day trading,day trader,stock

What’s The Approximate Initial Cost Of Investing In Penny Stocks?

I want to invest about $1,000 in penny stocks. How much more money would I have to fork out to get that done by a broker?

This entry was posted in day trading and tagged , , , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

2 Comments

  1. vvswarup
    Posted 2010/03/09 at 5:04 pm | Permalink

    I can’t speak for other brokers but my broker is Scottrade and they charge $7 per trade. For stocks under $1, there is an additional charge of 0.5% of the value of the investment.
    Let me point out that penny stocks are a bad investment. Penny stocks describe those companies whose stock cannot be traded on an organized exchange like the New York Stock Exchange because the company does not fulfill one or more of the requirements of the NYSE. Penny stocks are typically traded over-the-counter (OTC), also known as the Pink Sheets. Investing in penny stocks is highly speculative. As an investor myself, I would not recommend penny stocks for anyone. Instead, I would recommend safer investments like mutual funds and index funds.

  2. Gaytheist Buddha
    Posted 2010/03/09 at 5:18 pm | Permalink

    On-line brokers will charge $7 to $20 per trade, if those stocks can even be purchased through a broker.
    Penny stocks are a terrible investment. Put your money in the bank or buy index-based mutual funds.

One Trackback

  1. [...] What's The Approximate Initial Cost Of Investing In Penny Stocks … [...]

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>