Knowing where to buy penny stocks can make or break your success rate and the overall experience you have trading these securities.

While they’re not for everyone, penny stocks present a unique opportunity to gain serious leverage with little capital. Whether you’re investing in penny stocks under 10 cents or you’re more interested in the $3 to $5 range, though, you need the best broker for penny stocks.

So where can I buy penny stocks online? We’ve put together this detailed guide on where to trade penny stocks so you can weigh your options and choose the right broker for your needs:

  • Interactive Brokers
  • TradeStation
  • Robinhood
  • SoFi Active Investing
  • Merrill Edge Self-Directed
  • Fidelity
  • E*Trade
  • Moomoo
  • Charles Schwab
  • Firstrade

Each is on this list for a reason, but if we had to narrow it down further we’d suggest either TradeStation or Interactive Brokers since they integrate with the VectorVest stock software.

This means you can use our stock advisory to find opportunities, map out your trade, and then enter and exit positions from VectorVest! It’ll streamline your investments and help you earn higher returns with less stress along the way. Let’s get into where to buy penny stocks below.

Where to Buy Penny Stocks: The Best Broker for Penny Stocks in 2025

Just like in choosing the best broker for swing trading, the best broker for penny stocks can make or break your success in this strategy.

It can be the difference between consistently executing trades quickly and missing opportunities. The broker you choose directly impacts profitability as well, so considering fees is important when choosing one. You should also weigh features, support, and other factors.

We’ll talk more about how to choose the best penny stocks broker after we unpack the top 10 options. If you’re wondering where to buy penny stocks, you can’t go wrong with one of these options:

Interactive Brokers

Pros:

  • Access to a wide range of global markets.
  • Advanced trading tools and platforms.
  • Competitive margin rates.

Cons:

  • The platform can be complex for beginners.
  • There are high fees for IKBR Pro members

Let’s be honest – penny stocks can be risky. You need tools that help protect against the high volatility these stocks are notorious for. That’s why #1 on our list of the best broker for penny stocks is Interactive Brokers.

It provides you with a suite of features like the risk navigator, vetted orders, and real-time data so you can make the most informed decisions with these volatile stocks.

Advanced traders will also love the Trader Workstation which provides access to more sophisticated order styles, technical analysis tools, personalized charting features, and a whole lot more to help you capitalize on every trade.

There are no account minimums or commissions for each trade when using Interactive Brokers, but we haven’t even mentioned the primary reason we recommend it just yet: you can connect to VectorVest’s mobile app.

You can do all your research within VectorVest, which provides a buy, sell, or hold recommendation for any given stock at any given time, and then tap the TradeNow icon. This brings up an order ticket for you to customize before executing the trade.

Learn more about what makes VectorVest the best app for penny stocks if you’re not already using it.

TradeStation

Pros:

  • Advanced charting and analytical tools.
  • Customizable trading platform.
  • Educational resources, including paper trading and backtesting.

Cons:

  • Cannot purchase fractional shares.
  • A complicated platform for beginners.
  • Uninvested capital earns little interest

Another option for investors wondering where to trade penny stocks is TradeStation, a trusted broker since 1982. What separates this option from the rest is that you can execute OTC trades (where many penny stocks are found) for as little as $0.005 per OTC share!

It’s not hard to see why it’s topping lists of the best broker for penny stocks more than 40 years later: traders get some of the fastest execution times available. Market orders are placed within 0.044 seconds.

Speed is just one reason to consider trading penny stocks on TradeStation, which offers a wealth of educational resources and trading tools to support your investment strategy.

For instance, the Research Window is an advanced feature that combines fundamental and technical analysis to uncover the best opportunities for your specific goals. You can even simulate trades through paper trading to gain experience before putting real cash on the line.

Just be aware that you have to purchase whole share quantities on TradeStation, so you’ll need to round up or down based on the position size you want. That being said, there are zero account minimums and stocks/ETFs are commission-free.

Similar to Interactive Brokers, though, the biggest draw for trading penny stocks on TradeStation is the ability to connect to VectorVest for the most intuitive approach to stock analysis. It not only saves you time and stress but helps you earn higher returns!

