Best Benefits Of Penny Stocks Guide
Updated July 23, 2021
Benefits of Penny Stocks
Some people are sceptical about trading penny stocks.
But some people are fond of penny stocks and would recommend them to their partners and colleagues.
Lets see what the deal is with penny stocks.
Defining the penny stock
The penny stock is defined as small company stock which does not cost too much for traders.
In common cases, it is even less than $5 per share. But the small value of the share does not mean that it is less valuable than the other stocks.
Some penny stocks are even traded in the prominent platforms like New York Stock Exchange or NYSE.
The penny stocks are usually traded through the Over-The-Counter or OTC methods.
Where is it transacting?
Transactions take place through the OTC Bulletin Board or OTCBB.
If you're looking for an alternative, you could check on the Pink Sheets.
The quotations of penny stocks are conducted in digital measurement.
The market associates penny stocks with smaller companies.
It is different from conventional trades because it is only viable if the companies lack liquidity or there are ready buyers in the marketplace.
That is also the reason why the stocks prices are very low.
Because of the low liquidity, investors will have problems in selling their stocks because there might be much lower number of buyers when that happens.
The low liquidity also challenges the investors to find the price which really shows the conditions of the market.
Because of several reasons we have mentioned above, we could conclude that penny stocks are highly speculative.
That means even a tiny change in the penny stocks, the investors can possibly lose an enormous amount of all of their investments.
What drives the penny stocks prices?
As with other kinds of stocks, the prices of penny stocks can fluctuate.
These stocks usually come from growing companies or young companies with limited resources and funds.
If you have been around in the world of trading, you will surely get familiar with how the risk can happen. A long established company's stock is not too risky to take.
Small companies are the growing. They have not matured yet to deliver the great results for the investors.
Thats why it is not surprising that penny stocks are a great choice for traders who have a high tolerance to risk.
Although there are many ways to look at the penny stocks potentials, these have higher levels of volatility, resulting in higher rewards potential, and vice versa.
Obviously, with such high risk, it is not for the faint-hearted.
The advantages of penny stocks
Penny stocks, despite the risks which we mentioned above, come with abundant advantages. You can surely benefit from penny stocks if you do your research.
The low share price with potential high gain
From the moment you have heard about penny stocks, you know what to expect.
They are called penny stocks because they cost pennies to attain.
You can even get a stock trading for $.0001.
You can trade for that low.
With those kinds of share prices, you can purchase tons of them at once.
It does not require large capital
The stock market is not so friendly for small time investors.
Investment in financial markets usually requires large amounts of funds to invest.
It is undeniable that those with larger investment capital can use their funds to gain greater exposure.
But it will not work for most of us who do not have as much capital.
Penny stocks allow traders to trade with comparitively lower outlay.
Penny stocks are indeed risky
But these can give huge windows of opportunities for the small investors to make more profits.
Diversifying your investments portfolio
By adding the penny stocks to your investment portfolio, you will have more diversity in investments.
Having a diverse portfolio can help you to reduce the loss from other financial products in your portfolio overall.
Penny stocks can be perfect additions to your investment portfolio.
You can always spread penny stocks in between several stocks.
Help you to learn about the volatility in the market
It is true that penny stocks have greater volatility.
Analysing the volatility with the penny stocks can be a great learning experience.
Penny stocks may help you refine a more matured strategy to trade again with later.
Faster prices movement
If you are bored with a long term investments, then you could switch to penny stocks which can be traded intraday or daily.
It can provide you with a much faster pace of trading.
The price moves take place quickly with penny stocks.
But keep in mind that the price movement can be up or down.
It will happen in much shorter time than larger stocks.
If you are interested in faster price movements, penny stocks may be for you.
But of course, you need to strategize and be aware of the risks.
We've collected thousands of datapoints and written a guide to help you find the best Benefits Of Penny Stocks for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best benefits of penny stocks below.
Reputable Benefits Of Penny Stocks Checklist
There are a number of important factors to consider when picking an online Benefits Of Penny Stocks trading brokerage.
- Check your Benefits Of Penny Stocks broker has a history of at least 2 years.
