We found 11 online brokers that are appropriate for Trading Penny Shares Platforms.
Penny shares Guide
Updated March 06, 2021
Penny Shares
If you are not afraid of high risks, penny shares might be a perfect investment scheme for you. This is due to their liquidity levels, which are normally very low and more volatile than blue-chip stocks. The process of purchasing a penny share can be difficult, as you sometimes need to trade outside of London's stock exchange.
Meaning of Penny Shares
The title 'penny shares' cannot be described with a single definition, as all UK stocks are called 'penny stocks'. Nevertheless, companies under the London stock exchange are not priced in pounds, but in pennies. As a result of this, it is generally known that UK penny shares are stocks that do not cost more than £1, and they carry out trades outside of the major stock exchange. This implies that penny shares are usually traded on the AIM (also known as the 'Alternative Investment Market'), while it is traded on over-the-counter markets in other situations.
Either way, penny shares are normally from companies that have not yet gained a foothold in the industry. This may be because their basic business model has not yet been proven, or because they are newly established. The latter implies that the chance for development is important. If any penny share company is able to rise in the London Stock Exchange, its stock rate can increase.
However, penny shares also come with risks, as is the case with other investment streams. As mentioned before, penny shares have low liquidity levels and are very volatile, which implies that there is a higher chance of incurring a loss compared to the stable, established, and strong, blue-chip stocks. Also, it is common for a penny share's value to increase, which a buyer may find difficult to notice.
Reasons for Investing in Penny Shares
Low Barrier for Entry
One of the reasons investors choose penny shares is their low entry barrier. The price of one share is meager. To that extent, you can purchase large amounts of stocks. For instance, ASOS has an initial price listing of about 24p, and if you made an investment of £1,000, the total number of shares you are going to have will be 4,166 shares. For companies like British American Tobacco, with the current price listing of about 2,785p, you would only get 37 shares. Similarly, if the company involved with penny shares does not succeed in a short amount of time, you still have the opportunity to possess a higher number of stocks.
Several Penny Shares to Pick From
There are several hundred penny shares to pick from in the UK, such as those in the AIM, which lists more than 850 companies of different industries and sectors. Unlike the FTSE 100, which has no more than a hundred companies. This permits you to diversify over dozens of various penny shares. In supposition, you only need to choose one to be successful.
Unprecedented Growth
people get involved with penny shares because they believe that they can generate a large number of profits. If you are searching for penny shares to help you succeed, you should be searching for a four-figure percentage return. But almost no penny shares can attain this goal.
Risks Involved in Penny Shares
Before purchasing penny shares, you need to know the risks involved. The risks include:
Pumps And Dumps - 'Pump and dump' is a highly facilitative receipt. For those who do not know, this is the place where a group of dubious people jointly agree to purchase shares in a certain stock at premeditated times. The aim is to automatically raise the shares' value so that external investors will be attracted, making it seem as if they are investing in a big business. Nevertheless, as soon as the stock reaches a specific price, the pump and dump will start selling their shares.
Penny shares are highly volatile.
Low Liquidity - Another risk involved in penny shares is low liquidity. Leading companies on the FTSE 100 possess capitalizations of a multi-billion pound market. But as for penny shares, this may be only a few million, which makes it very complicated to transact. Additionally, and most essentially, while it might seem simple to purchase your preferred penny shares, this may not be the same as when talking about selling. For instance, it is wonderful to see your shares rise by about 400 percent in a week, but you might not generate enough profit if you are unable to sell them.
Lack of Information - When you purchase shares from FTSE 100 stocks, know that everybody is on a ranked playing field. This implies that pieces of information are always provided by the company via public domain. As a result, it does not seem to be of any concern whether you are a majority shareholder or if you only possess one share, as everybody can access the same information in the same period. If a company is unable to provide its information, they will be sanctioned and fined. Nevertheless, the laws guiding information are negligent when it comes to penny shares, which can make it complicated to determine the full capacity of a company.
We've collected thousands of datapoints and written a guide to help you find the best Penny shares for you. We hope this guide helps you find a reputable broker that matches what you need.
We list the what we think are the best Penny shares platforms below. You can go straight to the broker list here.
Reputable Penny shares Checklist
There are a number of important factors to consider when picking an online Penny Shares Platforms trading brokerage.
Check your Penny Shares Platforms broker has a history of at least 2 years.
Check your Penny Shares Platforms broker has a reasonable sized customer support of at least 15.
Does the Penny Shares Platforms broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
Check your Penny Shares Platforms broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
Does your Penny Shares Platforms broker have an international presence in multiple countries. This includes local seminar presentations and training.
