Listed below is some vital information that should be provided to investors by brokerage firms in order to trade successfully in penny stocks.

1. In the U.S., penny stocks trading should occur as per the guidelines of Securities and Exchange Commission (SEC). As per the guidelines, investors opting for penny stocks should have a brokerage account with a certified broker.
2. Penny stocks are highly volatile stocks whose trading occurs infrequently. Hence, it is the responsibility of the broker to keep the investors informed about the potential risks involved in penny stocks trading. Trading should start only after broker has received a statement of approval signed by the investor. This statement contains all the important information that an investor should know such as the financial situation, financial goals and the why penny stocks are being considered as a suitable investment.
3. Since penny stocks are neither approved nor disapproved by SEC, you should be really careful while investing in these stocks. Apart from taking financial advice from the broker, it is also important to learn about the market in which penny stocks trade.
4. According to the federal law, an investor should be informed about all the transaction details while buying a penny stock. These details include stock quotation, offer price, bid on the stock, compensation of salesperson and the brokerage firm.
5. It is the responsibility of the brokerage firm to send a monthly account statement to the investor. Through this statement, you can estimate the value of each penny stock present in the account.