You may be able to trade some shares with a telephone broker. It won'y be cheap (UK commission and commission with US broker).
You will need to sign a W8-BEN but this is all changing under FATCA (more problems, more expense).
You will lose money trading penny stocks as you are inexperienced, unknowledgeable and not in with the right people.
Tim Sykes-never heard of him.
Find out about OTC, BB, Pink Sheets and why they are so dangerous.
All UK equities are penny stocks because UK shares are quoted in pence. Only uneducated novices and scam artists see a difference. What you assume as "penny stocks " are low priced ,small companies with illiquid trading volumes and often very large spreads where a trade as small as ￡50 can send a price soaring.
"A fool and his money are soon parted"
You do realise that some shares in large companies are traded for pennies, but a true penny share is normally in a company so small/new their shares cant be traded in the normal way so are traded on a matched bargain basis
(this means if you want to buy say 1000 the dealer has to search around for somebody to sell 1000. and has to adjust the buying price price to entice somebody to sell
Similarly if you want to sell they have to search around for somebody willing to buy and decrease the price to entice somebody to buy
If they cant sell you could be stuck with the shares until somebody WILL buy (cos not everybody is stupid)
THIS means the difference between selling price and buying price can be huge so the shares have to increase a lot just for you to cover the trading costs)
Penny share trading aint a scam- its that only idiots do it.
You think if anybody really made loads of money doing it over a long period they would advertise how they did it and sell training videos instead of making even more money?
You do know that tim sykes makes his money from selling videos and not trading (and makes more money from these than he made trading).. The last time he was in the market he lost money (but he dont advertise this)
Do you want to lose your shirt?
then,,, trade penny stocks
trading platform? how about a brokerage?
Hi All, I'm attempting to find out more information on penny stocks and trading in the UK. Please could anyone respond the below questions I still have? Please do not link to other questions or articles as I find them confusing and don't give straight / honest answers.
Q: What is the best penny share trading platform to use?
Q: Can you buy shares via a trading platform or do you go via a broker?
Q: What is a good broker with cheapest fixed rates?
Q: Can I trade penny stocks in the USA from the UK? I tried to sign up for a USA platform and it required certain tax details from me?
Q: Is there money to be made on penny stocks or is it just a scam? I see lots of articles of people who claim to make X amount of money in 30 days etc.
Q: Has anyone used any of Tim Sykes training material? Does he cover beginners with low budgets?
Any other advise / opinions would be very helpful. Hopefully this clears it up for others who are also wondering where to get started.
Many thanks, much appreciated.
Lee
