Due to their great upside potential and cheap capital requirements, penny stocks are attracting a lot of interest. Penny stocks are speculative investments that carry a significant level of risk due to their volatility and unpredictability. Fortunately, investors can lower risks by selecting stocks with the most potential with the use of a penny stock trading software that offers real-time quotations and research.
A solid penny stock trading app makes it easy for you to keep track of stocks on your smartphone by taking use of streaming data, real-time alerts, spot analysis, and speedy trade execution. However, not every program for trading penny stocks is the same. A trading programme that lacks any of those features may disadvantage you. To make it easier for you to choose the app that best suits your needs, we categorized the top penny stock trading apps into six different categories in our roundup.
Best Penny Stock Trading Apps of 2022
- Best Overall: Charles Schwab
- Best for Novice Investors: Robinhood
- Best User Experience: TD Ameritrade
- Best for Tools & Resources: E*Trade
- Best for Active Traders: TradeStation
- Best for Penny Stock Research: Fidelity
Why We Selected It
We chose Charles Schwab as the best overall penny stock trading app because it has consistently been a market leader in full-service and discount brokerage and has carried over this exceptional client experience to its mobile app.
Cons & Pros
Pros
• One of the leading brokerage companies in the sector
• Top-notch client service
• No commissions and a minimal account size
• Free access to top-notch tools for research and analysis
Technology pioneer
Cons
• An overwhelming amount of tools and resources
Overview
Since its establishment in 1971, Charles Schwab has been fixated on giving its clients the finest possible investment experience overall, and along the way has won numerous accolades from the industry. A dynamic mobile app with all the features required for penny stock investors has been created thanks to its dedication to low-cost investment, technological innovation, good customer service, and world-class research and education resources. It is our choice for the top overall penny stock trading app because of this.
As the first discount brokerage in the sector, Charles Schwab launched the competition for lower stock commission rates. Therefore, it is not unexpected that Schwab was a pioneer in offering zero commissions on all stock trades, even those involving penny stocks.
Despite this, all Schwab clients have full access to all of the company’s offerings, including its StreetSmart platforms and premium stock screeners. The enormous variety of features and reports offered can be nearly bewildering.
Additionally, you get access to penny stocks trading over-the-counter (OTC) and on the pink sheets, among other exchanges. In-depth research and analysis may be done by investors on the StreetSmart platform, and they can use their mobile app to acquire quotes, execute trades, keep track of positions, and manage their assets. You can transfer assets and deposit checks using the app as well. Voice commands can be used to access all of this and to get responses to investment-related queries.
It’s crucial to remember that Charles Schwab and TD Ameritrade combined in 2020, therefore the Schwab trading platform may undergo modifications as a result. However, one can only hope for the best when two of the top online brokerage firms collaborate.
Robinhood‘s best for novice investors
Why We Selected It
We selected Robinhood as the best penny stock trading app for new investors because of its quick, intuitive, cleverly designed, and cost-free mobile trading platform, which has drawn a generation of young investors and made trading penny stocks simple and enjoyable.
Cons & Pros
Pros
• Simple, intuitive app
• There are no trading commissions
• Numerous investment choices
Free stock was deposited into a new account.
Cons
• There are no over-the-counter penny stocks.
• Web platforms’ capabilities are constrained.
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Overview
Millions of younger stock investors have gravitated toward Robinhood’s mobile stock trading platform since it was established in 2013. In addition to zero fee trading, Robinhood is our top recommendation for the best penny stock trading software for novice investors. It is streamlined, incredibly intuitive, and simple to use.
Additionally, commission-free trading in stocks, ETFs, options, and alternative investments like gold and cryptocurrencies is possible with the free investing app. Although it doesn’t supply the professional investors’ tools and resources, it does offer basic market research tools, real-time quotations, and the ability to track trades and watchlists. For a $5 monthly membership, Robinhood does provide a “Level 2” service with access to more resources and research as well as quicker cash clearance.
When you open an account with Robinhood, it will even deposit one share of stock into your account without requiring a minimum deposit. The absence of trading in OTC and pink sheet equities is the only drawback.
Although its web platform allows for transactions, it is restricted in comparison to the mobile app’s robust features. That could not be a good thing for someone who struggles to make quick deals with their thumbs. The Robinhood app is almost too simple to use for younger investors with more dexterous fingers, which could cause problems for unrestrained investors.
TD Ameritrade has the BEST USER EXPERIENCE.
Why We Selected It
With its slick looks, simple navigation, and powerful features—all created with the customer in mind—TD Ameritrade has consistently set the bar for high-end technology platforms. We selected it as the penny stock trading app with the finest user experience since its mobile trading app is no exception.
