How to buy cheap stocks without a broker
Small stocks, also called cheap stocks,  are stocks that are priced below $ 5 or even below $ 1. Such shares are issued by small and unknown companies.
Definition of small stocks
The advantage of acquiring small stocks is that because of their cheapness, you can make huge profits.
The disadvantage of acquiring small shares is that they carry high risks, since they are not completely liquid and such shares are issued by companies with an unstable financial situation.
It is also difficult to find a buyer for small stocks, so it is difficult to sell them.
Small stocks are not traded on major exchanges such as NASDAQ or NYSE, so it is better to buy them without a broker. The speculative nature of small shares promotes their sale directly to the buyer through online brokerage services.
Determine that small stocks are really worth investing in. Companies whose shares are sold at low prices can easily go bankrupt, leaving you with useless pieces of paper. Therefore, trading in small shares is considered a very risky business, but if successful, it can bring a lot of money.
Money is not invested in small stocks for a long time. They mainly serve for short-term speculative transactions.
Never invest more than you are willing to lose.
Make sure you understand how over-the-counter stock trading works. Small stocks are traded on leading exchanges; they are sold over the counter.
You will have to buy shares at the asking price, and sell them at a price that you will set yourself.
Prices for the same stocks may vary by seller. Your profit will be the difference between the price for which you bought the shares and the price for which you sold them.
Purchase of small shares
Before buying small stocks of any company, gather information about it. Buying small stocks means investing in small, growing companies. Although it is most likely that it will not be possible to collect complete information, it will not hurt you to study the financial condition of the company.
You can find financial information about many small companies on Google Finance or Yahoo Finance.
The OTC Bulletin Board and National Quotation Bureau services will also provide you with the necessary information on over-the-counter trading in small shares.
A good opportunity to buy cheap stocks is an initial public offering (IPO). Such a step makes the company public, and you can find out about the IPO of the company from its prospectus.
Please note that you may be a victim of scammers. They often buy a large number of cheap shares in a company, and then begin to actively inflate interest in such a company, trying to prove that it is worth investing in its shares. Then, fraudsters sell shares at a higher price, while the company itself is likely close to bankruptcy. This circuit is called “pumping and dumping.”
Before collecting small stocks, always collect information, especially if you are advised to buy cheap stocks by phone, email, newsletter or advertisement.
Open an account on a stock trading website. On the E-Trade and TD Ameritrade sites you can create an account. You will need to make a small deposit to make purchases and pay fees.
These sites are great for trading small stocks as they allow you to keep track of changes in their prices.
After you learn how to understand the mechanism and risks of trading cheap stocks, you can start trading.
You can buy shares directly on the site. Use limit orders, as they will help you better control your transactions.
If you use market orders, you can buy stocks at inflated prices or sell them too cheaply, as many buyers and sellers often set prices that do not correspond to the real value of the stocks.
Profit from small shares
If the shares are sold at too attractive a price, and even advertised, then most likely this is a “pump and dump” scheme.
The best way to determine the reliability of investing in certain stocks is to pre-collect information.
It is worth investing in companies that have gone through bankruptcy and are engaged in restructuring, as their shares will be cheap, and after the restructuring they will increase in value.