Robinhood
Robinhood is the only broker that allows you to trade commission-free. That's the best feature a penny stock trader could ask for and why they are recommended consistently as the best broker for penny stock traders. Robinhood allows anyone to connect their bank account to the app and set up one-time or recurring deposits for trading. The service is limited in a few ways, though. The desktop trading experience is currently in beta and lacks features from more established brokers. The app also only allows trading NASDAQ, NYSE, and select high-profile international brands on their home markets. Cryptocurrency is supported on a state-by-state basis.
Ally Invest
Ally Invest is the investment arm of one of the most popular online banks, Ally. The aspects of Ally that have made it one of the most popular online banks are present in the Ally Invest product, too. Trades are available at $4.95 per trade, but this can be dropped to $3.95 with special account conditions. The Ally Invest mobile experience is excellent, and the investing education center is great for beginners in trading who want to educate themselves on the market. They offer self-managed and professionally-managed accounts for trading stocks, options, ETFs, bonds, mutual funds, foreign exchange, and futures.
E*TRADE
E*TRADE has been around for a while as a preferred online exchange for several traders. That is because they offer access to pink sheet stocks, too. E*TRADE is more expensive than Ally Invest with trades starting at $6.95 commission fee, but the mobile and desktop experience is tailored to professional traders. If you like to dabble in penny stocks and require professional tools on both desktop and mobile, E*TRADE is your best bet. If you trade 30 or more times during the quarter, E*TRADE will drop that per trade price down to $4.95. That makes the platform even with Ally Invest in price-per-trade with professional tools to boot.
Interactive Brokers
Interactive Brokers offers low-cost trading for several options, making them appealing for penny stock traders. The price is $.005 per share with a minimum of $1 per trade and a maximum of 1% of the trade. This low fee structure is ideal for a penny stock trader who is trading exclusively in penny stocks. The fee schedule is slightly different for European and Asian countries, but Interactive Brokers explains the schedule clearly and concisely on their website. Desktop, mobile, and web platforms for trading are on par with E*TRADE and IB has been experimenting with new types of trading. A Facebook Messenger bot and an Alexa skill can help you trade hands-free.
Fidelity Investments
Fidelity offers access to pink sheet stocks, but it also has some of the best research tools available compared to any trading platform. Fees start at $4.95 per trade, placing it on par with Ally Invest. The research tools available make Fidelity worth considering, though TD Ameritrade's Thinkorswim platform can be an invaluable resource for beginning traders.