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Many years ago, when an individual was ready to invest in the stock market, he or she would have to place a phone call to or visit his or her broker at a brick and mortar investment bank or brokerage account. Over the last decade, do it yourself brokerage firms and platforms have exploded. Thanks to the internet, consumers can buy, sell, and research stocks for a fraction of the cost. Different online brokerage firms, however, provide different offers, different levels of customer service, and as it turns out, different prices. If you are investing in penny stocks, or have a moderate amount of money to invest in the stock market, trade fees can make a big difference in your profit margins. Using the right broker can save you hundreds, if not thousands or dollars every year; and those savings can add up. Choosing the right broker is as important as choosing the stock in which you’d like to invest. On-line brokers charge fees for balance transfers, commissions, and for executing transactions. Some online brokerage firms offer more customer service, and some offer very little in the way of customer support. And the level of support you receive may or may not be representative of the fees you are charged. One of the most popular on-line trading forms, E-Trade charges $12.99 for both market and limit orders. This includes penny stock trading. Investors need a minimum of $1,000 to open an account, and they charge a $40.00 fee quarterly. E-Trade provides limited customer support. Fidelity is another popular online trading site. While it requires a higher balance ($2,500) than E-trade, they don’t charge a quarterly service fee. Fidelity charges $19.95 for market and limit offers, but also offers more research than other sites. Fidelity is designed to provide the client service of a full service broker with an online convenience. Scottrade is one of the least expensive online brokers. They charge $7.00 for market and limit orders. There are no quarterly or annual fees, so you are not penalized for long periods of inactivity. They do, however, charge an additional fee of 0.5% of the total principal. This can add up for penny stock traders. Ameritrade charges a flat $10.99 fee for all market and limit orders, including penny stocks. You need to open with and maintain a balance of at least $2.00o, or you are charged a $15.00 quarterly fee. You are also charged the fee if you make less than four trades per month. This site is ideal for an active, autonomous investor. These sites vary in the amount of customer support they offer. Most sites offer some level of customer service, via phone, email, or instant chat. On many of these sites, you are more likely to receive technical support as opposed to financial or investment advice. Saving on brokerage fees is a smart way to increase your profit and revenue, especially if you are investing in penny stocks. If you’re researching which stocks to buy, take some time and research where you should buy them. Are you looking for more information regarding online brokers? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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