimed at newer users, it still will be valuable for veterans. They offer education on how penny stocks and investing truly work with information on trading methodology. The commission on trades is $4.95 plus $0.01 per share. There is also no account minimum, which is a nice bonus if you are looking to get started in penny stocks. There is a high value in using this platform so make sure to check it out and see if this is the right one for you.
The second platform is USAA and that’s a name you’ve most likely heard of. Their customer service has achieved a high rating so it is a familiar outlet, especially with their strong military service background. The commission for each trade is a little higher than Trade King as it is valued at $5.95 per trade and $0.005 for each share over 1,000 shares. The downside is that if you have made less than 25 trades per each quarter, that commission will boost up to $8.95 per trade. However, there is no account minimum so it is also a high value platform like Trade King.
The third and final platform that you should keep an eye on is eOption. Barron’s has rated eOption as the least expensive trader for both frequent and occasional traders alike. There is no account minimum just like the first two in this group, but the commission is even lower. At only $3 per trade (and no other added fees or stipulations) it makes eOption possibly the best option for penny stock trading. Since you don’t have to absorb many of the other fees that some platforms have, you are more likely to increase your investment and it will make you not as gun-shy to execute a trade.
Some of the other platforms that you have likely heard of don’t come close to offering the type of value that these three do. If you’ve noticed across other platforms, there is typically a minimum of anywhere from $500 all the way up to $10,000. If you are new to trading, this can scare you away as that is a large investment to make, especially for penny stocks. You would also be facing around a $10 fee for each trade, so that makes the three platforms above even more enticing.
If you are still wondering if these options are right for you, make sure to visit each site and try to weigh your best option. Consider how much you will be saving thanks to no account minimums and much lower commission on every single trade you make. That type of money will add up quickly and make your investment that much more worthwhile. There’s a lot to lose and gain on the market, but with these platforms, it’s more likely that there is a lot less to lose.
Angie Picardo is a writer at NerdWallet, a financial literacy website where you can find advice on online trading platforms to strategies to analyze investments.
Posted by John Kolb at 6:41 PM