Investment is one of the riskiest activities. You can never know whether your expectations will be justified or not, whether you will become the next millionaire or, conversely, lose all your investments. That is why, in order to become an investor, you need to go through a long approval process. But there is another way to become an investor: all you need is just a few minutes to choose and download the application from our list. Guessed what kind of investment in question? Of course, Penny Stocks! Let’s look at them more closely.
What is Penny Stock?
We are sure that among our readers, there are people who hear this term at first. Hence, before we go on to describe investment applications, it would be appropriate to pause a little and tell more about penny stocks Rules. Have you already know it? So, skip the section and move on.
According to the U.S. Security and Exchange Commission, penny stock is a “security issued by a very small company that trades at less than $5 per share”. What does it mean? Penny stocks like the common companies stocks can be traded on the security exchange, but the minimum amount you need to buy and the amount of investing are significantly less. For example, you can become an investor by buying the stocks on less than one dollar. The basic principles are low liquidity, low price, and wide spreads.
How to choose the penny stock application?
Investing is always risky and threatens us with a loss of money, therefore, even when it comes to such small amounts as, for example, $10, you will still take it seriously. Here are the basic features you need to take into account while choosing the app.
The quality of service and support
Sometimes situations may be unforeseen, for example, during the evaluating level of trade, the trading desk is becoming unreachable. In such cases, you want to quickly get the answer to what is going on. It is about the app’s service.
Penny stocks applications are the middle mans. Therefore, they take a commission. This fee depends on many different circumstances, including the volume of trades.
In investing activity, every millisecond can change the situation. Hence, it is important to have an easy-to-use interface with good navigation.
Each application provides you access to the stock markets. Which one exactly? This is already a question. Be sure to check the number of shares that are available in each application before using it.
Safety and speed
It seems to us that it makes no sense to repeat why security is so important for such applications, as well as the speed of operations.Now, you have already known what is a penny stock and how to evaluate the applications. It’s time to learn more about penny stock apps. Our team has already prepared for you the list of the 5 best 5 applications for trading. Enjoy!
The first one is TradeStation, owned by TradeStation Group, Inc. It is one of the oldest companies that provide brokerage services since 1982. Choosing their applications, you can be sure of the reliability of the platform and data safety. Moreover, they have a number of useful features:
- Hot Lists, Quotes, and Matrix;
- Tools for analyses and real-time statistics;
- Instant mobile notifications about the important events;
- High speed of working.
Interactive Brokers is another big player in the investment market arena. This company has 24 offices in 12 countries. Here you can trade not only penny stocks but also options, futures, forex, bonds, and other securities. The most pleasant fact is that although the application has a commission, it is very small — from $0.0035 to $0.005 per share. The exact amount depends on your trading volume. Similar to TradeStation, the Interactive Brokers app has a wide range of trading options, analyses tools, and other useful features.
Another great application that has a clean interface and a lot of trading options is TD Ameritrade. Here, you can get a clear view of your portfolio performance as well as of the whole market. The real-time quotes, integrated charts, and other statistical tools are available on your smartphone. Also, you can switch on the notifications and get instant price alerts. In addition, the application has a section with the latest industry news that allows you to stay up-to-date without leaving the TD Ameritrade platform. The application is available to download on the Android and iOS devices.
The name for the application was not chosen by chance. Remember Robinhood, the hero who took money from the reach and distributed them to the poor? It is this principle that underlies the application. The unique feature of the Robinhood app is that you can trade without fees or commissions. Here, you can choose the amount of money you want to invest (there are no limits), build a portfolio, and get real-time information about the trading. Another much loved feature is the speed of their support team that answers to your questions within seconds.
The last application we would like to tell you about is Fidelity. Unlike Robinhood, it uses the commissions, but their level is incredibly low — that makes the application the bright figure on the low-cost brokerage market. In addition to all the benefits Fidelity has, like high working speed, low fees, great analysis tools, it also made a step further and implemented the risk-averse protection feature for investors. Before you are allowed to trade on the platform, you need to have a small talk with the company representative that’ll tell you about the risks related to the investing activity.
Want to Be An Investor?
In fact, penny stock trading is opening a great opportunity for all those who want to participate in investing but do not have a sufficient amount of money. Are you one of them? Have you already invested the money? In what company? Did you use the application for it? Write in the comments below.