Best Brokers for Penny Stock Trading 2023

Table of Contents

Fidelity

Fidelity won Best Overall in our Annual Stockbroker Review because it has almost everything everyday investors could want while being easy to use and attractively priced. While most other brokers either charge extra for penny stocks or refuse to trade them at all, Fidelity charges nothing. Read full review.

Fidelity mobile app gallery

Fidelity website gallery

Firstrade

Firstrade, like Fidelity and TradeStation, offers $0 penny stock trading. It doesn’t have the breadth of services of Fidelity (few do), but speculative investors may find Firstrade a great fit, as it also doesn’t charge contract fees for options trading. Native Chinese speakers will appreciate Firstrade’s content and Chinese-speaking support staff. Read full review.

Firstrade mobile app gallery

Firstrade website gallery

TradeStation

TradeStation’s TS Select pricing charges $0 for penny stock trading up to 10,000 shares. Beyond that, the charge is a half cent per share, which is the same as what they charge for non-penny stock trades. We also like TradeStation’s extensive desktop application and — if crypto is also your thing — an amazing cryptocurrency platform. Read full review.

TradeStation mobile app gallery

TradeStation website

TD Ameritrade

TD Ameritrade, acquired by Charles Schwab in 2020, runs neck-and-neck with Fidelity in almost every category and excels at stock trading. Though we expect significant changes to both TD Ameritrade and Schwab as the two brokers continue to combine, we do expect TDA’s excellent thinkorswim trading platforms to continue at Schwab. Read full review.

TD Ameritrade mobile app gallery

TD Ameritrade website gallery

E*TRADE

E*TRADE, like TD Ameritrade, charges $6.95 for a penny stock trade, which drops to $4.95 after 30 trades in a quarter. Its web-based Power E*TRADE trading platform is easy to use. Penny stock investors who also invest in open-end mutual funds will appreciate the no-fee mutual fund trading, too. Read full review.

E*TRADE mobile app gallery

E*TRADE website gallery

Other brokers tested

In addition to our top five trading platforms for penny stock trading in 2023, we reviewed 12 others: Ally Invest, Charles Schwab, eToro, Interactive Brokers, J.P. Morgan Self-Directed Investing, Merrill Edge, SoFi Invest , Tradier, Robinhood, tastytrade, Vanguard and Webull.

To dive deeper, read our full reviews.

What are penny stocks?

What are OTC brokers?

Do you need a broker to buy penny stocks?

Who is the best broker to buy penny stocks from?

Is it illegal to buy penny stocks?

Is it a good idea to buy penny stocks?

Why are OTC stocks risky?

Can you make money with penny stocks?

Are penny stocks hard to trade?

How much does it cost to trade penny stocks?

What is the minimum to buy penny stocks?

Can you get rich off penny stocks?

How do beginners buy penny stocks?

Where is the best place to find penny stocks?

What app can I use to buy OTC stocks?

Can penny stock prices be manipulated?

What is a common penny stock myth?

Can you buy penny stocks on Robinhood?

StockBrokers.com 2023 Overall Ranking

Here are the Overall rankings for the 17 online brokers whose offerings we analyze and test, sorted by Overall ranking.

Methodology

For the StockBrokers.com 13th Annual Review published in January 2023, a total of 3,332 data points were collected over three months and used to score 17 top brokers. This makes StockBrokers.com home to the largest independent database on the web covering the online broker industry.

In order to assess the overall trading experience, we test across a wide range of devices and operating systems. Testing was done on devices for both Apple and Android operating systems. For Apple: iPhone XS with the most current iOS. For Android: Samsung Galaxy S9+, 6.2″ 4K Super AMOLED (2960×1440) 64-bit Octa-Core Snapdragon 835 Processor 2.7GHz, 6GB RAM 6.2″ with the most current operating system.

Our research team meticulously collects data on features with particular importance to penny stock traders, such as trading costs, availability of flat-fee trades, ease of platform and app use, and resources for researching a stock. In total, we evaluate nearly 200 variables for each broker. All research, writing and data collection at StockBrokers.com is done by humans, for humans. Read our generative AI policy here.

As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy. Brokers also were offered the opportunity to provide executive time for an annual update meeting.

Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors quality data they can trust. Learn more about how we test.