Best Penny Stock Trading App

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A lot of investors who are on the move want to know what their options are for a penny stock trading app that can keep up with their fast-aced mobile trading lifestyle. Best apps summary

Best Penny Stock Trading App

Broker

Cost Per Trade

Overall Rating

Ally Invest

$3.95

5/5

TradeStation

$5.00

4/5

E*TRADE

$6.95

4/5

TD Ameritrade

$6.95

4/5

Merrill Edge

$6.95

4/5

tastyworks

$5.00

4/5

Firstrade

$2.95

3/5

We’ve tested and reviewed the top penny stock brokers with mobile applications and at the end of the day, the #1 penny stock trading app is offered by Ally Invest.

Unfortunately, popular stock trading apps like Robinhood and M1 Finance don’t support penny stock trading.  OTC securities and penny stocks cannot be traded via Robinhood, which would be nice because of the commission-free aspect. Nevertheless, it’s still possible to trade penny stocks for free by taking advantage of new account promotions and signup bonuses.

Other Penny Stock Trading Apps to Consider

GET STARTEDon TradeStation’s site

TradeStation’s mobile app is another solid choice for avid penny stock traders, but customer service doesn’t run 24/7.

All-New Pricing. Now Only $5/Trade + No Software Fees. Learn More

GET STARTEDon TD Ameritrade’s site

TD Ameritrade has a flashy mobile trading app that’s suitable for penny stocks, but at $6.95 per trade, you will be overpaying on just about every trade.

About Penny Stock Trading Apps

Thanks to Robinhood, investors often confuse a trading app with a broker. Currently, there are no penny stock trading apps alone. Meaning, there are no apps that exclusively offer penny stock trading.

The best investing apps are offered by the biggest online brokerages, because they have the most resources available to make there apps as user-friendly as possible.

Ally Invest’s mobile app is very easy to use, and as a top-rated online broker, Ally never charges any inactivity or maintenance fees for brokerage accounts. Read the full Ally Invest review.

Which Penny Stocks to Buy

Knowing which penny stocks to invest in is like knowing the winning lottery numbers before buying a ticket.

It’s impossible to know which penny stocks are going to go up in price or down in price in the near future, but check out some of the interesting penny stocks we’ve highlighted in recent articles.

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Interesting Penny Stocks You Probably Haven’t Heard Of

More Info About Penny Stock Trading Apps

In order to buy and sell stocks in the US stock market, you need to have a brokerage account. The same goes for penny stock trading.

It’s perfectly fine to initially select a penny stock trading app from the Android or Apple App store, but after you download the app, you’ll still need to open a brokerage account with the company that created the app.

TD Ameritrade has thinkorswim, Ally Invest has Ally Mobile, TradeStation has TradeStation mobile, etc.

Which Penny Stocks Should I Trade

Determining which penny stocks to trade can be a difficult task. The easiest way to find new penny stocks is to use a penny stock trading app that has searchable features. Meaning, the app you use should allow you to search for low-priced securities.

This is another reason why we love Ally Invest, because their stock screener tool, which is available once you open an account, is a fantastic way to find low-priced stocks on the Nasdaq, NYSE, and OTC markets.

Why are Penny Stocks so Volatile?

Penny stocks are volatile because they’re cheap and often have market caps ranging from $1 million to just $50 million.

Although this might sound like a lot of money, for a publicly traded company, a $10 million valuation, i.e. market cap, is nothing.

Since an entire penny stock company can only be worth $10 million, a large order to buy or sell can have a significant impact on the price of the penny stock.

SEC Info

Simply put, penny stocks are often not the most liquid stocks. If one trader tries to buy $100,000 worth of a penny stock, it could easily send the stock soaring. When 100 traders all try to buy $100,000 of a single stock, the effect is compounded.

This is why traders, who may only have small amounts of capital, are gravitated towards penny stocks. It is fully possible to double an initial investment in a penny stock in a matter of hours. It is almost fully impossible to do the same thing with a blue-chip, name brand stock like Costco, Apple, IBM, etc.

Due to the immense volatility of penny stocks, the SEC has highlighted some additional important info to know before you dive head first into any potentially illiquid stock.

Here are the best penny stock trading apps

Penny Stock App Best for
TradeStation Desktop Trading
Ally Invest Customer Service
tastyworks Platform tools
Zacks Trade Low Margin Rates
TD Ameritrade Mobile Trading
Firstrade Non-US Traders
E*Trade Trading Platforms

Updated: September 15, 2018

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