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Penny stocks open up an entire new world of trading. Simply put, penny stocks are cheap, volatile, and have been known to make or destroy fortunes overnight. Penny stocks turned market gurus like Tim Sykes into a multimillionaire, but they have also put traders hundreds of thousands of dollars in the hole, like Joe Campbell.
At the end of the day, penny stocks aren’t all that different than regular stocks. They’re just less expensive and arguably present more trading opportunities. For those that plan on trading penny stocks, the most important rule is to keep your positions sized reasonably (never put your entire account in one trade) and keep your trading commissions as low as possible.
Here are the best penny stock brokers that have the lowest trading commissions and don’t require a minimum deposit to open.
3 Best Penny Stock Brokers with no Minimum Deposit for September 2018
1 Ally Invest – 5 stars
2 TradeStation – 4 stars
3 TD Ameritrade – 4 stars
None of these brokers require a minimum deposit to open up an account. However, some might require a minimum for margin trading capabilities.
Through all of the stock broker reviews we’ve conducted, and the hundreds of hours spent testing brokers and writing reviews, we have consistently found Ally Invest to be the best broker for stocks and options. In the full review of Ally, we noted how customer service is 24/7, pricing is as cheap as can be, and trading technology/platforms are on point.
For penny stocks, the fact that there is no minimum to open or maintain an account give you the freedom to trade when you want and not feel obligated to trade to avoid an inactivity fee, like Interactive Brokers has.
1. Ally Invest
A lot of penny stock traders choose Ally because they have one of the best lists of tradable penny stocks and extremely cheap trading commissions.
Ally offers valuable deals for penny stock traders: Up to $3,500 cash bonus + commission free trades for new accounts
Moreover, in terms of penny stock trading, investors should take note that not all brokers are friendly to penny stock trading. Some brokers have steep requirements to trade penny stocks and others have a very limited selection of OTC stocks available to trade.
Interactive Brokers is, without question, the worst broker for penny stocks, or anything else, really. They auto-liquidate positions and can leave investors with significant losses if the market moves against them, even for a brief period of time.
We highlighted Interactive Broker’s serious flaws here.
Interesting Penny Stocks for 2018
Once you’ve selected a suitable penny stock broker from this list, check out some of the interesting penny stocks for 2018.
Our two most popular lists are: