Timothy Sykes-What is a Penny Stock Broker?
What is a Penny Stock Broker?
You can see my favorite penny stock brokers HERE and all I can do is warn you about these bad brokers, but below is also a cool infographic that explains what a penny stock broker actually does:
If you want to buy stocks, you can’t simply call a company and buy its shares. You must deal with a broker. A broker is a middleman who specializes in selling these shares. A broker can be an individual, a brokerage company, or an online platform. So what is a penny stockbroker?
A penny stock broker runs the account that you’ll use to log in and trade and is responsible for making sure that your shares are bought or sold after you place your orders.
Who can be a stockbroker?
Not just anyone can be a stockbroker. To become a stockbroker, one must pass two exams which are administered by the Financial Industry Regulatory Authority, Inc (FINRA): the Series 7 and the Series 63 exams.
Types of brokers
There are two key types of brokers: full-service brokers, who provide services such as investment advice and retirement planning, and discount brokers, who offer more limited services but charge much less.
How do you choose a penny stockbroker?
Some stock brokers will try to charge you with hidden fees, including:
- Mandatory Frequency of Trading
- Annual Maintenance Fee
- Charges Toward Withdrawal
- Inactivity Fee
- Minimum Brokerage Per Share Charges
- Large Order Surcharges
- Minimum Account Balance
- Minimum Brokerage Per Order Charges
- Surcharges For Low-Priced Stocks
Either be sure to read the fine print, or be sure to ask about these fees before you commit to a broker. It’s best to ask right away, rather than being unpleasantly surprised later on.
Other considerations when choosing a penny stock broker
In addition to price, consider these things before signing on with a broker:
- Volume Restrictions
- Research and Analysis Tools
- Short Selling Restriction
- Customer Service Phone support
Finally, don’t forget to ask around for reviews of particular brokers!
Do you have a penny stock broker?
Share
How much has this post helped you?
(No Ratings Yet)
Loading...
Hey Everyone,
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.
This is such an amazing blog. Thank you for sharing this. Looking forward to more article.
thanks for the information
Hey Master SYkes, thanks for another great infographic.
They are definitely very helpful.
I have being learning a lot with Master Sykes here:
https://profit.ly/guru/timothysykes?aff=11288
Hey, nice to meet you.
I’m new and want to open an account but as foreigner i don’t know where to start
Do you know the good ones to start for small account?
Beside Interactive Broker
IB is best
Hey, I want to open an account but have no idea where to open.
I’m planning to open small account for foreigner
Can you help me?
Beside Interactive Broker
hi
I’m new to trading but eager to trade
is there a way I can be assisted to trade with minimizing losses
Practice using https://stockstotrade.com papermoney trading
I don’t do investing but I do love the field of entrepreneurship. Thing is, when you start making lots of money, you don’t want to retire. Especially when you have the potential to make money online 24 hours a day. How sweet of a feeling is that to wake up in the morning with an extra $500 to $1,000 from affiliate marketing, blogging, and the side hustle? 🙂
Yup, see https://profit.ly/affiliate too!