Robinhood

Pros:

  • Best mobile trading experience.
  • Solid interest rate on uninvested capital.
  • Access to fractional shares and cryptocurrencies.

Cons:

  • Limited research and analytical tools.
  • Does not support OTC penny stocks.
  • Customer support can be lackluster.

When it comes to where to buy penny stocks online, Robinhood can’t be overlooked. This is one of the most popular retail investing apps for a reason – it’s simple and affordable.

Mobile trading can be frustrating without the right broker, and Robinhood has made it a point to offer the most intuitive experience possible. The design is simple and yet you have access to quite a few trading tools right at your fingertips – though you won’t get the depth of analysis or research you would with other brokers we’ve mentioned thus far.

But for the most straightforward broker for penny stock trading, you can’t beat Robinhood. It’s a no-frills way to get started right from your smartphone.

Just be aware that you’re selling yourself short when it comes to not only research and analysis but also execution time. Robinhood’s speed of execution trails most of the other options on this list, and customer support can leave much to be desired if reviews are any indication.

SoFi Active Investing

Pros:

  • Commission-free stock trading.
  • Free financial planning advice.
  • Access to IPOs and fractional shares.

Cons:

  • Disappointing interest rates on uninvested capital.
  • Research tools are lacking.

SoFi Active Investing gives you more control over your OTC penny stock trading strategy than many others do, letting you be the first to invest in IPOs and accommodating fractional order purchases.

You won’t have to pay any commissions on trades or worry about account minimums, either. But what really makes SoFi Active Investing a unique choice is the access you get to free financial planning advice.

It’s easy to see what makes this attractive for newcomers – but are financial advisors worth it? Most of the time, you’ll find their recommendations and guidance a bit underwhelming.

We can only imagine the quality insights you’re getting from free financial planning. You’re far better off controlling your own portfolio, as nobody has your best interests in mind more than yourself!

All that being said, you won’t be able to analyze your own trades with SoFi – at least not very well. You don’t get the most sophisticated feature suite for stock research, unfortunately. You might need a third-party solution if you choose this broker, like the best stock analysis app.

Merrill Edge Self-Directed

Pros:

  • Impressive order execution speed and reliability.
  • World-class customer service.
  • Commission-free trades on stocks, options, and ETFs.

Cons:

  • No access to fractional shares.
  • Disappointing interest rates on cash that’s sitting in your account.

If you already have a Bank of America account and are wondering, where can I buy penny stocks? Look no further than Merrill Edge Self-Directed! This is an extension of your account that supports free trades on all OTC stocks, where you’ll find most penny stocks.

This is the best broker for penny stocks for a number of reasons, including its dependability in order execution and its high-speed turnaround times. Every second counts when it comes to trading penny stocks.

The one downfall of using Merrill Edge Self-Directed is the inability to trade fractional shares, just like TradeStation, you’ll need to round up or down. But since you’re not paying any fees or forced to hold an account minimum, it may still be worth it!

Fidelity

Pros:

  • No fees on penny stock trading.
  • In-depth research and analysis features.
  • Track record of top-notch customer service.

Cons:

  • Lacking support for trading futures, crypto, and more.

Fidelity is perhaps the best broker for penny stocks overall – at least, depending on who you ask. The company has earned a reputation for consistently providing a world-class trading experience for decades and counting.

What really separates Fidelity from other options on this list is the depth of research and analysis features you gain access to. This is an all-in-one solution for trading penny stocks, from finding opportunities to mapping out your trade and executing it. It’s worth paying more for the Chart+ package if you’re serious about trading penny stocks.

Fidelity is also known for regularly providing its users with the best fills on trades possible, helping you make the most of this tumultuous market.

You’ll be greeted by a wealth of educational resources to set you up for success as a new trader as well. Plus, you don’t have to pay anything extra to trade penny stocks.

E*Trade

Pros:

  • A consistent user experience from desktop to mobile.
  • Impressive analysis features and detailed educational resources.
  • Access to Morgan Stanley research.

Cons:

  • Expensive fees to trade penny stocks.
  • Margin rates can be excessively high.
  • Hard to access fractional shares through traditional trading.

Some consider E*Trade to be the best broker for penny stocks trading on mobile, even outperforming Robinhood. This is because while it’s a streamlined user experience from desktop to mobile, you get way more features to help set you up for success.

The research is derived from Morgan Stanley so you can rest assured you’re getting the deep, accurate insights you need to make calculated investment decisions. You’re also getting so many technical and fundamental analysis tools to help spot winning opportunities and capitalize.

The platform even goes as far as to provide a ton of educational resources to help you master the key principles of penny stock trading and investing in general.

So, what’s the catch? Why was E*Trade not placed at the top of our list of where to buy penny stocks? It all comes down to price. The fees to trade penny stocks OTC can be as high as $6.95, or $4.95 if there were 30 or more trades in the quarter. This really cuts into your profits unless you’re trading with higher position sizes.

Moomoo

Pros:

  • Intuitive mobile app experience
  • Commission-free trades for penny stocks
  • Low margin rates, high yields on uninvested capital.

Cons:

  • Suboptimal execution rates.
  • Limited investment options.

We know what you’re thinking…what is Moomoo? This relatively obscure broker for penny stocks trading may not be a household name, but it’s on our list of where to trade penny stocks for a reason!

Most of what earned it a place is the super seamless mobile trading experience Moomoo has created, which is on par with that of Robinhood. It’s easy to get the hang of advanced features so you can hit the ground running.

Of course, part of what makes Moomoo the best broker for penny stocks is the commission-free trading you’ll gain access to. You’ll also enjoy low margins and a solid interest rate on additional cash you have sitting in your account.

However, what matters most in choosing where to buy penny stocks is execution speed and reliability. Unfortunately, Moomoo has a reputation for falling behind the pack in both regards. You might find it costing you when you’re trying to buy or sell your shares in a timely manner.

Charles Schwab

Pros:

  • No account fees or minimums.
  • Traders can leverage the thinkorswim investment platform.
  • Advanced services for bigger accounts.

Cons:

  • Commissions for trading penny stocks OTC aren’t cheap.
  • Weak interest on uninvested cash
  • High margin rates.

Charles Schwab is so much more than a place to set up your Roth IRA or invest in mutual funds. If you’re wondering where to trade penny stocks, this is another great option. The broker has been around since 1971 and is still a top choice today.

You’ll enjoy zero account minimums and no fees for most trades – however, penny stock trading is another story. The $6.95 fee for OTC trades is right up there with E*Trade for highest on our list. It’s hard to justify choosing Charles Schwab unless you’re trading bigger positions where you won’t notice the fee.

That being said, don’t look past this penny stock broker just yet. What if we told you that you gained access to the most sophisticated trading platform at your disposal with your account?

The thinkorswim platform puts more features at your fingertips than anything else on the market. You can leverage advanced charting capabilities, build watchlists, set up screeners, and more. Those who want the best research features may find the $6.95 fee a small price to pay.

Firstrade

Pros:

  • Straightforward mobile trading experience.
  • Support in multiple languages (very popular for Chinese speaking traders).
  • No commission fees on penny stock trades.

Cons:

  • Educational resources are lacking.
  • Tools and features for analysis are also disappointing compared to the field.

Last but certainly not least in our guide on where to buy penny stocks, we have Firstrade. The lack of fees and account minimums is a refreshing break compared to some of the others on this list, protecting your profits and helping you maximize the value of each trade.

Why else did Firstrade win best in class last year, though? It comes down to how user-friendly the platform is, especially on mobile. It’s as easy-to-use as Robinhood and Moomoo, yet, it’s also quite innovative with its FirstradeGPT analysis tool. This is basically an AI research companion.

You’ll also love how helpful and friendly the customer service is, with industry-leading support times. Plus, Firstrade is one of the only penny stock brokers that offers support in Cantonese, Mandarin, and many other languages!

The shortcomings here are that the depth of Firstrade’s analysis features are sorely lacking, as is the platform’s educational resource database. You may find that for what you’re paying, the value isn’t quite there.

