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Best brokers for penny stocks in 2022

Fidelity Logo
1st place
Fidelity
Trading 212 Logo
2nd place
Trading 212
Visit broker
68% of retail CFD accounts lose money
Firstrade Logo
3rd place
Firstrade

Some penny stocks are listed on main exchanges like the NYSE or the NASDAQ. Others can only be traded over-the-counter at OTC, OTCQX, OTCQB markets or via the so-called "pink sheets". We narrowed down our list to only include brokers that give access to all of these markets.

Penny stocks often have especially high buying and selling fees on a per-share basis.

Our top broker picks for penny stock trading in 2022:

  1. Fidelity is the winner. Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.
  2. Trading 212 came in second. Real stocks and ETFs are commission-free. Quick and easy account opening. Great trading platforms.
  3. Firstrade rounds out the top three. Free stock, ETF, fund and options trading. Solid research tools. Quality educational tools.
  4. TD Ameritrade is ranked fourth. Low trading fees (free stock and ETF trading). Superb desktop trading platform. Great customer support.
  5. E*TRADE just made it to the list in fifth place. Low trading fees (free stock and ETF trading). User-friendly mobile trading platform. Great research tools.
Best brokers for penny stocks in 2022
Name Accepts client from Company info
#1 Fidelity US US stockbroker Visit broker
#2 Trading 212 Globally Global CFD broker, but real stocks/ETFs are also available Visit broker
68% of retail CFD accounts lose money
#3 Firstrade US US discount broker Visit broker
#4 TD Ameritrade US, China, Hong Kong, Malaysia, Singapore, Thailand, Taiwan, Canada (through TD Direct Investing) US-based stockbroker Visit broker
#5 E*TRADE US US stockbroker Visit broker

Not sure which broker to choose?

  • For a tailored recommendation, check out our broker finder tool. If you enter the name of your country and your preferences, it will display the best relevant matches.
  • Want more details? Compare brokers with the help of our in-depth comparison table.


So how did we come up with our list of the best brokers for penny stocks? We checked

  • their trading platforms
  • their fees for trading penny stocks and OTC stocks
  • if their overall score at BrokerChooser is high enough.


And now, let's see the best brokers for penny stocks one by one, starting with the winner, Fidelity.

Fidelity Logo

#1 Best brokers for penny stocks
Fidelity

Fidelity is a US stockbroker founded in 1946. It is regulated by top-tier authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Fidelity is considered safe because it has a long track record and is regulated by top-tier financial authorities.

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#1 Fidelity
Fees
3.9

Fidelity has low trading and non-trading fees, including commission-free stock trading. On the negative side, margin rates and fees for some mutual funds can be high.
Pros Cons
Free stock and ETF trading High fees for non-free mutual funds
Low bond fees High margin rates
No inactivity fee

Penny stocks refer to securities issued by "very small" companies that are priced under $5, according to the definition of the US Securities and Exchange Commission (SEC). Some penny stocks are listed on regular exchanges like the NASDAQ or the NYSE, but most of them are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks can have very high buying and selling fees percentage-wise if fees are quoted on a per-share basis, so we made sure to include a handful of zero-commission brokers.

In the list below, you can check the fees for exchange-listed stocks, OTC stocks and options.

Fidelity trading fees of a $2,000 trade
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
$2,000 trade on the NYSE or NASDAQ $0.0 $0.0 $0.0 $0.0 $0.0
US stock Free stock and ETF trading Commission-free $0 per trade Free stock and ETF trading Free stock and ETF trading
OTC stocks commission OTC stocks are free to trade Commission-free OTC stocks are free to trade $6.95 per oder $6.95 per oder ($4.95 if you had 30+ trades in the quarter)
10 contracts on US stock options $6.5 - $0.0 $6.5 $6.5
US stock options $0.65 fee per contract Not available $0 per trade $0.65 per contract $0.65 fee per contract; 50¢ with 30+ trades per quarter

All spreads, commissions and financing rate for opening a position, holding for a week and closing.

