Penny stocks can be a great way to make money quickly—but they’re also one of the riskiest investments you can make. If you don’t know what you’re doing, it’s easy to get burned.
So how do you protect yourself? By taking advantage of the best apps for trading penny stocks. Here are our favorites:
Table of Contents
Best Apps For Trading Penny Stocks
Penny stocks are garnering a lot of attention due to their low capital requirements and high upside potential. With high rewards, though, comes a proportional amount of risk; penny stocks are volatile and unpredictable speculative investments. Fortunately, a penny stock trading app with real-time quotes and analysis can help investors reduce risks by choosing stocks with the best potential.
A good penny stock trading app helps you conveniently monitor stocks on your smartphone, utilizing streaming data, real-time alerts, spot analysis, and quick trade execution to your advantage. But not all penny stock trading apps are the same. Lacking any of those capabilities, a trading app can put you at a disadvantage. In his roundup, we identified the best penny stock trading apps in six distinct categories to help you find the one that best fits your needs.
Best Penny Stock Trading Apps of 2022
Best Overall: Charles Schwab
Best for Novice Investors: Robinhood
Best User Experience: TD Ameritrade
Best for Tools & Resources: ETrade Best for Active Traders: TradeStation Best for Penny Stock Research: Fidelity Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. Best Penny Stock Trading Apps Charles Schwab Robinhood TD Ameritrade ETrade
TradeStation
Fidelity
Final Verdict
Compare Providers
What Should I Look For In A Penny Stock App?
How Much Do Trading Apps Cost When Buying Or Selling Penny Stocks?
Are Penny Stock Trading Apps Risky?
Can I Make Money Using Penny Stock Trading Apps?
Methodology
BEST OVERALL
Charles Schwab
Charles Schwab LogoLEARN MORE
Why We Chose It
A perennial leader in the full-service and discount brokerage space, Charles Schwab has translated its standout customer experience to its mobile app, making it our pick as the best overall penny stock trading app.
Pros & Cons
Pros
One of the top brokerage firms in the industry
Excellent customer service
Zero commissions and account minimum
Free access to world-class research and analysis tools
Technology leader
Cons
Vast number of tools and resources can be overwhelming
Overview
Since its founding in 1971, Charles Schwab has been obsessed with providing its customers with the best overall investing experience, winning many industry awards along the way. Its commitment to low-cost investing, technological innovation, excellent customer service, and world-class research and education resources has produced a dynamic mobile app with all the features penny stock investors need. That’s why it’s our pick as the best overall penny stock trading app.
Charles Schwab started the race to the bottom for stock commissions as the industry’s first discount brokerage. So, it’s not surprising that Schwab led the way to zero commissions on all stock trades, including penny stocks.
Even with that, all Schwab customers have complete access to its full range of services, including its StreetSmart platforms and high-end stock screeners. The vast number of features and reports available can almost be overwhelming.
You also have access to penny stocks traded on multiple exchanges, including over-the-counter (OTC) and the pink sheets. Investors can access the StreetSmart platform to conduct in-depth research and analysis and then use their mobile app to get quotes, make trades, track positions, and manage their investments. The app also allows you to deposit checks and transfer assets. All of this can be accessed by voice command, which can also fetch you answers to your investment questions.
It is important to note that Charles Schwab merged with TD Ameritrade in 2020, so there could be changes to the Schwab trading platform. However, when two of the premier online brokerage companies get together, one can only expect great things to come.
Read our full Charles Schwab Review.
BEST FOR NOVICE INVESTORS
Robinhood
RobinhoodLEARN MORE
Why We Chose It
Robinhood’s fast, intuitive, smartly designed, and zero-cost mobile trading app has attracted a generation of young investors, making it easy and fun to trade penny stocks, which is why we chose it as the best penny stock trading app for beginning investors.
Pros & Cons
Pros
Intuitive, easy-to-use app
Zero commissions on trades
Many investing options
Free share of stock deposited in new account
Cons
Over-the-counter penny stocks not available
Web platform has limited capabilities
NEW AND NOTABLE
On April 7, 2022, Robinhood announced that it rolled out Crypto Wallets to every eligible person on the WenWallets waitlist of more than two million people. According to the company, all eligible customers who signed up for the waitlist will be able to send and receive any of the cryptocurrencies currently available on Robinhood.
