The world of stock investing is divided up into two main groups: those who swear by their stock broker and those who swear they don’t need one. Often times, this group is divided up along experience lines: those with trading experience do their own trades online and those without still rely on a broker. If you are one of the millions of Americans who dabble in penny stocks, is it worth it to get a penny stock broker? Let’s take both sides of this issue and break them down for further analysis.

No

For folks that feel that using a penny stock broker is unnecessary, there is usually only one litmus test you need to pass: are you computer and Internet savvy or not? The argument hinges on the ideas that if you can visit various financial websites yourself and perform the same exact research that your broker is doing, than you simply don’t need a broker at all. There are enough online trading websites that are in constant competition with each other and, therefore, helping to keep costs and fees down, so that you simply don’t need a relic like a broker eating up your profits.

Many folks who choose to do their own research and their own investing enjoy the challenge presented by the idea of having to do it all yourself. These advocates point to the hundreds of professionally and independently run financial news websites and blogs as their source for information and news. With the help of online trading sites that provide live tickers and stock monitoring, many young traders have happily jettisoned the weight of a broker and have taken the full responsibility of their financial future themselves. Clearly, this method isn’t for everyone. It requires a lot of energy, a lot of commitment and the feeling that you really can do it all. Otherwise, you may fall into the yes group.

Yes

There are several key reasons why someone might use a penny stock broker. First, a penny stock broker can act like a sounding board for all of your investment decisions. You may be keenly interested and educated about the financial choices you have made and are considering making, but it isn’t your profession to know about the complicated world of investing. Your penny stock broker, on the other hand, has an entire lifetime of spotting trends, staying ahead of the curve and offering sound advice. Many investors believe that the cost of a broker is small potatoes compared to what you get in return.

Others point to the perceived volatility of penny stocks and feel that having a broker to screen out bad investments is worth ten times what they charge in fees. Others simply feel that, even though they enjoy watching their stocks move online or on the financial networks, they simply don’t have the time to invest that they would need to be able to invest without a broker by their side.

No matter which group you fall into, you should not consider investing without performing the necessary research at any time.

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Tags: buy penny stocks, Penny Stock Brokers, penny stock investing, penny stock reserach