Best Penny Stock Trading Applications for February 2025

Penny stocks are extremely fluctuating, speculative investments that generally sell for under $5 per share and frequently exhibit low liquidity. Moreover, these stocks may be traded over-the-counter (OTC), implying that the companies are not required to comply with the stringent disclosure standards of exchange-listed securities. Engaging in trading these assets demands expertise, comprehensive research, and effective trading strategies. Traders aiming to buy and sell these securities on mobile devices should look for applications that are feature-rich, easy to navigate, possess strong research functionalities, and offer excellent trading resources. Bitcoin’s Unpredictable Journey: Information vs. Anxiety, Steering Through ETF Exits

Following extensive hours of thorough investigation, including live demonstrations of platforms and evaluation of 21 online brokerage and trading services based on 29 distinct criteria, we determined that E*TRADE’s mobile application is the top option for trading penny stocks at any time and from any location, due to its exceptional user experience, powerful portfolio management tools, and outstanding trading resources. E*TRADE was also recognized as the premier choice for investors in search of a user-friendly penny stock trading application. Fidelity was rated highest for affordable penny stock trading, while Charles Schwab was identified as the best choice for novice penny stock traders. Lastly, Investopedia concluded that Interactive Brokers provides the finest risk management application and tools suitable for experienced traders, while TradeStation received a commendable mention for its sophisticated trading features.

Top Penny Stock Trading Applications for February 2025

• E*TRADE
• Fidelity
• Interactive Brokers
• TradeStation
• Charles Schwab

Best Overall, Best Usability:
E*TRADE

• : $0
• : $0 for listed trades, $6.95 for OTC transactions (which reduces to $4.95 if more than 30 trades occur each quarter)

Reasons for our selection

Best Overall

E*TRADE presents two outstanding trading applications tailored for various trader types. While they impose a fee of $6.95 for over-the-counter transactions unless the trading volume discount criteria are fulfilled, their mobile platform features remarkable research functions, an abundance of educational materials, and strong trading technology, all while delivering a top-notch user experience, making it an optimal selection for navigating the intricacies of penny stock trading.

Optimal Usability

E*TRADE is recognized as the premier option for usability because of its clear and uncomplicated layout. Nevertheless, this ease of use can be deceptive, as the application is, in fact, a robust tool that operates seamlessly, facilitating smooth navigation through news, research, charts, and a range of trading instruments, including stocks, options, and penny stocks.

Advantages and Disadvantages

Advantages

• Provides various mobile platforms suitable for traders at all experience levels

• Outstanding educational and research materials along with simulated trading options

• Access to a wide array of additional financial instruments with commendable trade execution quality

Disadvantages

• Increased fees for penny stock transactions

• Margin rates exceed those of competitors

• Extremely low interest rates on uninvested funds

Summary

Established in 1982 and based in Arlington, Virginia, E*TRADE has consistently prioritized technological advancements, providing multiple powerful platforms, particularly in mobile. E*TRADE offers traders two strong mobile applications. For moderate-volume penny stock traders, the standard E*TRADE mobile app is accessible. This application is user-friendly, quick, and feature-rich, catering to the requirements of typical penny stock traders.

More experienced investors may choose E*TRADE’s more advanced mobile interface—the Power E*TRADE application, tailored specifically for those who need sophisticated trading tools, comprehensive charting capabilities, and swift execution times. What distinguishes this mobile interface from other penny stock trading applications is E*TRADE’s “Behind the Move” feature, which notifies investors of notable price fluctuations. Considering the volatility of penny stocks, the Power E*TRADE application is a dependable option for veteran penny stock investors.

