Best brokers for penny stocks in 2024

Written by
Gyula L.
Fact checked by
Tamás D.
Updated
Dec 2023
Dive into our toplist of regulated and trusted brokers that we tested with real money. Every broker is available in the United States.

Find below the strengths of the best penny stock trading platforms available in the United States, updated for 2024:

  1. Fidelity - the best online broker for penny stocks in 2024. Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.
  2. Vanguard - Stocks and ETFs are free to trade. Easy account opening. Great mobile trading platform. Interest paid on uninvested cash.
  3. Firstrade - Free stock, ETF, fund and options trading. Solid research tools. Quality educational tools.
  4. Charles Schwab - Free stock and ETF trading. Outstanding research. Great customer service.
  5. E*TRADE - Low trading fees (free stock and ETF trading). User-friendly mobile trading platform. Great research tools. Pays interest on uninvested cash.
  6. TradeStation - Great web and mobile trading platform. High level of investor protection. High-quality research and education tools.
  7. Interactive Brokers - Low trading fees and high interest on cash balances. Wide range of products. Many great research tools.
  8. SogoTrade - Low trading fees. Quick and easy account opening. Great customer service.
  9. ChoiceTrade - Commission-free stock and ETF trades. Fast and easy account opening. User-friendly mobile trading platform.
  10. Zacks Trade - Low fees. Extensive stock and ETF selection. Great customer service.
Your location is United States
To see the top brokers in another country choose from the list below
Please select a country
Got questions?
Engage with our growing community of traders and investors like you to find your answers.
Join now
Top penny stock brokers

Trading and non-trading fees at the best brokers for penny stocks

Since penny stocks are priced so low per share, many of your buy/sell transactions will involve a large number of shares - so how your broker calculates stock commissions is key. See what the best brokers for OTC stocks and penny stocks will charge you for trading and other services.

Before we go on, an important notice: Some brokers' portfolios contain CFDs. These are complex and very risky instruments, therefore not suitable for everyone. You can easily lose all your invested money when you trade CFDs. If you need a more detailed explanation of what a CFD is, start with these CFD trading tips.
Broker
OTC stocks commission
US stock
Fidelity
OTC stocks are free to trade
$0.0
Vanguard
OTC stocks are free to trade
$0.0
Firstrade
OTC stocks are free to trade
$0.0
Charles Schwab
$6.95 per order
$0.0
E*TRADE
$6.95 per oder ($4.95 if you had 30+ trades in the quarter)
$0.0
TradeStation
Up to 10,000 shares: $0 for US customers, $5 per trade for international customers; a $0.005/share fee applies on the part exceeding 10,000 shares.
$5.0
Interactive Brokers
$0.005 per share, with a minimum of $1 and maximum of 1%
$1.0
SogoTrade
$2.88 per trade
$2.9
ChoiceTrade
$12 per trade
$0.0
Zacks Trade
1% of trade value, minimum $1
$1.0
Fees at the best brokers for penny stock trading in December 2023

Popularity of the best brokers for free penny stocks

Interested in what others think? Here's how many people chose these brokers at BrokerChooser in the last 6 months.

Market coverage and mobile platform features at the best brokers for penny stocks

Broad market coverage, along with a user-friendly, safe and informative trading platform, can greatly help you in finding penny stocks for your portfolio. Here's how the best penny stock sites perform along these criteria.

Broker
Stock markets (#)
Mobile user-friendliness
Fidelity
25
Great
Vanguard
4
Great
Firstrade
5
Great
Charles Schwab
4
Great
E*TRADE
5
Great
TradeStation
5
Great
Interactive Brokers
90
Great
SogoTrade
3
Great
ChoiceTrade
5
Great
Zacks Trade
90
Mid-range
Product selection and mobile features at the best brokers for penny stock trading in December 2023

And now, let's see in detail which are the best brokers for penny stocks in 2024, one by one.

Recommended for investors and traders looking for solid research and great trading platforms

Visit broker

Fidelity snapshot
US stockbroker
Overall score 4.7 stars
Stock/ETF fee score 4.1 stars
Mobile platform score 5.0 stars
Minimum deposit $0
Fractional shares available Yes
Read review For a detailed analysis of Fidelity, check out our review for 2024

Recommended for long-term investors looking for great ETF and mutual fund selection

Visit broker

Vanguard snapshot
US stockbroker
Overall score 4.3 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 4.4 stars
Minimum deposit $0
Fractional shares available No
Read review For a detailed analysis of Vanguard, check out our review for 2024

Recommended for beginners and investors looking for zero-commission trading, focusing on the US market

Visit broker

Firstrade snapshot
US discount broker
Overall score 4.4 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 4.5 stars
Minimum deposit $0
Fractional shares available Yes
Read review For a detailed analysis of Firstrade, check out our review for 2024

Recommended for investors and traders looking for solid research, low fees and great customer service

