What are penny stocks? They are the latest trend in micro-investments. We’re sure you have heard of stocks before, and penny stocks are pretty much the same thing but with one crucial (and beneficial for some) difference – they are much cheaper. You can participate in the buying and selling of these stocks for less than a dollar! Managing them via proper apps is the best way to get your toe in the water.
Named after a legendary hero that steals from the rich and gives to the poor. This is sort of like what the app will do for you. Sometimes the fees incurred from trading these miniscule stocks can outweigh the benefits, but that isn’t the case here at Robinhood. There are no fees or commissions for stock trading, especially ones that cost so little.
2 Interactive Brokers
Although there are fees with this app, they are significantly low. They are so low in fact that you are looking at $0.0035 to $0.005 per share depending on your volume. You can even choose fixed-rate plans meaning you get a flat rate per share so if you have a high volume of stocks, we suggest going for this option. Interactive Brokers also offers a wider range of trading options compared to Robinhood.
There are higher fees tacked onto E-Trade, but it’s still quite affordable and the fees also drop with more trades you make. What’s great about E-trade is it’s not only accessible through your mobile device, but you can gain access through your desktop, the web, and other devices. It’s a platform geared more towards active traders though.
This app comes with a lot of fees including commission fees and a monthly data accessing fee. All this can really add up but if all it’s okay with you then you can gain access to this superior trading platform through almost all electronic devices. You have the option of selecting per share pricing and that’s only good for those who don’t trade in large volumes. Their desktop version is easy to navigate and was even ranked #1 in 2017!
Offering trades lower than $5, Fidelity is a great deal for low-cost brokerages. If you aren’t a risk taker, Fidelity goes out of their way to protect you. Before you jump then gun and start investing, you can schedule a call with a representative to voice your concerns and learn about the risks. You get a choice of a wide range of accounts with no surcharges. That sounds good!
The top major benefit of penny stocks is, of course, their low price per share. They don’t cost much and are quite easily accessible and manageable thanks to these top apps. They serve as a great stepping-stone to eventually investing pricier stocks. They help you learn the basics and yield a higher return than bonds, for example. With the help of these apps and their penny stock alert services with low to no fees, you can test the waters and eventually become an expert trader!