Penny stocks trading is a great way to turn your pennies into dollars. Therefore, turn to penny stocks trading and earn a big deal of money. What are the best Penny Stock Brokers? Let’s find out in this article!
Penny stocks trading is so alluring for traders all across the globe. Why so? Because traders go in with a little amount of money and subsequently make serious money later down the line. Furthermore, penny stocks can also make huge fortunes if your trusted company turns out to be a good one. However, this form of trading is not advised for novice sailors because they don’t know how to navigate huge risks.
Furthermore, you also need a top-notch penny stocks broker for your endeavor. You need a broker that also offers a powerful but user-friendly penny stocks trading platform. There are hundreds of penny stocks brokers currently available in the market. However, finding a penny stocks broker for trading isn’t as easy as it initially seems. As you have to carefully look for numerous key features that make your trading a seamless endeavor.
As finding a worthy penny stocks broker is a difficult task, we are here at your service to help you out. We reviewed multiple penny stockbrokers and their penny stocks trading platforms. Hence, we have assembled a list of the best penny stock trading brokers. Truly, we are confident that our list will help you in finding a penny stocks broker that you seek and deserve.
6 Best Penny Stockbrokers & Their Trading Platforms
- Charles Schwab
- Interactive Brokers
- TD Ameritrade
1. Fidelity Investments
Fidelity Investments is a top online penny stocks trading broker. It gives you access to multiple enticing features. From wealth management to retirement needs and robust trading tools to transparent pricing, everything is available for you. Additionally, Fidelity Investments gives you access to Active Trader Pro that is a brilliant online penny stocks trading platform. The industry-leading research and analysis tools are also more than enough for a perfect trading experience. Moreover, Fidelity Investments also offers some tremendous features.
- Active Trader Pro and robust trading tools help you in your penny stocks trading.
- You can plan, evaluate, and also monitor your finances through remarkable tools and calculators.
- Planning and Guidance Center by Fidelity Investments also assists and guides you in creating and tracking progress. Thus, you can easily achieve your penny stocks trading goals.
- Additionally, industry-leading investment research and analysis empower you to make informed trading decisions.
Fidelity Investments also doesn’t require any minimum initial investment.
Fidelity Investments offers all stocks listed on the US stock exchange for trading. Furthermore, you can also trade on numerous penny stocks, IPOs, and other equities as well.
Fidelity Investments charges no commission for penny stock trades.
Fidelity Investments is best for offering the Active Trader Pro platform, unique features like wealth management, industry-leading research, and commission-free stock trading.
The Financial Conduct Authority (FCA) regulates Fidelity Investments.
Fidelity Investments also supports multiple funding methods, for example, electronic bank transfer, wire transfer, checks, and electronic wallets.
- Robust trading platform with some exceptional tools
- Latest research and analysis access
- Commission-free penny stock trading
- High margin fees
- Credit/debit cards are not accepted
- Difficult to navigate website
TradeStation is another top-class penny stocks broker. The broker’s top-quality penny stocks trading platform and powerful tools suit penny stocks trading. TradeStation offers an award-winning and one of the most popular penny stock trading platforms named TradeStation Platform. The platform allows you to develop, test, optimize, monitor, and also automate your trading strategies. Additionally, the broker also offers various other enticing features.
- TradeStation offers web-based, desktop, and mobile versions of the platform. They enable you to trade in the way you want.
- The platform also ensures impressive reliability and speed in terms of order execution.
- If you need the depth to make informed trading decisions, the platform also provides access to a huge historical database.
- In addition to top-class features, you can also buy and sell stocks in thousands of small companies with ease.
TradeStation requires an account minimum of $500.
TradeStation offers thousands of penny stocks for trading.
TradeStation also charges $0 commission on penny stock trades.
TradeStation is best for numerous characteristics, for example, commission-free stock trading, competitive margin rates, a collection of trading platform versions, and superior order execution.
TradeStation is also regulated by;
- The Securities and Exchange Commission (SEC)
- The Financial Industry Regulatory Authority (FINRA)
TradeStation also supports smart transfers, wire transfers, checks, and electronic transfers.
