The appeal of penny stocks is obvious for those with limited capital. You get a ton of leverage, and these are some of the most volatile stocks – so you stand to make impressive profits fast.

But with that opportunity comes an equal amount of risk. You need a reliable system for trading penny stocks, one that helps you analyze and execute your strategy on a consistent basis. We’re here to help with an overview of the best app for penny stocks investing.

From stock analysis software to low-commission brokerages for facilitating your trades, we’ve compiled the best penny stocks apps below:

  • VectorVest
  • Interactive Brokers
  • TradeStation
  • Fidelity
  • Charles Schwab
  • E*Trade

Each has its place, and by the time you finish reading through our list of the best app to trade penny stocks you’ll feel clear and confident in which are right for you. That being said, you needn’t look further than the VectorVest stock advisory.

It gives you a buy, sell, or hold recommendation for 16,000+ stocks on a daily basis, saving you time and stress while helping you win more trades with less work. Whether you’re after the top penny stocks under 10 cents or the best blue chip dividend stocks, try it out today risk-free!

What is the Best App for Penny Stocks?

Let’s not waste any time getting into the best app for penny stocks trading. There are more options than ever before at your fingertips, which can be a blessing and a curse. It means the offerings are constantly getting better, but it’s also harder to choose the right one.

So, stick with one of these options below and you can rest assured you’re getting an intuitive, reliable, cost-effective solution. Here’s why VectorVest is the #1 best app to trade penny stocks.

VectorVest

VectorVest is the best stock analysis app for any strategy, whether you’re looking for the best app for penny stocks or safe dividend stocks, aggressive growth stocks, the best stocks for covered calls, the best stocks for Roth IRA, or any other stock investing strategy for beginners.

It’s a proprietary stock rating system that distills complex technical and fundamental data into clear, actionable insights. This helps you make more calculated, confident investment decisions without spending hours stuck in front of your screen reading through charts or press releases.

Instead, you rely on just 3 simple ratings: relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation.

Better yet, the overall VST rating for any given stock at any given time prompts a buy, sell, or hold recommendation. This can streamline your decision-making and eliminate human error, emotion, and guesswork, protecting against losses while pushing profits higher.

It’s not just going to support your stock analysis efforts, though. It’s also the #1 stock picker with a database of stock screeners. You can choose a list that aligns with your strategy, in this case, penny stocks, and always find quality opportunities on a daily basis.

You can even integrate with some of the trading brokerages we’ll highlight below, trading from directly within the VectorVest app. It’s the #1 iPhone stock app and Android stock app, but don’t just take our word for it. Get a free stock analysis today and see for yourself!

Interactive Brokers

VectorVest doesn’t let you buy and sell penny stocks directly. Rather, it connects with a few different brokerages to facilitate a seamless analysis and trading experience. One of those is Interactive Brokers, which is certainly the best app for penny stocks for more seasoned traders.

IBKR Lite customers pay a minimum of $1 per trade, and IBKR Pro Tiered customers benefit from lower rates starting at $0.0035 per share. Either way, you’re gaining access to a variety of assets, real-time margin calculations, and position updates so you can manage your trades and risk.

Some of the most noteworthy tools include automated trading strategies, chart-based trading, and customizable stock screeners. That’s why it’s one of the best penny stocks apps for investors who want more control and technology at their fingertips.

However, the steep learning curve of its Trader Workstation (TWS) platform may pose a challenge for new users. The commissions can start to add up over time for frequent traders, too.

The truth is, you will find VectorVest to be a far more valuable investment app for beginner and expert penny stock traders alike. So you don’t necessarily need to stress about that learning curve. You’ll do the bulk of your analysis in VectorVest.

TradeStation

TradeStation is another VectorVest-supported brokerage perfect for experienced, high-volume traders who need real-time market analysis and the ability to automate trading strategies.

Its competitive pricing model charges $0.005 per share for OTC stocks, with a minimum commission of $1 per order. What really sets it apart, though, is access to over 180 technical and fundamental indicators through real-time stock scanners. This gives traders dynamic insight into market movements so they can stay ahead of the curve.

You can place conditional orders and leverage intra-day margin rates of 25%, making this one of the best apps to trade penny stocks from a flexibility perspective.

But similar to Interactive Brokers, the wealth of tools and resources may actually be something that deters you from TradeStation. The learning curve can be steep. Some customers have complained about slow support, too. Still, it’s considered among the best app for penny stocks for a reason!

Fidelity

Fidelity may not be what comes to mind when you think of the best penny stocks apps since this platform is more commonly used for long-term investing strategies.

However, it offers free OTC market trading, making it one of the best choices for penny stock traders. Other brokers charge some sort of fee for trading penny stocks – Fidelity does not.

