Best Penny Stock Trading Apps

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Contributor, Benzinga
November 14, 2023

Penny stocks are small company stocks usually traded over the counter for less than $5 per share. They are considered risky investments. The risks millions of investors are always on the lookout for the best way to invest in penny stocks. The reason is that investors are attracted to the allure of purchasing a high number of shares with less money — with hopes of a large profit when the price jumps. Volatility is also a factor, allowing profits to be made in a considerably short time frame.  Penny stock apps can help investors navigate these potentially profitable stocks.

You can buy penny stocks on your smartphone from a penny stock trading app. However, before you start trading penny stocks, choosing an app that provides a convenient and cost-effective experience is necessary. We have compiled a list of the best penny stock trading apps suitable for both experienced and newbie traders.

The Best Penny Stock Apps

Here are the apps Benzinga feels are the best for penny stock trading!

1. Best for Active and Global Traders: Interactive Brokers

  • Securely through Interactive Brokers’ website
    Securely through Interactive Brokers’ website
    Best For:
    Active and Global Traders
    Read Review

Interactive Brokers stands out from the pack when it comes to resolute lowest-cost access the widest global range of products and markets. Known as the professional's gateway to the world's markets, active traders & investors from over 200 countries and territories invest globally in Stocks, Options, Futures, Forex, Bonds, and Funds from a single integrated account at the lowest cost.

Interactive Brokers offers enhanced price execution via IB SmartRouting and access to their powerful Trader Workstation, web, mobile and API trading platforms. Interactive Brokers is also Benzinga’s #1-rated broker for mutual funds, bonds, international, short trading and more.

IB clients also earn extra income from their fully owned shares of stock via their Stock Yield Enhancement Program, and they capture the absolute lowest margin loan rates in the industry, which underscores their mission to lower investors' costs to maximize their returns.


  • IBKR continues to add more tools and platforms for advanced investors
  • New investors can learn all about the markets on this platform before spending their money


  • You may not want to get involved with a platform that reaches as far and wide as this one because it could serve to bog you down

2. Best for Futures Trading: TradeStation

Designed for active traders, expert traders and professional asset managers, TradeStation is another ideal brokerage for penny stock trading. 

You can choose either the TradeStation Select or the TradeStation Go account. Both accounts charge no commission for mobile trades. But TS GO desktop users have to pay a $10 commission for trades. The TS Select account grants you access to mobile and desktop trading without added charges and is, therefore, the favorite among penny stock traders. However, to get started with TS Select, you need at least $2,000. Commission-free holds up to 10,000 shares, after which you'll start paying $0.005 per share. 

For penny stock traders who can afford the price, the TradeStation app is highly efficient offering a great mobile experience and guaranteed access to valuable free data feeds. These qualities make it easy for you to research and enter trade within seconds. 


  • You can use this platform to save money if you plan to trade with high volume
  • When you need more functionality, it’s easy to upgrade and pay very little compared to other platforms


  • You may not want to pay extra to upgrade your account

3. Best for AI Investing: Magnifi

Magnifi is a marketplace that allows you, as the investor, to use common brokerage tools and AI to make the best decisions for your portfolio. Because you can pull up all the information you need on a given asset, you can easily invest in the assets that will give you the results you deserve and better match your strategy.

Search for the investment options that meet your needs, invest in specific categories or scan for assets in a price range that’s affordable for you.

Best for long-term investors and those who require a bit of client support, you can also learn more about investing from this platform, utilize the AI-powered investing assistant, enjoy commission-free investing, try the mobile app and take advantage of over 15,000 possible investment options. This makes Magnifi a good place to trade for both seasoned and novice traders.


  • You can use AI to invest if you need extra assistance
  • You can start here irrespective of your experience level


  • You may feel there are too many assets to choose from if AI accelerates the investing process for you

4. Best for Desktop Trading: E*TRADE

Penny stock traders using the E*TRADE platform enjoy zero commission charges and zero minimums. However, they're charged $6.95 for over-the-counter stock trades, just like TD Ameritrade. Unlike TD, the fee reduces to $4.95 after 30 trades per calendar quarter.

E*TRADE offers multiple high-end trading platforms that include web, desktop and mobile apps that penny stock traders can choose from. Most traditional traders appreciate a Wall Street feel in a trading platform; if you're one, you might appreciate the desktop version, Power E*TRADE. 

If you prefer the mobile version, you have a choice between the simplified version of the Power E*TRADE or the regular E*TRADE app. Either way, the mobile app offers a unique and seamless trading experience for both professionals and newbie traders. 

Additionally, E*TRADE provides users with access to research reports from Reuters, TipRanks and others, making it easier to make investment decisions. It also has a knowledge section with a plethora of useful articles and information accessible to everyone — available if you have an account with it or not. 


  • You can get reduced fees with higher volume
  • The additional tips and insights can improve your portfolio quickly
  • You can save your uninvested cash at a competitive APY


  • You may not need all the added extras that this platform prefers you use

5. Best for Stock Research: Fidelity

You can trade penny stocks and regular stocks on the Fidelity mobile brokerage without paying trading fees or recurring fees — with little or no trading experience. It also requires a zero minimum. Fidelity provides users access to many penny stocks to trade (with a warning about the potential risks involved in trading them). It has excellent trading tools and easy-to-navigate mobile apps. 

However, the desktop or laptop version, Active Pro, is Fidelity's flagship trading platform. In addition, there’s the Fidelity Spire app. It guides your savings and helps you make important investment decisions to realize your investment goals. 


