Our July 2025 Picks: Brokers for Penny Stocks
Review
Updated
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Penny stocks are those that trade below $5. Since penny stock companies don't typically meet the requirements to trade on major stock exchanges, not all brokerages offer them on their platforms.
The best penny stock brokers, however, will have low or free commissions on these over-the-counter (OTC) trades, plus ample ways to dig deeper into the companies behind these small share prices. With that in mind, let's take a closer look at the risks associated with penny stocks and the best brokers for penny stock trades.
| Broker/Advisor | Best For | Commissions | Learn More | |
|---|---|---|---|---|
 2025 Award Winner
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Research tools |
Commission:
Commission-free; other fees apply |
Learn More for E*TRADE from Morgan Stanley
On E*TRADE's Secure Website.
Special Offer
Open and fund a brokerage account and get up to $1,000. Terms apply. Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account. Please read full terms and conditions on our website. |
2025 Award Winner
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Extended trading |
Commission:
$0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Charting tools |
Commission:
$0 stock trades |
Learn More for TradeStation
On TradeStation's Secure Website.
Special Offer
New accounts with qualifying assets earn $50 to $5,000 using code FOOLAFYJ |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Educational materials |
Commission:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
|
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Free OTC stock trades |
Commission:
$0 commission for online U.S. stock and ETFs*. No account fees****. |
When we researched online brokers to create this list of brokerages, some of the things we looked for were low costs, a variety of account types, and great customer service ratings. Everyone's investing journey is different, but I've found these three factors are important for anyone to have a great investing experience.
On E*TRADE's Secure Website.
2025 Award Winner
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,000. Terms apply.
On E*TRADE's Secure Website.
Why E*TRADE from Morgan Stanley made the list: E*TRADE from Morgan Stanley charges a $6.95 commission on online trade of OTC stocks, which can be reduced to $4.95 when you execute at least 30 stock, ETF, and options trades each quarter.
While other brokers on this list charge no fees, E*TRADE from Morgan Stanley stands out with its intuitive platform and user-friendly tools and stock screeners for OTC trading.
On Robinhood's Secure Website.
2025 Award Winner
A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 for stocks, ETFs, and options
$0
On Robinhood's Secure Website.
Why Robinhood made the list: Robinhood offers commission-free trades on stocks, including penny stocks. Its platform is super intuitive and will even let you trade stocks 24 hours a day, five days per week.
However, unlike some of the brokers on this list, Robinhood's research offerings aren't particularly strong, nor does it provide much assistance on penny stock trading outside some educational articles.
On TradeStation's Secure Website.
A discount broker that's designed for active traders and cost-sensitive investors. You can often spend less than with other platforms.
$0 stock trades
$0
New accounts with qualifying assets earn $50 to $5,000 using code FOOLAFYJ
On TradeStation's Secure Website.
Why TradeStation made the list: TradeStation is a powerful trading platform that offers active traders powerful charting tools, up-to-date market data, and advanced order entry capabilities. For penny stock trades, however, this feature-packed platform may come at a steep price.
Any stock trades below $1.00 a share will incur a commission charge of $0.005 per share with a minimum of $1.00 and maximum of $50.00, both subject to a notional cap of 5%. So depending on your trade volume, TradeStation could be one of the more expensive penny stock brokers.
Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
Why Charles Schwab made the list: Charles Schwab is one of the best penny stock brokers for its educational materials, research, and tools. Although Charles Schwab charges $6.95 for executed trades on OTC markets, this could be worth it for the powerful research at your disposal.
Fidelity’s brokerage account offers free tools and $0 commission for online U.S. stock and ETF trades.* Investors can access a wide range of options, from stocks and mutual funds to crypto. Get an all-in-one view of live data and charts with the Fidelity Trading Dashboard, set up recurring investments, and enjoy 24/7 support from investing professionals. You can also potentially earn more on uninvested cash with a money market fund.**
$0 commission for online U.S. stock and ETFs*. No account fees****.
$0****
Why Fidelity made the list: Fidelity offers free online OTC stock trades, making it an affordable option for those looking to cut out fees altogether. This, coupled with its robust research and tools, make Fidelity a strong candidate for the best penny stock broker.
Penny stocks are very risky, but they can offer distinct advantages for knowledgeable investors. With that in mind, here are strengths and weaknesses to consider.
Most financial experts and companies -- including The Motley Fool -- don't recommend penny stocks for the majority of investors. Most penny stocks are cheap for a reason, and only a handful will experience the kind of explosive growth that their investors are hoping for. If you're set on investing in penny stocks, however, here are some ways to get started.
Penny stocks don't actually cost a penny per share, but rather are defined as companies trading below $5. Penny stocks are usually unestablished, nascent companies (often start-ups) who may offer some promise but have little or no track record of success.
Because penny stock companies don't typically meet the minimums requirements to trade on major market exchanges, like the New York Stock Exchange (NYSE), they're often sold over-the-counter (OTC). This can add another layer of risk to penny stocks, as OTC markets don't have the same stringent reporting requirements as major exchanges.
Penny stocks aren't great investments for beginners. Even experienced investors often steer clear of these volatile, risky stocks. If you've assessed the risks for yourself and know what you're getting into, the best brokers and platforms mentioned above can help you trade at low prices with ample educational resources to bolster your own experience.
Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios from Morgan Stanley, E*TRADE from Morgan Stanley, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Robo Investing, Stash, Stockpile, tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
E*TRADE services are available just to U.S. residents.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
Fidelity disclosure
Investing involves risk, including risk of loss
* - $0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at (https://www.fidelity.com/trading/commissions-margin-rates). Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read (https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document). Supporting documentation for any claims, if applicable, will be furnished upon request.
****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See (https://www.fidelity.com/trading/commissions-margin-rates) for further details.
