Best Online Brokers for Buying Penny Stocks in 2018

With penny stocks, it is a common misconception for investors to think they are getting

Consistently winning awards with J. These online brokers offer impressive trading platforms alongside flat commissions.

The Easiest Online Stock Broker for Beginners

Penny stocks trade for less than $5 a share. Trading them can be risky because they are available only outside major exchanges, and they can be very volatile. We review the best brokers and offer.

The platform has all the functionality an experienced trader would need at a discounted price, but investors should look elsewhere for research and educational information. Benzinga is a fast-growing, dynamic and innovative financial media outlet that empowers investors with high-quality, unique content.

Login Email Password Forgot your password? Best Brokers for Penny Stocks. Thomas Rudy Contributor, Benzinga November 13, Contents [ Hide ]. Best For Mobile traders Traders looking for research and data Investors looking for retirement planning guidance. Open an account securely through eTrade's website. Best For Beginner investors Advanced traders Investors who want portfolio-building advice.

Open an account securely through TD Ameritrade's website. Open an account securely through Ally Investment's website. Best For Low cost stock trading Beginners looking to start trading Investors on the go. Open an account securely through Robinhood's website. Best For Beginner investors Advanced traders Investors seeking commission-free etfs.

Open an account securely through Charles Schwab's website. Robinhood Best Way to Save Money. Compare all of our top penny stock picks See the table below to compare and contrast the features that matter to you most. Get started securely through eTrade's website.

Pros Extensive resources Full banking services Easy-to-use platforms. Get started securely through TD Ameritrade's website. Pros Superior technology No account minimum balance Excellent customer support Premier data and news partnerships. Cons Slightly higher commissions Can be for more advanced users. Get started securely through Ally Investment's website. Pros Volume discounts available Among the lowest fees in industry Good for every experience level Excellent customer service. Get started securely through Charles Schwab's website.

Get started securely through Robinhood's website. Pros Free trading for all stocks Multiple integrations for banking deposits No transfer out fees. Cons Lacks research reports Some features require premium paid upgrades. Current Promotion Invite a friend and get a free stock.

Get started securely through eOption's website. Pros Low stock and option commissions Low margins Automated trading. The easiest way to lose out on penny stock profits — aside from making bad trades — is paying unnecessarily high broker fees. Charles Schwab offers the most reasonable penny stock rates of any broker. Its online educational resources are second to none, and it offers commission-free ETFs to help you further grow your portfolio.

I looked at all the hidden fees or surcharges that many brokers like to tack on to penny stock trades, and found the ones that had the absolute lowest rates available. Some trade for a little less than a dollar and some even trade for less than a penny at a fractional value per share.

But regardless of specific price, any true penny stock is going to be an ultra low-priced investment on a per share basis. In theory, you can buy 50, shares of a stock priced at 1 cent per share. But in practice, there are going to be costs to any transaction. It can add up big-time in lost profits.

No Surcharges for Low-Priced Stocks: Some brokers charge a percentage on the total trade value and others charge a fee per share. That means any broker that either charges you for large trades or insists you break them up into multiple orders is not conducive to penny stock investing. Penny stock investing is inherently aggressive, so some brokers demand you upgrade to a premium trading account with higher minimum balances or additional platform fees. If you want to trade penny stocks, you should be able to do so without additional costs and headaches like these.

Low Minimum Account Balance: Click here to jump to comments…. A very good information you delivered. As an offshore investor, what chances do I have to benefit from Money Morning Brokerage, and what procedures do I need to undergo through? Required Needs to be a valid email. Avoid stocks with average daily trading volume of less than , shares. Avoid penny stocks being aggressively promoted on public discussion forums or websites not focused on investing.

Here are the top three warning signs of a shell company scam, according to the SEC and FINRA… If a company has been dormant for many years and then brought back to life. If a company has changed its name and, especially, business focus multiple times.

Check for massive reverse stock splits like 1-for, or 1-for, Ssbaggala Kaweesa Kigozi March 9, A very good information you delivered. You may choose from these hot topics to start receiving our money-making recommendations in real time.

Don't forget choose a topic. Gold and Silver Alerts. Interested in other topics?