How to trade penny stocks online without a broker

Have you been wondering on how to invest in penny stocks without a broker? You are not alone — a lot of investors feel like hefty transaction fees eat up the significant portion of their earnings.

If you are looking for ways on how to invest in penny stocks avoiding exorbitant brokerage fees, keep reading below. Direct investment is one way on how to invest in penny stocks without online brokers. Some companies have investors relations department that you can contact directly and buy stocks from them.

How to Buy Penny Stocks without a Broker

In case you are thinking of investing in a dividend stock, they may offer you a dividend reinvestment plan that will allow you to further enrich your portfolio. The only drawback when it comes to investing in penny stocks without a broker that not all the little companies have direct investment options which ultimately may limit your stock selections.

By all means check out the Directinvesting. Another way you can do penny stock investment without a broker is through OTC Markets and Pink Sheets, but beware this is one of the riskiest ways out there. Pink Sheet and OTC Companies do not list their stocks with major stock exchanges like NYSE or NASDAQ because these are usually companies facing bankruptcies or otherwise difficult financial times and therefore cannot meet their strict listing criteria.

We do not recommend you buy penny stocks through these markets or through any penny stock lists suggested by them because too many scams and financial losses stem from these kinds of stocks.

If you are deciding on how to invest in penny stocks and cut brokerage fees, one way is to find a discounted broker with minimal fees and very often zero account minimums so you can start trading for virtually very little money. Having a discounted broker means that you will have access to purchase all sorts of hot penny stocks , not just stocks from companies that have direct investment potential.

The first step in figuring out how to invest in penny stocks is to open an online trading account. Please be advised that penny stocks are rather thinly traded and there may not be enough sellers of a particular stock at a given time, therefore you will have to place a limit order instead of a market order by entering a ticker symbol, quantity and specify your buy price.

The buy price would typically be the latest quoted price of a penny stock.

How to Buy Stocks Online Without a Broker - Direct Stock Purchase Plans

Verify your information before clicking the processing button to make sure all the amounts and pricing are correct. Most online discount brokers can also fulfill your order online if you do not have immediate access to the Internet. Just a final word of caution for those who are trying to learn how to invest in penny stocks is to never trust any penny stocks newsletters or alerts you might be getting through the phone or e-mails.

Best Brokers for Penny Stock Trading - The Simple Dollar

The penny stocks risks are just too high to not do the research yourself! Home Privacy Policy Contact Us. Penny Stock Lists Penny Stock Tips Penny Stock Types Penny Stocks Trading.

How to Invest in Penny Stocks Online without a Broker? How to Find Penny Stocks before They Explode? Promising Penny Stocks to Invest in - How to Spot Them? Penny Stocks for Dummies: Privacy Policy Contact Us.