The popularity of self-directed investing and the accessibility of online brokerage firms has made it possible for any investor to buy small and micro cap stocks online without a traditional broker. Brokerage firms have provided various options for individual investors, and their charges for each trade vary. Generally, opening an investment account doesn’t require a minimum amount. Some brokerage firms are dollar-based which allow you to invest a fixed amount of money automatically each month for buying certain penny stocks for a fixed fee.

So if you want to learn how to buy small cap stocks without a full service broker, you need to find financial institutions that offer online brokerage accounts, such as the Noble Trading and Zecko Trading that are directly linked to the Over The Counter exchanges on which most penny stocks trade such as the OTC BB, OTC QX, OTC QB, OTC Pink etc… Make a research on different companies and be familiar with their policies, requirements, structures, fees, and the options they offer. Once you’re able to pick a brokerage firm that suits your styles and objectives of investing, open an online brokerage account and follow the firm’s policies and protocols to the letter.

After creating a brokerage account, you can now supply your account with funds that you can use for your investments. You have different options for funding your account such as bank-to-bank money transfer, wire transfer or check. It’s also necessary to know about the transfer policies of your banking institution to avoid unpleasant surprises like lengthy waiting period from initial money exchange to the actual transfer.  Once the fund transfer is completed, the penny stock market is now open to you and you can start trading. You may log in to your account at any time and trade as often as you want and as your funds allow.

Keep in mind that when you purchase penny stocks using these online brokers, you’ll be putting all the workload of trading on yourself. Penny stock brokers generally know the ins and outs of the stock market that the new investors might not know about. However, once you obtain enough knowledge of the market over time through trial and error of trading, you should be able to handle the trades yourself. So I recommend you make your first few trades very small. You need to do your research well especially when deciding on the particular micro caps or small caps you want to buy. Just like the bigger exchanges like the TSE, S&P 500, NASDAQ etc… the penny stock market is not as much about luck, but more about research and trading skill. Therefore, it’s important to be well-informed about the stock market before you attempt to buy penny stocks online without a full service broker or some other guide.

Want To Know What Small Cap Stocks I’m Recommending Right Now?

If you are interesting in learning about a few hot penny stock opportunities I  feel could be the next big thing then I’d encourage you to subscribe to my newsletter called: Paul’s Penny Stock Insiders… as a thank you ‘ll give you a report entitled “The Only 3 Penny Stocks We Are Recommending Right Now (and Why)“.