{"id":2746,"date":"2023-01-03T04:37:00","date_gmt":"2023-01-03T04:37:00","guid":{"rendered":"https:\/\/www.publicfinanceinternational.org\/?p=2746"},"modified":"2023-07-26T08:42:47","modified_gmt":"2023-07-26T08:42:47","slug":"best-penny-stock-brokers","status":"publish","type":"post","link":"https:\/\/www.publicfinanceinternational.org\/best-penny-stock-brokers\/","title":{"rendered":"Best Penny Stock Trading Platform 2023"},"content":{"rendered":"\n

In our guide, we go over the best penny stock brokers based on a variety of factors<\/strong>. We base our review process on a variety of factors such as customer support, fees, regulation, security, mobile app, education, and more. We then assess the performance of each provider to bring you this list.<\/p>\n\n\n\n

Best Penny Stock Broker 2023<\/h2>\n\n\n\n

Here is a list of our top brokers for penny stock traders. We ranked them based on specific criteria. Penny stock brokers included in our list had to meet a certain threshold to be included. <\/p>\n\n\n\n

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  1. Interactive Brokers<\/strong> – Best Penny Stock Trading Platform Overall<\/li>\n\n\n\n
  2. E*Trade<\/strong> – Best for Penny Stocks Broker Trading Tools<\/li>\n\n\n\n
  3. Fidelity<\/strong> – Best Broker for Penny Stocks Research<\/li>\n\n\n\n
  4. Charles Schwab<\/strong> – Good Penny Stocks Broker<\/li>\n\n\n\n
  5. Firstrade<\/strong> – Limited Penny Stocks<\/li>\n\n\n\n
  6. Lightspeed<\/strong> – Powerful Penny Stock Broker<\/li>\n\n\n\n
  7. Tradestation<\/strong> – Zero-Commission Penny Stocks Platform<\/li>\n<\/ol>\n\n\n
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    Interactive Brokers – Top Rated Penny Stocks Broker Overall<\/h2>\n\n\n
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    Interactive Brokers is best trading platform for penny stocks<\/strong>. It was founded in 1978 and is regulated by top-tier authorities. Their trading platform is one of the best in the industry and is excellent for advanced traders. Interactive Brokers offers access to 150 markets across 33 countries.
    The minimum deposit is $0, with $0.00 penny stock fees (OTCCB), and they charge a commission of $0.0035 per share<\/strong>.
    On top, you get access to Stocks, ETFs, Options, Futures, Currencies, Cryptocurrencies, US Spot Gold, Bonds, Mutual Funds, and Hedge Funds<\/strong>.<\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    Great Trading Platform<\/td>Trader Workstation (TWS) is complex<\/td><\/tr>
    Trading Tools<\/td><\/td><\/tr>
    Mobile App<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n
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    E*TRADE – Best Trading Tools<\/h2>\n\n\n
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    E*TRADEis known for its commission-free stock trading. It is a well-regulated<\/strong> stock broker founded in 1982.
    While it is excellent for stock trading with a flat fee of $0, they charge $6.95 for placing penny stock orders<\/strong> or buying Pink Sheet \/ OTCBB stocks. If you are an active trader with at least 30 stock, ETF, and options trades per quarter, this fee is lowered to $4.95.<\/p>\n\n\n\n

    They offer only limit orders for stocks trading under $1\/share<\/strong>. Broker-assisted trades are $25.<\/p>\n\n\n\n

    The minimum deposit at E*TRADE is $0.<\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    Great Trading Platform<\/td>Fees for active penny stocks traders<\/td><\/tr>
    No Minimum Deposit<\/td><\/td><\/tr>
    Research Tools and Education<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n
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    Fidelity – Best Research and Education<\/h2>\n\n\n
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    Much like e*Trade<\/a>, Fidelity Investment offers a plethora of trading platforms available on desktop, mobile, and web-based. Fidelity charges no extra fees for trading penny stocks<\/strong>.<\/p>\n\n\n\n

    Fidelity Investments has a $0 minimum to open an account<\/strong>. For mutual funds, the minimum is $2,500, and a $5,000 minimum deposit is required for margin trading.<\/p>\n\n\n\n

    Fidelity offers excellent research and trading tools. Their trading platform and mobile app are easy-to-use with loads of trading tools at your disposal.<\/p>\n\n\n\n

