Best Penny Stock Apps

Penny stocks are an interesting and sometimes hot topic in the investment world. Beginner and seasoned traders alike may be able to benefit from these unique stocks. So whether you’re looking to learn more about penny stocks or trying to find the best place to trade them, I’ve got you covered. And hey, even if you decide that penny stocks aren’t right for you, you may be able to benefit from any of these apps. There are some of the best apps for trading penny stocks.

Overview of the best penny stock apps

Penny stock appBest for
Charles SchwabAdvanced, intricate platform
E*TRADEFlexible mobile app options
FidelityResearch and information
RobinhoodSimple, easy-to-use mobile app
TD AmeritradeUser experienced tailored to real traders
TradeStationEducation tools

The best penny stock apps

Charles Schwab

Charles Schwab is a well-known name in the investment space, so it’s no surprise that it offers access to penny stocks. Its customers can trade penny stocks through multiple exchanges, including over-the-counter markets and pink sheets stocks.
Even investors who are just getting started can take advantage of all that Charles Schwab has to offer. A Schwab brokerage account has no account minimums and no recurring fees. There’s also no online stock trade commission.
Customers can trade using either the desktop or mobile apps offered by Charles Schwab. When using your desktop or laptop, you’ll have access to StreetSmart Edge, Charles Schwab’s premier trading platform. This platform uses sophisticated technology to make finding and placing trades as quick and easy as possible. It also offers several layouts and tools that can be adjusted for every skill level. The mobile app allows you to manage your account and trade stocks in just a few simple steps, making it a great tool for the on-the-go investor.
An important thing to consider about Charles Schwab is that as intricate as this platform is, it might be overwhelming and intimidating to a new user. But, if you’re willing to dive in and learn how to use the tools and resources that you need based on your experience, it’s a great, affordable option. It’s also important to note that Charles Schwab has merged with TD Ameritrade, so there may be changes to come in the platform.

E*TRADE

E*TRADE offers a few different experiences that you can choose from, which can make it a bit more appealing to new users. The desktop, mobile, and web apps all offer key features and tools for an investor of any experience level.
The desktop version of the trading platform, Power E*TRADE, offers user-friendly tools that can give you the best of the Wall Street experience. It features easy-to-understand definitions of all of the industry terms you might see pop up in your trading experience. You’ll also have access to dynamic charting, risk-reward analysis, and other important tools to help you make the best investment decisions.
One of the best features of E*TRADE is that you can choose your mobile app experience. The regular E*TRADE app allows you to do everything that you need right from your phone. You can invest in penny stocks and other investments right from your app, as well as manage your money and monitor breaking news. You can also use a version of Power E*TRADE in mobile app form. This mobile app acts as a companion to the web platform and gives you access to interactive charts as well as more detailed information and news.
E*TRADE has been dealing with online trading for decades, and penny stocks are just one of many things that you can invest in using this platform. That being said, Morgan Stanley has acquired E*TRADE, so you may experience some changes in the user experience.

Fidelity

Fidelity offers a top-of-the-line trading platform and access to some of the best research available on a variety of topics, including penny stocks. Additionally, it offers a comprehensive look at your financial goals and how to reach them.
With Fidelity, you can make informed trading decisions using its Active Trader Pro platform. This platform offers real-time insights and actionable alerts to keep you up-to-date on trading opportunities. The platform also offers a Daily Dashboard, which you can use to keep an eye on all of the earnings announcements, economic events, and real-time news that are related to your portfolio.
As advanced as it is, Fidelity makes it easy to customize Active Trader Pro to your tastes and needs. When you sign up, you can use a predefined layout to get you started. As you learn, you can build a custom layout with the tools that are useful to you. You can even customize your layout with the colors and font size that best fit your preferences.
Since Fidelity is so well known for its top-notch research, it’s no surprise that it includes a full viewpoint on penny stocks. This clearly defines what a penny stock is, as well as the risks that you should be aware of before you invest. At the end of this viewpoint, Fidelity includes links that can help you take the next steps if you want to invest in penny stocks.

Robinhood

If you’re looking for a platform that focuses on mobile trading, Robinhood may be the one for you. The app is known for being a streamlined and approachable option for beginners, but anyone can find the benefit in its platform.
This platform offers a wide variety of trading opportunities, no matter what you’re interested in. You can trade stocks, ETFs, options, and even cryptocurrency using Robinhood. Additionally, you can take advantage of Robinhood’s modern approach to financial news and educational resources.
Unlike some of its competitors, Robinhood’s mobile app offers more features than its web platform does. For investors who are on the go and prefer simplicity, this could make it a more attractive option when compared to other trading platforms.
As far as penny stocks go, an important thing to understand about Robinhood is that the platform only supports penny stocks that trade on the major exchanges — NASDAQ or New York Stock Exchange (NYSE). You cannot trade over-the-counter (OTC) or pink sheets penny stocks using Robinhood.

TD Ameritrade

TD Ameritrade offers a stellar user experience, no matter what level investor you are. This company has been around since 1975, giving it plenty of time to create the experience that investors have come to expect from a leading technology platform.
Investing with TD Ameritrade starts with choosing the trading app that best meets your needs. For new or casual investors, the regular TD Ameritrade app will probably suit you just fine. It offers innovative products and features that can help you efficiently manage your portfolio. It also provides you with tools and resources to help you learn and continue to improve your investment strategies. You can do all of this using a web platform on your computer, or with a straightforward mobile app.
TD Ameritrade also offers a trading platform called thinkorswim®. This platform is based on real feedback from traders, so the user experience is continuously improved to give traders what they want from a trading app. With thinkorswim®, you’ll have access to up-to-the-minute news and analysis to keep you on top of your game at all times.
No matter which app you use, you’ll be able to monitor your investments using live feeds and charts. For penny stocks, thinkorswim® may be the better option of the two because it provides access to tools that can help you assess the value of a penny stock company. Using thinkorswim®, you’ll be able to evaluate and decide on when to make your move based on a penny stock’s price action and volatility.
Since TD Ameritrade has merged with Charles Schwab, it’s important to keep in mind that a new trading platform may be on the horizon.