Overview
Since its founding in 2013, Robinhood’s mobile stock trading platform has been a magnet for millions of younger stock investors. In addition to zero-commission trading, the app is streamlined, highly intuitive, and easy to use, making Robinhood our top pick as the best penny stock trading app for beginning investors.
The free investing app also allows for commission-free trading in stocks, ETFs, options, and alternative investments like gold and cryptocurrency. While it doesn’t offer the kind of tools and resources used by sophisticated investors, it does provide basic market research tools along with real-time quotes and the ability to track trades and watchlists. Robinhood does offer a “Level 2” service with access to more tools and research and faster clearance of cash for a $10 monthly subscription.
Robinhood doesn’t require a minimum deposit to set up an account, and it will even deposit one share of stock in your account when you open it. The only downside is OTC and pink sheet stocks are not available for trading.
While you can use its web platform to make trades, it’s limited compared to the full-featured mobile app. That could be a negative for anyone who isn’t adept at using their thumbs to make quick trades. For younger investors with more nimble fingers, Robinhood’s app is almost too easy to use, which could be trouble for undisciplined investors.
Read our full Robinhood Review.
BEST USER EXPERIENCE
TD Ameritrade
TD AmeritradeLEARN MORE
Why We Chose It
TD Ameritrade has always set the standard for high-end technology platforms with sleek designs, intuitive navigation, and robust features, all built with the end-user in mind. Its mobile trading app is no different, which is why we chose it as the penny stock trading app with the best user experience.
Pros & Cons
Pros
Leader in web and mobile platform technology
Top-quality research tools
Access two types of trading platforms
Zero commissions on non-OTC stocks
No account minimums or fees
Cons
OTC trade commission of $6.95 per trade
Some uncertainties regarding merger with Schwab
Overview
Since 1975, TD Ameritrade has delivered for its clients with industry-leading technology platforms offering the best in tools, research, real-time streaming data, and service. Its mobile trading app is no different, which is why it is our pick as the penny stock trading app with the best user experience.
If your biggest concern in picking a penny stock trading app is trading costs, then TD Ameritrade may not be for you. You can get by without paying any commissions when trading non-OTC stocks. But, if you want to trade OTC penny stocks, you will pay $6.95 per trade. There is no minimum deposit required to set up an account.
However, if you’re looking for the most comprehensive research tools and analysis software, you can’t do any better than TD Ameritrade. Depending on your experience level or trading frequency, you can choose between a couple of their trading apps. The regular TD Ameritrade app is suited for new investors or those who trade less frequently, while the award-winning, premium thinkorswim app is best for advanced or active traders.
Both apps let you trade and monitor your stocks with live feeds and charts. While both apps offer a range of research tools, with the thinkorswim app, you have access to tools to help you assess a penny stock company’s value and evaluate the timing of a stock purchase based on price action and volatility.
It should be noted that, in 2020, TD Ameritrade merged with Charles Schwab, another leader in the online brokerage industry. While it’s not yet known what the new trading platform will look like, you can expect it to have best-in-class features and capabilities.
Read our full TD Ameritrade Review.
BEST FOR TOOLS & RESOURCES
ETrade Etrade2022V2LEARN MORE Why We Chose It ETrade is another pioneer and innovator in online trading technology, and it brings all of its mobile trading app, making it our choice as the best penny stock trading app for tools and resources.
Pros & Cons
Pros
Industry pioneer in online trading platforms
Two app options depending on investors’ needs
Streamlined, easy-to-use mobile and desktop platforms
Access to one of the more robust web platforms in the industry
Zero commissions on non-OTC stocks
Cons
$6.95 commissions for OTC stock trades
Possible changes to platform following merger with Morgan Stanley
Overview
ETrade, a full-service online brokerage company, was one of the first to create an electronic trading platform and has been a leading innovator since its founding in 1982. Like its industry-leading web platform, ETrade has stacked its mobile trading apps with everything a penny stock trader could need, which is why it is our choice as the best penny stock trading app for tools and resources.
E*Trade charges $6.95 per trade on OTC stocks ($4.95 per trade after 30 trades in a quarter). But it charges zero commissions on all other penny stocks with no account minimum.
However, if you want access to some of the best tools and research capabilities in the industry, E*Trade is your best bet. What better way to enhance your trading opportunities and mitigate your risks than with streaming data, real-time quotes, and a high-end stock screener?
