What is the best online broker for penny stocks

NerdWallet offers financial tools and advice to help people understand their options and make the best possible decisions. The guidance we offer and info we provide are deeply researched, objective and independent. We spent over hours reviewing the top online brokers before selecting the best for our readers. A little trepidation about investing in stocks never hurts. That healthy fear is particularly appropriate for penny stock trading. This is where the backstory is important: These stocks are cheap for a reason.

Best Penny Stock Brokers for

Because they are issued by small, yet-to-be-established companies, penny stocks can be volatile. They are often hard to research and accurately value, and they trade infrequently, which means they can be tough to sell.

Not sure about penny stocks? See our overall rankings for the best online brokers for stock trading. NerdWallet does not recommend taking on the risks that come with trading penny stocks unless you are a sophisticated investor and you understand this market.

When selecting an online broker to trade penny stocks, you want to be aware of the following:.

Brokers often add a surcharge to stocks that are valued at less than a certain dollar amount, though that threshold will vary by broker. The best penny stock brokers allow trades of unlimited shares without additional fees, but a few charge more for large orders. Some brokers also limit the number of penny stock shares you can trade in one order or in one day, slowing your ability to trade and forcing you to pay how to get coins faster on farmville 2 commission for a second order.

Watch out for firms that require you to trade penny stocks by placing a phone order or that impose limits on the types of trades you can execute.

Ideally, your penny stock broker will allow you to trade penny stocks with the same online platform used for other stock trades. We kept all of the above in mind when evaluating brokers. Schwab could easily win every category here. Both companies have helpful customer service and a breadth of educational offerings.

Best Penny Stock Brokers for

These brokers will appeal to investors who prioritize low commissions. If commissions nyse amex options trading floors your main concern, Merrill Edge and Interactive Brokers are good options — as is Charles Schwab, already mentioned above.

Interactive Brokers caters to active traders, with a 0. In addition to that, the broker caps commissions at 0. These online brokers offer impressive trading platforms alongside flat commissions. NerdWallet strives to keep its information accurate and up to date.

All financial products, shopping products and services are presented without warranty. Pre-qualified offers are not binding. So how do we make money?

We receive compensation from our partners when someone applies or gets approved for a financial what is the best online broker for penny stocks through our site. But, the results of our tools like our credit card comparison tool and editorial reviews are based on quantitative and qualitative assessments of product features — nothing else.

What is the best online broker for penny stocks times, we may receive incentives such forex basic strategies an increase in the flat fee depending on how many users click on links to the broker-dealer and complete a qualifying action.

How to Buy Penny Stocks Without a Broker: 10 Steps (with Pictures)

Log in Sign up. Best Brokers for Penny Stock Trading NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Lower fees, smarter savings.

Best Brokers for Penny Stock Trading - NerdWallet

See what accounts are right for you With the new NerdWallet tool, you can: Take full advantage of your tax benefits. Learn how much you should be saving and where.

Track your investment progress with NerdWallet. The Best Online Brokers for Stock Trading The Best Online Brokers for Stock Trading.

See the Best Online Trading Platforms Power Trader? See the Best Online Trading Platforms. Find the Best Online Brokers Find the Best Online Brokers. See the Best Brokers for Beginners New Investor? See the Best Brokers for Beginners. We want to hear from you and encourage a lively discussion among our users.

Please help us keep our site clean and safe by following our posting guidelinesand avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise. Credit Cards Banking Investing Mortgages University Partners. Insurance Loans Shopping Utilities Taxes. About Company Press Careers Leadership.

Terms of Use Privacy Policy. Reasonable commission; two trading platforms. Large selection; discounts for frequent traders.