Fidelity non-trading fees
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0
USD margin rate 9.8% - 10.3% 11.0% 10.2%

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Trading 212 Logo

#2 Best brokers for penny stocks
Trading 212

Trading 212 is onboarding clients without a waiting list from the EEA region only. Customers from other eligible countries can join Trading 212's waiting list, but it may take a while until onboarding restrictions are lifted and the waiting list is scrapped.

Trading 212 is a global CFD broker, but clients can also trade stocks and ETFs free of charge. The company was founded in 2004 and is now headquartered in London. Trading 212 is regulated by the UK Financial Conduct Authority (FCA), the Cypriot Cyprus Securities and Exchange Commission (CySEC), and the Bulgarian Financial Supervision Commission (FSC).

Check out our Trading 212 review tailored to the needs of beginner investors and traders.

Trading 212 is considered safe as it is regulated by the top-tier FCA.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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68% of retail CFD accounts lose money

#2 Trading 212
Fees
3.7

Trading 212 offers commission-free stock and ETF trading, and there are also no fees for deposit, withdrawal or inactivity. However, fees for forex trading are high.
Pros Cons
Free stock and ETF trading High forex fees
No withdrawal and inactivity fee High financing rate

Penny stocks refer to securities issued by "very small" companies that are priced under $5, according to the definition of the US Securities and Exchange Commission (SEC). Some penny stocks are listed on regular exchanges like the NASDAQ or the NYSE, but most of them are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks can have very high buying and selling fees percentage-wise if fees are quoted on a per-share basis, so we made sure to include a handful of zero-commission brokers.

In the list below, you can check the fees for exchange-listed stocks, OTC stocks and options.

Trading 212 trading fees of a $2,000 trade
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
$2,000 trade on the NYSE or NASDAQ $0.0 $0.0 $0.0 $0.0 $0.0
US stock Free stock and ETF trading Commission-free $0 per trade Free stock and ETF trading Free stock and ETF trading
OTC stocks commission OTC stocks are free to trade Commission-free OTC stocks are free to trade $6.95 per oder $6.95 per oder ($4.95 if you had 30+ trades in the quarter)
10 contracts on US stock options $6.5 - $0.0 $6.5 $6.5
US stock options $0.65 fee per contract Not available $0 per trade $0.65 per contract $0.65 fee per contract; 50¢ with 30+ trades per quarter

All spreads, commissions and financing rate for opening a position, holding for a week and closing.

Trading 212 non-trading fees
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0
USD margin rate 9.8% - 10.3% 11.0% 10.2%

Visit broker More
68% of retail CFD accounts lose money

Firstrade Logo

#3 Best brokers for penny stocks
Firstrade

Firstrade is a US discount stockbroker regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The company was founded in 1985 under the name First Flushing Securities.

Firstrade is considered safe because it has a long track record and is overseen by top-tier regulators.

Visit broker

#3 Firstrade
Fees
4.5

Firstrade has low fees. It offers free stock, ETF, funds, and options trading with low non-trading fees. However, margin rates are high.
Pros Cons
Low trading fees High margin rates
Low non-trading fees
Free stock, ETF, fund and options trading

Penny stocks refer to securities issued by "very small" companies that are priced under $5, according to the definition of the US Securities and Exchange Commission (SEC). Some penny stocks are listed on regular exchanges like the NASDAQ or the NYSE, but most of them are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks can have very high buying and selling fees percentage-wise if fees are quoted on a per-share basis, so we made sure to include a handful of zero-commission brokers.

In the list below, you can check the fees for exchange-listed stocks, OTC stocks and options.

Firstrade trading fees of a $2,000 trade
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
$2,000 trade on the NYSE or NASDAQ $0.0 $0.0 $0.0 $0.0 $0.0
US stock Free stock and ETF trading Commission-free $0 per trade Free stock and ETF trading Free stock and ETF trading
OTC stocks commission OTC stocks are free to trade Commission-free OTC stocks are free to trade $6.95 per oder $6.95 per oder ($4.95 if you had 30+ trades in the quarter)
10 contracts on US stock options $6.5 - $0.0 $6.5 $6.5
US stock options $0.65 fee per contract Not available $0 per trade $0.65 per contract $0.65 fee per contract; 50¢ with 30+ trades per quarter

All spreads, commissions and financing rate for opening a position, holding for a week and closing.

