Are high brokerage fees scaring you from buying penny stocks? There are ways to cut out the middleman and invest in some of the best penny stocks without having to use a broker. Some of the most opportunistic and profitable companies in America can be invested in without even opening a brokerage account. Many aren’t aware that this even exists!
Sometimes having a knowledgeable broker can be helpful with investing but it may not be worth it when it comes to penny stocks. If you do not want to pay brokerage fees, why should you have to? Penny stocks are so cheap to begin with, being less than $5 a share that they can be great ways to invest for beginners who don’t have much cash to start with. You could invest just $100 into a penny stock and sometimes make a very sizable return. Being charged brokerage fees can take a big portion of your profits though.
You will need computer access to trade without a broker. Many internet sites today act like a bridge for investors the penny stock market. Traders can get access to OTC stocks through these websites. Although these websites charge a subscription fee usually, they are much smaller than traditional brokerage fees and you can find one that charges once a month, once a year, or maybe just a one-time charge completely. You could be saving thousands of dollars in the long run by opting to trade penny stocks this way.
Many companies on the market use Computershare who provides the administrating of direct stock purchase plans for companies who want to sell their shares to the public without engaging a stockbroker. A direct stock purchase lets you buy shares of the Company without needing a broker. Not all companies listed on the stock exchanges offer a plan like this but there are many.