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How to Buy Penny Stocks on E-Trade Financial Corporation Platforms


For the uninitiated and those who are new to online brokerage, often the question is how to trade penny stocks. I am sure at some point of time, you have heard about the suggestion to E-Trade penny stocks. Well, are you wondering about the link that E-Trade and penny stocks have?

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Well, the fact is that E-Trade has been one of its kind pioneers in online brokering services. One of the leading financial companies in US today, they have been the flag-bearers of the digital makeover of the entire stock trading procedure.

Whether you are a short-term trader or a long-term investor, E-Trade has made a name for itself providing innovative solutions without fail always. It offers to make investors and traders financially independent by not just providing them with a platform to trade but also educating and guiding them in the overall training procedure to master the markets.

So, I am sure that the question that is bothering you now, is E-Trade good for penny stocks or can you trade penny stocks on E-Trade? When it comes to penny stocks, often E-Trade is the first port of call for most seasoned investors. Not only because of the digital edge they provide, but traders also value the continuous learning process that helps them to stay ahead in the game.

We all understand that investing in penny stocks is no child’s play. The chances of getting your hands burnt are quite obvious. So some help and guidance can only help you hone your understanding better. It will help educate you about the risks involved and the gains possible with a lot more clarity. This is exactly where E-Trade penny stocks come into play.

As you all know penny stocks are rather illiquid counters and often trade is on the basis of a limit price rather than actual market price. The problem in this context is identifying the right value. This is because, given the low volumes and the really low prices, even a difference of pence could determine loss or profit for the entire investment position.

How to Buy Penny Stocks on E-Trade Platforms

How to Buy Penny Stocks on E-Trade Platforms

So that brings us to the next area of concern in terms of penny stocks trade. It is about how to invest in penny stocks on E-Trade? It is very important to get proper guidance on how to buy penny stocks on E-Trade and more importantly, how to find penny stocks on E-Trade?

Well at the very behest, a basic fact that should give a lot of relief to people keen about exploring E-Trade is the simple fact that E-Trade and penny stocks are old friends. In fact, as per a lot of studies, E-Trade has been ranked amongst the top sites to undertake penny stocks trade. In a highly dynamic stock market with changing parameters every second, to continue to hold the top slot needs a significant amount of excellence in terms of both service as well as research. The reason why E-Trade penny stocks has managed to hold on to this position is essentially on the back of

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  1. Commendable service to ever customer that they handle
  2. Remaining ahead of peers in terms of providing top quality product and platform
  3. Maintaining its edge with regards to innovation as well as wealth management
  4. Cutting edge research that helps customers to never miss a profit making opportunity.
  5. Helping investors unlock long-term value in the stock market.

Now we delve into the key issue of how to invest in penny stocks on E-Trade. Well, your entire journey of how to buy penny stocks on E-Trade starts with the details provided E-Trade on penny stocks.

Normally for an average investor or trader with the moderate expectation of gains, their list of Top 5 penny stocks or the All Star list provides unbiased research about some highly trade worth penny stock. The next step addresses your key query about how to find penny stocks on E-Trade. Once you click on the ‘Trading’ ‘Portfolio’ tab you will be able to access the stocks that E-Trade might have a position on.

Whether they have upgraded or downgraded these counters and on the basis of what will be amply borne out in the in-depth research that accompanies their stock pick. This comprehensive list of stock picks helps to simplify your quest of how to find penny stocks on E-Trade and also enables you with a basic understanding of how to buy penny stocks on E-Trade.

After going through all the necessary research and brokerage views along with charts highlighting the stock performance, you can take a call on buying a penny stock on E-Trade. The stock screener tab in the research segment of the E-Trade platform enables you to select the stocks. Based on various factors like

  1. The key sector
  2. The quality
  3. The price
  4. The market cap
  5. The volume

You can make your own list of potential penny stock buys/sells on E-Trade. The fact that E-Trade rates all these counters on a scale of 1-5 goes a long way in helping you pre-decide on the list of penny stocks that you would want to bet on.

Now that you have analyzed and identified the E-Trade penny stocks that you would like to bet on, only one step is left. You have to go ahead and buy these by simply clicking on the buy button on E-Trade trading platform. This is also the place where a buyer has to mention the exact number of stocks they want to buy, the amount at which they want to finalize the deal and type of pricing that they would want.

But that is not all. E-Trade and penny stocks have a deep relationship, and customer convenience is one aspect that they do not compromise. So after an investor/buyer has filled in all their specification, they can also preview their order. This step is crucial in how to buy penny stocks on E-Trade because it helps you eliminate potential mistakes or misses that might have otherwise gone unnoticed.

The process of selling penny stocks on E-Trade is pretty much similar to that of how to buy penny stocks on E-Trade. Once you fill in details about the total number of stocks to sell and the price at which you want to exit, you just have to select that stock and click on the sell button. Here again, you can preview your position before the final click.

Therefore E-Trade penny stocks are not just about how to invest in penny stocks on trade, but also helping you grasp the essence of quality stock market investment in its true sense. Learning how to buy penny stocks on E-Trade often becomes almost cakewalk given the depth of their research and the ease of use that the platform is associated with. Given the details with which every stock trade is approached, you will soon learn to understand the ropes of the trade and how to go about buying and finding penny stocks on E-Trade.