Visit broker

Charles Schwab snapshot
US discount broker
Overall score 4.6 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 4.2 stars
Minimum deposit $0
Fractional shares available Yes
Read review For a detailed analysis of Charles Schwab, check out our review for 2024

Recommended for investors and traders looking for solid research and a great mobile trading platform

Visit broker

E*TRADE snapshot
US stockbroker
Overall score 4.5 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 4.5 stars
Minimum deposit $0
Fractional shares available No
Read review For a detailed analysis of E*TRADE, check out our review for 2024

Recommended for traders focusing on US markets and buy-and-hold investing

Visit broker

TradeStation snapshot
US stockbroker
Overall score 4.4 stars
Stock/ETF fee score 3.7 stars
Mobile platform score 4.8 stars
Minimum deposit $0
Fractional shares available No
Read review For a detailed analysis of TradeStation, check out our review for 2024

Recommended for traders looking for broad market access and a professional trading environment

Visit broker

Interactive Brokers snapshot
International broker providing all asset classes
Overall score 4.9 stars
Stock/ETF fee score 4.6 stars
Mobile platform score 4.3 stars
Minimum deposit $0
Fractional shares available Yes
Read review For a detailed analysis of Interactive Brokers, check out our review for 2024

Recommended for stock and options traders with a US focus who value great customer service

Visit broker

SogoTrade snapshot
US-based stockbroker
Overall score 4.0 stars
Stock/ETF fee score 4.3 stars
Mobile platform score 3.5 stars
Minimum deposit $0
Fractional shares available No
Read review For a detailed analysis of SogoTrade, check out our review for 2024

Recommended for stock and options traders looking for low trading fees and focusing on the US market

Visit broker

ChoiceTrade snapshot
US-based stockbroker
Overall score 3.9 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 3.5 stars
Minimum deposit $100
Fractional shares available No
Read review For a detailed analysis of ChoiceTrade, check out our review for 2024

Recommended for traders and investors looking for comprehensive research tools, a wide product selection and low fees

Visit broker

Zacks Trade snapshot
US discount broker
Overall score 4.3 stars
Stock/ETF fee score 4.0 stars
Mobile platform score 3.5 stars
Minimum deposit $0
Fractional shares available Yes
Read review For a detailed analysis of Zacks Trade, check out our review for 2024

Didn't find the best broker for you?

Answer a few questions and get a personalized broker list!
Get a personalized broker recommendation
125,500 people already found a broker via this tool!

Your broker toplist will be selected based on your answers.

Where do you live?
More info

How did we pick the best brokers for penny stocks in 2024?

  • We checked 101 online brokers, trying out their services using real money
  • We took a close look at their penny stock and OTC trading fees
  • We tested their trading platforms for user-friendliness and functionality
  • We also took into account the overall quality of each broker's services
  • Finally, we checked their non-trading fees
Save hours of research!
Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser's unique methodology. This includes collecting more than 600 data points for each broker. Now let's jump straight to the results.

FAQ

What are penny stocks?

Penny stocks are generally defined as securities issued by relatively small companies that are priced under $5 per share.

Where to buy penny stocks? Some are traded on big exchanges like the NYSE or NASDAQ, but most are only available over-the-counter (OTC) on specialized markets. We narrowed down our top list to brokers that offer you all these options.

If you want to learn more, read our detailed guide on what penny stocks are and what risks they involve.

How much does it cost to trade penny stocks?

The cost of buying and selling penny stocks depends on the fee structure of your broker. In the case of penny stocks traded on a big exchange, some brokers offer commission-free trading. Otherwise, look for brokers that charge a flat fee per transaction, rather than a per-share commission.

Are penny stocks safe?

Penny stocks are considered high-risk instruments. Penny stocks are often issued by unlisted companies with little available information, and some have been subject to scams. Also, the low liquidity of penny stocks means that a few big transactions on the market can result in big price swings.

Is it difficult to sell penny stocks?

Because of low liquidity, you may find it difficult to find a buyer for your penny stocks. This makes it difficult to actually realize your profits even if the share price has increased.

What is an alternative to trading penny stocks?

If you only have smaller amounts to invest at a time, one alternative to consider is fractional shares. At brokers allowing this feature, you can, for example, buy a $10 chunk of a reputable and liquid stock that otherwise trades at $500.

Want to read more about penny stocks?

Check out these articles written by our broker and trading experts:

Got questions?
Engage with our growing community of traders and investors like you to find your answers.
Join now

Author of this article

Gyula Lencsés, CFA
Gyula Lencsés, CFA

Gyula is a former analyst expert and Head of Content at BrokerChooser. With over a decade in finance, he led content creation at BrokerChooser and personally evaluated some of our 100+ listed brokers. He opened real-money accounts, executed transactions, and engaged with customer services, offering firsthand assessments. Prior to BrokerChooser, he managed mutual funds in wealth management, trading stocks, ETFs, bonds, commodities, forex, and derivatives. His goal: simplify the hunt for top brokers in a dynamic investment landscape.

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.

Follow us

Regional settings

×
I'd like to trade with...