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Best brokers for penny stocks in 2023

Vanguard Logo
1st place
Vanguard
Fidelity Logo
2nd place
Fidelity
Firstrade Logo
3rd place
Firstrade

Top penny stock trading platforms in the United States in 2023


  1. Vanguard - the best online broker for penny stocks in 2023. Stocks and ETFs are free to trade. Easy account opening. Great mobile trading platform.
  2. Fidelity - Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.
  3. Firstrade - Free stock, ETF, fund and options trading. Solid research tools. Quality educational tools.
  4. TD Ameritrade - Low trading fees (free stock and ETF trading). Superb desktop trading platform. Great customer support.
  5. E*TRADE - Low trading fees (free stock and ETF trading). User-friendly mobile trading platform. Great research tools.

How did we pick the best brokers for penny stocks in 2023?

  • We checked 102 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 500 data points for each broker. Now let's jump straight to the results.

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.

Check out the best brokers in another country

Best brokers for penny stocks
Overview of fees and services

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.
Vanguard Fidelity Firstrade TD Ameritrade E*TRADE
OTC stocks commission OTC stocks are free to trade OTC stocks are free to trade OTC stocks are free to trade $6.95 per oder $6.95 per oder ($4.95 if you had 30+ trades in the quarter)
$2,000 trade on the NYSE or NASDAQ $0.0 $0.0 $0.0 $0.0 $0.0
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0

Market coverage and mobile platform features

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.

Vanguard Fidelity Firstrade TD Ameritrade E*TRADE
Number of stock markets 4 25 5 4 5
Mobile app user-friendliness Great Great Great Great Great
Mobile two-step authentication Yes Yes No Yes No
Mobile search function Great Great Great Mid-range Great

Best brokers for penny stocks
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And now, let's see in detail which are the best brokers for penny stocks in 2023, one by one.

Vanguard Logo

#1 Best brokers for penny stocks
Vanguard

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

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Vanguard snapshot
US stockbroker
Overall score 4.5 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 2023
Fidelity Logo

#2 Best brokers for penny stocks
Fidelity

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

Visit broker

Fidelity snapshot
US stockbroker
Overall score 4.8 stars
Stock/ETF fee score 4.3 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 2023
Firstrade Logo

#3 Best brokers for penny stocks
Firstrade

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

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Firstrade snapshot
US discount broker
Overall score 4.5 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 3.8 stars
Minimum deposit $0
Fractional shares available No
Read review For a detailed analysis of Firstrade, check out our review for 2023
TD Ameritrade Logo

#4 Best brokers for penny stocks
TD Ameritrade

Recommended for investors and traders looking for solid research and a well-equipped desktop trading platform

Visit broker

TD Ameritrade snapshot
US-based stockbroker
Overall score 4.9 stars
Stock/ETF fee score 5.0 stars
Mobile platform score 4.8 stars
Minimum deposit $0
Fractional shares available No
Read review For a detailed analysis of TD Ameritrade, check out our review for 2023
E*TRADE Logo

#5 Best brokers for penny stocks
E*TRADE

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

Visit broker

E*TRADE snapshot
US stockbroker
Overall score 4.7 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 2023

Best brokers for penny stocks
FAQ

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.

Best brokers for penny stocks
Further reading on penny stock trading

Author of this article

Réka Hidas

Author of this article

Réka attended the International Business and Economics bachelor program at Corvinus University in Budapest. She's eager to help investors find the best investment providers, through writing extensive reviews. On a more personal level she wants to develop her skills and grow professionally on this field.

Réka Hidas

Junior Broker Analyst

Réka attended the International Business and Economics bachelor program at Corvinus University in Budapest. She's eager to help investors find the best investment providers, through writing extensive reviews. On a more personal level she wants to develop her skills and grow professionally on this field.

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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