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Can you trade penny stocks at Vanguard?

Your expert
Fact checked by
Adam N.
Updated
Jan 2024
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Data-driven Data-driven
Independent Independent

Can you trade penny stocks at Vanguard as of January 2024?

Yes, you can trade OTC penny stocks at Vanguard.

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Vanguard penny stock fees, withdrawal fee and more

Vanguard main highlights
💰 Vanguard stock trading fees class Low
💰 Vanguard OTC stock fees OTC stocks are free to trade
📃 Vanguard available stock markets 4
💰 Vanguard withdrawal fee $0
💰 Vanguard minimum deposit $0
💰 Vanguard inactivity fee No
📃 Vanguard deposit methods Bank transfer
🗺️ Country of regulation USA
🎮 Vanguard demo account provided No

Data updated on January 26, 2024

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What are penny stocks?

Penny stocks are defined as stocks that are priced below $5 and are issued by small companies. While some penny stocks are listed on formal securities exchanges, such as NASDAQ, the majority are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks are considered to be risky investments because of their poor liquidity and high price volatility. Only a small share of penny stocks have a real potential to bring high returns, while the vast majority tends to perform poorly. Investing in penny stocks may well result in you losing all your invested money. If you'd like to learn more, check out our guide to trading penny stocks. Below, you can view examples of a well-performing and a poorly performing penny stock in 2022.

Poorly performing penny stock in 2022


Well-performing penny stock in 2022

Looking for the best brokers for penny stocks?

If you're looking for the best brokers that offer penny stocks trading, check our list of the world's best brokers for penny stocks.

FAQ

Is it worth investing in penny stocks?

Penny stocks are highly volatile assets that require caution. Some penny stocks may lose all their value over a relatively short period, while others may produce above-average returns.

Why are penny stocks so risky?

Penny stocks are considered risky assets because of their high price volatility and lack of liquidity. Penny stocks are shares of small companies, only a few of which have the potential to perform well in the future. Because of poor liquidity, it is hard or sometimes outright impossible to sell the stocks you own.

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Further reading

Author of this article

Edith Balázs

Fiscal Fables Storyteller | Forex • Safety • Financial Journalism

I bring 20+ years of experience as a correspondent having worked for Bloomberg, Dow Jones and The Wall Street Journal covering macroeconomics, stock, currency and fixed-income markets. I hold a Master's degree in American Studies and Journalism.

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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