- Check your Benefits Of Penny Stocks broker has a reasonable sized customer support of at least 15.
- Does the Benefits Of Penny Stocks broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
- Check your Benefits Of Penny Stocks broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
- Does your Benefits Of Penny Stocks broker have an international presence in multiple countries. This includes local seminar presentations and training.
- Make sure your Benefits Of Penny Stocks can hire people from various locations in the world who can better communicate in your local language.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
Our brokerage comparison table below allows you to compare the below features for brokers offering Benefits Of Penny Stocks.
We compare these features to make it easier for you to make a more informed choice.
- Minimum deposit to open an account.
- Available funding methods for the below Benefits Of Penny Stocks.
- What you are able to trade with each brokerage.
- Trading Platforms offered by these brokers.
- Spread type (if applicable) for each brokerage.
- Customer support levels offered.
- We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
Top 15 Benefits Of Penny Stocks of 2021 compared
Here are the top Benefits Of Penny Stocks.
Compare Benefits Of Penny Stocks min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are benefits of penny stocks. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more benefits of penny stocks that accept benefits of penny stocks clients
| Broker |
XTB
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SpreadEx
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Swissquote
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forexmart
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hdfcsecurities
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icicidirect
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sharekhan
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Zerodha
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Robinhood
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Trading212
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eoption
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| Rating | |||||||||||
| Regulation | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA) | Cyprus Securities and Exchange Commission (CySEC) | Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange | Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange | Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange | Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Unregulated |
| Min Deposit | No minimum deposit | 1 | 1000 | 1 | No minimum deposit | No minimum deposit | No minimum deposit | No minimum deposit | No minimum deposit | 1 | 500 |
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| Used By | 250,000+ | 10,000+ | 300,000+ | 10,000+ | 2,000,000+ | 2,000,000+ | 1,500,000+ | 1,500,000+ | 10,000,000+ | 15,000,000+ | 10,000+ |
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| Platforms | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps | MT4,WEB,desktop | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | DealBook (Desktop, Mobile, iPhone, iPad, iPod touch, Web) |
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| Learn More |
Sign
Up with xtb |
Sign
Up with spreadex |
Sign
Up with swissquote |
Sign
Up with forexmart |
Sign
Up with hdfcsecurities |
Sign
Up with icicidirect |
Sign
Up with sharekhan |
Sign
Up with zerodha |
Sign
Up with robinhood |
Sign
Up with trading212 |
Sign
Up with eoption |
| Risk Warning | 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | Losses can exceed deposits | Your capital is at risk | Your capital is at risk | Your capital is at risk | Your capital is at risk | Your capital is at risk | Your capital is at risk | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Your capital is at risk |
| Demo |
XTB Demo |
SpreadEx Demo |
Swissquote Demo |
ForexMart Demo |
HDFC Securities Demo |
ICICI Direct Demo |
Sharekhan Demo |
Zerodha Demo |
Robinhood Demo |
Trading 212 Demo |
eoption Demo |
| Excluded Countries | US, IN, PK, BD, NG , ID, BE, AU | US, TR | US | CU, IR, KP, SY, UA | US, CA |
All Benefits of penny stocks in more detail
You can compare Benefits Of Penny Stocks ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Benefits Of Penny Stocks for 2021 article further below. You can see it now by clicking here
We have listed top Benefits of penny stocks below.
Benefits Of Penny Stocks Table of Contents
- Benefits Of Penny Stocks Explained
- 6 Factors to Consider when Choosing Benefits Of Penny Stocks
- Are Your Benefits Of Penny Stocks Trusted And Established?
- Are The Benefits Of Penny Stocks World Leading?
- What are the Benefits Of Penny Stocks Commissions and Fees?
- What are the Benefits Of Penny Stocks Funding and Withdrawl Methods?
- Find Benefits Of Penny Stocks with Round-the-clock support?
- Make sure the Benefits Of Penny Stocks Offer Comprehensive Trader resources?
- Why Benefits Of Penny Stocks needs to be regulated?
- Benefits Of Penny Stocks FAQ
- What are the best Benefits of penny stocks brokers?
- What is the best Benefits of penny stoc broker?
