Best Brokers for Penny Stocks

Penny stocks are generally defined as low-priced shares trading below $5 and are known for their volatility, thin trading volumes and speculative potential. While they can offer big upside for risk-tolerant traders, penny stocks also come with heightened risks, including illiquidity and limited public financial disclosures. That’s why choosing the right broker is critical.

These platforms provide access to over-the-counter (OTC) markets or sub-$5 stocks listed on major exchanges, while also offering transparent pricing, solid research tools and platform stability. Whether you’re new to the space or a seasoned micro-cap investor, these brokers can help you manage the unique challenges of penny stock trading.

How We Chose the Best Brokers for Penny Stocks

This list is tailored to reflect the specific needs of penny stock traders. Our selections are based on the following criteria:

• Commission structure: Low-cost or transparent pricing for trading sub-$5 stocks and OTC securities.
• Platform usability: Clean interface and mobile functionality to navigate volatile moves quickly.
• Account options: Support for individual brokerage accounts with low or no minimums.
• Customer support: Easy access to live help and account specialists.
• Asset class access: Ability to trade OTC, pink sheet or exchange-listed penny stocks.
• Research tools: Market scanners, fundamental data and news coverage for small-cap stocks.

Best Brokers for Penny Stocks

The brokers below offer the access, tools and pricing transparency needed to trade penny stocks effectively whether you're focused on listed small caps or venturing into the OTC market.

Fidelity – Best for Commission-Free Penny Stock Access

Fidelity is one of the few full-service brokers that offers $0 commissions on most U.S.-listed stocks under $5, without imposing surcharges that are common with other firms. While it doesn’t allow trading in most pink sheet or grey market securities, Fidelity does support exchange-listed penny stocks, including Nasdaq and NYSE small caps.

Its Active Trader Pro platform is packed with real-time data, customizable screeners and options for extended-hours trading. For investors looking to explore the higher-quality end of the penny stock market, Fidelity offers an ideal blend of cost efficiency and research access.

Key Features:

• Fees: $0 commission on U.S.-listed stocks, including those under $1; no platform fees
• Access: No OTC pink sheet or grey market access; exchange-listed only
• Platform: Desktop and mobile apps with advanced research and screeners
• Education: Extensive content for evaluating small-cap risk and performance
• Drawbacks: No access to true OTC/pink sheet markets

Charles Schwab – Best for Platform Support and Research

Charles Schwab gives traders access to low-priced and OTC stocks with a straightforward commission model and a suite of tools for evaluating risk. The platform allows trading of certain OTC securities and doesn’t charge extra commissions for stocks under $1. Users can search penny stocks through Schwab’s screeners and access market research via Morningstar and other providers.

Its web platform and mobile app are user-friendly and include real-time news, customizable watchlists and order entry tools for managing volatile positions. While Schwab doesn’t support all types of pink sheet stocks, its research depth makes it a solid option for informed speculation in the small-cap space.

Key Features:

• Fees: $0 commissions on U.S. stocks and ETFs; some fees apply to foreign or highly illiquid OTC stocks
• Access: Supports some OTC securities, not all pink sheets
• Platform: Schwab.com and mobile apps offer real-time data and alerts
• Education: Morningstar reports, in-house commentary and beginner guides
• Drawbacks: Limited access to deep OTC/pink sheet markets

Interactive Brokers (IBKR) – Best for Global and OTC Access

Interactive Brokers stands out for its broad access to OTC markets, including thousands of penny stocks not available at most mainstream brokers. Traders can use IBKR to buy and sell pink sheet stocks, foreign penny stocks and low-volume securities all while benefiting from industry-low commissions and institutional-grade tools.

The IBKR Mobile app supports conditional orders, advanced charting and real-time market depth. Pricing is transparent, with commission models tailored for active traders. For those seeking deep market access and fine-tuned control, IBKR is a go-to choice for serious penny stock trading.

Key Features:

• Fees: $0.0035 per share (min $0.35 per order); tiered pricing available
• Access: Full support for OTCBB, pink sheets and foreign penny stocks
• Platform: IBKR Mobile and Trader Workstation (TWS) for advanced trading
• Education: Webinars, scanners and API access for quantitative analysis
• Drawbacks: Interface may be complex for newer investors

E*TRADE – Best for OTC Market Access 

E*TRADE offers a strong combination of usability and access to penny stocks, including many OTC securities. The platform allows investors to trade sub-$1 stocks and pink sheets with relatively low trading fees and no account minimums. Users can filter stocks by price range, volume and exchange through the platform’s customizable screeners.

Its mobile app and Power E*TRADE desktop platform provide real-time charts, market depth and technical indicators making it a good choice for traders who value access without sacrificing ease of use.

Key Features:

• Fees: $0 for listed stocks; OTC trades may include commission or surcharge
• Access: Supports many OTC and pink sheet stocks (availability varies)
• Platform: Power E*TRADE and mobile app offer strong charting and order types
• Education: Trading tutorials, videos and small-cap strategy guides
• Drawbacks: Specific fees for OTC stocks may apply and vary by issue

Why Platform Access and Fees Matter for Penny Stock Traders

Penny stocks are often high-risk, low-volume investments. That means every cent in fees, every second in execution and every data point counts. Unlike large-cap stocks that benefit from high liquidity and widespread analyst coverage, penny stocks can be more difficult to trade efficiently. Traders need to be certain that their brokerage platform supports these stocks and offers the execution speed necessary to move in and out of positions quickly.

Many traditional brokers either limit access to certain OTC securities or apply surcharges for trading low-priced shares, especially those under $1. Some platforms may block access to pink sheet or grey market stocks altogether due to compliance or liquidity concerns. These limitations can frustrate traders who want to explore the full spectrum of the penny stock universe, including foreign or less-regulated issuers.

The best brokers for penny stocks offer more than just low commissions. They provide transparent pricing structures, wide market access including OTCBB and pink sheets and risk assessment tools that help traders navigate this speculative corner of the market. Because data on micro-cap companies can be sparse or unreliable, platforms with screeners, alerts and research reports become critical for managing risk and finding opportunity.

Trade Cheap, But Trade Smart

Penny stock trading requires more than just low costs—it demands smart access, good research and flexible tools. Fidelity and Schwab are great for traders sticking to exchange-listed small caps. Interactive Brokers and E*TRADE offer deeper OTC access for experienced traders. And thinkorswim remains a go-to for real-time tools and market simulation.

Choose the platform that fits your strategy and make sure you're equipped to analyze risk just as seriously as potential reward.

Frequently Asked Questions