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Where To Buy Penny Stocks: A Complete Guide

Susan Kelly

Nov 05, 2023

The image of penny stocks isn't great. While inexpensive, it is difficult to forecast their price because of their high volatility. Investors in the UK have it rough since penny stocks are typically handled like wagers on a horse race at a bookmaker's.

However, as is usually the case with generalizations, the assumption that all penny stocks and shares are the domain of speculative gamblers or Wolf of Wall Street con artists is untrue. Penny stocks are still available and might be a smart investment.

That's much easier said than done because it requires being wary of anything that appears to be a bargain but is simply a dud lying behind a low price. Investing in penny stocks is not a quick way to wealth. Even more so than with other stocks, they must be thoroughly researched before being included in an investment portfolio.

It is because, in general, penny stocks represent smaller, less publicly traded corporations that are subject to fewer rules and regulations. That's why they don't face the same level of scrutiny as other, bigger businesses.

Where To Buy Penny Stocks?

Penny stock applications can be easy to invest with little money, avoiding the high risk of more substantial purchases. Instead, the top penny stock apps provide a simple, low-cost method to begin investing. Below are the top penny stock applications available now, breaking down their most important characteristics so you can make the most informed decision for your financial future.


To profit from Fidelity's penny stocks, you must first understand the dangers you'll subject yourself to. In addition to exercising caution, this firm provides valuable assistance via its website and mobile app.

Their Learning Center is user-friendly and has helpful resources, such as the most up-to-date in-depth research and a stock screener to assist you in picking the best penny stocks for your portfolio. The app offers a straightforward UI and a note-taking feature.

It makes it perfect for newbies, but even seasoned investors may benefit from the information provided. Active Trader Pro is a desktop application for active trading. The availability of more than 15 different currencies and the inclusion of more than 20 different nations makes international trade possible and convenient.

Charles Schwab

Charles Schwab is a household brand in the world of finance, so it stands to reason that they are also a safe bet for investing and our top option for penny stock applications. Schwab Trading Software, offered by Charles Schwab, is a user-friendly tool that is simple no matter where you happen to be.

Thanks to the numerous charting possibilities and seamless integration with your preferred social network, you can always stay on top of things. The app's simple design makes it accessible to novice investors while also satisfying the needs of seasoned pros. Creating an account is the first step. There is no minimum trade amount; however, there is a flat cost associated with all trades.

TD Ameritrade

TD Ameritrade is another prestigious brokerage house offering personal and managed account choices. Trades are charged at a set rate, while electronic funds transfers and purchases of mutual funds incur no additional costs. You may use either the robust online platform or the handy mobile app.

Either way, submitting a trade ticket is a breeze. Thinkorswim stands out due to the sophisticated features it offers. You may trade exchange-traded funds (ETFs), mutual funds, foreign currency, futures, or options depending on your investment strategy.

The software is great for novice and seasoned investors because of its extensive library of over 400 different types of analyses. For urgent transactions, Google Assistant allows you to use third-party systems like Facebook Messenger and Twitter Direct Messages for even more rapid trade execution and reporting.


To begin trading, you must first create a brokerage account, but once you do, you may begin investing immediately. Information is available to assist with investing strategy, such as retirement planning materials and market news to keep you updated on market movements.

It's supplementary advice that's great for investors but especially for newcomers still learning the ropes. Commissions are affordable, and you'll receive a sizable reduction if you make 30 or more monthly trades. This feature, which helps you save money while using the site, is unusual among programs for trading penny stocks.

Financing the account might take some time, depending on your chosen financing method, but then you can choose between self-directed online trading and broker-assisted trading. But you may always deposit a check or send a wire transfer, and the Transfer Money service is always free. Excellent customer service is available by phone anytime, any day of the week.

Market Analysis Of Penny Stocks

Penny stock markets are notoriously unstable, with daily price changes of as much as 20% being the norm. Therefore, before selecting whether or not to proceed with any trading choice, it is crucial to undertake a comprehensive study of your risk-management approach.

As a result, it is prudent to pursue investments in expanding markets rather than those in decline. Since penny stocks in the UK and elsewhere don't experience a lot of daily trading activity on the stock exchanges, it usually doesn't take a big buy or sell order to make a difference.

Penny stock prices may also be affected by the attention they receive, for example, on message boards dedicated to the topic. If a stock has a big one-day surge and you fear missing out, you could be tempted to buy. Ensure you're buying for the correct reasons since what goes up rapidly may fall just as quickly.


Penny stocks are a high-risk investment option. If you're going to put your money into penny stocks, do your homework on the company you're putting your money into and keep an eye on the data related to the firm's growth plans.

Beginners should avoid investing in penny stocks since they are fraught with danger if they aren't careful. Only experienced traders with a firm grasp on market speculations and a penchant for careful analysis and study should consider trading penny stocks.

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