Best Brokers for Penny Stocks

Penny shares are thought-about extremely speculative (and excessive danger) investments resulting from their lack of liquidity, giant bid-ask spreads, small capitalization and restricted submitting and regulatory requirements. Nonetheless, some traders prefer to commerce penny shares as a result of the low value makes it doable to carry 1000’s of shares for a comparatively small quantity of capital – and all these shares imply traders can revenue with the acquire of only a few cents per share.

Low-priced securities can’t be held in custody on the Depository Belief Firm (DTC) and, could carry pass-through expenses that may be as excessive as 10 occasions the worth of the commerce itself. Non-DTC eligible securities can’t be cleared electronically. Exchanges comparable to NYSE and Nasdaq require DTC-eligibility, but it surely’s as much as you to find out the eligibility of penny shares buying and selling on the OTC Bulletin Board and OTC Markets Group (a present listing will be discovered on the DTCC web site). 

Our standards for placing a dealer on this listing embrace entry to the OTC markets, low account minimums, $0 or flat price per-trade commissions with no extra cost for low-cost shares. We additionally search for real-time margin calculations so that you’re conscious of your shopping for energy.

Whereas many brokers supply penny shares, some add a surcharge to shares that commerce beneath a sure greenback stage or quantity restrictions that bump up the value for big orders. Many brokers are charging commissions for buying and selling penny shares despite chopping commissions to $0 on exchange-traded shares and ETFs.


Finest brokers for penny shares:

Interactive Brokers

  • Account Minimal: $0.00
  • Charges: 
  • $0.00 commissions for equities/ETFs accessible on IBKR’s TWS Gentle, or low prices scaled by quantity for lively merchants that need entry to superior performance comparable to order routing. $0.65 per contract for choices on TWS Gentle; that can also be the bottom price for TWS Professional customers, with scaled charges primarily based on quantity.Futures $0.85 per contract

Interactive Brokers’ very low per-share buying and selling fee of $.005 ($1 minimal per commerce) and up-to-the-split-second real-time margin calculations are perfect for penny inventory merchants. IBKR Lite shoppers can commerce penny shares for $0.


  • Low commissions, most 1% of commerce worth for IBKR Professional, $0 for IBKR Lite

  • Streaming real-time information, together with account data 

  • IBot, IB’s AI-powered on-line assistant, may also help discover options


  • Knowledge streams on just one machine at a time 

  • Merchants Workstation places up a steep studying curve

  • IBKR Professional clients are charged charges to commerce, although they’re low

Charles Schwab

  • Account Minimal: $0
  • Charges: $0 for inventory/ETF trades, $0.65 per contract for choices.

Schwab’s analysis pages level out the change on which a inventory trades, which is able to preserve you knowledgeable of the inherent danger. There are a number of platforms accessible; the StreetSmart platforms have customizable charting and streaming real-time quotes. Schwab doesn’t cost buying and selling commissions on all shares (together with penny shares) and ETFs.


  • The sheer variety of options and stories accessible can really feel overwhelming

  • Schwab maintains transaction historical past for simply 24 months on-line

  • Schwab doesn’t sweep uninvested money right into a cash market fund

Constancy Investments

  • Account Minimal: $0
  • Charges: $0 for inventory/ETF trades, $0 plus $0.65/contract for choices commerce

Get $100 whenever you open a brand new, eligible Constancy account with $50 or extra. Use code FIDELITY100. Restricted time supply. Phrases apply. Provide Disclosure.

Constancy’s wonderful analysis may also help you display screen for penny shares by market sector. Their Energetic Dealer Professional platform is now accessible to all clients, no matter buying and selling frequency or account steadiness.


  • Entry to Energetic Dealer Professional for all clients

  • Glorious commerce executions on listed shares 

  • Inventory screeners allow you to discover potential trades


  • Non-U.S. residents and residents can not open an account

  • Discovering a software could require utilizing a couple of platform

  • Knowledge have to be manually refreshed on the web site


  • Account Minimal: $0
  • Charges: $0 shares and ETFs. Choices are $0.60/contract and futures are $1.50/contract ($0.50 for micro e-minis)

TradeStation provides a service referred to as TSgo that permits customers to commerce penny shares (certainly, all equities) commission-free on their internet platform or cellular apps. All information streams in real-time. You possibly can place, modify, and cancel trades from charts or by utilizing keyboard shortcuts.


  • Versatile and customizable real-time market scanners 

  • Glorious charting and technical evaluation capabilities 

  • Per-share charges drop as you commerce extra shares 


  • Steep studying curve for establishing buying and selling methods

  • A number of pricing plans provided could also be complicated

  • TSgo clients who place trades on the highly effective TradeStation desktop platform pay a $10 surcharge

Relating to the opposite brokers we surveyed, Robinhood doesn’t enable OTCBB trades. Ally Make investments apply surcharges to trades of shares of underneath $2 per share and SogoTrade for trades underneath $1 per share, which may considerably add to your buying and selling prices.

Fascinated with making penny shares part of your portfolio? Take a look at our information to buying and selling penny shares earlier than you bounce in.

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Investopedia is devoted to offering traders with unbiased, complete critiques and scores of on-line brokers. Our critiques are the results of six months of evaluating all facets of a web based dealer’s platform, together with the person expertise, the standard of commerce executions, the merchandise accessible on their platforms, prices and charges, safety, the cellular expertise and customer support. We established a ranking scale primarily based on our standards, amassing over 3,000 information factors that we weighed into our star scoring system.

Click on right here to learn our full methodology.