Best Brokers for Penny Stocks

Penny stocks are the financial equivalent of playing with fire. Exciting, dangerous and occasionally rewarding if you don’t get burned. These low-priced, high-volatility stocks can make or break your portfolio overnight. But if you dive into the penny stock world, you need the right broker. The best platforms for penny stock trading offer low fees, advanced trading tools and access to OTC markets, where many of these stocks live.

Names like Interactive Brokers, Robinhood and Webull dominate the penny broker scene, but not all are equally suited for the fast-paced world of penny stocks. Whether you're looking for zero-commission trading, direct market access or a platform built for active traders, there's a broker that fits your style. 

Quick Look at the Best Penny Stock Brokers:

• Best for Social and Community Investing: Public.com
• Best for Professional and High-Volume Traders: Interactive Brokers
• Best for Beginner-Friendly, Commission-Free Trading: Robinhood
• Best for Advanced Tools and Paper Trading: Webull
• Best for AI-Powered Investment Insights: Magnifi
• Best for Direct Market Access and Short Selling: Cobra Trading
• Best for Advanced Trading Tools and Customization: TradeStation

7 Best Online Brokers for Penny Stocks

Not all brokers are built to handle penny stocks. Some platforms cater to buy-and-hold investors, while others offer direct access routing, advanced charting tools and deep liquidity pools, all essential when trading volatile, low-cap stocks. Whether you're looking for a simple, commission-free trading experience or a hardcore direct-access broker, these platforms have you covered.

Best for Social and Community Investing: Public.com

Public.com has positioned itself as the go-to social investing platform, perfect for those who want to trade penny stocks while engaging with a community of like-minded investors. The platform offers zero-commission trading, fractional shares and a sleek mobile-first interface.

Unlike other discount brokers, Public.com focuses on education and transparency. It offers in-depth company insights and real-time discussion forums, making it a great choice for traders who want to learn as they trade rather than blindly throwing money at penny stocks and hoping for the best.

Public.com doesn’t offer direct access to OTC stocks, limiting its usefulness for those hunting sub-dollar, off-exchange plays. This is a solid option if you’re focused on listed penny stocks with strong liquidity.

Why We Picked It: Public.com offers zero commissions and a social trading experience ideal for new traders learning the ropes.

Best for Professional and High-Volume Traders: Interactive Brokers

Interactive Brokers (IBKR) is for the serious trader who doesn’t mess around. If you’re looking for direct access trading, low fees and professional-grade tools, this is the broker you want.

Unlike Robinhood and Webull, which cater to casual traders, IBKR provides advanced order routing, deep liquidity pools and access to international markets. Penny stock traders can execute trades with tight spreads and minimal slippage, which is crucial when dealing with fast-moving stocks.

While IBKR isn’t the most beginner-friendly platform, it’s the gold standard for direct market access and institutional-level execution. This is the broker to use if you plan to take penny stock trading seriously.

Why We Picked It: Interactive Brokers offers the best execution quality and lowest trading costs for high-volume penny stock traders.

Best for Beginner-Friendly, Commission-Free Trading: Robinhood

Robinhood made commission-free trading mainstream, but does it hold up for penny stocks? Yes and no.

On the plus side, zero commissions and a user-friendly interface make Robinhood a great place for new traders to get their feet wet. The mobile app is simple, sleek and easy to navigate, making it a popular choice for casual investors.

The downside? Robinhood doesn’t support OTC stocks, meaning you’re limited to penny stocks listed on the Nasdaq and NYSE. That’s a dealbreaker for serious penny stock traders who want access to the deepest, most volatile micro-cap plays.

Why We Picked It: Robinhood is ideal for beginners looking for a simple, commission-free way to trade listed penny stocks.

Best for Advanced Tools and Paper Trading: Webull

Webull offers the same commission-free trading as Robinhood but with better tools and deeper market data. It’s built for traders who want technical indicators, advanced charting and real-time market depth without paying hefty fees.

Webull’s biggest advantage is its paper trading feature, allowing traders to test their penny stock strategies without risking real money. This is a game-changer for new traders who want to practice before diving into the deep end.

Like Robinhood, Webull doesn’t support OTC stocks, so you’ll be limited to exchange-listed penny stocks.

Why We Picked It: Webull provides better tools than Robinhood while offering commission-free trading.

Best for AI-Powered Investment Insights: Magnifi

Magnifi is a unique addition to the list. It offers AI-powered investment insights for traders looking to build smarter portfolios. While not a traditional penny stock broker, Magnifi helps traders filter stocks based on market trends, fundamentals and risk factors.

If you’re looking to find the best penny stock opportunities without endlessly scrolling through stock lists, Magnifi’s AI-powered search tools can save you hours of research.

Why We Picked It: Using AI-driven insights, Magnifi helps traders filter and identify the best penny stock opportunities.

Best for Direct Market Access and Short Selling: Cobra Trading

Cobra Trading is a direct access broker built for professional traders. If you’re serious about short selling penny stocks or executing lightning-fast trades, this is the platform to use.

Cobra offers direct routing, Level 2 market data and deep liquidity pools, making it ideal for those who need split-second execution. Unlike commission-free brokers, Cobra charges for trades, but for active traders, the superior execution quality is worth it.

Why We Picked It: Cobra Trading offers direct market access and the best execution speed for professional penny stock traders.

Best for Advanced Trading Tools and Customization: TradeStation

TradeStation combines powerful trading tools with low fees, making it a solid choice for casual and active traders. It offers commission-free trading on stocks and ETFs, plus access to advanced charting and market analysis tools.

For penny stock traders, TradeStation’s direct order routing and customizable trading platform make it one of the most powerful options. If you want deep market insights and pro-level execution, this broker delivers.

Why We Picked It: TradeStation provides a balance of advanced tools and commission-free trading, making it great for all levels of penny stock traders.

How to Choose the Best Penny Stock Broker

Not all brokers are created equal, especially concerning penny stocks. Here’s what to consider before opening an account.

• Regulatory compliance: Ensure the broker is registered with FINRA and SIPC to protect your funds.
• Trading platform: You need fast execution, real-time data and advanced charting tools for penny stocks.
• Commission and fees: Many brokers offer zero commissions but look for hidden costs like routing and withdrawal fees.
• Research and educational sources: Access to news, market trends and trading insights is crucial for finding high-potential penny stocks.
• Security features: Protect your investments with two-factor authentication and account monitoring tools.

Navigating the Wild World of Penny Stocks

Penny stock trading is risky, unpredictable and, if done right, potentially lucrative. The key is having the right broker to match your trading style. Whether you prefer commission-free platforms like Robinhood, direct access trading with Cobra or AI-driven insights from Magnifi, there’s an option for everyone.

Frequently Asked Questions