Cons & Pros
Pros
• A pioneer in mobile and online platform technology
• Superior research instruments
• Use two different kinds of trading platforms
• Non-OTC stocks have no commissions.
• No fees or account minimums
Cons
• A $6.95 per trade commission for OTC transactions
• Some ambiguity around the merger with Schwab
Overview
Since 1975, TD Ameritrade has provided the best tools, research, real-time streaming data, and customer support to its clients through industry-leading technology platforms. We chose it as the penny stock trading software with the finest user experience since its mobile trading app is no different.
TD Ameritrade might not be the best option for you if trading fees are your first consideration when choosing a penny stock trading software. Trading non-OTC stocks can be done without paying any commissions. However, you must spend $6.95 for each trade if you wish to trade OTC penny stocks. A minimum deposit is not necessary to open an account.
However, TD Ameritrade is the best option if you’re seeking for the most complete research tools and analytical software. You can select from a few of their trading apps based on your level of experience or frequency of trading. The award-winning, premium thinkorswim app is the ideal option for seasoned or aggressive traders, while the standard TD Ameritrade app is best for novice investors or those who trade less regularly.
You may trade and keep an eye on your stocks using both applications’ live feeds and charts. While both apps include a variety of research tools, the thinkorswim app gives you access to tools that may be used to evaluate the worth of a penny stock firm and decide whether to buy shares based on price action and volatility.
It should be noted that Charles Schwab, another pioneer in the online brokerage sector, and TD Ameritrade combined in 2020. Although the new trading platform’s appearance is not yet known, you may anticipate that it will include best-in-class features and capabilities. B
Why We Selected It
We chose E*Trade as the best penny stock trading app because it offers all of its mobile trading features and is another industry pioneer and inventor in online trading technology.
Cons & Pros
Pros
• Market innovator for online trading platforms
• Two app choices based on the requirements of investors
• Simplified, user-friendly desktop and mobile platforms
• Use of one of the most reliable web platforms available in the market
• Non-OTC stocks have no commissions.
Cons
• OTC stock trade commissions are 6.95 dollars.
• Potential platform modifications following the merger with Morgan Stanley
Overview
Since its foundation in 1982, E*Trade, a full-service online brokerage firm, has been at the forefront of innovation. It was one of the first to develop an electronic trading platform. We chose E*Trade as the best penny stock trading app for tools and resources because, like its market-leading web platform, it has loaded its mobile trading apps with everything a penny stock trader might require.
When trading OTC equities, E*Trade costs $6.95 per trade ($4.95 per trade after 30 trades in a quarter). However, it has no account minimum and zero commissions on any other penny stocks.
E*Trade, on the other hand, is your best option if you want access to some of the top tools and research capabilities in the business. With streaming data, real-time prices, and a sophisticated stock screener, what better method to increase your trading chances and reduce your risks?
The Power E*Trade app or the ordinary E*Trade app are the two mobile app options available to users. Both provide novice investors and experienced traders with a seamless trading experience. The upgraded edition is a full-service platform that offers Bloomberg TV streaming, breaking news, and money management tools.
All E*Trade mobile customers get access to the extensive library of educational materials and trading tools found on the desktop version of the company’s website, including research reports from Thomson Reuters, TipRanks, and other sources.
E*Trade was acquired by Morgan Stanley in 2020, but the company is adamant that its platforms’ user interfaces won’t alter.
MOST EFFICIENT FOR ACTIVE TradeStation
Why We Selected It
We chose TradeStation as the best penny stock trading software for active traders because of its affordable costs, best-in-class trading execution, and features. TradeStation has long been a favourite among professional and active traders.
Cons & Pros
Pros
• Trading platform of institutional calibre
• Quick trade processing
• Ample research and technical analysis tools
• Trades with no commissions
Cons
Overview
TradeStation, which was founded in 1982, has grown into a renowned trading platform that both professional and active traders enjoy using. We selected TradeStation as the best penny stock trading app for active traders because of its institutional-quality platform and reputation for lightning-quick trade executions.
Users can trade on the desktop platform for free and there is no minimum account requirement for the TS Select app. Also, you will pay $0.005 per share for trades involving more than 10,000 shares. The best alternative for novice penny stock traders would be TS Select if you intend to limit your per-trade volume at or below 10,000 shares.
Webinars, industry insights, and community forums are just a few of the training materials available to users. Additionally, you’ll get access to virtual training, where you can create a dummy account and practise trading in real time or with historical data.