Users can choose between two mobile app versions—the regular ETrade app or the Power ETrade app. Both offer a seamless trading experience for new investors and professional traders alike. The advanced version is a full-service platform providing money management capabilities along with breaking news and streaming Bloomberg TV.
All E*Trade mobile users have access to its vast resources of learning and trading tools available on its desktop platform, including research reports from Thomson Reuters, TipRanks, and others.
Morgan Stanley acquired E*Trade in 2020, but the company insists the customer experience of its platforms won’t change.
Read our full E*Trade Review.
BEST FOR ACTIVE TRADERS
TradeStation
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Why We Chose It
TradeStation, long favored by active and professional traders for its low costs and best-in-class trading execution and tools, makes its institutional-quality platform available on its mobile app, making it our choice as the best penny stock trading app for active traders.
Pros & Cons
Pros
Institutional-quality trading platform
Two mobile app options
Fast trade executions
Vast technical analysis and research tools
Zero-commission trades
Cons
$2,000 account minimum for TS Select option
$10 per trade surcharge for TSgo users on desktop platform
Overview
Since 1982, TradeStation has built itself into an award-winning trading platform active and professional traders like to call home. Known for its lightning-fast trade executions and institutional-quality platform, TradeStation makes it all available for its mobile app users, which is why we chose it as the best penny stock trading app for active traders.
TradeStation offers two mobile app options—TS Select and TSgo—both offering zero-commission trades on penny stocks and all other equities. TSgo users can access the desktop platform for trades and other resources, but there is a $10-per-trade charge. There is no account minimum or commissions for all stock trades.
The TS Select app requires a $2,000 account minimum, but users can trade on the desktop platform for free. Also, for trades involving more than 10,000 shares, you’ll pay $0.005 per share on the trade. If you plan on keeping your per-trade volume at or below 10,000 shares, TS Select would be the best option for beginner penny stock traders.
Users have access to several training resources, including webinars, market insights, and community forums. You’ll also have access to simulated training where you can open a simulated account and test trading strategies in real-time or using historical data.
Read our full TradeStation Review.
BEST FOR PENNY STOCK RESEARCH
Fidelity
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Why We Chose It
Fidelity is one of the premier online brokerages globally, but its hallmark has always been its world-class research, which it also makes available for penny stock investors, making it our choice as the best penny stock trading app for penny stock research.
Pros & Cons
Pros
Premier online brokerage companies
Free access to flagship trading platform by all customers
Zero commissions and account minimums
World-class stock research and analysis
Stock screener tools for finding the best stocks
Cons
Non-U.S. citizens are not eligible to open an account
Overview
As one of the top online brokerage companies, Fidelity frequently makes many “best of” lists for different reasons, but its research capabilities have always been tops. Now, all Fidelity customers, including penny stock investors, can access its research and analysis tools through Fidelity’s Active Trader Pro platform. That makes Fidelity our choice as the best penny stock trading app for penny stock research.
Fidelity is among the top online brokerage companies that do not charge a commission for stock trades, including penny stocks, and there is no account minimum. All Fidelity customers, regardless of trading frequency or account balance, have access to its Active Trader Pro platform, parts of which translate to its mobile app.
The mobile app has a clean design, making it easy to buy and sell the large number of penny stocks Fidelity offers. It also delivers timely portfolio, market, and research information with the ability to tailor the news and content. Users can get stock quotes and intraday valuations, check balances, track positions, and transfer money.
Fidelity’s stocks screener is the only one we could find that searches for stocks that trade specifically on OTC exchanges, with filters that can narrow the search to fewer than 1,000 stocks. By comparison, screeners used by TD Ameritrade, and E*Trade can only narrow the search to more than 10,000 stocks.
Read our full Fidelity Investments Review.
Final Verdict
If you could take all the best features of the mobile apps on this list and roll them up into one, you would have the Charles Schwab penny stock trading app. That includes a highly intuitive and easy-to-use interface, top-notch tools and resources, world-class research capabilities, and a superior user experience. Schwab mobile app users get all of that without paying a dime in trade commissions or account fees.
With Schwab, there are no limitations on which penny stocks you can trade, and, with its screening and research tools, you can quickly identify the best potential penny stocks and assess their risk. While investing in penny stocks poses more significant risks, investors can at least have some comfort knowing they have access to best-in-class trading and educational tools to make more informed decisions.