Firstrade non-trading fees
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0
USD margin rate 9.8% - 10.3% 11.0% 10.2%

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TD Ameritrade Logo

#4 Best brokers for penny stocks
TD Ameritrade

If you are an experienced trader looking for solid research and a well-equipped desktop trading platform, we definitely recommend TD Ameritrade.

Founded in 1975, TD is one of the biggest US-based stockbrokers and is regulated by top-tier authorities like the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the Commodity Futures Trading Commission (CFTC).

This online broker is considered safe as it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials and is overseen by top-tier regulators.

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#4 TD Ameritrade
Fees
4.2

TD Ameritrade offers free stock and ETF trading, while forex, bond and options fees are also low. On the other hand, it charges high fees for futures.
Pros Cons
Low trading fees High fund fees
Low non-trading fees
Free stocks and ETFs

Penny stocks refer to securities issued by "very small" companies that are priced under $5, according to the definition of the US Securities and Exchange Commission (SEC). Some penny stocks are listed on regular exchanges like the NASDAQ or the NYSE, but most of them are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks can have very high buying and selling fees percentage-wise if fees are quoted on a per-share basis, so we made sure to include a handful of zero-commission brokers.

In the list below, you can check the fees for exchange-listed stocks, OTC stocks and options.

TD Ameritrade trading fees of a $2,000 trade
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
$2,000 trade on the NYSE or NASDAQ $0.0 $0.0 $0.0 $0.0 $0.0
US stock Free stock and ETF trading Commission-free $0 per trade Free stock and ETF trading Free stock and ETF trading
OTC stocks commission OTC stocks are free to trade Commission-free OTC stocks are free to trade $6.95 per oder $6.95 per oder ($4.95 if you had 30+ trades in the quarter)
10 contracts on US stock options $6.5 - $0.0 $6.5 $6.5
US stock options $0.65 fee per contract Not available $0 per trade $0.65 per contract $0.65 fee per contract; 50¢ with 30+ trades per quarter

All spreads, commissions and financing rate for opening a position, holding for a week and closing.

TD Ameritrade non-trading fees
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0
USD margin rate 9.8% - 10.3% 11.0% 10.2%

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E*TRADE Logo

#5 Best brokers for penny stocks
E*TRADE

E*TRADE is a US-based stockbroker founded in 1982. It is regulated by top-tier financial authorities such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

E*TRADE is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials, and is overseen by top-tier US regulators.

In February 2020, E*TRADE was acquired by Morgan Stanley. To find out more about the motives behind the acquisition and about the wider market context, check out this article we wrote about the deal.

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#5 E*TRADE
Fees
4.4

E*TRADE offers free stock and ETFs tradies; some bonds and mutual funds are also free to trade. Non-trading fees are low. On the negative side, fees for mutual funds that aren't free are high.
Pros Cons
Free stock and ETF trading High fees for non-free mutual funds
Some mutual funds and bonds are free
Low non-trading fees

Penny stocks refer to securities issued by "very small" companies that are priced under $5, according to the definition of the US Securities and Exchange Commission (SEC). Some penny stocks are listed on regular exchanges like the NASDAQ or the NYSE, but most of them are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks can have very high buying and selling fees percentage-wise if fees are quoted on a per-share basis, so we made sure to include a handful of zero-commission brokers.

In the list below, you can check the fees for exchange-listed stocks, OTC stocks and options.

E*TRADE trading fees of a $2,000 trade
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
$2,000 trade on the NYSE or NASDAQ $0.0 $0.0 $0.0 $0.0 $0.0
US stock Free stock and ETF trading Commission-free $0 per trade Free stock and ETF trading Free stock and ETF trading
OTC stocks commission OTC stocks are free to trade Commission-free OTC stocks are free to trade $6.95 per oder $6.95 per oder ($4.95 if you had 30+ trades in the quarter)
10 contracts on US stock options $6.5 - $0.0 $6.5 $6.5
US stock options $0.65 fee per contract Not available $0 per trade $0.65 per contract $0.65 fee per contract; 50¢ with 30+ trades per quarter

All spreads, commissions and financing rate for opening a position, holding for a week and closing.