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E-Trade Fees on Penny Stocks

E-Trade Fees on Penny Stocks

You can start off your E-Trade penny stocks investment journey with as little as $500 worth of initial investment. In case you are worried about the E-Trade fees for penny stocks, investors convenience and E-Trade’s customer centric approach gets appropriately highlighted once again. You can open the E-Trade penny stocks investment account absolutely free. Investors or traders are only charged for the trades that they undertake on E-Trade, irrespective of whether they are buying or selling stocks.

The terms of payment in case of E-Trade fees for penny stocks is quite clear and easy to understand. They do not have any hidden or built in charges whatsoever. The basic rate per trade is priced at

  1. $9.99/trade for a first time trader or an one-off transaction
  2. $7.99/trade for traders who undertake a minimum of 150 trades every quarter
  3. $6.99 per trade for frequent trader

Not just that, E-Trade remains committed to the cause of its penny stocks investors at every point. The E-Trade penny stocks forum is known to keep the different cross section of investors connect and maintain investment interest in stocks. This helps the entire trading to become a little more abuzz with activity and a little less drab.

However, whenever you are fixing target price for a penny stock buy/sell on E-Trade, you must be careful about taking into account the exact E-Trade fees you are paying for penny stocks that you might undertake a transaction on. Your final profit figure must exclude this cost and then analyze. Given the slightly higher billing rates for newcomers, the focus often should be on them. It is not just important to factor it in your profit calculation but also to support the quality of service that you have been enjoying thus far on E-Trade. This also rules out potential false trade possibilities.

How to Identify Penny Stocks on E-Trade

How to Identify Penny Stocks on E-Trade

While buying and selling penny stocks on E-Trade are not very difficult to learn, the challenge is often in identifying the right counters to buy and sell. The question that we seek to address now is how to find penny stocks on E-Trade You need to identify the appropriate penny stocks on E-Trade to make a profitable investment strategy. Of course, the research and the rating on E-Trade helps you identifying right stocks, find out how much percent of your E-Trade fees is being eaten up by the transaction charges.

Apart from giving you a lowdown of some of the top trades and top losers, you also have special features on E-Trade that enable you to keep adding lucrative alternatives to your trading basket. Of course, the kind of trader that you are goes a long way in determining the right tools to use. E-Trade has different trading alternatives for

  1. Beginners
  2. Investors
  3. Active traders

Additionally, E-Trade members can take advantage of several other features as well. You will get access to free checking services across all ATMs all over United States. E-Trade also simplifies the over penny stocks position that is ideal for an investor depending on their risk appetite and ability to trade. The active trading matrix on E-Trade provides live updates 24×7 to all its members for their additional convenience.

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But remember it is never easy to buy penny stocks whether on E-Trade or otherwise. They are available at such cheap rates for a reason. It is predominantly because of the questionable fundamentals or low business prospects. In that context, then you have to understand how much of your investment is worth risking in these counters. While E-Trade does provide detailed analysis on penny stocks, you must be able to make an investment call on your own based on the target you are looking at. You must be careful not to over stretch your limits or expose yourself to too much of risk.

Advantages of Buying Penny Stocks on E-Trade

Advantages of Buying Penny Stocks on E-Trade

Some of the cardinal advantages of using E-Trade for your penny stock trade include:

1. Bank Account

This is by far the most profitable feature of undertaking E-Trade penny stocks trade. Whatever cash is not used in trade can easily be transferred to your savings account, and the E-Trade Bank pays almost 4 times the commercial bank rates. Additionally, investors with E-Trade penny stocks also get the advantage of having their accounts FDIC insured, and they do not have to maintain a minimum balance.

2. Opening deposit is low

You can open an account on E-Trade for a low as $500. This makes it a lot more affordable alternative for small investors

3. Reinvest Dividends

Additionally, E-Trade penny stock traders can also look at reinvesting the dividends that they are earning from the various stocks that they are invested in. This helps you to increase your wealth even further by compounding the overall amount.

Disadvantages of Buying Penny Stocks on E-Trade

Disadvantages of Buying Penny Stocks on E-Trade

However, there is another side of the coin as well. There are some concerns about opening an E-Trade account for trading in penny stocks.

1. Account Transfer Fees

Though the overall fees for opening an account on E-Trade has been brought down, they still have a very high inactivity fee, and also the rates of account transfer is quite high.

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2. Real Time Rates For Active Traders

Only active traders on E-Trade have access to real time rates. But that comes at a premium pricing. The basic account that you can open for free will give you a rate which is 15 minutes delayed. In penny stocks trade, that can impact profitability to a large extent.

E-Trade penny stocks can be a profitable concept depending on the horizon of your investment and overall risk appetite. Moreover, you need to be careful to factor in the transaction charges involved. Your trade can be profitable only when you earn profit excluding these charges. While you can learn how to find penny stocks on E-Trade, the ultimate trading call has to be yours. That will help you decide if E-Trade is good for penny stocks.

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