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Penny Stock Brokers: Where To Trade Penny Stocks in 2023
The cheapest penny stocks brokers with no commission, fees, or surcharge to buy, sell,
trade penny stocks.
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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 2023, we have reviewed online
brokers penny stock charges and listed them in the table below.
Our research shows that the best stock brokers for penny stocks trading are TD Ameritrade and
Firstrade.
The two brokers 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 perfect 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 up to $4,000 cash bonus + $200 in ACAT rebate!
TD Ameritrade: $0 commissions + transfer fee reimbursement.
Brokerage Firms Penny Stock Fees
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Firstrade penny stock commission: $0
Firstrade penny stock definition: $1 or less. Learn more
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Firstrade
Review
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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
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TD Ameritrade
Review
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Webull penny stock commission: $0
Webull penny stock definition: $1 or less. Learn more
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Webull
Review
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TradeStation penny stock commission: $5
TradeStation doesn't have penny stocks surcharge. Learn more
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TradeStation
Review
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Ally Invest penny stock commission: $0.01 per share
Ally Invest penny stock definition: $2 or less. Learn more
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Ally Invest
Review
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Charles Schwab penny stock commission: $0
Charles Schwab doesn't have penny stocks surcharge. Learn more
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Charles Schwab
Review
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Etrade penny stock commission: $0
Etrade doesn't have penny stocks surcharge. Learn more
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Etrade
Review
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Interactive Brokers penny stock commission: $0 for Lite plan
IB doesn't have penny stocks surcharge. Learn more
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Interactive Brokers
Review
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Fidelity Investments penny stock commission: $0
Fidelity Investments doesn't have penny stocks surcharge. Learn more
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Fidelity
Review
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SogoTrade penny stock commission: $5 + 0.5% of the principal value
SogoTrade penny stock definition: $1 or less
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SogoTrade
Review
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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.
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Muriel Siebert
Review
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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
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WellsTrade
Review
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Vanguard penny stock commission: $0
Vanguard doesn't have penny stocks surcharge. Learn more
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Vanguard
Review
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Merrill Edge penny stock commission: $0
Merrill Edge doesn't have penny stocks surcharge. Learn more
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Merrill Edge
Review
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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.
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 23 years, and has background in both applied math and programming.