You deposit cash in your account. Then you find the stock you want to buy, enter the ticker symbol (i.e. SPY), select the buy dropdown box, enter the number of shares, then press enter. They'll ask you to confirm it. The transaction will go through in less than a minute. Scottrade will charge a commision fee of $7.00 which is among the lowest in the industry.
Don't get into penny stocks, you'll quickly loose your money. The reason the stock is selling for pennies is that the company is worthless. If you know nothing about buying stock, buy an index ETF such as SPY, SDY, or DIA. It is much less risky and will provide returns similiar to the general stock market index it represents.
Good luck.
Start an online brokerage account. Here's a list or you can use google:
http://dailyreckoning.com/the-best-onlin...
If you don't have much money to start with you should really pay attention to how much they charge per transaction.
The minimum you would need to start is about $500 although you could probably find a broker with a lower min if you looked (sharebuilder?)
Penny stocks have the HIGHEST risks of any stocks. They are frequently manipulated and have low liquidity (meaning you have a hard time selling them at the price you want). And generally if a stock is cheap they are struggling financially. You need a lot of knowledge and experience to be able to find decent penny stocks. Without it you're just throwing your money away.
The real problem with "penny stocks" is that they don't meet SEC regulatory capitalization limits (aka they are too small to be regulated by the SEC). THEREFORE, you really don't know what is on their books and how much to value the company at. You're just throwing money into the wind (and sometimes a pump-and-dump scheme).
"The reason I want to get into Penny Stocks is because the risk is low"
You are joking, of course?
Penny stocks are the surest way of losing your money (all of it!).
"The reason I want to get into Penny Stocks is because the risk is low "
Some people should not invest. Perhaps you are one of them.
Lots of good advice here. I use Scottrade and they are a fantastic brokerage if you just need a trading platform and you do research on your own. They do offer some helpful tools, but for me the biggest benefit is the low trading commission and their lack of any account fees. If you do end up getting a Scottrade account, you can use the referral code "WRBB1235" to get 3 free trades.
everything can be done online now. Go checkout scottrade.com :) they have a lot of incentives and promotions for beginners.
I'm making good profit with a binary option signal software called "autobinary signal". It's great!! Check here for more information ( http://forexsignal.kyma.info )
I am interested in investing and getting into buying stock. I have no interest in selling it, simply purchasing it. I would like to start with penny stocks but how do I purchase these stocks. Do I have to go to a trader? There are none around me. Thanks.
