Cheapest Penny Stock Brokers With No Commission On Penny Stock Trades


List below contains 2020 review of the cheapest penny stocks brokers online with no commission, fees or surcharge to buy, sell, trade penny stocks.


Cheapest Penny Stocks Brokers


A lot of online brokers charge additional commission on penny stocks (stocks priced under $1) trades. This surcharge policy makes low priced securities trades prohibitively expensive. However, there are some brokerage firms that do not impose additional commission on penny stock trades. In 2020, we have reviewed online brokers penny stock charges and listed them in the table below.

Our research shows that the highest rated, best stock brokers for penny stocks trades are TD Ameritrade and Firstrade. TD Ameritrade and Firstrade charge $0 for any trade for stocks listed on a U.S. exchange. For stocks not listed on a U.S. exchange, also known as OTC stocks, $6.95 commission applies at TD Ameritrade but Firstrade is still at $0. There is no penny stock trade surcharge at these companies. This combination of low commissions and no surcharge makes the two firms the cheapest brokers for penny stock trading.

Another thing to consider when looking for the cheapest penny stock broker, is that some brokerage firms might have additional commission on large-size orders - usually 1,000 shares or more. This surcharge will also make penny stock trades way too expensive. TD Ameritrade and Firstrade don't have large-size order surcharge.

We encourage readers to check detailed brokerage reviews on our website that contain the links to the list of all the fees charged by the firms.

The companies we mentioned above offer incentives for new clients to open a brokerage account (all current broker promotions are listed under this link):

Firstrade: Get $0 commission in ALL trades!

TD Ameritrade: $0 commissions + transfer fee reimbursement.




    

Brokerage Firms Penny Stock Fees


Firstrade
Rating
Firstrade Penny Stock Fee Firstrade
Review

Firstrade rating

Firstrade


Firstrade penny stock commission: $0

Firstrade penny stock definition: $1 or less. Learn more
Firstrade
Review
TDA
Rating
TD Ameritrade Penny Stock Fee TDA
Review

TD Ameritrade rating

TD Ameritrade


TD Ameritrade penny stock commission: $0 for stocks listed in U.S. exchange ($6.95 for OTC stocks)

TD Ameritrade doesn't have penny stocks surcharge. Learn more
TD Ameritrade
Review
Webull
Rating
Webull Penny Stock Fee Webull
Review

WeBull rating

Webull


Webull penny stock commission: $0

Webull penny stock definition: $1 or less. Learn more
Webull
Review
TradeStation
Rating
TradeStation Penny Stock Fee TradeStation
Review

Tradestation rating

TradeStation


TradeStation penny stock commission: $5

TradeStation doesn't have penny stocks surcharge. Learn more
TradeStation
Review
Ally Invest
Rating
Ally Invest Penny Stock Fee Ally Invest
Review

Ally Invest rating

Ally Invest


Ally Invest penny stock commission: $0.01 per share

Ally Invest penny stock definition: $2 or less. Learn more
Ally Invest
Review
Schwab
Rating
Schwab Penny Stock Fee Schwab
Review

Charles Schwab rating

Charles Schwab


Charles Schwab penny stock commission: $0

Charles Schwab doesn't have penny stocks surcharge. Learn more
Charles Schwab
Review
Etrade
Rating
Etrade Penny Stock Fee Etrade
Review

Etrade rating

E*trade


Etrade penny stock commission: $0

Etrade doesn't have penny stocks surcharge. Learn more
Etrade
Review
IB
Rating
IB Penny Stock Fee IB
Review

Interactive Brokers rating

Interactive Brokers


Interactive Brokers penny stock commission: $0.005 per share with $1 minimum per trade for SMART routed orders

IB doesn't have penny stocks surcharge. Learn more
Interactive Brokers
Review
Fidelity
Rating
Fidelity Penny Stock Fee Fidelity
Review

Fidelity Investments rating

Fidelity


Fidelity Investments penny stock commission: $0

Fidelity Investments doesn't have penny stocks surcharge. Learn more
Fidelity
Review
SogoTrade
Rating
SogoTrade Penny Stock Fee SogoTrade
Review

Sogotrade rating

Sogotrade


SogoTrade penny stock commission: $5 + 0.5% of the principal value

SogoTrade penny stock definition: $1 or less
SogoTrade
Review
Siebert
Rating
Siebert Penny Stock Fee Siebert
Review

Muriel Siebert rating

Muriel Siebert


Muriel Siebert penny stock commission: $14.95

Muriel Siebert doesn't have penny stocks surcharge. There is 1.5 cents per share surcharge for each additional share over 1,000.
Muriel Siebert
Review
WellsTrade
Rating
WellsTrade Penny Stock Fee WellsTrade
Review

Wellstrade rating

Wellstrade


Wells Fargo/WellsTrade penny stock commission: greater of $34.95 and 3.5% of principal

Wells Fargo/WellsTrade penny stock definition: $1 or less. Additional 1.5 cents per share charged for more than 1,000 shares in one trade. Learn more
WellsTrade
Review
Vanguard
Rating
Vanguard Penny Stock Fee Vanguard
Review

Vanguard rating

Vanguard


Vanguard penny stock commission: $0

Vanguard doesn't have penny stocks surcharge. Learn more
Vanguard
Review
Merrill Edge
Rating
Merrill Edge Penny Stock Fee Merrill Edge
Review

Merrill Edge rating

Merrill Edge


Merrill Edge penny stock commission: $0

Merrill Edge doesn't have penny stocks surcharge. Learn more
Merrill Edge
Review
SpeedTrader
Rating
SpeedTrader Penny Stock Fee SpeedTrader
Review

Speedtrader rating

SpeedTrader
SpeedTrader penny stock commission: $6.95

SpeedTrader doesn't have penny stocks surcharge.
SpeedTrader
Review








Be Aware of the Risks


Before you jump in and buy one of these stocks, you should first familiarize yourself with special hazards that have long been associated with the OTC marketplace. Penny stocks typically have large bid-ask spreads, which increase the cost of ownership. Liquidity is often much lower compared to regular equities. And volatility can be quite high as well.


Frequent Risks Encountered in the OTC Marketplace


Because the over-the-counter marketplace has fewer government regulations, criminal activity has been common over the years. The listing requirements that OTC exchanges enforce are much less strict than the regulations imposed by bigger exchanges.

Volatility tends to be higher, and liquidity can be a problem in some cases. Bid-ask spreads are also larger, which increases the round-trip trade price.