9 Best Penny Stock Trading Platforms to Consider

A penny stock is formally defined as any stock less than $5 per share, according to the SEC and other regulatory bodies. In common practice, many investors consider a penny stock as stock with a share price of under $1. While investors always hope they’ll pick a stock that climbs rapidly in value, they should understand that there are a number of challenges unique to this type of investing. If you are in the market for penny stocks, and if you fully understand the risks involved, here are the nine best sites for making these trades.

A financial advisor can help you navigate penny stocks and other investments for your portfolio.

How Penny Trading Works

Penny trading is more tightly regulated than ordinary stock trading. Because investors don’t trade these stocks often, prices are both more volatile and less accurate. Penny stocks are also more difficult to sell once you have them, and they can be far more difficult to buy if you’ve taken a short position. As a result, this is a market generally occupied by accredited and sophisticated investors.

However, the same volatility that makes this a speculative asset also can make it a highly profitable one. After all, while it takes a lot for Amazon to double in value, a stock selling for just $0.25 only needs to climb by a quarter per share to do the same thing. And, ultimately, in the stock market, it’s not the price at which you sell the stock that matters—it’s the percentage of the gain.

Data and Methodology

We identified the brokerage firms below through exhaustive research and analysis of the of the penny stock trading market. They are listed in an order that’s in direct correlation with their individual composite score based on our methodology, which includes consumer ratings from multiple popular online app stores, the minimum required investment, and any required fees specifically for trades.

1. Fidelity

Fidelity does not charge you to trade penny stocks. This platform offers legitimately free penny stock trading, absent any costs charged by other market participants. For an asset that often works on such small margins, this can be an enormous benefit.

At the same time, Fidelity also offers a strong trading platform overall with numerous resources available for education and research. That said, while Fidelity offers a strong trading platform, its format isn’t the friendliest for beginners. It may be challenging to navigate for users who are looking for highly specialized tools and information for over-the-counter (OTC) trades.

2. Firstrade

Firstrade stands out as one of the platforms that charges no commissions on penny stock trades. Many brokers still apply fees for trading these low-cost shares, which can quickly eat into profits given the tight margins investors often work with. By eliminating these charges, Firstrade makes it easier for penny stock traders to focus on their strategies rather than worrying about transaction costs.

Unlike some competitors that limit OTCaccess, Firstrade opens the door to a large selection of penny stocks. This broader reach can be valuable for investors who want to explore opportunities outside of traditional exchanges. Having access to a wider marketplace also means investors don’t have to juggle multiple accounts just to pursue OTC trades.

Firstrade’s interface is designed with clarity and ease of use in mind, making it approachable for beginners who may find other platforms overwhelming. However, it lacks some of the high-end charting and customization features that more experienced traders often look for. As a result, Firstrade is best for investors who want straightforward access to penny stocks without a need for advanced analytics.

3. Webull

Webull appeals to penny stock investors by offering commission-free trading across stocks, ETFs and options. While many platforms now waive fees for standard trades, Webull also allows commission-free access to penny stocks listed on major exchanges. This keeps costs low for investors looking to maximize gains from small, speculative trades.

One of Webull’s biggest strengths is its sleek, app-based design. The platform emphasizes a mobile-first experience, with intuitive navigation and built-in tools that cater to both casual and active traders. For penny stock investors who want to track the market on the go, Webull’s platform provides flexibility without sacrificing functionality.

The main drawback for penny stock investors on Webull is its limited access to OTC markets. The platform primarily supports penny stocks that are exchange-listed, meaning investors cannot trade the full range of micro-cap securities available through some competitors. This narrower scope can be restrictive for those seeking broader exposure.

4. Robinhood

Robinhood pioneered the commission-free model that has since become an industry standard, and that extends to penny stocks listed on major exchanges. Investors can trade without worrying about fees or minimum account balances, which makes the platform attractive to beginners experimenting with low-cost shares. For penny stock investors, this cost structure helps preserve potential gains on already thin margins.

Further, Robinhood’s app is designed to remove barriers to entry for new investors, offering a straightforward experience for buying and selling shares. This simplicity can be appealing to penny stock traders who want a quick way to place trades without wading through complex features or technical jargon.

While Robinhood makes trading accessible, it comes with notable limitations. The platform offers very limited research and analysis tools, which can leave penny stock investors without the data they need to evaluate speculative trades. In addition, Robinhood does not provide access to the broader OTC market, restricting investors to penny stocks that trade on larger exchanges.

5. TradeStation

TradeStation is a fantastic platform for the kind of data-heavy work that penny stock traders depend on. This service offers an unparalleled amount of technical information that’s specifically useful to volatility-oriented traders like penny stock investors and day traders. This includes access to real-time OTC stock prices, a service that many other platforms don’t offer. Investors should note that these prices can be unreliable, especially when delivered in real-time, but it is still a strong feature.

These offerings from TradeStation all come on top of a service that already offers terrific stock trading tools to begin with. The customization available through TradeStation allows you to build a trading environment that’s just right for you, and the ability to search through industries and exchanges for both mainstream and OTC stocks makes it very useful.

That said, TradeStation lags slightly behind its competitors in certain areas. It is not quite as fast as Lightspeed Trading, nor as cheap as Fidelity. Yet these are minor issues at best. If you are an OTC stock trader, this is a terrific product for you.

6. Interactive Brokers

Interactive Broker is a tough one on this list mainly because it is one of the most expensive options you can choose. It charges a $1 minimum per trade, plus per-share prices that start at $0.0029 and climb from there. As these charges grow, they can bite into your profits pretty quickly.

So why list it here? There are two reasons. First, Interactive Brokers is a generally outstanding trading platform that also offers penny stock trading. Investors who are looking for a trading solution would do well to consider this product overall.

