Penny Stock Trading UK for 2024

We found 11 online brokers that are appropriate for Trading Penny Stock Investment Platforms.

Penny Stock Trading UK Guide

Analysis by Andrew Blumer, Updated Last updated - April 18, 2024

Penny Stock Trading UK

If you are looking for crypto like explosive growth, then penny stocks should be your first choice in the Stock Market! As the name suggests, these stocks have a very low price but are very volatile. As a result of this volatility, it is not a rare sight to see massive gains within the span of a few days.

For UK traders looking for greater returns on their investments, these microcap stocks can prove to be the preferred choice. However, with significant returns comes significant risk, and that's true in this situation.

What makes these small companies so volatile? These small companies are usually low on cash, unestablished, and do not have the resources to compete against the big names. You could say that such companies are the underdogs of their respective sectors.

Penny Stocks Explained

Newly listed companies or companies which are small usually have a lower share value. The stock of such companies is called penny stocks. The explosive returns and low prices of these stocks attract both seasoned & amp; new investors alike.

In the UK, any company whose share price is worth less than 1 and less than 100 million caps is considered a micro-cap or cheap stock.

Is It Allowed to Trade Penny Stocks In UK?

Yes, is it legal and allowed to trade penny stocks in the United Kingdom. FTSE AIM index, which tracks the performance of all companies listed on the London Stock Exchange, can be used to find such stocks. You will find these stocks under Alternative Investment Market (AIM) in FTSE AIM. As these stocks are a bit risky, they are kept in a separate category.

Process of Buying Microcap Stocks

The first step is selecting a suitable trading platform. Once you find a platform that offers good services, you have to open an account with them.

Once the account has been set up, you can fund your account and start trading these low-cost shares.

Criteria Of A Penny Stock

In simple terms, any stock that has a low price can be considered a penny stock. However, just for the sake of simplifying things, you can look for these criteria to find such stocks

Blue Chip vs Microcap Stocks

These 2 are the opposite of each other. Blue-chip are established and financially sound companies that have been around for a long time with a history of positive P/E ratio, dividend payments, and large market capitalisation.

On the other hand, microcap is a newly listed company with little to no financial history, no dividend payments, and a price of less than 1. Since these are risky investments, they are kept separate and can be found in the Alternative Investment Market (AIM) category in the UK.

Should You Trade These Small Stocks?

Before investing in this investment vehicle, consider these things.

Tips for Trading Penny Stocks

You need to have a game plan for trading this investment vehicle. Although these are just stocks, their high volatility makes them high risk. We have listed some tips you can use for trading.

Strategy

Strategy Trading without a strategy is risky in itself, and when trading such items, it becomes crucial. Create some rules for entry, profit-taking & amp; when to cut losses. Once you have established these rules, it is best to stick to them.

Money Management

Money Management Knowing how much volume to trade and when to exit a trade separates the good traders from bad traders. When trading high-risk items, your money management must be on point. It is not uncommon for penny stocks to move 100% or even more.

Stock selection

Stock selection Just choosing some random cheap stocks is not going to get you anywhere. Your stock selection must be based on information, news & amp; financial data. The chances of a company going bankrupt are very high in these small & amp; newly established companies.

Pros & amp; Cons of Trading Microcap Stocks

Let's take a look at what you can expect from trading these type of stocks

Microcap Stocks Pros

Microcap Stocks Cons

We have conducted extensive research and analysis on over multiple data points on Penny Stock Trading UK to present you with a comprehensive guide that can help you find the most suitable Penny Stock Trading UK. Below we shortlist what we think are the best Penny Stock Trading Investment Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Penny Stock Trading UK.

Reputable Penny Stock Trading UK Checklist

Selecting a reliable and reputable online Penny Stock Trading Investment Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Penny Stock Trading Investment Platforms more confidently.

Selecting the right online Penny Stock Trading Investment Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Compare Key Features of Penny Stock Trading Investment Platforms in Our Brokerage Comparison Table

When choosing a broker for Penny Stock Trading Investment Platforms trading, it's essential to compare the different options available to you. Our Penny Stock Trading Investment Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.

By comparing these essential features, you can choose a Penny Stock Trading Investment Platforms broker that best suits your needs and preferences for Penny Stock Trading Investment Platforms. Our Penny Stock Trading Investment Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.

Top 15 Penny Stock Trading Investment Platforms of 2024 compared

Here are the top Penny Stock Trading Investment Platforms.

Compare Penny Stock Trading Investment Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Penny Stock Trading Investment Platforms broker, it's crucial to compare several factors to choose the right one for your Penny Stock Trading Investment Platforms needs. Our comparison tool allows you to compare the essential features side by side.

All brokers below are Penny Stock Trading Investment Platforms. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more Penny Stock Trading Investment Platforms that accept Penny Stock Trading Investment Platforms clients.

