Penny Stocks Google
Whether you start investing with penny stocks or expensive stocks like Google, or the many-priced stocks in between, you need a brokerage account. An online account offers the cheapest way to trade. This is a plus. However, if you want your hand held, this may not be the route for you. Online brokerage trading accounts are inexpensive because they offer limited services.
No matter what the $ investment you make in the trade, a brokerage firm always needs to assist you in these transactions. Therefore you always have a fee attached to the buying AND the selling of your trade. Online firms provide minimal service to their customers and have low fees. Full service brokerage companies – like Schwab charge more. They also provide a higher level of customer service like having your own broker to talk to instead of reaching a call center and getting the next available customer service representative.
There are vast differences between the various online brokerage firms so, do your homework. A common factor, if you’re trading online, is that you have minimal services offered.
Michael Cohen from Doubling Stocks recommends Zecco.com I looked at their website and, as Michael indicates, their “free trades” allow larger profit margins for small investors. I like the idea of “free trades” with Zecco, especially for newcomers. Zecco does require a minimum set-up amount of $2500 to qualify for free trades. You can open the account with any amount (this is good) but are not eligible for the free trades with less than $2500 opening balance. Be sure to check the details on all mandatory fees because, as we know, there is no such thing as a free lunch. Zecco needs to make money too.
Be sure to check the details of your specific needs with your broker before you open the account. You can always change brokers later ( I changed 4 times!) but, getting it close to right at the beginning simplifies the stress overall.
I have traded with thinkorswim and they have very low-priced trades. Think or Swim offers a “Family and Friends” $50 rebate if you sign up through someone you know. If this sounds appealing, open your account with a friend or, notify me and we can set up a referral together. ThinkorSwim however, doesn’t allow a lot of the penny stocks to be traded on their platform. Not all brokers do all things. Did you know this?
Not all brokers trade all things! Talk and ask about a specific trade style you envision and see what the sales folks tell you. Also, different brokers require different minimum deposits to open an account. ASK QUESTIONS.
Here are some questions to ask before opening your online brokerage account:
- What is the minimum amount needed to open the account?
- What hours are you open for customer service calls?
- What is your minimum fee to buy or sell stocks?
- Is your fee based on 100 shares or a range of shares?
- Is there a monthly maintenance fee or minimum number of trades required for the account?
- Will I get real time (or delayed) information?
- If I move my account to another firm what is the charge?
I’ve had personal experience with the following online brokerage firms – Interactive Brokers, OptionsXpress, and Think or Swim. I’m just now trying Zecco and will keep you posted. They all have benefits and downsides. Be sure to ask questions but, don’t be afraid to try. You can change brokers easily and, usually without fees.
Bio
Chris Best has been trading since 2006. Before starting her trading career she read a lot and practiced with virtual platforms. She admits “There is nothing like the real thing”. Chris continues her education while trading for real. She has certificates of completion in Stock Trading, Options Trading, and Basic Futures. Contact her at Skato51@gmail.com and view her website [http://www.HelpingWomenTrade.com]
Chris has a M.A. in Communications and B.A. in Education. To success!
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