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Which platforms are best for Penny Stock trading?
Are you interested in adding penny stocks to your portfolio and undertaking related trading activities? Then you’ll need a good broker and platform for trading penny stocks. Because these stocks trade for less than $1 and even less than $0.01 sometimes you really need to find a platform that keeps fees to a minimum. When $100 might buy 10,000 shares, it makes little sense to pay a per share fee of $0.01 or even $0.001. Instead, you’ll want a discount broker that lets you pay a flat commission with no volume or price surcharges. So here we are with three of the best choices in platforms that are good for trading penny stocks.
For a good selection of penny stocks with no surcharges, low margin rates and a flat-rate commission of $4.95 per trade Schwab can’t be beat. And they also have a Satisfaction Guarantee, so if you aren’t completely satisfied they refund your commission and do what’s fair to “make things right”. Plus, they offer several trading platforms (web-based, mobile and a professional level desktop version) and excellent analysis from Schwab’s in-house analysts and third parties.
Fidelity scores as well as Schwab for those looking for a good platform to trade penny stocks. Fidelity will give you a flat rate $4.95 commission free of surcharges for price or volume. And they protect penny stock investors by requiring you to contact them to verify you understand the risks involved with penny stocks the first time you place a trade for 10,000 shares or more. Just like Schwab, Fidelity offers excellent research from over 20 different third-party providers. You also get access to Fidelities powerful stock screener, and if you make over 36 trades a year, you’ll also have access to their professional trading platform.
If you want to drop your fees even lower, and meet the requirement of 30 trades per quarter, you can go with the Ally Invest platform and get trades for a $3.95 flat rate commission. If you trade less than 30 trades per quarter, the commission is still a low $4.95 flat rate. Ally Invest comes with a user-friendly trading platform, but you won’t get as much research as you would with Schwab and Fidelity. If you’re happy doing your own research, this shouldn’t be a problem, and if you’re an active trader, you can save a considerable amount in commissions over the course of a year. There are other great platforms for trading penny stocks, but the three listed above will give you your lowest costs and best value.