  • Fidelity is a multi-faceted platform that anyone can use
  • With no minimum, you can get started in your own time and with your preferred budget


  • You may not be interested in penny stocks and the extra functionality that can help with these assets

6. Best Overall Global Broker for Short Selling: TradeZero

  • securely through TradeZero's website
    securely through TradeZero's website
    Best For:
    Overall Global Broker for Short Selling
    Read Review

TradeZero is an excellent platform for those who need versatility and simplicity. You can trade on your desktop or a mobile app, and the platform makes it easy to invest in a wide range of assets—including penny stocks.

You can use the app for free, or you can register for a Pro account for $59 per month. The platform offers several affordable trading options, low fees and 24/7 customer service. You can take your trading from the desktop to your phone as you travel, and invest across the NYSE, AMEX, or NASDAQ, but remember, your penny stocks must list for more than $1 if you want to trade for free.


  • You can register for much less money than many platforms charge
  • Because you can transition between apps easily, you can stay abreast of what’s going on in your portfolio at all times


  • You may not be interested in short selling

How Do Stock Apps Work for Penny Stocks?

When you use a stock app to trade penny stocks, remember that every app is different. Some apps may not allow you to trade penny stocks below a certain price. You must also look into how the app handles stocks that are delisted or fall to $0.

Remember, also, that every app supports different exchanges. If the stocks are on the OTC market, they may not be available through the app you have chosen. Also, review the guidelines the app uses if a stock you have already purchased IPOs, as it may not be available.

Otherwise, you can choose the stock you wish to buy, how many shares you want and complete your order within the app.

Best Features on a Penny Stock App

Before selecting an app to trade penny stocks, make sure you look for an app that offers qualities that meet your trading needs. Some of the features or qualities to look out for are. 

User experience

The app must be easy to use and navigate. There should also be good customer support available. So, before choosing an app to trade penny stocks, check reviews from other users about their experiences with the apps. You can easily gauge user experience by reading customers' testimonies on social media Comment sections. 

Low commissions and charges

Trading apps that offer flat-fee trades instead of per-share rates are cheaper in the long run. It is best to avoid brokers that charge multiple fees like a monthly platform fee, fees for data or have monthly minimums if you want to save.

Access to a large number of penny stocks

Unlike regular shares listed on popular exchanges, a penny stock is mainly traded over the counter. It’s a plus to choose a broker that allows you to trade over-the-counter penny stocks. 

Penny Stock Movers of the Day

If you are undeterred by the high-risk potential involved in trading a penny stock and you're looking to trade, we’ve compiled the list of top penny stock gainers and losers for the day for your perusal.

Stock Movers



Session: Dec 7, 2023 4:00PM EST - Dec 8, 2023 1:21PM EST

How do Penny Stocks Work?

Penny stocks trade pretty much like other stocks but with added risks. As a result of their low-price shares and small market cap, investing in penny stocks is highly speculative. Since they are not required by law to file information with the Securities and Exchange Commission, there is usually little information about them. 

The absence of information might lead you to make an investment decision based on rumors or guesswork. Penny stocks are most often referred to as illiquid investments since fewer people trade these shares. The lesser liquidity means lesser chances of finding a buyer. You can therefore be forced to sell at an unfavorable price.  

Furthermore, penny stocks are a haven for stock manipulators. Stock manipulators buy large quantities of a stock intending to inflate the prices through false statements and half-truths and sell when prices increase.   

Pros and Cons of Penny Stocks

Before deciding to jump in or avoid penny stocks, it's good to understand the pros and cons of such an investment to make a more informed decision. Some of these are:


Very cheap: At $5 or less, penny stock shares are very cheap. You can buy a large number of shares for little money. For example, if a company’s share price is $0.50 per share, you can buy as many as 1,000 shares for just $500. If the share price jumps to $2 per share, you will gain $1,500 profit on 1,000 shares. 

High volatility making quicker returns: Because of high volatility, penny stocks have the potential to offer high growth in a very short time. Meanwhile, regular stocks on Nasdaq or NYSE could take the next 1, 2 or, in some cases 5 years before you can see growth.


Low-quality companies: Most penny stock companies are low-quality companies. They are unprofitable and often produce huge losses. Some also have a product that is out of demand with numerous competitors.

Easy to lose money: Penny stocks are very volatile, and though investors can gain money quickly, they can also lose it quickly.  

High rate of scams: Penny stocks are prone to “pump-and-dump scam.” In a pump-and-dump scam, fraudulent traders artificially inflate the price of penny stocks and sell out for a profit.

Are Penny Stocks a Good Investment?

Statistically speaking, you are more likely to lose money trading penny stocks. Most penny stocks are traded based on speculation as there is little or no information about them. Penny stocks are therefore prone to manipulation and fraud. However, despite the risk, penny stocks can deliver huge returns and fast growth. 

To minimize your risk of being defrauded, you must tread with caution and do due diligence through adequate research on the best penny stocks to invest in. Be especially mindful of paid promotions through emails. 

Frequently Asked Questions


Can you get rich off of penny stocks?


While it is not impossible to get rich off penny stocks, statistics have shown that most investors lose money trading penny stocks.


How are penny stocks different than normal stocks?


You can buy most penny stocks over the counter, unlike regular stocks. Also, very few penny stocks are listed on major stock exchanges.


Where can I find penny stock apps?


You can find penny stock apps by looking at Benzinga’s recommended list above.