E*TRADE also offers outstanding educational materials and access to a range of tradable securities, including equities, fixed income, and derivatives. The platform features an impressive execution time, averaging 0.11 seconds, with 96.53% of transactions completed at or better than the national best bid or offer (NBBO). The firm also reports an average price enhancement of $8.62. Bitcoin and Ethereum Uphold Inexpensive Transaction Charges Amid Heightened On-Chain Function – TheCryptoUpdates

Although E*TRADE is a robust platform for penny stock trading, it does have some limitations. The margin rates are relatively high, fluctuating between 11.20% to 13.20%, and only affluent individuals with over $500,000 in net worth can negotiate more favorable rates. Furthermore, E*TRADE provides cash management accounts for traders with idle cash, but even accounts surpassing $1 million yield very minimal interest rates.

In summary, E*TRADE offers one of the top penny stock trading applications on the market. Investors seeking additional confidence can establish a complimentary demo account to determine if it meets their requirements.

Read the complete E*TRADE review.

Top Affordable Option: Fidelity

Our Justification for Choice

Investopedia has recognized Fidelity as the premier low-cost penny stock trading application due to its absence of fees and commissions. However, that isn’t the sole reason Fidelity excels in this area. Numerous other brokers also provide commission-free penny stock trading, but they fall short when compared to the services and trading and research tools accessible through Fidelity’s application.
**Drawbacks**
**Benefits**
– No commission charges for over-the-counter shares.
– Sophisticated research and trading instruments.
– Versatile brokerage solutions suitable for both investors and traders.

**Drawbacks**
– Fidelity does not provide services internationally.
– Absence of demo accounts.
– Margin rates vary from 8.25% to 12.575%, which is considered relatively steep. Ethereum Holders Join Forces to Protect $1886 as Important Assistance During Negative Trend

**Summary**
Established in 1946 and based in Boston, Massachusetts, Fidelity is acknowledged as a prominent platform for trading penny stocks, owing to its commission-free trading services, including for over-the-counter shares, along with its outstanding app functionalities and adaptability. Although penny stocks may draw numerous traders, they are indeed considered high-risk investments. Fidelity’s trading application equips traders with essential tools and research functionalities.

Traders can utilize a range of research platforms, such as Argus reports, Zacks, and Trading Central. Fidelity also provides exclusive research, excellent charting features, and a plethora of educational materials. It is a multifunctional platform tailored to cater to the requirements of both traders and investors, facilitating trading in financial instruments like stocks, bonds, and options, while also offering cash management accounts that yield competitive interest on idle cash or various retirement accounts to optimally meet your needs.

For penny stock traders, there are several factors to consider. For example, Fidelity’s offerings are restricted to domestic traders in the U.S. and do not reach global markets. Moreover, Fidelity does not offer demo accounts, which means traders cannot trial the platform prior to account creation. Additionally, traders who utilize significant margin might find the interest rates of 8.25% to 12.575% to be less favorable. Nonetheless, given the commission-free penny stock trading, this could be a reasonable compromise if margin trading is not integral to your strategy.
Examine the complete Fidelity evaluation

**Top Risk Management, Top Advanced Trader:** – $0 – $0 (for IBKR Lite users)

**Reasons for Our Choice**

**Top Risk Management**
Investopedia has selected Interactive Brokers as the premier option for risk management due to its extensive range of intricate order types, access to a broad selection of financial instruments for portfolio diversification, real-time tracking features, and pre-execution order assessments, all while benefiting from the economical IBKR Lite plan.

**Top Advanced Trader**
Interactive Brokers is also acknowledged by Investopedia as the optimal selection for seasoned traders. Besides IBKR Lite, they provide IBKR Pro, which grants access to IB SmartRouting and additional advanced functionalities such as sophisticated charting, backtesting, automated trading strategies, and algorithmic trading features.

**Advantages and Disadvantages**

**Advantages**
– Commission-free trading for low-priced stocks
– A wide variety of tradable instruments
– Access to advanced risk management and trading resources

**Disadvantages**
– Getting accustomed to the platform may involve a learning curve
– The tiered pricing system of the IBKR Pro plan can be intricate
– IBKR does not offer proprietary research

**Summary**
Interactive Brokers, known as IBKR, was established in 1977 and is based in Greenwich, Connecticut. It provides an outstanding trading platform for penny stocks aimed at traders who emphasize risk management features and advanced tools.

Traders dealing in penny stocks who concentrate on risk management will discover that IBKR’s trading platform is rich in features.
For instance, investors can obtain extensive data via a real-time position tracking system, along with live margin and automated liquidation functionalities to assist in reducing losses. IBKR additionally provides a range of sophisticated order types and distinctive conditional orders that are rarely available among rivals. Investors can also explore a broad spectrum of asset categories for diversified portfolios, such as equities, ETFs, options, and futures. Interactive Brokers offers some of the most attractive margin rates in the market and delivers consistent interest on idle cash.

Experienced traders will find this trading application appealing as it encompasses extra features designed for intricate trading approaches. For example, IBKR Pro caters to high-volume traders whose tactics necessitate optimal execution prices. This is especially vital for those dealing with fluctuating penny stocks. Nonetheless, a drawback of IBKR Pro is its complex tiered fee system. In contrast to IBKR Lite, transactions under the Pro plan incur commissions, even for penny stocks, but the availability of advanced tools and features might warrant the expense. Traders keen on exploring it can commence with a complimentary trial.

In summary, Interactive Brokers presents a robust and adaptable platform. It’s essential to recognize that there is a learning curve, but IBKR strives to ease this journey through its complimentary Trader’s Academy. Another aspect to keep in mind is that while Interactive Brokers does not offer proprietary research, it makes up for this by granting access to over 60 news and research outlets.

Read the complete evaluation of Interactive Brokers. Leading Crypto Acquisitions Currently: BlockDAG, ETH, SOL, along with ADA

Also appropriate for seasoned traders:

TradeStation
– Minimum account: $0
– Fees: $0.005 per share, with order commissions ranging from $1 to $50.
For seasoned penny stock investors aiming to fulfill their specific trading requirements, TradeStation emerges as a dependable choice to contemplate. It provides advanced mobile functionalities, such as intricate charting, practice trading, personalized alerts, and a sensible fee arrangement. In general, investors will discover TradeStation to be an outstanding platform for sophisticated penny stock trading.

**Advantages and Disadvantages**

**Advantages**
– Provides a practice account
– Competitive pricing structure for penny stock transactions
– Features backtesting, automated trading, and algorithmic trading options

**Disadvantages**
– Margin rates can escalate to between 11.50% and 12.50%
– Lacks access to outside research
– Customer support response times may be sluggish

**Summary**
Established in 1982 and based in Plantation, Florida, TradeStation is endorsed by Investopedia as a viable option for experienced traders. With more than four decades of expertise in the field, TradeStation equips clients with advanced trading instruments and swift execution speeds accessible via its trading platform.

Experienced traders with tailored trading strategies can test them against over three decades of historical data. If a strategy is found to be effective and is ready for real-world application, traders can further automate it. Moreover, tech-savvy advanced traders can leverage TradeStation’s algorithmic trading functionalities. It is Altcoin Period 2025: Leading Digital Currencies to Observe & Important Marketplace Tendencies – TheCryptoUpdates to note that users should be acquainted with GitHub and possess proficient coding abilities to effectively utilize the API.

In addition to its technical benefits, TradeStation offers a competitive pricing structure for penny stock trading, charging $0.005 per share, with commissions varying from $1 to $50 per transaction. Nonetheless, the platform does have certain limitations.
For example, margin trading entails relatively elevated interest rates. While affluent account holders may negotiate their rates, traders with balances ranging from $50,000 to $499,999 are anticipated to incur an interest rate of 11.50%, whereas those with amounts below $50,000 encounter a rate of 12.50%. Furthermore, users lack access to outside research, and contacting customer support can be quite difficult. Nevertheless, the platform is technically sound, and traders who wish to experiment to evaluate its appropriateness can choose TradeStation’s demo account.