Free trades is just the tip of the iceberg, too. You get access to an intuitive mobile platform and comprehensive stock screeners to help you identify opportunities and capitalize accordingly.

The easy-to-use interface and robust research tools make this one of the best choices for beginner and experienced investors alike. The only downsides are high margin rates and limited cryptocurrency offerings, which might be deal-breakers for certain traders.

Charles Schwab

Charles Schwab is one of the largest brokerage firms in the U.S., known for its top-tier educational resources and beginner-friendly tools. It goes without saying it’s among the best apps to trade penny stocks.

While you’re charged a $6.95 flat commission for OTC trades, the combination of high-quality research tools and access to free news feeds makes it a strong choice for novice penny stock traders. You also get to choose from multiple trading platforms depending on your goals.

Just be aware that the fixed commission structure can become costly for those trading large quantities of penny stocks. Unless you’re trading really high position sizes, you may find the commission cuts into your profits too much.

Other investors point to the excessive margin rates and low interest on cash balances as reasons to consider one of our other apps for buying and selling penny stocks.

E*Trade

Finally, we have one of the most versatile penny stock trading apps on the market: E*Trade. This platform caters to both beginners and experienced investors.

While ETRADE charges a $6.95 flat commission for OTC stock trades, this drops to $4.95 for active traders who make 30 trades per quarter. It’s a bit more affordable than Charles Schwab in this sense depending on your specific strategy.

The platform’s user-friendly design and extensive educational resources make it our top choice for ease of use. We love the mobile app, too, which gives you access to live Bloomberg TV, third-party research, and seamless penny stocks trading.

Advanced users can take advantage of the Power ETRADE app for even more sophisticated charting and technical analysis tools. But, similar to Schwab, high margin rates and lack of fractional share options are limitations for some traders.

What are Penny Stocks?

There you have it, the best app for penny stocks depending on your goals. But, let’s take a step back. What are penny stocks in the first place, and are they really worth investing in?

Contrary to what you may assume, they aren’t always just a few pennies. These are low-priced, speculative stocks typically trading for less than $5 per share. They’re associated with small-cap or micro-cap companies that are either newly established or financially struggling.

Most penny stocks are traded over-the-counter (OTC) via the OTC Bulletin Board (OTCBB) or Pink Sheets, two platforms outside the major exchanges like the NASDAQ or NYSE.

Some penny stocks are also traded on traditional exchanges, though.

Because penny stocks tend to be priced very low, even a small price movement, like a shift from $0.10 to $0.20, can cause significant gains and losses. This is their appeal, but it’s also their downside. You need to be extremely calculated when trading penny stocks.

Are They Worth Trading?

So, is it really worth bothering with bottom dwellers when more established stocks exist, like blue-chip investing or monthly dividend stocks to hold forever? There’s certainly a place for these types of stocks.

They have a low barrier to entry given their low cost, so you can buy a large number of shares with a relatively small amount of capital. This is why beginner investors or those seeking quick gains are drawn towards them. Here are some things to consider, though:

  • High Volatility: Penny stock prices can change dramatically in a short period. They’re prone to sharp gains and equally steep losses.
  • Lack of Liquidity: Many penny stocks are thinly traded, meaning it can be difficult to find buyers or sellers at the right time. This can result in slippage, where you may need to settle for a worse price than expected when executing trades.
  • Limited Information: information is everything for making calculated, emotionless investments. But, most penny stocks represent smaller, lesser-known companies often with less transparent financial reporting. Investors may struggle to find reliable information to make informed decisions.

Still, the right investor sees these as a great opportunity. You just need a high risk tolerance and the commitment to digging deep to find information. Fortunately, the best app for penny stocks can help streamline this and set you up for success.

How Do I Buy a Penny Stock?

If you do decide that these types of stocks align with your goals and risk tolerance, here are some tips on making that first trade.

Choosing the Right Brokerage

We’ve covered the best penny stocks apps for you, so now, it’s just a matter of choosing one of the brokerages we listed above. There’s a lot to consider, from fees to research tools. Not all platforms give you the same level of empowerment at the same price.

The truth is though, you can’t go wrong with any of the solutions we shared today. We wouldn’t have included it on our list of the best apps for penny stocks if it wasn’t a quality choice. We’ll share more insights on our rationale in choosing these apps later on so you can do the same.

Funding Your Account

After you’ve created an account with one of these brokerages you’ll need to deposit funds from your bank account. Even though you’re trading penny stocks you still want ample capital to make sure your trades actually move the needle.

This can be anywhere from a few hundred dollars to a few thousand depending on your financial situation and your goals. Most brokers offer multiple funding options, such as bank transfers, debit cards, or wire transfers. Choose the one that’s most convenient for you.

