Penny Stocks are low-priced, small-cap stocks. Contrary to the name may suggest, they are almost never worth pennies.
According to the SEC: “The term “penny stock” generally refers to a security issued by a very small company that trades at less than $5 per share.“
Penny Stocks are popular as they have been known to provide extremely high returns in short periods of time, but they are also noted to be of higher risk than normal stock trading since the companies are smaller and usually less well-known.
Now you know what they are, let’s take a look at the best apps for trading penny stocks.
1. eToro
Best for: Social Traders
Are you a social person? If yes, eToro may be your perfect penny stock trading app. Hosting the latest cheap stocks, this trading app is ideal for all traders – it’s super easy to use and has a cool social platform built in so that you can chat to other people about penny stocks. If you want to learn more about the eToro app, take a look at our comprehensive eToro review.
2. Trading 212
Best for: Everyone
Penny stock trading is a breeze on Trading 212. They regularly add new penny stocks and have a revolutionary, slick trading platform for IOS & Google Play. We really like the alerts feature and the fact that you can look at charts down to 5 minutes – this makes it ideal for penny stock trading. Check out our full review of Trading 212.
3. Robinhood
Best for: Beginners
Robinhood is commission-free stock trading app based in the US. It is perfect for penny stock trading since it offers more ‘penny stocks’ than other brokers. You can trade new & trendy cheap stocks on Robinhood. It’s particularly popular with younger traders.
4. BDSwiss
Best for: Every Trader
BDSwiss is a great app for trading penny stocks. Why? Well firstly, they have a wide range of stocks available to trade on the app and it’s one of the cleanest and easies-to-use trading apps we’ve ever seen. They even have a free demo account so that you can test out your penny stock trading skills before you risk your real money.
5. Vantage FX
Best for: Experienced Traders
Vantage FX is a trading app based in Australia which offers penny stock trading on a regulated brokerage account. We especially like how easy it is to get an account set up and the bonus offered to new traders. Vantage FX is a slightly more advanced trading app, therefore we recommend it to experienced penny stock traders. We’ve made a full review on Vantage FX, covering everything there is to know about the app.
Summary
It’s really easy to get started trading penny stocks with these brilliant apps available on the market. Some apps have more penny stocks available to trade than others, so why not sign up to a few to get a feel for what is right for you first.
To re-cap, here are the best apps for penny stocks.
- eToro: Best for Social Traders
- Trading 212: Best for Everyone
- Robinhood: Best for Beginners
- BDSwiss: Best for Every Trader
- Vantage FX: Best for Experienced Traders
Do you know of any other good penny stock trading apps? Let us know about them in the comments below!