- A collection of trading platforms
- Powerful tools
- User-friendly interface
- Comprehensive research
- Active trader community
- Higher account minimum
3. Charles Schwab
Trading penny stocks at one of the best penny stockbrokers like Charles Schwab enables you to take your penny stock trading to the next level. The broker provides excellent stock research and analysis tools. Moreover, they are equally beneficial for both, new and experienced penny stock traders. Charles Schwab also gives you a wonderful opportunity to trade penny stocks the way you want on the platform you want. Because Schwab.com and StreetSmart Edge are both feature-rich stock trading platforms with user-friendly interfaces. Additionally, the broker lets you get your hands on the following key features.
- Exquisite stock research and powerful trading tools help you in stock analysis. They also guide you in finding the best penny stocks for trading.
- Advanced screeners and Schwab Stock Lists also make your stock finding quest seamless. Hence, you can find new ideas, compare different stocks, and also customize search criteria using these innovative tools.
- Third-party researches and commentaries from Market Edge, Morningstar, Credit Suisse, and Briefing.com also help you evaluate stocks.
- In addition to penny stock trading, intuitive All-in-One Trade Ticket tools make stock, ETF, and options trading effortless. Gain/Loss Analyzer also helps you analyze your trading performance.
- Mobile trading platforms, real-time streaming quotes, advanced charting tools, excellent customer support services, and much more features are also available. These features also contribute to making Charles Schwab one of the best online stock brokers.
Charles Schwab doesn’t require any account minimum.
Charles Schwab offers stock trading on all stocks listed on the US stock exchange. You can also trade over-the-counter stocks (OTCs) and initial public offerings (IPOs).
Charles Schwab charges $6.95 per trade commission on online penny stock trades.
Charles Schwab is best for its powerful trading platforms, intuitive tools, and also for extensive US penny stock offerings.
Charles Schwab is also regulated by;
- Securities and Exchange Commission (SEC)
- Financial Industry Regulatory Authority (FINRA)
- Commodity Futures Trading Commission (CFTC)
Charles Schwab supports multiple funding methods, for example, bank transfers, checks, and electronic wallets.
- Offers numerous US penny stocks for trading
- Powerful platforms and trading tool
- Excellent customer support services
- Responsive mobile application
- High penny stocks brokerage commission
- Doesn’t support credit/debit cards as well
4. Interactive Brokers
Interactive Brokers is another superb penny stocks broker. The broker offers the Trader Workstation platform as your penny stocks trading platform. It is among the most efficient and top-class online stock trading platforms. Interactive Brokers also offers a suite of amazing features that make your penny stock trading simple but tremendously profitable. Additionally, the platform is available in all three versions: desktop, web, and mobile. Moreover, if you want to take advantage of 100+ order types and complex algorithm trading, Interactive Brokers is for you.
- Trader Workstation with all its powerful but free trading tools helps you in identifying profitable market opportunities. You can also analyze trading outputs and make informed trading decisions.
- The broker also promises comprehensive reporting that leads you to easy transaction costs analysis, portfolio analysis, and more.
- Backtesting, paper trading, IB Risk Navigator, advanced order and algorithms, simple orders, and much more make your trading simple, effortless, and enjoyable.
- Interactive Brokers also allows you to trade on penny stocks of numerous companies.
Interactive Brokers also doesn’t require any account minimum for opening accounts on the platform.
Interactive Brokers also offers to trade on penny stocks of numerous companies. You can trade penny stocks both in the OTC marketplace and quoted on big stock exchanges.
Interactive Brokers’ also offers commission-free trading on penny stocks through the IBKR Lite account. However, when using the IBKR Pro account, the platform charges $0.005 per share or 1% of trade value as commission.
Interactive Brokers is best for powerful and flexible trading platforms, comprehensive reporting, and low commissions.
In addition to exceptional features, Interactive Brokers is regulated by;
- The Securities Exchange Commission (SEC)
- The Commodity Futures Trading Commission (CFTC) in the US
Interactive Brokers also supports numerous funding methods. For example, wire transfers, checks, Automated Clearing House transfers, Canadian Electronic Funds Transfer, and BPAY (for Australian dollars only) are all supported by the platform.