Where Can I Buy Penny Stocks Without a Broker?

There you have it, where to buy penny stocks! There are so many great options at your fingertips, and now, it’s just a matter of choosing the one that most aligns with your needs. But where can I buy penny stocks WITHOUT a broker? 

This is a common question we see people asking when they want to avoid paying fees or they want access to penny stocks not available through typical brokers.

Some companies will let you purchase shares directly from them – known as Direct Stock Purchase Plans (DSPPs). This is typically something offered by much larger companies but some small firms trading at penny stock prices offer this feature, too.

There are also transfer agents such as Computershare or AST Financial, which basically serve as intermediaries between companies and investors. They can manage DSPPs and Dividend Reinvestment Plans (DRIPs) on your behalf.

The truth is, though, you won’t have a ton of luck buying penny stocks without a broker. You’ll also lose access to professional platforms, real-time market data, and robust analysis tools to help you make the most of every trade.

With so many great platforms to choose from, why not set yourself up for success with the best broker for penny stocks today? We’ll share a few more tips on choosing the right one below.

What to Look for in the Best Penny Stocks Broker for Your Needs

The best penny stocks broker for you requires an understanding of your trading strategy and goals, your experience level, other tools you like to use (like VectorVest), and your position sizes. These are the most important criteria to weigh in choosing a broker:

Low or No Commission Fees

High fees can quickly eat into the slim margins penny stock traders earn, which is why you should stick with one of the many options on this list that doesn’t charge any fees.

If you are going to choose one of the brokers that charges $6.95 for OTC trades, you better be trading in high enough positions that you don’t even notice the fee in your returns.

You should also be aware of hidden fees such as regulatory charges or inactivity fees that some platforms impose. Transparency is key. Pay attention to account minimums as well, as that may rule some of these brokers out from the get-go.

Access to Over-the-Counter Markets (OTC)

While typical blue-chip stocks trade on major exchanges like the NYSE or NASDAQ, you’ll find penny stocks on Pink Sheets or OTC markets. So, the broker you choose must offer access to these markets so you can capitalize on any opportunity that comes your way.

Real-Time Data and Market Alerts

If you’re making decisions based on old data, you’re not going to see much success with penny stock trading. These are simply too volatile a security to not use real-time data for. Prices can move dramatically in seconds.

Fortunately, you can rest assured you’re getting the best possible data with VectorVest since we use Nasdaq last sales data. This gives you a serious advantage over other traders, leveling the playing field with professional investors.

Speed and Reliability of Order Execution

Again, the volatility of these stocks warrants choosing a platform that maximizes order execution speed and reliability. Delays of even a few seconds can mean the difference between profit and loss in these trades.

Choose a broker with a reputation for consistently boasting industry-leading execution speeds along with a dependable track record of filling orders.

Integration with Mobile Platforms

These days, your investing goals don’t have to get put on pause just because you’re not at your desk. You can take your trades anywhere when you have a penny stocks broker that supports mobile trading.

Not all brokers offer the same level of mobile user experience, though. The features and tools need to be streamlined, and you should be able to set up real-time notifications so you never miss an opportunity.

Research Tools and Stock Screeners

Speaking of features and tools, the best broker for penny stocks should empower you with a wealth of research tools and screeners to help you find opportunities and capitalize.

These tools should allow you to filter stocks based on criteria like price, volume, sector, and financial health, helping you identify potential winners and weed out the losers.

Better yet, see if you can find a broker that has pre-curated watch lists for stocks under a certain price – this way, you never have to look far for your next trade!

Final Thoughts on Where to Trade Penny Stocks

So, where can I buy penny stocks? As we wrap up our guide to the best broker for penny stocks trading we hope you have a clear understanding not just of where to buy penny stocks, but which of these 10 choices best suits your needs.

Whether you want to learn how to day trade penny stocks for present-day income or how to make money off penny stocks in the long term, the best broker for penny stocks can make or break your success.

In closing, though, we highly encourage you to try either TradeStation or Interactive Brokers since you unlock the full power of VectorVest. Learn more about what makes this the right approach with a free stock analysis today!