Joining the stock market can be your introduction to an exciting but volatile world – after all, your decisions can always lead to you either earning or losing money. If you’re planning to swing or day trade, be extra cautious and diversify your portfolio to minimize risks. Now, here’s what you need to know how and where to buy penny stocks from the different platforms available online.
A simple search will lead you to a confusing amount of information and apps – muddying the waters for most first-time investors, myself included. We’ve all been there, and after experimenting with these platforms in our own lives, we at Penny Stocks Today are happy to share our best picks.
If you’re entering with little to no knowledge of the stock market and wondering how or where to buy penny stocks, Robinhood is a beginner-friendly trading platform with outstanding user experience. The platform is catered to beginners with tons of helpful knowledge and features that’ll make your first-time experience much more enjoyable. You can make your trades straight from your smartphone and can earn free shares using your referral link, so it’s definitely worth a shot. Even though Robinhood also operates on computers, we don’t recommend it since other platforms are better-suited for that. Also if you’re working full-time and need longer trading hours you might feel a time crunch with Robinhood’s market hours – 9:00 AM EST to 4:00 PM EST – which are shorter than other trading platforms like WeBull.
Less user-friendly than Robinhood, the switch to Webull could be difficult at first. However, you’ll benefit from Webull’s extra data and extended hours. Those additional hours will offer more trading opportunities in addition to its access to cryptocurrencies and paper trading. Paper trading is a very useful feature as you learn the ropes because dealing with fake money will give you real experience without the risk. Webull has a desktop friendly platform as well which is helpful for accessing its abundance of detailed charting, technical indicators, customization features, and market data. Despite all these resources, Webull lacks the educational support that beginner traders might need starting out. But with practice and patience, any user can master Webull’s interface and enjoy all that it has to offer.
thinkorswim is a trading platform under TD Ameritrade that offers Forex trading, access to foreign stocks, bitcoin futures trading, and numerous stocks that aren’t available on Robinhood or WeBull. You can also trade in small market cap stocks like OTC market stocks. But its important to consider the fees associated with OTC trading which are listed as a $6.95 commission applied to online trades of over-the-counter stocks. Thinkorswim excels in providing educational content, research, and paper trading practice as well. However, to access certain features like level 2 market data or trading options, your account will first need approval. The UI will may require some practice but the many opportunities and additional support give you excellent exposure to everything the stock market has to offer. Yet, with these features comes the possibility that you could be investing in a scam or pump and dump. Unlike Robinhood and WeBull, users on thinkorswim must be extra cautious because of the volatility of low market cap stocks.
Keep in mind that there are certain rules such as the PDT (Pattern Day Trader) rule which limits users to trading only three times per five trading days. This means that if you purchase a stock and sell it on the same day, it will count as a one day trade. However, some exchanges will allow you to trade using a cash account which lets you avoid PDT since you’ll be able to trade and sell on the same day without being marked. You’ll still have to wait for your funds to settle when using a cash account but for some, this may be useful.
These were some examples of where you can buy penny stocks For more educational stock market content and ideas, feel free to subscribe to our newsletter and join our alert room on telegram. We post ideas and valuable information to help our subscribers become better traders.
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