Compare the Penny Stock Trading Apps
Course Min. Deposit Fees Commission Rates Other Investment Options
Charles Schwab
Best Overall $0 None $0 on all stock trades Stocks, bonds, funds, ETFs, options, futures
Robinhood
Best for Novice Investors $0 None $0 on all stock trades Stocks, bonds, ETFs, options, crypto
TD Ameritrade
Best User Experience $0 None $0 for non-OTC stocks, $6.95 for OTC stocks Stocks, bonds, funds, ETFs, options, futures
E*Trade
Best for Tools & Resources $0 None $0 for non-OTC stocks, $6.95 for OTC stocks Stocks, bonds, funds, ETFs, options, futures
TradeStation
Best for Active Traders $2,000 for TS Select None $0 on all stock trades, $0.005 per share over 10,000 shares Stocks, bonds, ETFs, options, futures, crypto
Fidelity
Best for Penny Stock Research $0 None $0 on all stock trades Stocks, bonds, ETFs, options, futures
What Should I Look for in a Penny Stock App?
The quickest way to narrow down your choices for a penny stock app is to compare costs. Holding your costs down is key to maximizing profits while minimizing losses. With many of the top penny stock brokerage firms offering high-quality apps free of commissions, you don’t have to sacrifice quality for cost.
Next, look for ease of use. Apps that are difficult or clumsy to navigate can end up costing you money. A good penny stock app will have a clean design and a streamlined process for getting quotes and executing trades.
The availability of investment options is also essential. Some penny stock apps limit your investing to non-OTC stocks, or they may charge a commission for OTC trades. You should also have access to a wide range of other investments, such as stocks, bonds, and ETFs.
Penny stock apps that offer solid research and analysis tools, or access to a desktop platform that offers them, are essential to uncover potential winners and reduce your risk. A penny stock app or platform with good educational resources is a big plus.
How Much Do Trading Apps Cost When Buying or Selling Penny Stocks?
Not long ago, most brokers charged commissions or a flat rate for buying and selling penny stocks. Today, you should be able to trade penny stocks at no cost with no account minimums. You just have to look for possible hidden fees or limitations, such as a cap on the number of shares you can trade for free. Plus, if you ever have to use a live broker to execute a trade, you could pay a fee.
Are Penny Stock Trading Apps Risky?
A penny stock trading app could introduce some risks if it is not high quality. The ability to identify the right penny stocks, execute trades quickly, and monitor your positions is key to optimizing your investment experience. Apps that don’t offer live streaming or real-time quotes could put you at a disadvantage. Generally, when you choose a penny stock trading app from a top online brokerage company with sound research and analysis capabilities, you can actually reduce your risk.
Can I Make Money Using Penny Stock Trading Apps?
Of course, you can make money, but you can lose your money just as easily. Penny stocks, especially those selling for less than five dollars, are considered high risk because the companies are either not yet financially sound or have yet to find a market for their product. Plus, penny stocks are not heavily traded, which could be a liquidity risk if you had to sell them quickly.
Essentially, penny stock investing is speculation. They can be highly volatile and unpredictable. Penny stock investors should only invest with money they can afford to lose.
How We Chose the Best Penny Stock Trading App
We took a look at the 12 of the top penny stock apps and compared them based on critical factors such as reputation, costs, ease-of-use, investment options, research and analysis tools, access to other platforms, and any unique features. On closer inspection, we used the same criteria to identify the best penny stock trading apps in six categories.
best penny stock app for beginners
A lot of investors like to allocate a small proportion of their portfolio into penny stocks. This is because penny stocks are typically up and coming firms that could one day make it big. Although the upside potential is huge, as are the risks. This is why you need to ensure that you do your homework before taking the plunge.
In this guide, we explore the best penny stock app of 2022. On top of discussing our top-rated providers in great depth, we’ll also walk you through the process of making a penny stock investment today.
In This Guide[show]
Top 10 Penny Stock Apps
Below you’ll find our top 10 penny stock apps of 2022. You can scroll down to find out more about what each app offers.
eToro – Overall best penny stock app with 0% commission
Robinhood – Top penny stock app for US residents
Stash – User-friendly US penny stock app
Trading 212 – More than 4,000 stocks and ETFs
IG – UK penny stock app with over 10,000 equities
Plus500 – One of the Best CFD Apps for Penny Stocks
AvaTrade – Penny stock app with MT4
Fineco Bank – Penny stock app with low minimums
Charles Schwab – Access over-the-counter markets
Capital.com Group – CFD penny stock app with low fees
The Best Penny Stock Apps of 2022
If you want to buy penny stocks in a cost-effective and secure manner, you’ll want to stick with a regulated broker. Most providers also offer a fully-fledged stock app, which is great for placing buy and sell orders on the move.