E*TRADE non-trading fees
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0
USD margin rate 9.8% - 10.3% 11.0% 10.2%

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Best brokers for penny stocks
How did we pick the best brokers for trading penny stocks?

Our most important criteria were fees, followed by the usability of the mobile app.

An online broker and its trading platform can easily make or break your success in online trading.

7 important criteria for mobile platforms
1. User-friendliness A user-friendly and well-equipped trading platform can significantly increase your trading comfort.
2. Safe login Two-step authentication during login can prevent unauthorized persons from using your trading account.
3. Search function Trying to find your favorite shares? On some trading platforms, it’s not a simple task. Check how easily you can use this feature.
4. Order types Order types are crucial for risk management. Having the possibility to set up stop orders (used mainly to limit your losses) is a must, while conditional orders are nice to have.
5. Price alerts and notifications Want to be up to date about price movements or the execution of your orders? You'll need easy-to-set price alerts and notifications.
6. Fee and portfolio reports Portfolio reports help you keep track of your trading performance. The fees you pay to the broker are not always transparent, even though they have a big impact on your trading results.
7. Research tools Check if the broker provides research tools for both technical and fundamental analysis.

Best brokers for penny stocks
Keep in mind - safety

We check about 20 safety-related criteria, such as the quality of regulation, the investor protection amount and the transparency of the broker’s financials.

However, financial companies can still go under. In such cases, it is important to know what happens to the securities and cash in your account.

In a worst case scenario, for example if the broker commits fraud or just simply cannot pay you, you have a last resort – the investor protection scheme of the country where the broker is regulated.

The investor protection amount differs from country to country, so it is worth checking this before you open an account.

Best brokers for penny stock - Investor protection and regulation
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Investor protection amount $500,000 (securities up to $500,000, cash up to $250,000) £85,000 for clients under FCA, and €20,000 for clients under CySEC or FSC Bulgaria $500,000 (securities up to $500,000, cash up to $250,000) $500,000 (securities up to $500,000, cash up to $250,000) $500,000 (securities up to $500,000, cash up to $250,000)
Country of regulation USA UK, Bulgaria, Cyprus USA USA, Hong Kong, Singapore USA
Visit broker Visit broker
68% of retail CFD accounts lose money
Visit broker Visit broker Visit broker
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Best brokers for penny stocks
Bottom line

Now that you've seen the details, let's zoom out. Here are the best brokers for trading penny and OTC stocks in 2022:

Best brokers for penny stocks in 2022
Fidelity Trading 212 Firstrade TD Ameritrade E*TRADE
Broker intro US stockbroker Global CFD broker, but real stocks/ETFs are also available US discount broker US-based stockbroker US stockbroker
Overall score 4.7 4.6 4.3 4.7 4.6
Fees score 3.9 stars 3.7 stars 4.5 stars 4.2 stars 4.4 stars
Mobile platform score 4.5 stars 4.9 stars 3.8 stars 4.8 stars 4.5 stars

Pick the winner or any runner-up and take the next step in your trading journey. Remember that trading penny stocks is considered very risky. Let us know what you think in the comments section.

Still unsure? Or maybe your country is not served by our #1 broker? Use our broker finder tool to find the best broker for you.

Author of this article

András Iván

Author of this article

Andras has over 5 years of experience in investing and trading equities, options and bonds. He believes that active trading and a more passive investing approach both have merits and everyone can find a strategy that fits their needs. He's eager to help identify the characteristics of specific brokers, so the best match can be found for each client.

András Iván

Broker Analyst

Andras has over 5 years of experience in investing and trading equities, options and bonds. He believes that active trading and a more passive investing approach both have merits and everyone can find a strategy that fits their needs. He's eager to help identify the characteristics of specific brokers, so the best match can be found for each client.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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