When it comes to penny stocks, you must first learn the fundamentals of trading. This includes fundamental skills such as research and risk management. Aside from those, if you want to earn money with penny stocks, you’ll need something else. The “something” in question is a broker.
Consider it for a moment. Even if you find the ideal penny stock to invest in, without the ability to buy shares, you’re just looking. When it involves discovering the Best Penny Stock Brokers, there are a few things to keep in mind.
To begin, will you be actively trading each day or every other day? Will you, on the other hand, be a long-term investor or a swing trader? Brokerage fees are the reason for this. If you actively trade, you will almost certainly incur more expenses than someone who trades “here and there.”
So, who are some of the Best Penny Stock Brokers? I recommend utilizing one of the online broker options. The truth is that these kinds of stocks are so volatile that picking up the phone and calling an actual person takes a few minutes when the market moves in seconds. In this case, you should look for a self-directed account. You should also ensure that the broker in question enables you to buy penny stocks.
The Best Penny Stock Brokers in 2023
Although some brokers enable you to buy stocks for as little as $1, they may limit your access to certain exchanges. The OTC exchange is the most popular because it has fewer specifications. As a result, there are fewer regulatory barriers for businesses to overcome. As a result, some critical information may be withheld because companies are not required to report such information. Some brokers will not provide access to such stocks in this case.
Interactive Brokers
This is one of the more adaptable penny stock brokers available right now. It’s additionally among the few nations that allow international trading. Whether you want to trade Canadian penny stocks or US penny stocks, Interactive Brokers has also you covered. Furthermore, it provides a wide range of pricing options. There are three types of options: tiered, fixed, and free.
Free fees include no commissions on IRAs, ETFs, and penny stocks listed in the United States. In addition, the company provides high-quality mobile, desktop, and web trading. Though it isn’t as popular as it appears, many penny stock traders are migrating to this broker.
E-Trade
For active traders, E-Trade (Etrade) is one of the Best Penny Stock Brokers. It provides access to penny stocks that trade on all major US exchanges along with OTC penny stocks. Not only are tools available through the company’s website, but it also has a strong portfolio of additional tools, such as the ETrade Pro platform.
Clients have a variety of options when it comes to charting, utilizing technical indicators, as well as finding breaking news. ETrade has a dynamic smartphone app as well. It provides a variety of tools equivalent to the desktop app. In comparison, customization is somewhat limited.
ETrade is very flexible to active traders in terms of fees. Options trades cost $0.65 per contract or $0.50 if the trader makes more than 30 stocks, ETF, as well as option trades per quarter. Furthermore, trades in penny stocks on the NASDAQ, as well as NYSE, incur no commission fees. Trading fees may apply to OTC penny stocks. Needless to say, it is a commonly traded app and platform, with thousands of investors using it every day.
TD Ameritrade / Charles Schwab
TD Ameritrade and Charles Schwab are the next two penny stock brokers on this list. It’s critical to understand that all these 2 different brokers conducted as well as agreed to the terms of a merger, with Schwab acquiring TD. The new firm will control $5 trillion or more in assets after a $26 billion deal. However, until the transaction is fully completed, each is working independently.
TD Ameritrade, like Etrade, provides an alternative to the “ETrade Pro” platform. Think or Swim is the name of TD’s. Gaining access is completely free. ETrade may charge an annual subscription for ETrade Pro based on your activity or inactivity. When it comes to fees, TD does not charge a broker commission on stock, ETF, or options trades in the United States. It charges $0.65 per option contract and a $6.95 commission on OTC penny stocks. Schwab is comparable.
The penny stock broker reduced its trading fee on all NASDAQ as well as NYSE stocks while maintaining the $0.65 per contract fee on options. There are also fees associated with trading OTC penny stocks. Schwab’s background in personal finance is another advantage. When it comes to savings plans, investment vehicles, and the various vehicles for retirement investing, the brokerage firm is very forthright.
The bottom line
Determine what sort of features you want as well. Do you just want to place trades or do you want charting software as well as other technical trading features? Some advanced feature sets are not available with brokers that offer low or no-fee trading. That could simply be because hosting such technology requires additional expenditures on the broker’s end. If that’s your preference, there are numerous additional online resources for you to utilize in addition to your web app as well as a mobile app. I hope that this article about the Best Penny Stock Brokers can be useful to you.