To clarify, the Securities and Exchange Commission (SEC) defines a penny stock as any publicly-traded company with a share price of $5 or less. With this in mind, below you will find a list of the best penny stock apps of 2022
- eToro – Overall Best Penny Stock App with Zero Commission in UK and US
eToro is a hugely popular stock trading app that is now home to over 12 million investors. Launched in 2007, the platform is fully regulated and holds licenses from the FCA, CySEC, and ASIC. By downloading the eToro stock app – which is available on iOS and Android devices, you will have access to over 1,700 stocks across 17 exchanges, including many of the best stocks to buy.
Many of these equities sit within the SEC definition of a penny stock (share price of $5 or less). You can buy penny stocks at eToro without paying any commissions or share dealing fees. The platform doesn’t charge an ongoing fee or subscription either. Additionally, the eToro free penny stock trading app allows you to invest on a fractional basis. This means that you can trade at an amount you are comfortable with – as long as you meet a $50 minimum investment.
There are over 150+ ETFs on the eToro app – many of which focus on small-cap penny stocks. This allows you to gain exposure to your desired market in a diversified and passive manner. Once again, ETFs can be traded without you needing to pay any commissions. The eToro stock app also offers a Copy Trading feature. This allows you to select an investor that has a great track record of making consistent profits, and then copy their trades like-for-like. You can do this without paying any fees.
In terms of getting started, the eToro penny stock app can be downloaded free of charge. Once you open an account you will be required to meet a minimum deposit of $200. You can fund your account through the app with a debit/credit card or e-wallet. These payment methods are processed instantly. If you deposit in a currency other than the US dollar, a small conversion fee of 0.5% will apply.
Read our comprehensive eToro app review to find out more about what this app offers.
Pros
Regulated by the FCA, CySEC, and ASIC
Trusted brand with over 12 million client accounts worldwide
Buy stocks without paying any commission or share dealing charges
Social and copy trading
Buy stocks or trade CFDs with leverage (Non-US)
1,700+ stocks listed on multiple international markets
Personalised eToro account where you can set up trading price alerts
Cons
Not suitable for advanced traders that like to perform technical analysis
Visit eToro Now
67% of retail investors lose money trading CFDs at this site.
- Robinhood – Best 0% Fee Penny Stock App for US Residents
Robinhood stock app
If you’re based in the US, there is every chance that you have heard of the Robinhood stock app. More than 10 million Americans are using the provider to buy and sell stocks – not least because you will not pay any commissions or dealing fees.
Furthermore, the Robinhood penny stock app allows you to trade from just a few dollars – meaning that you can engage in fractional ownership. In terms of its asset library, the Robinhood app covers over 5,000 stocks and ETFs. Options and cryptocurrencies are also supported.
When it comes to funding your account, Robinhood allows you to connect your US checking account. If you’re on the standard account then the first $1,000 that you deposit will be credited instantly. The Robinhood app has great reviews on both the Google Play and Apple Stores. While the former has a rating 4.3, the latter stands at 4.8. Impressively, these ratings are based on over 2 million verified reviews.
Read our comprehensive Robinhood app review to find out more about what this firm offers.
Pros
Heavily regulated in the US
More than 10 million traders using the app
Buy and sell stocks without paying any commission
No minimum deposit in place
No monthly or annual maintenance fees
More than 5,000 US stocks supported
Also invest and trade ETFs, options, and cryptocurrencies
Perfect for newbie traders
Cons
Only 250+ foreign stocks listed
Unable to deposit with a debit/credit card or e-wallet
Visit Robinhood Now
- Stash – User-Friendly Stock Trading App for US Residents
Stash stock appStash is a great option if you’re based in the US and want to start off with a beginner-friendly stock app. The provider has designed the application so that it appeals to newbie investors that want to buy and sell stocks in a complex-free manner.
It takes just minutes to get started and there is no minimum deposit. You will have access to an abundance of stocks on the app – all of which can be purchased commission-free. You will, however, need to meet a small monthly charge of $1 to gain access to the app.
Stash also offers accounts at $3 and $9 per month, which offer additional features (such as retirement accounts). Much like Robinhood, Stash supports fractional ownership on stocks and shares.
