Can You Buy Penny Stocks Without a Broker?
Penny stocks, also known as a “micro-cap stock” or “small cap stock”, is a publicly-traded stock with a very low price per share, usually under $5, sometimes less than $1 (indicated by the name “penny” stock). They are typically issued by small, less-established companies. But can you buy a penny stock without a broker? The short answer, “Kind of.”
Technically if you wanted to buy any stock, albeit a penny stock, without a stock broker, you can. You just need to open up what’s called a self directed account via an online penny stock broker. Websites like ETrade, Scottrade, TD Ameritrade, Interactive Brokers, and the like all give penny stock traders the ability to buy penny stocks and sell penny stocks without having to pick up the phone, dial a number, wait on hold, and then speak to an actual broker to place a penny stock trade.
Though live brokers can give candid advice, the general time it takes to place a trade with a live person versus the time it take to place a trade yourself with an online penny stock broker can be the difference between making money with penny stocks or simply breaking even or losing money with penny stocks.
Unfortunately there’s no real way to buy a penny stock without some type of broker. Whether it’s a live person or a web terminal, in order to actively trade a penny stock and make money in the stock market, you’ll need a brokerage account to do so. Can you buy physical certificates of a stock from someone or a company? Sure you can but when it comes time to turning that stock certificate into something you can actually make money with, you’ll need to engage a stock broker. The only question you need to ask yourself is how much of a fee do you want to pay when you buy or sell a penny stock?