- Related Benefits Of Penny Stocks Reviews
- Related Benefits Of Penny Stocks Alternatives
- Related Benefits Of Penny Stocks Comparisons
Benefits Of Penny Stocks Explained
Trading the financial markets with Benefits Of Penny Stocks when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for Benefits Of Penny Stocks is the platform that a Benefits Of Penny Stocks offer.
Choose Benefits Of Penny Stocks that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need Benefits Of Penny Stocks that you can rely on.
6 Factors to Consider when Choosing Benefits Of Penny Stocks
Follow these five rules for selecting a broker that's right for you:
Are Your Benefits Of Penny Stocks Trusted And Established?
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets. The top rated Benefits Of Penny Stocks broker is XTB. Established in 2002, and in operation for 16 years XTB have a head office in Poland.
XTB is regulated. This means XTB are supervised by and is checked for conduct by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) regulatory bodies.
Another top rated broker is SpreadEx.
SpreadEx was established 1999, and in operation for 19 years SpreadEx have a head office in UK.
SpreadEx is regulated. This means SpreadEx are supervised by and is checked for conduct by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) regulatory bodies.
| Broker |
XTB
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SpreadEx
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Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
|
| Year Established | 2002 | 1999 | 1999 | 2015 | 2000 | 1994 |
| Head Office | Poland | UK | Switzerland | Cyprus | India | India |
| Regulation | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA) | Cyprus Securities and Exchange Commission (CySEC) | Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange | Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange |
| Used By | 250,000+ | 10,000+ | 300,000+ | 10,000+ | 2,000,000+ | 2,000,000+ |
| Negative balance protection | Yes | No | No | Yes | Yes | Yes |
| Guaranteed Stop Loss | No | Yes | No | Yes but 10% | No | No |
| Learn More | Visit XTB | Visit SpreadEx | Visit Swissquote | Visit ForexMart | Visit HDFC Securities | Visit ICICI Direct |
| Risk Warning | 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | Losses can exceed deposits | Your capital is at risk | Your capital is at risk | Your capital is at risk |
Are The Benefits Of Penny Stocks World Leading?
Choose a broker that's at the forefront of innovation and generally considered an industry-leader. XTB Segregates clients funds and offers over 4000 instruments. XTB offers both an online trading platform as well as a mobile platform giving clients easy access to markets.
In addition, the XTB platform enables access to a variety of financial markets worldwide. XTB is a world-leader when it comes to innovation and they are always looking at ways to improve and to maintain their competitive advantage.
Another good choice when looking for Benefits Of Penny Stocks is SpreadEx . SpreadEx Segregates clients funds and offers over 15000 instruments.
| Broker |
XTB
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SpreadEx
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Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
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| Instruments Available | 4000 | 15000 | 100 | 111 | 5000 | 5000 |
| Platforms | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps | MT4,WEB,desktop | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
| Excluded Countries | US, AU, CA, JP, KR, KP, SG, MU, IL, TR, IN, PK, BA, ET, UG, CU, SY, BD, NG, ID, BE, LY, MO, KE, YE, VU, GY, CD, CG, AF, LA, MZ, IQ, IR | US | US | Cuba, Iran, North Korea, Syria, Crimea | Cuba, Iran, North Korea, Syria, Crimea | |
| Forex pairs offered | 57 | 55 | 150 | 100 | 0 | 0 |
| Forex pairs offered | 57 | 55 | 150 | 100 | 0 | 0 |
| Major forex pairs | Yes | Yes | Yes | Yes | No | No |
| Minor forex pairs | Yes | Yes | Yes | No | No | No |
| Exotic forex pairs | Yes | Yes | Yes | No | No | No |
| Cryptocurrencies (availability subject to regulation) | Yes | Yes | No | Yes | No | Yes |
| Commodities Offered | 21 | 16 | 7 | 0 | 14 | 14 |
| Metals | Yes | Yes | Yes | Yes | No | No |
| Energies | Yes | Yes | Yes | Yes | No | No |
| Agricultural | Yes | Yes | No | Yes | No | No |
| Stocks Offered | 1696 | 1000 | 0 | 53 | 5000 | 5000 |
| UK Shares | Yes | Yes | Yes | Yes | No | No |
| US Shares | Yes | Yes | Yes | No | Yes | Yes |
| German Shares | Yes | Yes | Yes | No | No | No |
| Japanese Shares | Yes | Yes | Yes | No | No | No |
What are the Benefits Of Penny Stocks Commissions and Fees?