Broker XTB AvaTrade SpreadEx Trading212 forexmart Robinhood hdfcsecurities icicidirect sharekhan Zerodha eoption
Rating
Regulation FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) Firm reference number 609146, Financial Supervision Commission (FSC), Cyprus Securities and Exchange Commission (CySec) License number 398/21 Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Unregulated
Min Deposit No minimum deposit 100 1 1 1 No minimum deposit No minimum deposit No minimum deposit No minimum deposit No minimum deposit 500
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 1,000,000+ 300,000+ 10,000+ 15,000,000+ 10,000+ 10,000,000+ 2,000,000+ 2,000,000+ 1,500,000+ 1,500,000+ 10,000+
Benefits
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
Accounts
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Islamic account
  • Demo account
  • Standard account
  • Demo account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • MAM/PAMM account
  • Islamic account
Platforms MT4, Mirror Trader, Web Trader, Tablet & Mobile apps Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4,WEB,desktop Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps DealBook (Desktop, Mobile, iPhone, iPad, iPod touch, Web)
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
xtb
Sign Up with
avatrade
Sign Up with
spreadex
Sign Up with
trading212
Sign Up with
forexmart
Sign Up with
robinhood
Sign Up with
hdfcsecurities
Sign Up with
icicidirect
Sign Up with
sharekhan
Sign Up with
zerodha
Sign Up with
eoption
Risk Warning 76-85% 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. 71% of retail investor accounts lose money when trading CFDs with this provider Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. Your capital is at risk Your capital is at risk Your capital is at risk Your capital is at risk Your capital is at risk Your capital is at risk Your capital is at risk
Demo XTB
Demo
AvaTrade
Demo
SpreadEx
Demo
Trading 212
Demo
ForexMart
Demo
Robinhood
Demo
HDFC Securities
Demo
ICICI Direct
Demo
Sharekhan
Demo
Zerodha
Demo
eoption
Demo
Excluded Countries US, IN, PK, BD, NG , ID, BE, AU BE, BR, KP, NZ, TR, US, CA, SG US, TR US, CA RU CU, IR, KP, SY, UA


All Penny Stock Trading Investment Platforms in more detail

You can compare Penny Stock Trading Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Penny Stock Trading Investment Platforms for 2024 article further below. You can see it now by clicking here

We have listed top Penny Stock Trading Investment Platforms below.

Penny Stock Trading UK List

XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 1000000+ traders. 76-85% 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 ECN account
Islamic account VIP account
Regulated by FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19)
AvaTrade
(4/5)
Min deposit : 100
AvaTrade was established in 2006 and is used by over 300000+ traders. 71% of retail investor accounts lose money when trading CFDs with this provider AvaTrade offers Forex, Cryptocurrencies, Commodities, Indices, Stocks, Bonds, Vanilla Options, ETFs, CFDs, Spread Betting, Social Trading . Cryptocurrency availability with AvaTrade is subject to regulation.

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account
Regulated by Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland
SpreadEx
(4/5)
Min deposit : 1
SpreadEx was established in 1999 and is used by over 10000+ traders. Losses can exceed deposits SpreadEx offers Forex, CFDs, and spread betting.

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 ECN account
Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
Trading212
(3/5)
Min deposit : 1
Trading 212 was established in 2004 and is used by over 15000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. 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 ECN account
Islamic account VIP account
Regulated by Financial Conduct Authority (FCA) Firm reference number 609146, Financial Supervision Commission (FSC), Cyprus Securities and Exchange Commission (CySec) License number 398/21
forexmart
(3/5)
Min deposit : 1
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 ECN account
Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
Robinhood
(3/5)
Min deposit : 0
Robinhood was established in 2013 and is used by over 10000000+ traders. Your capital is at risk Robinhood offers Stocks, 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 ECN account
Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
hdfcsecurities
(3/5)
Min deposit : 0
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 ECN account
Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
icicidirect
(3/5)
Min deposit : 0
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 ECN account
Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
sharekhan
(3/5)
Min deposit : 0
Sharekhan was established in 2000 and is used by over 1500000+ traders. Your capital is at risk Sharekhan offers Equity, Commodities, Mutal funds.

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 ECN account
Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
Zerodha
(3/5)
Min deposit : 0
Zerodha was established in 2010 and is used by over 1500000+ traders. Your capital is at risk Zerodha offers Stocks, 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 ECN account
Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
eoption
(3/5)
Min deposit : 500
eoption was established in 2008 and is used by over 10000+ traders. Your capital is at risk eoption offers Forex trading, CFD trading, Social trading, Share Dealing.

Funding methods

Bank transfer Credit Card Paypal

Platforms

DealBook (Desktop, Mobile, iPhone, iPad, iPod touch, Web)

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account ECN account
Islamic account VIP account

Learn more Learn more about XTB.
76-85% 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.
TRADE NOW Try XTB today
76-85% 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.