Make sure your Penny Shares Platforms can hire people from various locations in the world who can better communicate in your local language.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
Our brokerage comparison table below allows you to compare the below features for brokers offering Penny Shares Platforms.
We compare these features to make it easier for you to make a more informed choice.
Minimum deposit to open an account.
Available funding methods for the below Penny Shares Platforms.
What you are able to trade with each brokerage.
Trading Platforms offered by these brokers.
Spread type (if applicable) for each brokerage.
Customer support levels offered.
We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
Top 15 Penny Shares Platforms of 2021 compared
Here are the top Penny Shares Platforms.
Compare Penny Shares Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Penny shares platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Penny shares platforms that accept Penny shares platforms clients
Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG)
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Losses can exceed deposits
75% of retail investor accounts lose money when trading CFDs with this provider
US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW
US
CU, IR, KP, SY, UA
All Penny shares platforms in more detail
You can compare Penny Shares Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options,
regulation and account types side by side.
Trading the financial markets with Penny shares when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for Penny shares
is the platform that a Penny shares offer.
Choose Penny shares that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need Penny shares that you can rely on.
6 Factors to Consider when Choosing Penny shares
Follow these five rules for selecting a broker that's right for you:
Are Your Penny shares Trusted And Established?
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets.
The top rated Penny shares broker is
XTB.
Established in 2002, and in operation for 16 years
XTB
have a head office in Poland.
XTB
is regulated. This means XTB are supervised by and is checked for conduct by
Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) regulatory bodies.
Trading 212
was established 2006, and in operation for 14 years
Trading 212
have a head office in UK.
Trading 212
is regulated. This means Trading 212 are supervised by and is checked for conduct by
Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) regulatory bodies.
Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG)
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Losses can exceed deposits
75% of retail investor accounts lose money when trading CFDs with this provider
Losses can exceed deposits
Your capital is at risk
Are The Penny shares World Leading?
Choose a broker that's at the forefront of innovation and generally considered an industry-leader.
XTB Segregates clients funds and offers over 4000 instruments.
XTB offers both an online trading platform as well as a mobile platform giving clients easy access to markets.
In addition, XTB supports many popular third-party trading platforms enabling access to a
variety of markets worldwide that can be traded with the assistance of expert advisors or a customizable automatic trading strategy.
XTB is a world-leader when it comes to innovation and they are always looking at ways to improve
and to maintain their competitive advantage.
Another good choice when looking for Penny shares is
Trading 212 .
Trading 212 Segregates clients funds and offers over 3000 instruments.
MT4, Mirror Trader, Web Trader, Tablet & Mobile apps
Web Trader, Tablet & Mobile apps
Web Trader, Tablet & Mobile apps
MT4, Web Trader, Tablet & Mobile apps
MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps
MT4,WEB,desktop
Excluded Countries
US, AU, CA, JP, KR, KP, SG, MU, IL, TR, IN, PK, BA, ET, UG, CU, SY, BD, NG, ID, BE, LY, MO, KE, YE, VU, GY, CD, CG, AF, LA, MZ, IQ, IR
US
US
US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW
US
Forex pairs offered
57
177
55
100
150
100
Forex pairs offered
57
177
55
100
150
100
Major forex pairs
Yes
Yes
Yes
Yes
Yes
Yes
Minor forex pairs
Yes
Yes
Yes
Yes
Yes
No
Exotic forex pairs
Yes
Yes
Yes
Yes
Yes
No
Cryptocurrencies (availability subject to regulation)
Yes
Yes
Yes
Yes
No
Yes
Commodities Offered
21
14
16
26
7
0
Metals
Yes
Yes
Yes
Yes
Yes
Yes
Energies
Yes
Yes
Yes
Yes
Yes
Yes
Agricultural
Yes
Yes
Yes
Yes
No
Yes
Stocks Offered
1696
1731
1000
4500
0
53
UK Shares
Yes
Yes
Yes
Yes
Yes
Yes
US Shares
Yes
Yes
Yes
Yes
Yes
No
German Shares
Yes
Yes
Yes
Yes
Yes
No
Japanese Shares
Yes
Yes
Yes
Yes
Yes
No
What are the Penny shares Commissions and Fees?
Ensure that your broker is transparent with fees and those dues are competitive.
The best rated Penny shares broker XTB
offers competitive offers for Forex, CFDs, Cryptocurrency. XTB minimum deposit is 0.
