When you decide to start investing in the Penny Stock Market, you have to somehow actually pay for the stocks you buy. Most brokerage firms offer investors several different types of accounts, each serving different purpose. I present three of the most common types in the following article. The basic difference boils down to how particlular brokers view your “creditworthiness” when it comes to buying and selling securities. If your credit isn’t great, your only choice is cash account. If your credit is good, you can open either a cash account or margin account. Once you qualify for a margin account, you can (with additional approval) upgrade it to do option trades.
To open an account, you have to fill out an application and submit a check or money order for at leaset the minimum amount required to establish an account.
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