Penny stocks are great because you could have $100 worth of stock and increase that value by an incredible number in a short span of time and I am talking about a few days even. Getting back to how to take advantage of these financial instruments to get a good return on your money, it is important to know again that they do not trade on the major exchanges.
How do you identify these penny stock brokerage houses? Simply by googling them. But, I would recommend the Sharebuilder program of ING, TDG Waterhouse and Scottrade just to give you some reputable names before you go looking. Speaking of Scottrade, I have been hearing that they are probably the best when it comes to discount brokerage and the $7 per trade commission that they charge is really unbeatable. Scottrade also offers a lot of free seminars on trading stocks at their location. So locate the nearest one and speak to the stockbroker about these great opportunities.