As with any stock investing strategy, we encourage you to start small – especially if you’re new to trading in general. You will make mistakes, and you want them to be as low-stakes as possible. You might even consider paper trading at first.

Research and Analysis

Since these stocks are so speculative you need to do your due diligence in researching any opportunity before making a trade. This requires a combination of technical analysis and fundamental analysis.

Fundamental analysis involves investigating the actual health of the company. Look into its revenue trends, debt levels, and management quality. Keep in mind this information may be sparse for penny stocks, so do your best.

In contrast, technical analysis is where you’ll use charts and technical indicators like moving averages, volume trends, and price patterns to uncover buying opportunities. Penny stocks are volatile, so watch these trends closely to avoid being caught in price spikes or crashes.

We suggest building a watchlist of potential penny stocks you are interested in and monitoring their price action and news updates before making any moves.

Placing Your Order

Once you’ve identified a stock and feel confident in your research, it’s time to place your order. There are a few different ways you can approach this:

  • Market Order: This executes the trade immediately at the current market price. However the volatility of these stocks may result in a price higher (or lower) than expected.
  • Limit Order: This allows you to specify the maximum price you’re willing to pay. It’s a safer play for trading penny stocks to avoid unexpected price jumps.
  • Stop-Loss Order: This will cut losses automatically if the stock’s price drops to a predetermined level, protecting against significant losses.

Some platforms allow traders to route their orders directly to the market for faster fills. Keep in mind the importance of execution speed when trading penny stocks.

Managing Your Position

Understanding when to buy stocks is one thing, you also need to know when to sell stocks. Track price movements, volume, and any news related to the stock. Sudden price shifts are common in penny stocks.

That’s why we also encourage you to set up take-profit orders alongside your stop-losses. This prevents you from getting greedy and trying to squeeze out more profits, only to see the stock plummet and get stuck holding the bag.

You can adjust both your take profit and stop loss orders as the situation evolves so you don’t miss out on additional profits or close your position right before the stock skyrockets.

Be clear about your exit strategy from the start. Know when to sell, whether the stock rises to a certain level or drops below your risk threshold. Don’t get greedy – penny stocks can drop just as fast as they rise.

Our Rationale For Choosing the Best Penny Stocks App

Not sure how we came up with this list of the best penny stocks app and want a bit of clarity? These were the things we considered to be the most important in building our list.

Fee Structure and Costs

High commissions can easily eat into your profits, especially with OTC stocks. We prioritized apps with low or no commission fees, as well as transparent pricing.

Apps like Fidelity offer commission-free trading, while others, like Interactive Brokers, have competitive pricing models that scale well for high-volume traders. Take other costs into account as well, like fees for routing orders to specific venues or margin trading.

Ease of Use for Beginners

The quicker you get the hang of an app the faster it can start to deliver an ROI. Penny stock trading can be complicated, especially with the volatility involved, so we chose intuitive solutions that you can hit the ground running fast with.

That’s not to say you don’t need advanced tools and features. These are still important, but they need to be presented in a clear, easy-to-understand manner. If you don’t know how to use them to the fullest, what’s the point?

Research Tools and Resources

Speaking of tools and resources, it should go without saying that the best app for penny stocks is one that provides you with unparalleled insights to make calculated, emotionless decisions.

You need access to robust screeners, stock analysis tools, and up-to-date news feeds. Ideally, the data you’re using is real-time – or as close to it as possible. Every second counts when trading penny stocks, after all.

Customer Support

Strong customer support is essential, particularly for penny stock traders who may need quick answers or assistance during volatile market conditions. We looked at apps that provide multiple support channels (live chat, phone, email) and have a reputation for responsiveness.

Execution Speed

We keep harping on speed, and there’s a reason for that. Even tiny price movements can translate into massive percentage swings. The best app to buy penny stocks is one that minimizes the risk of slippage and leaves you stuck in a position.

Closing Thoughts on the Best App to Buy Penny Stocks

That concludes our overview of the best app to trade penny stocks. Whether you prioritize low fees, ease of use, or advanced research tools, one of these solutions will align with your needs.

Our blog has more resources on topics like how to find undervalued stocks, where to put retirement money after retirement, swing trading vs day trading, how to build a stock portfolio, how to pick good stocks for short-term, swing trading strategies, stock market sentiment, free stock analysis websites, best day of the week to buy stocks, and much more.

But whether you’re trying to trade penny stocks or the best short term stocks, set yourself up for success with VectorVest. It’s not only the best app to buy penny stocks, but the best stock analysis solution across the board.

See it in action today and never worry about missing an opportunity or leaving profits on the table again. Trade confidently with VectorVest, the best app to buy penny stocks in 2024!