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We spent over 300 hours reviewing the best online brokers before you choose the top for our readers. Also to guide the main one that’s effective for you, we’ve highlighted their pros, cons and current offers.

A little trepidation about paying for stocks never hurts. After all, you’re putting money jeopardized. That healthy fear is very ideal for penny stock investing.

Penny stocks – typically referred to as OTC or over-the-counter stocks -?are much like they sound, though they do not actually a new penny. Generally thought of as stocks that trade for under $5 per share, cheap stocks are traded outside of the major stock exchanges. Instead, they’re quoted around the OTC Bulletin Board or in the OTC Markets Group – formerly named Pink Sheets – a financial marketplace that lists 10,000 securities and allows investors to trade via finance brokers. (To get more detailed on penny stock trading trading, see our article on the way to commit to cheap stocks.)

Five dollars a share feels like a steal when stacked against businesses that trade for $500 or even more. This is why the backstory is significant: These stocks are cheap for a reason. Considering they are issued by small, yet-to-be-established companies, cheap stocks could be volatile. They usually are challenging to research and accurately value, so they trade infrequently, that means they might be challenging to sell. Important thing, you can find?a lot of various ways to reveal your portfolio to stocks without ponying up a top share price?- here?are some suggestions.

Choosing something stock broker

In case the above mentined didn’t make this clear: NerdWallet does not recommend taking on the danger that is included in trading penny stock lists if you aren’t an innovative investor and you just see why market.?However if you’re focused on this plan, you possibly can at the least go in with your eyes open.

In accessory for?the common features you’d look out for in a brokerage account?- we’ve outlined those here – you’ll try to be concious of these when choosing an internet broker to trade penny stocks:

Trade surcharges: Brokers often add a surcharge to stocks which might be valued at only a certain dollar amount, though that threshold are very different by broker. Some consider anything trading under $5 being a small cap stock, whilst others assemble the cutoff at $3 or $1.?Because small cap stock trades typically involve quite a few shares, it can be better to skip brokers which has a surcharge and look instead for a broker that charges a set commission.

Volume restrictions: The most beneficial small cap stock brokers allow trades of unlimited shares without late payment fees, just a few charge more for giant orders. Some brokers also limit the volume of penny stock investing shares it is possible to trade-in one order or in sooner or later, slowing your ability to trade and forcing someone to pay another commission for your second order.

Trading restrictions: Watch out for companies that expect you to trade very cheap stocks by placing phone order or that impose limits to the varieties of trades you’ll be able to execute. Ideally, your stock investment broker will let you trade penny stock lists with the same online platform for other stock trades.

Below are NerdWallet’s top brokerages for penny stock investing traders. You’ll realize that a great number of brokers also be visible on our listing of the best car finance brokers for trading; they’re all well-rounded brokers that give a uniquely strong suite of features for penny stock investing trading. Stay with me include suits your trading preferences best.

+ Go to a listing of our picks

Best Brokers for Stock investment Trading

  • TD Ameritrade: Best trading platform with no account minimum
  • TradeStation: Best trading platform
  • E-Trade: Best overall
  • Charles Schwab: Best overall without any account minimum
  • Interactive Brokers: Perfect for per-share pricing
  • Zacks Trade: Good for per-share pricing

Summary: Best brokers for penny stock trading

Broker Best
for
Highlights Commiss-
ions
Promotion Account minimum Get
started

Charles Schwab

4.5NerdWallet rating
Review

Overall Flat commission; volume discounts available $6.95
per trade
Up to 500 commission-free trades with qualifying deposit $500 Open Account

Zacks Trade

5.0NerdWallet rating
Review

Low costs Per-share commission $0.01 per share; $3 minimum $1 minimum through April 15, 2019 $2,500 Open Account

Interactive Brokers

Review

Trading platform with no account minimum Two powerful trade platforms $6.95
per trade
$100 – $600 cash bonus with qualifying deposit $0 Open Account

Best overall value in trading penny stocks

These brokers combine flat trade prices with quality execution, research and data tools.