Ensure that your broker is transparent with fees and those dues are competitive.
The best rated Benefits Of Penny Stocks broker XTB offers competitive offers for Forex, CFDs, Cryptocurrency. XTB minimum deposit is 0.
Another top rated Benefits Of Penny Stocks broker SpreadEx offers Forex, CFDs, and spread betting. SpreadEx minimum deposit is 1. Please note that any cryptocurrency availability with any broker is subject to regulation.
| Broker |
XTB
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SpreadEx
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Swissquote
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forexmart
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hdfcsecurities
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icicidirect
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| Min Deposit | 0 | 1 | 1000 | 1 | 0 | 0 |
| Withdrawl Fees | varies | 0, minimum £50 | No | 5 | No | No |
| Inactivity Fees | Yes | No | No | No | No | No |
| Deposit Fees | No | No | No | Yes | No | No |
| CFD Commission Fees | Yes | No | No | Yes | No | No |
What are the Benefits Of Penny Stocks Funding and Withdrawal Methods?
When dealing with Benefits Of Penny Stocks having convenient funding and withdrawl facilities makes the trading process and your trading experience smoother.
| Broker |
XTB
|
SpreadEx
|
Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
|
| Bank transfer | Yes | Yes | Yes | Yes | Yes | Yes |
| Credit Cards | Yes | Yes | Yes | Yes | No | No |
| Paypal | Yes | No | No | No | No | No |
| Skrill | Yes | Yes | No | Yes | No | No |
| Payoneer | Yes | Yes | Yes | No | No | No |
| Neteller | Yes | No | No | Yes | No | No |
Find Benefits Of Penny Stocks with Round-the-clock support?
Customer service is very important when dealing with Benefits Of Penny Stocks.
When investing and dealing with brokers customer support can be a range of customer services to assist customers in making cost effective and correct use the brokers services. It can include assistance in installation, training, troubleshooting, upgrading, and cancelation of a product or service.
Benefits Of Penny Stocks customer support can include Phone answering services, Live chat support and Email customer service support.
XTB support a wide range of languages including English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish
SpreadEx support a limited number including English
XTB and SpreadEx offer support where clients are able to call or contact the helpdesk via email or a chat service.
| Broker |
XTB
|
SpreadEx
|
Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
|
| Support |
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| Languages | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish | English | English, German, French, Italian, Spanish, Arabic, Russian, and Chinese | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian,Hindi, Hebrew, Arabic, Russian | English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文 | English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文 |
| Learn More | Visit XTB | Visit SpreadEx | Visit Swissquote | Visit ForexMart | Visit HDFC Securities | Visit ICICI Direct |
| Risk Warning | 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | Losses can exceed deposits | Your capital is at risk | Your capital is at risk | Your capital is at risk |
Make sure the Benefits Of Penny Stocks Offer Comprehensive Trader resources?
Make sure your broker offers free resources like analysis, education and risk-management tools. With a wealth of knowledge from top analysts, XTB and SpreadEx work together to bring the latest news and insights to traders.
For most traders, the first – and sometimes only – concern is pursuing their 'edge'. While that is surely important, along with sound money management habits, to navigating the markets; that step alone does not represent the full preparation. As each trader dives into this important venture, it is important not to forget the most rudimentary yet crucial steps such as selecting the best broker to access the markets.
Why Benefits Of Penny Stocks needs to be regulated?
A regulated Benefits Of Penny Stocks broker lowers your risk.
Broker regulation protects consumers. Too little broker regulation can lead to poor services and possibly financial harm.
Benefits Of Penny Stocks brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated. This amounts to fraud if client money is used to conduct the business. Regulation is required to make sure this does not happen.
Benefits Of Penny Stocks List
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Mirror Trader, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4,WEB,desktopCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