Another top rated Penny shares broker Trading 212 offers
Stocks, Forex, Commodities, Indices. Trading 212 minimum deposit is 1.
Please note that any cryptocurrency availability with any broker is subject to regulation.
Customer service is very important when dealing with Penny shares.
When investing and dealing with brokers customer support can be a range of customer services to assist customers in making cost effective and correct use the brokers services.
It can include assistance in installation, training, troubleshooting, upgrading, and cancelation of a product or service.
Penny shares customer support can include Phone answering services, Live chat support and Email customer service support.
XTB support a wide range of languages including English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish
Trading 212 support a wide range of languages including English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文
XTB and Trading 212 offer support where clients are able to call or contact the helpdesk via email or a chat service.
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Losses can exceed deposits
75% of retail investor accounts lose money when trading CFDs with this provider
Losses can exceed deposits
Your capital is at risk
Make sure the Penny shares Offer Comprehensive Trader resources?
Make sure your broker offers free resources like analysis, education and risk-management tools.
With a wealth of knowledge from top analysts, XTB and
Trading 212 work together to bring the latest news and insights to traders.
For most traders, the first – and sometimes only – concern is pursuing their 'edge'. While that is surely important,
along with sound money management habits, to navigating the markets; that step alone does not represent the full preparation.
As each trader dives into this important venture, it is important not to forget the most rudimentary yet crucial steps such as
selecting the best broker to access the markets.
Why do Penny shares need to be regulated?
A regulated Penny shares broker lowers your risk.
Broker regulation protects consumers. Too little broker regulation can lead to poor services and possibly financial harm.
Penny shares brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated.
This amounts to fraud if client money is used to conduct the business.
Regulation is required to make sure this does not happen.
XTB was established in 2002 and is used
by over 250000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. XTB offers Forex, CFDs, Cryptocurrency.
Cryptocurrency availability with XTB is subject to regulation.
Funding methods
Bank transfer
Credit Card
Paypal
Platforms
MT4, Mirror Trader, Web Trader, Tablet & Mobile apps
Customer support
Live chat Phone support Email support
Account Types
Micro account
Standard account
Islamic account
VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG)
Trading 212 was established in 2006 and is used
by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading 212 offers Stocks, Forex, Commodities, Indices.
Funding methods
Bank transfer
Credit Card
Paypal
Platforms
Web Trader, Tablet & Mobile apps
Customer support
Live chat Phone support Email support
Account Types
Micro account
Standard account
Islamic account
VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
City Index was established in 1983 and is used
by over 14000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting.
Funding methods
Bank transfer
Credit Card
Paypal
Platforms
MT4, Web Trader, Tablet & Mobile apps
Customer support
Live chat Phone support Email support
Account Types
Micro account
Standard account
Islamic account
VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS)
ForexMart was established in 2015 and is used
by over 10000+ traders. Your capital is at risk ForexMart offers Forex trading, CFD trading, Social trading, Share Dealing, Crypocurrency trading.
Funding methods
Bank transfer
Credit Card
Paypal
Platforms
MT4,WEB,desktop
Customer support
Live chat Phone support Email support
Account Types
Micro account
Standard account
Islamic account
VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
HDFC Securities was established in 2000 and is used
by over 2000000+ traders. Your capital is at risk HDFC Securities offers Demat Account, Trading Account, NRI Account, Commodity Trading, Currency Trading, Mutual Fund Account, NPS Account.
Funding methods
Bank transfer
Credit Card
Paypal
Platforms
Web Trader, Tablet & Mobile apps
Customer support
Live chat Phone support Email support
Account Types
Micro account
Standard account
Islamic account
VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
ICICI Direct was established in 1994 and is used
by over 2000000+ traders. Your capital is at risk ICICI Direct offers Equity Trading, Derivatives Trading, Mutual Fund & IPO, Fixed Deposit, Bond, NCD, wealth products.
Funding methods
Bank transfer
Credit Card
Paypal
Platforms
Web Trader, Tablet & Mobile apps
Customer support
Live chat Phone support Email support
Account Types
Micro account
Standard account
Islamic account
VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
The best Penny shares platform broker is XTB. We consider
XTB one of the best Penny shares platforms brokers because XTB is actively
used by over 250000 active traders.
XTB ia regulated by tier 1 financial regulators including Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG). XTB were founded in 2002 and have a headquarters in Poland. You can open a live trading account with XTB with as little as a 0 min deposit.
Related Penny shares Reviews
Read our reviews on our Penny shares listed above. You can read our indepth Penny shares reviews below.
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See our highly rated list of Penny shares alternatives below.