- Allows trading on stocks both in the OTC marketplace and quoted on big stock exchanges
- Fractional share trading
- Powerful trading platform and research tools
- Superior order execution
- Zero commission on IBKR Lite
- The website is not user-friendly
5. TD Ameritrade
Another penny stock broker that ensures confident penny stock trading is TD Ameritrade. It provides you with different platform options to choose from. For example, desktop, web, and mobile platforms are there to help you. Web platforms also allow you access powerful tools from wherever you are with internet access. Besides, the Thinkorswim desktop platform is a feature-rich stock trading platform with some unique trading tools. TD Ameritrade also provides tutorials to help you get started quickly. The broker also offers device-optimized mobile applications that allow you to trade stocks on the go. Additionally, TD Ameritrade undoubtedly makes penny stock trading interesting as well as confident with several remarkable features.
- Web platforms allow you access to some astonishing technical analysis tools. Moreover, planning tools, educational resources, and third-party research are also extremely helpful in penny stocks trading.
- You can also stay updated with the latest market news from Yahoo Finance in the customizable Dock.
- Thinkorswim platform also promises elite-level tools, powerful market scanners, and monitor risk/reward. Furthermore, you can also make penny stocks trading effortless with multiple other enticing features.
- Social sentiment tools, 400,000+ economic indicators, real-time streaming quotes, phenomenal mobile applications, etc. also make TD Ameritrade the best penny stocks broker.
TD Ameritrade also has no account minimum requirements.
TD Ameritrade also offers various domestic penny stocks and initial public offerings (IPOs) for penny stocks trading.
TD Ameritrade also charges a high commission. You will have to pay a $6.95 per trade commission on penny stocks trades.
TD Ameritrade is best for a collection of powerful stock trading platforms and exceptional tools.
TD Ameritrade is also a highly regulated penny stocks trading platform. It is regulated by;
- Financial Conduct Authority (FCA)
- Securities Futures Commission (SFC)
- The Commodities Futures Trading Commission (CFTC)
- The Monetary Authority of Singapore (MAS)
- The Investment Industry Regulatory Organization of Canada (IIROC).
TD Ameritrade also supports numerous funding methods. You can use either the electronic bank transfer, wire transfer, checks, or account transfer from another firm as funding methods.
- A collection of powerful trading platform
- Latest market news from Yahoo Finance
- Allows trading of numerous penny stocks
- Doesn’t allow credit/debit cards transfers
- High commission on penny stocks trading
E*TRADE is another popular penny stocks broker. It gives you access to a cutting-edge penny stocks trading platform. Additionally, you also have access to the latest research, trading strategies, and much more. The broker’s innovative Power E*TRADE platform is also packed with the latest tools for penny stock trading. Moreover, if you need mobile applications, the broker allows you to choose from two applications. In fact, E*TRADE is a unique broker because it offers various unique features.
- Power E*TRADE is also among the very best, efficient, and robust online stock trading platforms. It brings various top-quality features that also help you in making the best trading decisions.
- The advanced charting tools with multiple indicators, chart types, and drawing tools also assist you in your technical analysis.
- Independent analyst research, market news, quotes, screeners, and even retirement planning also help you in taking control of your trading and financing.
- E*TRADE Mobile app perfectly runs on all types of devices including the Apple Watch. You can also handle activities like Transfer Money using the app.
- Power E*TRADE is the second application that is also loaded with numerous top-quality features. For example, streaming quotes help you analyze market movements.
E*TRADE also doesn’t require any account minimum.
E*TRADE also offers numerous penny stocks both in the OTC marketplace and small companies quoted on exchanges.
E*TRADE also charges a $0 commission on penny stocks listed on stock exchanges and have prices over $1. Conversely, you will have to pay $6.95 per trade commission on Pink Sheets and OTC stocks.
E*TRADE is best for an intuitive platform, robust features, and commission-free penny stocks trading.
E*TRADE is also regulated by;
- Securities and Exchange Commission (SEC)
- The Financial Industry Regulatory Authority (FINRA)
E*TRADE also supports various funding methods like bank transfer, wire transfer, and check deposits.