Read the complete TradeStation evaluation

Top Beginner Penny Stock Investor: Charles Schwab

Minimum Account Requirement: $0 Fees: No commission for listed trades; $6.95 for over-the-counter transactions

Reasons for Our Selection

Investopedia has recognized Charles Schwab as the premier penny stock trading application for novice traders. New traders will discover that Schwab’s mobile platform is user-friendly, providing high-quality education and useful resources to assist them on their trading path. In addition to Schwab’s well-regarded thinkorswim platform and its mobile counterpart, beginner traders can also take advantage of Schwab’s mobile application, which is expertly designed and carefully crafted for penny stock trading. Disclosing the Enigmas of the MyShell Marketplace: A Whale’s $12.15 Million SHELL Extravaganza

Advantages and Disadvantages

Advantages:
– Complimentary educational materials from beginner to advanced stages
– Access to exclusive and external research
– Outstanding trading simulator

Disadvantages:
– Elevated margin interest rates
– Low yields on uninvested cash
– $6.95 charge for over-the-counter stocks

Summary

Established in 1971 and based in Westlake, Texas, Charles Schwab is endorsed by Investopedia as the preferred platform for novice traders seeking fundamental guidance and tools to commence trading penny stocks.
Although no trading platform is flawless for newcomers, many investors will discover that all trading platforms inevitably involve a learning process, irrespective of their background or skill level. Charles Schwab distinguishes itself in this arena by greatly exceeding other trading platforms in offering educational assistance for its users.

Schwab provides an abundance of educational courses and training materials for both customers and non-customers. It includes live instructional videos that cover a range of trading techniques presented by industry professionals, as well as on-demand videos, virtual workshops, and in-person gatherings. Most notably, all these resources offered by Schwab come at no cost. Newcomers can also access exclusive research conducted by Schwab, in addition to reports from Morningstar, Argus, and Market Edge.

Despite its numerous benefits, Schwab does possess some limitations. Its margin rates are comparatively high, fluctuating between 10.825% and 12.575%. While this may not be a significant issue for many beginners, considering the risks tied to margin trading, it is still wise to be mindful of potential interest rates. Schwab’s interest rate on uninvested cash is also rather low, sitting at merely 0.05%. Furthermore, traders dealing in penny stocks should be aware that Schwab imposes a fee of $6.95 for over-the-counter stocks, which could erode any profits or worsen losses. Nevertheless, Schwab continues to be an outstanding platform for novices. Traders who are uncertain about opening an account can experiment with its demo account to verify it’s the right choice.

Read the complete Charles Schwab evaluation

Why You Can Rely on Us

Since 1999, Investopedia has been assisting readers in discovering the finest tools and platforms for managing their finances. The team of editors and research analysts at Investopedia assesses 21 online brokers and trading platforms based on 29 essential criteria to aid penny stock traders in achieving success.
We employed this data to assess the expenses, trading technologies, account services, and other significant attributes of each platform, delivering unbiased and thorough evaluations to enable readers to make well-informed investment choices. Our analysis and ratings are entirely autonomous and not swayed by advertising affiliations. Our dedicated team of specialists prioritizes impartiality to guarantee you receive optimal guidance when seeking online futures trading platforms. The editors, research analysts, and compliance officers at Investopedia diligently work every day to refresh and enhance this content by observing shifts in online brokerage services and modifying our material as needed.

Our Method for Choosing the Top Penny Stock Trading Applications

Investopedia is devoted to offering investors fair and detailed assessments and ratings of penny stock trading platforms. Our appraisals of the leading penny stock trading platforms are grounded in our distinctive research across four categories and 29 criteria that are essential for readers in identifying the appropriate penny stock trading platform.

The proportions for the following categories are utilized to evaluate each platform:

• Cost: 30.50%
• Features: 32.00%
• Customer Experience: 26.50%
• Trading Technology: 11.00%

We established a thorough scoring framework using this information to evaluate 21 online brokerage and trading platforms based on their research functionalities, portfolio tracking options, fees, and commissions, assisting our readers in selecting the ideal penny stock trading platform. For each firm, Investopedia’s research team and full-time editorial personnel scrutinized data gathered directly from company websites and representatives. Our data gathering process occurred from January 14 to January 22, 2025.