Second, Interactive Brokers also offers one of the widest ranges of penny stocks to short when compared with other platforms. This is why we have listed it as the best platform for risk-takers. Shorting penny stocks is one of the highest speculation investments you can take on, up there next to futures and minor market currencies.

All in all, Interactive Brokers is a great platform for investors who also want to add some penny stocks to their investment portfolios. However, if you are specifically interested in trading OTC shares, and you aren’t looking to take on the enormous risk of shorting this market, you’ll probably do better with one of the other entries on this list.

7. E*TRADE

E*TRADE is one of the best all-around trading platforms on the web, right up there next to TD Ameritrade. This is particularly true when it comes to new investors. If you’re out there learning the ropes, E*TRADE’s clean design and strong educational resources make it a fantastic choice for you. This is just as true when it comes to penny stocks.

If you’re looking to learn this segment of the market, E*TRADE may be the best platform you can select. It is easy to use and navigate, allowing new investors to focus on learning the assets rather than the system. It also comes equipped with a terrific range of educational tools and fundamental analysis outlets, among other resources for investors looking to learn how to trade penny stocks wisely.

That said, E*TRADE is probably not the best platform for sophisticated traders. With prices starting at $6.95 per trade for OTC stocks, this is one of the more expensive choices out there. Plus, while its tools are strong, they are also not the very best you can find. You will get a better range of data and trading tools from some of the other platforms on this list.

8. Schwab

Charles Schwab offers commission-free trading on U.S.-listed stocks, including many penny stocks. This pricing structure allows investors to trade without worrying about transaction fees cutting into their potential gains. For penny stock investors, avoiding commissions can make a meaningful difference when working with smaller price movements.

Schwab also stands out for its extensive research resources and educational materials. The platform gives investors access to professional-grade reports, in-depth market analysis and a wide selection of learning tools. For those navigating the speculative world of penny stocks, these resources can provide context and guidance to make more informed decisions.

In addition to its standard website and app, Schwab offers advanced trading through thinkorswim, a platform designed for active traders. Here, investors can access sophisticated charting, screening tools and real-time data. While penny stock investors may not always need such advanced tools, having the option can be valuable for those who want to conduct detailed analysis.

9. Lightspeed Trading

Penny stock traders are some of the highest-velocity traders on the market, often second only to the forex investors. This is because both markets share the same tendency to make money off of fractional changes in value. When the movement of a few cents can mean your entire profit margin, it pays to trade quickly (literally).

Lightspeed Trading is a terrific platform for exactly this type of investor. As its name suggests, this product is built with speed in mind. From boasting better connection speeds than its competitors to allowing you to select the routing instructions for any given trade, Lightspeed offers several features specific to very active traders. It has an extremely strong suite of technical indicators, with a particular emphasis on volatility and related data that can help you find and track stocks based on their movement.

While it excels in that arena, Lightspeed Trading delivers very little for any other kind of investor. It has little (if any) fundamental analysis, for example, and its interface can be confusing at best. This is a very complicated piece of software that doesn’t try to make life much easier, so unless you’re a sophisticated investor, you shouldn’t expect to understand this program.

What to Look for in a Penny Stock Trading Platform

Not all trading platforms are created equal, especially when it comes to penny stocks. Since these stocks are more volatile and often trade OTC, choosing the right platform can make a big difference in your experience.

Here are some key features to look for:

Low trading fees for OTC stocks: Penny stocks often involve trading large quantities of inexpensive shares, so high fees can quickly eat into your profits. Look for a platform that offers competitive rates for OTC trades, ideally with no sneaky fees.
Access to real-time data and Level 2 quotes: Because penny stocks move fast, having access to up-to-the-second price data and Level 2 quotes, which show detailed bid and ask prices, can help you make better decisions and spot opportunities.
Ease of order execution and liquidity tools: Penny stocks can be illiquid, so choose a platform with strong order execution capabilities and tools to help you gauge liquidity before you buy or sell.
Educational resources for beginners: If you’re new to penny stock trading, a platform with tutorials, guides and educational videos can help you understand the basics and avoid common mistakes.
Customer support and platform usability: Given the fast-moving nature of this market, it helps to have a user-friendly interface and reliable customer support in case you run into issues.

Choosing a platform that combines these features will give you a better shot at navigating the penny stock market effectively.

Risks of Trading Penny Stocks

Penny stocks might seem appealing because of their low price and high potential returns, but they also carry significant risks. Before investing in penny stocks, it’s crucial to understand what you’re getting into.

Here are some of the major risks to note:

High volatility and steep losses: Penny stocks can experience dramatic price swings in short periods. While this can lead to quick gains, it also means you could lose your investment just as fast.
Illiquidity: Many penny stocks trade in low volumes, making it hard to find a buyer when you want to sell. This lack of liquidity can trap your money in an underperforming stock.
Susceptibility to fraud or manipulation: The penny stock market is more prone to scams, such as “pump and dump” schemes, where bad actors artificially inflate a stock’s price and then sell, leaving others with losses.
Lack of company transparency and financial information: Unlike larger, established companies, many penny stock issuers aren’t required to disclose much financial information. This lack of transparency makes it harder to evaluate the company’s true value or prospects.

Bottom Line

Finding a good penny stock trading platform can be difficult. All nine options on our list have their own pros and cons, but there are some fundamentals to keep in mind when making your choice. You should consider the costs and whether the overall platform fits with your style and preferences. Each will get the job done, but each does it slightly differently, so it’s important you pick a platform that you’re comfortable with.

Tips on Investing

What role should penny stocks play in your portfolio? The best way to come up with the answer to that for your portfolio is by working with a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Make sure your investment assets fit your risk profile. SmartAsset’s free, easy-to-use asset allocation calculator will help align your assets with your risk tolerance.