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Why We Selected It
Our suggestion for the best penny stock trading software for penny stock research is Fidelity, one of the top online brokerages in the world, but its trademark has always been its top-notch research, which it also makes available to penny stock investors.
Cons & Pros
Pros
• Elite online brokerage firms
• All customers have free access to the main trading platform.
• Account minimums and no commissions
• Top-notch stock analysis and research
• Resources for stock screening to locate the top stocks
Cons
• Account opening is not permitted for non-U.S. nationals.
Overview
Fidelity routinely appears on “best of” lists for several reasons as one of the leading online brokerage firms, but its research capabilities have always been the greatest. All Fidelity customers can now use its research and analytical capabilities through Fidelity’s Active Trader Pro platform, including investors in penny stocks. The greatest penny stock trading app for penny stock research is therefore Fidelity, in our opinion.
Fidelity is one of the best online brokerage firms since there is no account minimum and no commission fee for stock trading, including penny stocks. All Fidelity clients who trade 36 or more times over the course of a year have access to the Active Trader Pro platform, which is also available as a mobile app.
The mobile app’s straightforward design makes it simple to buy and sell any of the many penny stocks that Fidelity provides. With the option to customise the news and content, it additionally provides timely portfolio, market, and research information. Users can check balances, track positions, and transfer money in addition to getting stock quotations and intraday valuations.
The only stock screener that expressly looks for stocks that trade on OTC markets and offers search filters is offered by Fidelity.
Final Conclusion
The Charles Schwab penny stock trading app would exist if you could combine all the best features of the applications on this list into one. This features a very user-friendly layout, excellent tools and resources, top-notch research capabilities, and an outstanding user experience. All of that is provided without cost to customers of the Schwab mobile app for trades or accounts.
There are no restrictions on the types of penny stocks you can trade with Schwab, and you can rapidly find the highest-potential penny stocks and evaluate their risk using the screening and research tools available. Although there are greater dangers associated with investing in penny stocks, investors may at least feel more secure knowing they have access to the greatest trading and educational resources available to help them make better informed choices.
What Qualities Should a Penny Stock App Have?
Comparing prices is the simplest way to reduce your options for a penny stock app. The secret to generating earnings and limiting losses is keeping costs low. You don’t have to compromise on quality for price because many of the best penny stock brokerage companies offer top-notch apps without charging any commissions.
Next, consider usability. You can end up paying for apps that are challenging or awkward to use. A top-notch penny stock software will be easy to use and have a straightforward procedure for acquiring quotes and placing trades.
Another important factor is the accessibility of investing opportunities. Some apps for penny stocks only let you invest in non-OTC equities, or they may charge a commission for OTC trades. A wide variety of other investments, including stocks, bonds, and ETFs, should be available to you as well.
To find potential winners and lower your risk, penny stock applications that provide reliable research and analysis tools—or access to a desktop platform that does—are crucial. A penny stock platform or app with quality educational materials is a significant advantage.
When buying or selling penny stocks, how much do trading apps cost?
For purchasing and selling penny stocks not too long ago, the majority of brokers levied commissions or a flat fee. Nowadays, there shouldn’t be any fees or account minimums while trading penny stocks. Simply keep an eye out for any potential hidden costs or restrictions, such a limit on the number of shares you can exchange for nothing. Additionally, you can incur costs if you ever need to execute a trade through a live broker.
How dangerous are penny stock trading apps?
If a penny stock trading app is of low quality, there may be some risks included. Your investment experience will be optimised if you can choose the correct penny stocks, place transactions swiftly, and keep track of your positions. You can be at a disadvantage if the app you use doesn’t provide real-time quotes or live streaming. In general, you can actually lower your risk when you select a penny stock trading software from a reputable online brokerage firm with strong research and analysis capabilities.
Can Penny Stock Trading Apps Make Me Money?
Yes, it is possible to make money, but it is also feasible to lose it. Because the companies are either not yet financially healthy or have not yet found a market for their product, penny stocks, particularly those trading for less than five dollars, are seen as high risk investments. Additionally, penny stocks do not trade frequently, which could pose a liquidity risk if you needed to sell them right away.
Investing in penny stocks is just speculation. They are sometimes very unpredictable and volatile. Investors in penny stocks should only use capital that they can afford to lose.
How We Selected the Best App for Penny Stock Trading
We examined the top 12 penny stock applications based on important criteria like reputation, price, usability, investment possibilities, research and analysis tools, accessibility to other platforms, and any special features. Upon careful analysis, we determined the top penny stock trading applications in six categories using the same standards.