TradeStation

TradeStation is geared toward active traders and technically-minded investors, but in recent years, the company has been making more of an effort to appeal to newer investors. While it may take some time to adjust to the platform, you should be able to find almost any tool that you need for your investment strategies.
The process of getting started with TradeStation is as streamlined as possible, and you can get your account up and running within the same day. However, navigating the platform options and the pricing structure can be a bit of a headache when compared to some of its competitors. The costs are broken down in several ways, including per-contract commissions, futures transaction fees, and annual inactivity fees.
Despite the costs, TradeStation provides excellent research capabilities that provide traders with robust stock screener capabilities. You’ll also have access to a portfolio analysis that includes analytics, optimization, and performance reporting. A watchlist can be set up and customized to help you transition from researching to trading stocks. You can even break down your portfolio’s performance to assess what’s working and what needs to change.
The educational resources that TradeStation offers may be where it outshines its competitors. You’ll have access to webinars, courses, community forums, and frequently updated market insights. You’ll also be able to use a simulated training technique that allows you to open a simulated account and test teach trading strategy to get hands-on experience before you dive in.

Summary table

Penny stock appAccount minimum depositAccount feesOnline stock trade commission
Charles Schwab$0$0$0
E*TRADE$0$0Up to $6.95 for over-the-counter stock trades
Fidelity$0$0$0
Robinhood$0$0$0
TD AmeritradeTD Ameritrade$0$0$6.95 per over-the-counter stock trade
TradeStation$0 for TS Go accounts; $2,000 for TS Select accounts$0$0

How are penny stocks traded?

You can find penny stocks on several markets. Some are traded on major exchanges like NYSE and NASDAQ. Some experts suggest only trading penny stocks that are available on these exchanges. You may also run into a stockbroker that will only deal with penny stocks that are traded on these exchanges.

OTC stocks

Penny stocks can also be found over the counter (OTC). OTC stocks are traded via a broker-dealer network instead of on a centralized exchange. This isn’t always a negative thing, but in some cases, it might mean that the securities didn’t meet the requirements to have a listing on a standard market exchange.
If you want access to penny stocks from the major exchanges and in the OTC marketplace, brokerage firms such as Interactive Brokers might be the place to go.

Why you should use penny stock apps

Penny stocks can be a risky investment, but that doesn’t necessarily mean that you should avoid them entirely. Instead of being drawn in because of the affordable price alone, you should be sure that you understand penny stocks and the risks before you try to make a living day trading them.
Fortunately, most trading apps today offer plenty of affordable resources that can help you determine whether trading penny stocks is for you. Although most apps offer similar features, some unique differences separate them, and these should be taken into consideration. If you’re new to investing, you’ll probably want to look for an app that is relatively straightforward for you to navigate. You may also want to check to make sure you won’t be charged a fee or penalized otherwise if you aren’t an active trader.
If you’re looking for an app that will allow you freedom when it comes to trading penny stocks, you’ll want to consider this as well. Some apps might discourage trading penny stocks due to the risks. Others might only trade penny stocks that are available on the major exchanges. If you’re not looking to get involved with OTC markets, this might be okay for you. But if you want the option to trade on OTC markets as well, it’s probably best to start out using an app that will give you that flexibility.
Even if you’re not looking to trade penny stocks — or if it’s not the main focus of your investment strategy — trading apps can be a huge asset to you. Many apps offer no minimum account deposit or account fees, making it easy and affordable to start trading. It’s also likely that you’ll find commission-free stock opportunities within these trading apps.

FAQs

What is a penny stock?
A penny stock isn’t always just one penny, but it does typically refer to stocks that trade for less than $5 per share. Penny stocks are usually associated with a small company.
Why do penny stocks exist?
Penny stocks can offer an opportunity for small businesses to access public funding and can be used as a stepping stone into a larger marketplace.
Are penny stocks a risky investment?
Unlike some other commodities on the stock market, penny stocks usually don’t have much liquidity and are traded infrequently. Due to the lack of liquidity, penny stock traders may find it difficult to sell stocks. So, even though they are inexpensive to buy, penny stocks are generally considered a high-risk investment because the lack of liquidity means that investors can lose most of or all of their investment.
How would I know which penny stocks to invest in?
If you’re investing in penny stocks, then you’ll want to do some market research. Fortunately, most trading platforms can offer you the tools you need to do this. One thing to remember is that instead of focusing solely on share prices, you should focus on the market capitalization of the company. This is determined by the stock price and the number of shares outstanding.

The bottom line

There are several trading apps that you can use to trade penny stocks. Each one offers its own unique set of tools and resources, so it’s important to consider which one best matches your goals. Some may be designed for advanced investors, while others are more approachable. There are even trading apps that can work together with other products to help you monitor progress toward all of your financial goals.
When it comes to penny stocks, it’s easy to get swept up in the low cost as an affordable approach to investing. However, penny stocks do come with risks, so it’s important to do your research and evaluate those risks. As a new investor, it might be interesting to add some penny stocks to your portfolio to see what happens. But due to the nature of penny stocks and the risks involved, penny stocks are not likely to provide a one-way ticket to financial freedom.
The bottom line is, no matter what your level of interest is in penny stocks, if you’re interested in investing at all, there’s probably a trading app out there for you.

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