We found 11 online brokers that are appropriate for Trading Penny Stocks Investment Platforms.
Why trade penny stocks on Robinhood is a frequently asked question. We have been asked this many times, and so here we will give our stance. Before we proceed, it is important to mention that Robinhood is widely known for not charging a commission on trading. This is enticing to many, but particularly to the beginners who start their trading journey with low capital.
Robinhood is also popular among traders as you can get paid interest on the uninvested funds. This feature has recently been added to the platform. Uninvested funds are loaned to banks and other borrowers. A cut fee is earned from the clients, and a 0.3 percent interest a month is passed on to the traders.
Robinhood has been around since 2013 as an online broker and within a brief period of just seven years it has managed to bring in waves of traders. Most of the traders who showed interest in it are penny stock newbies. This is evident from the Reddit platform where fans hype the feature on its chat rooms.
Penny stocks refer to some of the common shares of small companies listed on the trading exchanges or can be bought over the counter (OTC) and these are traded at less than a dollar for each unit. These have less liquidity and are traded infrequently. Hence, these are difficult to convert into cash. They are also highly speculative and carry high bid-ask spreads.
Robinhood is best for penny stock traders who are new into the market and have low capital. However, there are some significant drawbacks.
The premarket, as well as after-hours trading, are limited on the platform. Even though the liquidity is less at such odd hours, many may look at it as an additional opportunity to trade. The platform does not offer access to the OTC markets. The OTC stocks are generally volatile and traders on the platform cannot get the chance to trade these.
Robinhood is a budget broker, something which, much like a free lunch to old-school parents, many believe does not really exist. Traders should read the small fine print before signing up with the trading platform. It claims to offer a free stock carrying a maximum value of $200. Let us take a look at the actual chances of this.
It seems decent that a trader saves $10 by not paying the commission and gets a $10 free stock. However, it is true that one terrible execution may wipe out all such calculations.
It is important to use the right trading tools, but there is no guarantee of profitability. Hence, it is better to understand the market and try to make smarter decisions.
Top movers and popular lists can be found at a first glance on the home page of Robinhood, but beginners may not know how to trade these as there is no scanner provided to filter the related stocks. This results in the temptation to trade the listed stocks.
It may not be completely fruitful to trade on the stock picks of someone else. A trader should learn to be self-sufficient and think for oneself.
The primary USP of Robinhood is commission-free trading. This is perfect for active traders or beginners who would risk a very small capital. For others, there are several more competitive brokers offering better services, but all may not offer zero commission trading features. Moreover, some online brokers are filled with hidden fees.
Robinhood was a revolutionary name when it entered the brokerage sphere way back in 2013. It became the first online broker to offer commission-free trading on its platform. Nearly a decade later, the market is flooded with more commission-free and discount brokers. So, the options are now vast, and traders are advised to check out more than one platform to find out whether their trading needs are met.
Before wrapping up the article, it is important to recognise that Robinhood is the current sensation in the financial market. The most-traded segment is penny stocks on Robinhood. We have discussed the pros and cons of it which should help in picking up a broker.
Novice traders are recommended to read reviews and check the feedback of Robinhood from related forums and websites to decide whether it is worth signing up on the platform.
We've collected thousands of datapoints and written a guide to help you find the best Penny Stocks On Robinhood 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 Stocks Investment Platforms below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Penny Stocks Investment Platforms trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Penny Stocks Investment Platforms.
Compare Penny Stocks Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Penny Stocks Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Penny Stocks Investment Platforms that accept Penny Stocks Investment Platforms clients
Broker |
eToro
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IC Markets
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XTB
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AvaTrade
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FP Markets
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Rating | |||||||||||
Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | 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) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), British Virgin Islands Financial Services Commission (BVI) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 250 | 100 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 20,000,000+ | 180,000+ | 250,000+ | 200,000+ | 10,000+ | 15,500+ | 10,000+ | 142,500+ | 3,500,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, Mac, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Learn More |
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Up with icmarkets |
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Up with avatrade |
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Up with fpmarkets |
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Up with plus500 |
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Up with pepperstone |
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Up with easymarkets |
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Up with xm |
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Up with fxprimus |
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Up with spreadex |
Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 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. | 72% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider 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. 79.3% 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 | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
AvaTrade Demo |
FP Markets Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
You can compare Penny Stocks 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 Stocks Investment Platforms for 2021 article further below. You can see it now by clicking here
We have listed top Penny Stocks Investment Platforms below.