This means that you can make an investment from just a couple of dollars. This is great for diversification purposes, too. Stash requires you to deposit funds with a US checking account, which is fairly straight forward to do once you are set up
Read our comprehensive Stash app review to find out more about what this app offers.
Pros
No minimum deposit
Offers fractional stock
More than 1,200+ stocks and ETFs
Best-suited for newbie traders
Heavily regulated
Avialable on both iOS and Android
Lots of educational resources
Cons
Monthly fee of between $1 and $9 depending account type
Does not support instant deposits with a debit/credit card or e-wallet
Visit Stash Now
- Trading 212 – Leading UK Penny Stock App – 0% Commission on Shares
Trading 212 stock appTrading212 is a great option if you want to access the penny stock scene from the UK. The regulated provider offers over 4,000 stocks and ETFs. This covers markets in the UK, US, and much more.
You can invest in these stocks in the traditional sense, or trade them via CFDs. If opting for latter, you will have access to leverage facilities of up to 1:5 on stock CFDs, and even more on other asset classes.. The penny stock CFD option at Trading 212 is also useful if you are planning to short-sell a share.
Going back to the traditional stock dealing segment of the app, Trading212 allows you to invest from just £1. This is because the application offers full support for fractional ownership. Additionally, Trading212 offers a Stocks and Shares ISA for all UK residents. This means that the first £20,000 invested this financial year(eligible assets) will remain tax-free.
In terms of pricing, Trading212 does not charge any share dealing fees. Its CFD trading facility is also commission-free and there are no going maintenance charges or subscriptions required. If you like the sound of Trading 212, the mobile app is compatible with Android and iOS devices. You should have no concerns regarding safety, as the provider is licensed by the FCA and your funds are protected by the FSCS.
Read our comprehensive Trading 212 app review to find out more about what this Trading 212 offers.
Pros
0% commission on all stocks and ETFs
Invest from just £1 via fractional ownership
Your money is protected by the FSCS and FCA
CFD trading is also supported – as is leverage and short-selling
Excellent reviews on Google Play and Apple Stores
More than 500,000 trusted clients
Stocks and Shares ISAs offered for tax-efficient savings
Cons
Still relatively unheard of in the UK trading space
Limited fundamental analysis tools
Visit Trading 212 Now
- IG – Best Penny Stock App for UK Residents (10,000+ Stocks)
IG is well worth considering if you’re based in the UK. The brokerage firm – which was launched in the 1970s, has a stock library that consists of over 10,000 equities. This covers dozens of stock exchanges – not just in the UK but overseas, too. In particular, this broker gives you access to heaps of penny stocks – all of which can be purchased online or via the mobile app.
Regarding the latter, this is available on iOS and Android devices – and can be downloaded free of charge from the IG website. In terms of fees, IG charges £8 per trade – which you will pay when you place an order and again when you cash your investment out. If you trade more than three times in a 30-day period, then this fee is reduced to just £3.
Alternatively, you might consider the spread betting or CFD trading department at IG. This covers an impressive 17,000+ financial instruments. On top of stocks, you can also trade bonds, indices, ETFs, commodities, cryptocurrencies, and more. You won’t pay any commissions in the CFD/spread bettinf department unless you decide to trade stocks. If you do, the specific fee varies depending on the exchange, albeit, this averages 0.10%.
IG is heavily regulated, with licenses from several bodies. This covers the FCA, ASIC, and others. The parent company – IG Group Holdings plc, is listed on the London Stock Exchange with a market capitalisation of just below £3 billion. Getting started with this penny stock app requires a minimum deposit of £250. You can instantly fund your account with a debit/credit card through the app if using an Android. However, iOS users must do this through the main IG website.
Read our comprehensive IG app review to find out more.
Pros
Trusted investment app with a long-standing reputation
More than 10,000 stocks listed
Good value share dealing services – fees as low as £3 per trade
Leverage and short-selling also available
Spread betting and CFD products
Access to dozens of international markets
Great research department
Cons
Minimum deposit of £250
US stocks have a $15 minimum commission
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- Plus500 – One of the Best CFD Apps for Penny Stocks
Plus500 is a global trading platform that specialises in CFDs. This covers everything from commodities and indices to cryptocurrencies. Additionally, the Plus500 platform is home to thousands of stock CFDs from heaps of international markets. Many of these instruments come with a share price of less than $5 – ensuring that that sit within the remit of penny stocks.