- Intuitive but user-friendly platform
- Extensive research access
- Exceptional customer support services
- Commission-free penny stock trading
- Difficult to navigate website
- Credit/debit cards are also not acceptable
Penny stocks, penny stocks broker, and penny stocks trading platform – FAQs
What are penny stocks?
Penny stocks are stocks issued by very small companies with limited resources. Thus, they don’t have the potential to explode. Penny stocks are traded at less than $5 per share. However, the most common penny stocks are traded in pennies. In other words, you can trade penny stocks of various small companies at less than $1.
Why do traders buy penny stocks?
This is a very pertinent question that often arises in our minds. If small companies with very low chances of becoming big issue penny stocks, then why do traders buy them? Because traders want to buy stocks at ground-floor prices of companies before they hit the road to success and become big. This is what penny stocks traders hope for and therefore, they risk their money and buy penny stocks.
What are the benefits of penny stocks?
Penny stocks offer various benefits. For example, penny stocks are cheap, and thus, you can buy thousands of stocks with a little amount of money. Additionally, penny stocks can be very profitable, especially if the company becomes a big one and achieves success.
Should I buy penny stocks?
Yes, you should buy penny stocks as they offer numerous benefits. However, you also need to consider that there are various risks associated with penny stocks. In fact, penny stocks are one of the riskiest trading types. In short, you need to keep the following key aspects in your mind when trading penny stocks.
- Penny stocks are traded at significantly lower prices because of a reason – as they are extremely risky.
- Penny stocks trading is prone to fraud. Therefore, you need to beware of fraudulent schemes.
- You also need to be aware of scams. For example, ignore offers like big returns on penny stocks.
- As small companies don’t have to disclose all financial information, it is difficult to get reasonable information about them. Therefore, you need to conduct thorough research to collect information.
- Some penny stock brokers also charge high fees. Thus, you also need to consider brokerage fees before starting penny stocks trading.
How much money do I need to start penny stocks trading?
There is no absolute answer to this question. You can start penny stocks trading with as much money as you have. However, it is important to keep in mind that some brokerage firms require a minimum deposit amount.
Why are penny stocks risky?
Penny stocks are risky because of the following reasons.
- Penny stocks are issued by small companies having little resources to handle business operations. Therefore, the potential for losses is high as compared to established companies.
- Small companies don’t have to comply with regulatory rules and regulations as compared to listed companies. Thus, you have no or very little reliable and readily available information. Moreover, penny stocks are also issued by newly established companies with little or no track record. As a result, you may not have all the information for a full evaluation of the company.
- Regulatory authorities ask for less stringent disclosure requirements from small companies. Therefore, lack of information leads penny stocks traders to fraudulent pump-and-dump schemes.
- Furthermore, penny stocks may be less liquid. As a result, traders may have to face difficulties in trading.
What makes a good penny stock trader?
As we have mentioned earlier, penny stocks trading is a risky game. In fact, many penny stocks brokers have also been part of scams. Therefore, it is important to choose a reliable and trustworthy penny stock broker for yourself. So, you need to consider the following key aspects before picking a penny stocks broker.
- Firstly, you need to consider the penny stocks trading platform provided by the broker. You need a powerful but easy-to-use platform.
- Secondly, it is important to look for the necessary research tools, especially if you don’t know how to conduct technical analysis. It is important because finding reliable information about OTC and small companies is extremely difficult. Thus, you need strong technical analysis tools that can help you analyze penny stocks.
- Thirdly, you also need to make sure that your penny stocks broker is a regulated broker. Otherwise, you may find yourself in a very complicated situation later on.
- In addition to other aspects, you also need to consider penny stocks trading fees. There are various penny stocks brokers that charge a $0 commission on penny stocks trading. Therefore, choose a broker that is less expensive.
- Finally, also make sure that you aren’t paying any additional fees in order to trade cheaply.
Do penny stocks brokers place any special restrictions on penny stocks trades?
Yes, it is quite possible. There are some penny stock brokers that place some restrictions on penny stocks trades. For example, some brokers do not facilitate online penny stocks trading. You have to place orders on the phone. Furthermore, they may also offer limited order types. Therefore, it is important to choose a broker that lets you trade in the way you prefer.