Why trade US penny stocks?
I did hear about many people searching for “canadian penny stocks”, “uk penny stocks” or similar phrases to move away from the US market and try something else. People in general are pretty aware of the US Penny Stocks, but have problem with identifying penny stocks in other countries.
Are US Penny Stocks not good enough?
It is a good question. The idea of making money with Penny Stocks is strictly connected to the US stock market. It does not really exist outside of the US. The reason behind it, is the size and the depth of the US stock market. Even though penny stocks exist on other markets, the amount and size of trades, the number of companies available, makes it simply not feasible to trade them profitably.
The whole idea about trading Penny Stocks is connected to the sheer amount and size of trades, which is forcing prices to move very fast. Quite often you can find stocks that will move 20%-300% in a few minutes, and that draws attention of traders. Those types of stock's price moves will not happen outside of the US Penny Stocks (at least it is extremely rare).
So, if you live outside of the US and want to trade Penny Stocks, the only place you can really do that is the US. All you have to do, is to sign up with some stock broker that either operates in your jurisdiction and supports US markets; or operates in the US but also serves offshore customers.
The least problems with finding such broker will have Europeans. There are many stock brokers accepting customers on both sides of the Atlantic: Interactive Brokers, Sure Trader or Trade Station to mention just a few.
Only trade US Penny Stocks
If you live in the US and you think about trading Penny Stocks on other markets, do not bother! It is not worth your effort. The only reason you may want to do that is, if you look more for investing (long term) than trading.