You can trade at Plus500 without paying any fees or commissions, other than the spread. We find that during standard market hours, the spreads are competitive on this platform. Plus500 also offers a fully-fledged mobile app – which is available for Android and iOS users. As you will be traded penny stock CFDs, you will always have the option of going long or short. Put simply, this means that you stand to make gains irrespective of how the markets are performing.
Trading via the Plus500 app also gives you access to leverage facilities. Your limits will depend on where you are based. For example, those based in the UK and Europe are capped by ESMA limits – meaning 1:30 is the maximum leverage on offer. Those based outside of the aforementioned regions will have access to much higher limits. Getting started at Plus500 takes no more than a few minutes.
You simply need to download the app, register an account, and meet a minimum deposit of £100. The application supports debit/credit cards and Paypal for instant deposits. After that, you can start trading penny stock CFDs straightaway. In terms of safety, Plus500UK Ltd is authorised & regulated by the FCA (#509909). If you’re based outside of the UK, you will fall under the scope of an alternative regulatory body.
Pros
Heavily regulated trading platform
0% commission on all forex trading positions
Leverage facilities available
Mobile app is highly rated
No transaction fees
Minimum deposit just £100
Heaps of forex pairs supported
Thousands of CFD instruments
Cons
Does not offer traditional investment assets
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There is no guarantee you will make money with this provider.
- AvaTrade – Best Penny Stock App For MT4
AvaTrade is an established online CFD trading platform that also allows you to trade via an iOS and Android mobile app. The platform is regulated in several jurisdictions and has a great reputation in the online space.
This CFD trading provider offers thousands of financial instruments – including lots of stock CFDs. AvaTrade does not charge any commissions and spreads are typically super-low. For example, major stocks come with an average spread of just 0.13%. Those that fall within the remit of penny stock CFDs are slightly higher at 0.19%, albeit, this is still competitive.
What we really like about AvaTrade is that you will have full access to MT4. This is ideal if you are planning to install an automated penny stock trading robot. Once installed via your desktop device, you can then monitor the robot through the MT4 mobile app. All you need to do is log in with your AvaTrade credentials.
AvaTrade offers heaps of fundamental research tools and market insights. The mobile app requires a minimum deposit of just $100 – which is great if you are planning to start off with small trading volumes. The mobile app supports several payment methods – including debit/credit cards and a bank wire. Additionally, it is worth noting the pros and cons.
Pros
Thousands of financial instruments supported
Super-tight spreads on forex pairs
Several trading platforms – including MetaTrader 4 and 5
Regulated in several jurisdictions
Great for news and market insights
Low account minimums
Cons
Best suited for more experienced traders
Visit AvaTrade Now
There is no guarantee you will make money with this provider.
- Fineco Bank – Best Penny Stock App For Low Fees and Small Stakes
Fineco logo
Fineco Bank is a large-scale financial institution based in Italy. It now offers retail investment and trading services – both online and via a native mobile app. You will have access to thousands of shares from multiple marketplaces, as well as CFD trading facilities.
This stock app stands out for several reasons. First and foremost, Fineco Bank allows you to buy penny stocks at a fee of just £2.95 per trade. You won’t need to pay a monthly fee either – unless you plan on investing in ETFs. If you do, this starts at just £2.95 per month – which includes one free ETF trade.
Fineco Bank also supports for a CFD trading facility – of which you can access on your phone. This allows you to trade penny stocks on a commission-free basis. As always, this comes with the added benefit of applying leverage and short-selling. All deposits must be facilitated from a bank account transfer and meet a £100 minimum. As a huge European bank, it comes as no surprise to learn that this trading provider is heavily regulated.
Pros
Buy shares from just £2.95
Thousands of shares, ETFs, and funds supported
Trade CFDs via shares, indices, commodities, and more
Low minimum deposit of just £100
Heavily regulated and trusted repuation
No fees to deposit
Cons
ETFs require a monthly payment of £2.95 (includes 1 free ETF trade)
No debit card deposits
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There is no guarantee you will make money with this provider.
- Charles Schwab – Access Penny Stocks on Over-the-Counter Markets
Fineco logo
Charles Schwab is one of the largest brokerage firms globally. This US-based platform stands out for us as it is one of the few options available when it comes to accessing the OTC (Over-the-Counter) marketplace. After all, this is where penny stocks typically trade – especially those with super-low market capitalisations.
