Penny stocks are a good place to start for investors who have high risk tolerance and want a sizable amount of profit.
Finding what penny stock trading app is best for you may be difficult, but in this article we recommend our top 7 penny stock trading apps to choose from.
Quicklook: Best Penny Stock Trading Apps
- TradeStation: Best for Advanced and Active Users
- E*Trade: Best for Access to the Best Investor Research and Resources
- Charles Schwab: Best for Overall Experience
- RobinHood: Best for Beginners
- Interactive Brokers: Best for Competitive Pricing
- TD Ameritrade: Best for User Experience and Passive Traders
- Fidelity: Best for Research on Penny Stocks
Table of Contents:
- Best Penny Stock Trading Apps
- What Are Penny Stocks
- How Does a Penny Stock Trading App Work?
- What to Consider With Penny Stock Trading Apps
- Benefits of Trading Penny Stocks
- Risks of Trading Penny Stocks
- Are Penny Stocks a Good Investment?
- Frequently Asked Questions
7 Best Penny Stock Trading Apps
A trading app can make investing an easy and accessible experience. Here we recommend some of our favorite penny stock trading apps, showcasing their standout features, benefits, disadvantages, and fees.
This platform was designed for those who are professionals or active traders. This is due to the terminology used and how the app was designed for its users.
Many expert or asset managers use TradeStation for their app trading experience. There are two account types TS Select and TS GO.
Standout Features: No added fees to have full access to mobile and laptop trading
- Charges no commission for mobile trades
- Certain account types can hold up to 10,000 commission free shares
- TS Select (their most reputable account type) initial price is $2,000
- TS GO Desktop users have to pay $10 per trade in commission fees
- No commission on mobile trade
- TS Select $2,000 initial price and $.005 commission per share after 10,000 shares held
- TS GO $10 per commission on desktop
Sign up here with TradeStation (Free stock trading – intuitive stock trading tools. Cash bonus for new accounts (conditions apply))
This platform has two different apps, Power E*TRADE and E*TRADE. This allows investors to have a variety of app options when investing. Additionally, E*TRADE provides Reuters reports allowing investors to research their potential investments without having to pay for an additional subscription.
Standout Features: Access to reports from Reuters and TipRanks
- No commission charges or minimum payments
- Power E*TRADE provides a more traditional Wall-Street trading platform
- Charged $6.95 for OTC stock trades
Fees: No commission charges or minimum payments required
Sign up with E*Trade here (Free Stock Trading – Award winning platform and mobile app!)
As one of the top brokerage firms in the industry, Charles Schwab is a great overall stock trading app for investors of all levels.
This app is great for someone looking for a high quality user experience, within their mobile device.
Standout Features: Free access to research and analysis tools
- No commissions or minimums
- Amazing customer service
- Could be hard to navigate with the extensive amount of tools and resources provided
Fees: No fees
This platform is best for those who just started their investment journey. This trading app has gained traction from younger and beginner investors looking for a seamless trading experience.
Standout Features: Free share of Robinhood’s stock when you create a new account
- Easy to navigate app
- Plethora of stocks options to choose from
- OTC penny stocks are not yet available
- Has limitations to its desktop version
Fees: No fees
This platform is best suited for those who wish to have a ton of options for the lowest price possible.
Interactive Brokers offers over 4,300 no-transaction fee mutual funds and great low margin rates.
Standout Features: Large variety of asset classes in more than 120 markets using 22 different currencies
- Excellent execution and price improvement tools
- Inactive accounts can be susceptible to fees
Fees: For the PRO accounts due to inactivity you can be charged maintenance fees
This platform is best for those who wish to have an easy to use investment app that clearly layouts the functionalities of the app. TD Ameritrade has a wide range of trading tools to enhance their users’ experiences.
This app is best for passive traders or those who are just starting off their investment journey.
Standout Features: Excellent research tools and two types of trading platforms
- No commissions on non-OTC stocks
- OTC trade commission of $6.95 per trade
- No account minimum
- No commissions on non-OTC stocks
- $6.95 per OTC trade
This platform is best suited for those who are specifically interested in penny stock research and finding out new penny stock growth opportunities.
This app provides analysis tools through its Fidelity’s Active Trader Pro platform that allows investors to have a plethora of resources.
Standout Features: Stock tool which scans for the best stocks along with their research tools
- No commissions or account minimum fees
- A highly reputable company
- People outside of the US are ineligible to open an account
Fees: No commissions or account minimum fees
What Are Penny Stocks?
Penny stocks are stocks with low liquidity and price. These stocks are usually from smaller companies and their price range is typically under $5.
Since these stocks are at a low price there is room for large profits but also large losses.
More Information on Penny Stocks:
How Does a Penny Stock Trading App Work?
Many trading apps offer penny stocks on their platforms. Therefore there isn’t any differentiation between them and normal stock trading apps.
What to Consider With Penny Stock Trading Apps
All these factors below can drastically impact your experience on these trading platforms. It is important to ask yourself what you are looking for in a trading platform and how these factors can enhance your experience.
Let’s review the four main factors that should be considered prior to using new penny stock trading apps.
Access to a Wide Variety of Penny Stocks
By having a wide variety of penny stocks, traders have the freedom to invest in a multitude of options. This is an important characteristic to look into when investing to make sure you are not pigeon holed into choosing the more common penny stocks and missing out on other potential opportunities.
Prior to downloading an app, an investor should dictate whether they are an advanced or beginner investor. By doing this, it can help lessen how user friendly the app is with those at that skill level. Additionally, looking for the app’s reviews and customer support is a good tell tale sign regarding the app’s quality.
Low or Zero Commission Fees
Many platforms have fees associated with trading, however there are a wide range of those who do not. It is important to seek out those with low fees so your profits don’t bear the brunt of it.
Lastly, when looking for an app, you want to see if it is an accredited platform. How are its reviews? Who has advocated to use this platform? What are its credentials? Ask yourself these questions prior to investing your money into a new trading platform.
Benefits of Trading Penny Stocks
Prior to investing into penny stocks one should understand the benefits of trading these types of stocks. These include:
- Highly volatile stocks leaving room for a massive return on investment
- High growth in a short period of time
- Large return on investment with little capital invested
Risks of Trading Penny Stocks
Despite how good penny stocks sound, there are downsides to investing in them. These include:
- These stocks tend to have low liquidity making it hard for investors to cash out their returns
- Hard to find information on smaller companies with penny stocks, making investing in them a greater gamble
- Artificial inflation can potentially skew company’s financial situation
Are Penny Stocks a Good Investment?
Penny stocks are a great investment for those who have a large tolerance for risk. Additionally, they can provide a large return on a small initial investment.
One should look into trading penny stocks on their mobile device due to the amount of platforms that provide commission free transactions. Before investing in these opportunities though, consult with your financial advisor to guide you through your investment decisions.
Frequently Asked Questions
You can make a sizable profit on a relatively small investment. However, penny stocks have high volatility making it hard to make a consistent income on their returns.
Yes, you can invest $100 in penny stocks. Since penny stocks are less than $5 per share, you will get around 20 shares depending on their share price.
on August 2021, the best penny stocks to trade in are Romeo Power (RMO), Biolase (BIOL), and Inuvo (INUV).
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