    In addition to their trading platforms, Fidelity offers an app called Fidelity Spires, which acts as a guide for your investing and saving goals. <\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    $0 Commissions for Penny Stocks<\/td>Focused on retirement accounts<\/td><\/tr>
    No Minimum Deposit<\/td><\/td><\/tr>
    Research and Education<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n
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    Charles Schwab – Good Penny Stock Broker<\/h2>\n\n\n
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    Charles Schwab<\/a> is an excellent choice if you\u2019re looking to get into penny stocks. They offer traders access to trade penny stocks through numerous exchanges. These include over-the-counter markers like OTCQX and OTCQB, as well as pink sheet stocks. <\/p>\n\n\n\n

    The minimum deposit at Charles Schwab is $0. Penny Stocks fees are high<\/strong>: $6.95 for online trades and $6.95 + $25 for broker-assisted trades.<\/p>\n\n\n\n

    There are no opening and maintenance fees.<\/p>\n\n\n\n

    Charles Schwab offers both mobile and desktop-based trading platforms. Both platforms come with a plethora of features that will meet the needs of most traders.<\/p>\n\n\n\n

    The trading platform, Schwab\u2019s StreetSmart, features a nifty Wall Street-style interface which we find useful. <\/p>\n\n\n\n

    What makes Charles Schwab great is that they have no recurring fees or minimums if you have a main brokerage account. This includes zero commissions on stock trades. <\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    Mobile App<\/td>Margin rates are high<\/td><\/tr>
    Great Research<\/td><\/td><\/tr>
    Fund Selection<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n
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    Firstrade – Limited Selection of Penny Stocks<\/h2>\n\n\n
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    Firstrade was founded in 1985, and is heaquartered in New York. They offer a great mobile app with good charting tools. Firstrade focuses on Chinese speaking clients. Their offering of penny stocks is limited<\/strong>, and only offer limit-orders. <\/p>\n\n\n\n

    Trading fees are low, and the minimum deposit is $0.
    Comparing Firstrade to other brokers on this list, we would recommend Interactive Brokers, E*Trade or     Fidelity<\/a> instead.<\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    Founded in 1985<\/td>Limited Penny Stocks Offers<\/td><\/tr>
    Mobile App<\/td>Primarily focuses on Chinesse speaking investors<\/td><\/tr>
    Education<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n
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    Lightspeed<\/h2>\n\n\n
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    Lightspeed is an online brokerage and a division of Lime Brokerage. Lightspeed offers an advanced trading platform at lightspeed execution speeds.<\/p>\n\n\n\n

    The Minimum deposit at Lightspeed $10,000<\/strong>. <\/p>\n\n\n\n

    Their trading platforms have been optimized for advanced, professional traders who actively trade.<\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    Advanced Trading Platform<\/td>High Minimum Deposit<\/td><\/tr>
    Execution Speed<\/td>Primarily focuses on Chinesse speaking investors<\/td><\/tr>
    Options Trading<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n
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    Tradestation<\/h2>\n\n\n
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    TradeStation is brokerage firm that is suited toward active, professional investors.<\/p>\n\n\n\n

    They offer two mobile apps: TS Select and TSgo<\/strong>. While penny stocks and other equities are zero-commission on the mobile app, there is a $10 per trade charge on the desktop platform.<\/p>\n\n\n\n

    The minimum deposit for TS Select app is $2,000<\/strong>, while the desktop platform is free.
    Active investors trading more than 10,000 shares pay $0.005 per share.<\/p>\n\n\n\n

    TradeStation makes up for this exorbitant fee by offering free access to robust data fees. <\/p>\n\n\n\n

    PROS<\/th>CONS<\/th><\/tr><\/thead>
    High-quality trading platform<\/td>High Minimum Deposit<\/td><\/tr>
    Execution Speed<\/td>$10 per share charge on the desktop platform<\/td><\/tr>
    Research and trading tools<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n\n

    What Are Penny Stocks?<\/h2>\n\n\n\n

    Penny stocks are issued companies<\/strong> and trade at less than $1 a share<\/a>. Penny stocks usually trade OTC (over-the-counter). In simple terms, these companies are small and unprofitable to be listed on major exchanges like NYSE or NASDAQ.<\/p>\n\n\n\n

    There are two primary platforms for listing penny stocks: OTCBB and pink sheets.<\/p>\n\n\n\n

    Generally, the stocks that are listed on pink sheet listings are from companies that are unable to meet the requirements for a listing on major exchanges. <\/p>\n\n\n\n

    Small companies can list their stock on pink sheets to avoid the costs and regulatory requirements that come with being listed on a major exchange. <\/p>\n\n\n\n

    Because they\u2019re so cheap, it is easy to buy and trade at high volumes however, penny stocks are risky.<\/p>\n\n\n\n

    Pros<\/h3>\n\n\n\n