In particular, Charles Schwab allows you to buy penny stocks that are listed on the Pink Sheets and Over the Counter Bulletin Board (OTCBB). You can do this online or via your mobile device. In terms of fees, this brokerage house charges just $4.95 per trade – which is very competitive.
Charles Schwab also stands out as it does not have a minimum account balance is place. This is ideal if you want to buy penny stocks but you don’t want to risk large amounts of capital. Charles Schwab accepts several payment methods – including the ability to deposit checks via the mobile app. The application is available to download free of charge on Google Play and the Apple Store.
Pros
Gain access to the Pink Sheets and OTCBB
Buy penny stocks from just $4.95 per trade
Thousands of financial instruments supported
Mobile app available on iOS and Android devices
One of the largest brokerage firms globally
No minimum account balance
Cons
The platform isn’t overly user-friendly
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There is no guarantee you will make money with this provider.
- Capital.com Group – Best Penny Stock Trading App for Beginners
Capital.com group is potentially the best penny stock trading app for beginners located outside of the US. The user-interface is super-clean, making it easy to trade assets at the click of a button. Capital.com Group specialises in CFD instruments, which comes with several benefits.
As always, this means you can profit from both rising and falling markets. You can also apply leverage – with limits determined by the asset class and your country of residence. You will not pay any trading commissions when trading at Capital.com Group – and spreads are often industry-leading. In terms of tradable markets, Capital.com Group is particularly strong in the stock CFD space.
For example, it gives you access to lots of penny stocks listed on the UK’s Alternative Investment Market (AIM). This stock exchange is home to hundreds of small-cap and newly launched entities – making a great for penny stock trading. What we also like about Capital.com is that it allows you to open an account with a minimum deposit of just £20.
This can be achieved with a debit/credit card or e-wallet. There are no fees to deposit or withdraw funds, either. The Capital.com Group app is available on iOS and Android devices. The provider also offers a subsidiary app that is focused on trading education.
Pros
Industry-leading spreads
0% commission on all asset classes
Great selection of currency pairs
24/7 trading
Clean and crisp mobile app
Deposit from just £/$ 20
FCA-regulated
Cons
Minimum deposit of £250 when using a bank account
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79.17% of retail investor accounts lose money when trading CFDs with this provider.
How to Choose the Best Penny Stock App for You
So now that we have reviewed the best penny stock trading apps of 2022 – we are now going to discuss some of the factors that you need to look out for before opening an account. After all, you are going to be risking your own capital, so it’s crucial to assess whether or not the app is right for you.
This includes:
Regulation
It goes without saying that your chosen penny stock app provider should be in full possession of a license. This license should be issued by a reputable regulatory body – such as the SEC (US), FCA (UK) or CySEC (Europe). These bodies provider a wealth of regulatory protections – such as client fund segregation.
The free penny stock trading app in question will also need to comply with anti-money laundering and KYC requirements – and will have its books audited on a regular basis. Ultimately – if you come across a penny stock app that isn’t regulated – or one that holds a license from a shady location, avoid it.
Penny Stock Assets
Once you are confident that your chosen penny stock app is regulated by a reputable body, you then need to look at its asset library. More specifically, explore what penny stocks you will have access to. As we briefly mentioned earlier, the SEC defines a penny stock as a publicly-listed firm with a share price of $5 or less.
eToro stock app
Interestingly, this covers the vast bulk of the London Stock Exchange – as UK shares are priced in pennies as opposed to pounds. Some penny stock trading apps – notably Charles Schwab, also give you access to the OTC markets. This includes both the Pink Sheets and OTCBB – which is where most US-based penny stocks are listed.
Fees
You do, of course, also need to look at what fees you will be expected to pay to invest in your chosen penny stocks. This can vary quite wildly depending on the penny stock app you sign up with. For example, the likes of eToro, Robinhood, Plus500 and Capital.com allow you to trade without paying any commission.
The aforementioned brokers also refrain from charging a monthly fee. With that said, some penny stock investment apps will charge a flat commission that is payable at both ends of the trade. For example, Charles Schwab charges $4.95 and Fineco charges £2.95. Additionally, you need to look at other fees that might come into play – such as those linked to deposits and withdrawals.
Platform & Usability
Some penny stock apps are designed specifically for the everyday investor. That is to say, the application will be simple to use and requires no prior knowledge of trading.
Conclusion
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