Best Penny-Stock Trading Apps of 2022

Trade penny stocks with these top trading apps

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A penny stock is a low-priced stock, often valued at less than a dollar. Penny stocks are highly risky, speculative investments in companies that often have very little revenue. However, because of penny shares’ low prices, some investors are excited by the idea of buying a big quantity of them in hopes that they’ll spike in value.

If you get lucky, you can turn a significant profit. however, investing in penny stocks can be dangerous. There’s a good chance you’ll lose all the money invested. On top of their minimal earnings and other risk factors, investors may have trouble finding someone willing to buy penny shares when they want to sell, adding liquidity risk to the uncertainties of their investment.

If you choose to dedicate part of your portfolio to these speculative investments, you’ll want to make sure you’re using a good investment service. Stock trading apps are among the best ways to buy and sell penny stocks.

Best Penny-Stock Trading Apps of 2022

Best Overall and Low Cost : Fidelity Investments


Fidelity

Fidelity

  • Minimum Deposit: None
  • Fees: None for stocks, ETFs, and mutual funds, 65 cents per contract for options
  • Account Types: Standard, retirement, education, trusts, managed portfolios, margin

Why We Chose It

Fidelity is one of the world’s largest brokers, with more than $11 trillion under its management.

One reason that it made our list of the best penny-stock trading apps is that the company offers a wide variety of investing services. 

Penny stocks should only be one part of your investment strategy. You should diversify into other investments. Fidelity lets you invest in things like mutual funds and exchange-traded funds (ETFs) and allows you to open different types of accounts, such as retirement and brokerage accounts.

Fidelity is also a good choice for beginners, thanks to its lack of a minimum-balance requirement. You can open an account with just enough to start trading penny stocks.

If one of your reasons for considering penny stocks is their low price, Fidelity offers fractional shares of more than 7,000 stocks. That means you can buy a portion of a share in a company, rather than facing the cost of a full share. That lets you invest just pennies in less-risky stocks as an alternative to volatile penny stocks.

Pros
  • Many account types

  • Fractional shares let you invest for less in larger businesses

  • No commissions for most trades

Cons
  • Minimal research tools

Best for Trade Experience : Charles Schwab


Charles Schwab Logo

Charles Schwab Logo

  • Minimum Deposit: None
  • Fees: None for stocks and ETFs, 65 cents for options
  • Account Types: Traditional brokerage, retirement, trust, 529 plans

Why We Chose It

The way in which Schwab stands out from the competition is through its trade experience. Investors get access to real-time data and charts, letting them understand market movements and see price changes as they occur. You can easily enter orders while viewing the chart, which lets you stay up to date on the market while entering trades.

The app also includes powerful screening tools that you can use to find investment opportunities.

Schwab keeps costs low, charging no commission for stock trades. It also offers fractional share investing for Standard & Poor’s (S&P) 500 companies, starting at $5. That gives penny stock traders a way to start investing in more expensive stocks.

Pros
  • No minimum balance

  • No commissions for stock trades

  • Fractional shares for S&P 500 companies

  • Powerful trading and research tools

Cons
  • Higher minimum investment for fractional shares

Best for Research and Investor Education : Interactive Brokers


Interactive Brokers

 Interactive Brokers

  • Minimum Deposit: None
  • Fees: Varies - None to 0.5 cent per share
  • Account Types: Traditional, IRA
Why We Chose It

If you’re an active investor, you may want to be moving money in and out of positions multiple times a day. That requires a lot of research and up-to-the-second market information to make sure you’re trading at the right time.

Interactive Brokers (IB) was designed specifically for experienced, active traders. It supports more than 100 order types and offers the option to invest on margin, all at a low cost of 0.5 cent per share with a maximum fee of 1% of the trade’s value.

The app’s trading platform makes it easy to view IB’s research and analysis. It also offers stock-screening tools to identify investment opportunities and when to sell.

Pros
  • Powerful trading platform

  • Access to research and analysis

  • Supports 100+ order types

  • Low fees

Cons
  • Not beginner-friendly

Best for Customer Service : E*TRADE


Etrade2022V2
  • Minimum Deposit: None
  • Fees: None for stocks and ETFs
  • Account Types: Brokerage, custodial, IRA

Why We Chose It

E*TRADE, like the other apps on this list, makes it easy to start investing with no minimum balance requirements and no commissions for stock trades. Anyone can open an account and start trading penny stocks with just a few dollars.

E*TRADE also offers a variety of other investment services, making it an option for people who are interested in penny stocks but also want to build a diversified portfolio at a single brokerage firm.

What sets E*TRADE apart is its dedication to customer service. The company is known for the quality of its customer support and makes it easy to contact help when you need it. You can call the support number, send a secure message from your account, or even reach out via social media.

Pros
  • No minimum balance

  • No commissions

  • Good customer service

Cons
  • No fractional shares

Final Verdict

If you’re thinking about investing in penny stocks, you want to make sure you choose the right app. Look for the app that is easiest for you to use and remember to consider other factors, such as whether you can build an entire portfolio at the same brokerage firm. Using one app for all your investing can help make managing your money a bit easier.

Compare the Best Penny-Stock Trading Apps

Company Account Minimum Fees Account types
Fidelity Investments Best Overall and Best for Low-Cost Trades None None for stocks, ETFs, and mutual funds, 65 cents per contract for options Standard, retirement, education, trusts, managed portfolios, margin
Charles Schwab Best for Trade Experience None None for stocks and ETFs, 65 cents for options Brokerage, retirement, trust, 529
Interactive Brokers Best for Research and Investor Education None Varies - None to 0.5 cent per share Brokerage, IRA
E*TRADE Best for Customer Experience None None for stocks and ETFs Brokerage, custodial, IRA

How Does Penny-Stock Trading Work?

Penny-stock trading works in the same way as trading other stocks. You can buy and sell shares through your broker. The important thing to remember is that penny stocks may not have as much liquidity as others, which can make it harder to buy or sell them.

How To Invest in Penny Stocks?

You can invest in penny stocks through a brokerage account. Once you open an account and deposit funds, you can place a buy order to purchase shares of penny stocks.

Are Stock Trading Apps Safe To Use?

Yes, penny-stock trading apps are safe to use. The apps on our list are all from major brokerage companies and come with fraud protection and Securities Investor Protection Corp. (SIPC) insurance. However, keep in mind that penny-stock trading can be highly risky.

How Should You Choose the Best Penny-Stock Trading App?

Choosing the best penny-stock app depends on your needs and goals. Think about what you value in a trading experience, such as research tools or stock screeners. Then look for the app that offers those features while keeping fees low.

Methodology

We are dedicated to providing readers with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on its platforms, costs, and fees, security, the mobile experience, and customer service. A rating scale was established based on these criteria, collecting thousands of data points that were weighed into a scoring system.

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Article Sources

  1. Fidelity. “We Are Fidelity.” (Assets under management as of Dec. 31, 2021.)

  2. Fidelity. “Introducing $0 Commission Trades.”

  3. Fidelity. “Fractional Shares.”

  4. Charles Schwab. “Welcome to the Better Place for Traders.”

  5. Charles Schwab. “Schwab Stock Slices.”

  6. Interactive Brokers. “Commissions.”

  7. Interactive Brokers. “IBKR is the Professional’s Gateway to the World’s Markets.”

  8. etrade.com. "Open an Account."