  • NerdWallet editor review
  • Trade Commission$4.95
  • Account Minimum$0
  • Promotion$100referral award for first-time clients
  • Open an account
  • NerdWallet editor review
  • Trade Commission$6.95
  • Account Minimum$500
  • Promotion500free trades with qualifying deposit
  • Open an account

Because microcap stocks are of course priced low per share, small cap stock traders typically trade large volumes. That results in brokers with flat commissions, meaning you may trade quite a few shares for just one fee. Charles Schwab and E-Trade top the list here.

Charles Schwab does precisely what an effective broker should, during the penny-stock world. It enables anyone to trade a big array of microcap stocks, doesn’t always have a surcharge and?offers strong research, tools and trading platforms. Schwab charges an appartment $4.95 trade commission.

E-Trade charges a set $6.95 trade commission, but reduces that to $4.95 per trade for high-volume traders, defined?as those who trade 30 or maybe more times per quarter. Like Charles Schwab, the firm offers high-quality platforms and tools without late charges.

The lowest-cost penny stock investing brokers

These brokers will appeal to investors who?choose to pay commissions using a per-share basis.?

  • NerdWallet editor review
  • Trade Commission$.005 per share$1 minimum
  • Account Minimum$0
  • PromotionNoneSpecial terms for clients 25 or younger
  • Open an account
  • NerdWallet editor review
  • Trade Commission$.01 per share$3 minimum
  • Account Minimum$2,500
  • Promotion$1trade minimum through April 15, 2019
  • Open an account

If per-share expense is the pain you are after, then look to Interactive Brokers and Zacks Trade.

Interactive Brokers offers?budget friendly pricing of the two, charging just half a cent per offer a $1 commission minimum. The broker?also imposes monthly commission minimums of $10 for accounts with balances of $100,000 or less. If minimum isn’t met, the main difference is charged just as one inactivity fee.

Zacks Trade charges one cent per share, using a $3 minimum. (On stocks priced below $1 per share, Zacks Trade’s commission changes to 1% on the trade value, governed by the $3 minimum.)

The twist: Both brokers provide you with the same trading platforms, as Zacks Trade white-labels?the platforms and mobile app from Interactive Brokers. One distinction that provides Zacks Trade a leg up for beginner traders: Each Zacks customer is followed by a passionate broker, without any extra fee for phone trades.

The best trading platforms for penny stocks

These car finance brokers offer impressive trading platforms alongside flat commissions.

  • NerdWallet editor review
  • Trade Commission$6.95
  • Account Minimum$0
  • Promotion$100 – $600cash bonus with qualifying deposit
  • Open an account
  • NerdWallet editor review
  • Trade Commission$5.00
  • Account Minimum$500
  • PromotionNone
  • Open an account

Our top overall picks provides the places you wish to go, however, if you are searching for additional options, visit TD Ameritrade and TradeStation. With commissions at $6.95 per trade, TD Ameritrade costs a bit more than other brokers, however it is thinkorswim platform is viewed one of the best. If you’re getting started, you can like the broker’s Trade Architect platform, that is a lot better for beginners.

TradeStation charges $5 per trade, however, you could possibly push that commission lower provided you can choose the broker’s per-share pricing or unbundled pricing tiers. With account fees (closing, transfer as well as others) on the higher end your range, TradeStation is the perfect bet for all having a bigger bankroll and even more experience of the market. But you’re getting something for funds: a wide-ranging and well-developed desktop platform with automatic execution and loads of strategy tools. OTC data costs $5 monthly.

Best with no account minimum

These brokers require no minimum deposit to read an account.?

  • NerdWallet editor review
  • Trade Commission$4.95
  • Account Minimum$0
  • Promotion$100referral award for first-time clients
  • Open an account
  • NerdWallet editor review
  • Trade Commission$6.95
  • Account Minimum$0
  • Promotion$100 – $600cash bonus with qualifying deposit
  • Open an account

Since a part of the benefit cheap stocks is the low share price -?which means you can invest little money?- it’s advisable an agent without having account minimum. Both Charles Schwab and TD Ameritrade fit the bill.