Buying penny stocks—typically defined as stocks trading for less than $5 per share—is done through an online brokerage account. Because these stocks are highly volatile and often trade on over-the-counter (OTC) markets rather than major exchanges like the NYSE, choosing a broker with low fees and reliable OTC access is critical. 1. Choose a Compatible Online Broker
: Some brokers, like Fidelity, require you to sign a specific agreement acknowledging the high risks of penny stocks before you can trade them.
: Complete an online application with your personal details, such as your Social Security number and employment information.