Best Penny Stock Trading Apps of 2024

E*TRADE is one of the first all-electronic brokerage companies. The company was founded in 1982 in Palo Alto, California, and began internet trading with the launch of Etrade.com in 1996. Morgan Stanley completed its purchase of E*TRADE in 2020. The company has smartly designed platforms that are easy to use and offer a wide range of products and services for U.S. customers. E*TRADE’s commissions for OTC trading are higher than at some other brokers, but assuming the trade size is large enough, the commission is not prohibitive for investors to try OTC stock trading on its platform. However, it is likely that more active OTC traders will want to explore lower-cost options.

Less advanced penny stock traders who also depend on a fast and reliable platform for managing critical banking features like managing cash, transferring money, depositing checks, and paying bills, will appreciate the E*TRADE Mobile app. The entry-level E*TRADE Mobile app also allows users to view live Bloomberg TV while gaining access to third-party research and breaking news. For more active investors, the wide array of analysis tools, charting functionality, and trading technology made available on the more advanced Power E*TRADE app is impressive when you consider how streamlined the platform is.

Fidelity is a privately owned business founded in Boston in 1946 and is one of the largest brokerage companies in the U.S., with more than 50 million individual investors, $13.7 trillion assets under administration, and $5.3 trillion in total discretionary assets as of March 31, 2024. Fidelity provides access to most U.S. markets, including both domestic and international stocks, ETFs, mutual funds, options, crypto, fixed income, and the OTC market. 

As Investopedia’s top choice for best broker overall and best full-service investment app, along with a host of other categories, Fidelity offers customers a comprehensive suite of accounts and services, including robo trading, banking features, and a wide range of helpful tools for analyzing securities and your portfolio. For penny stocks, Fidelity provides access via the same platform for other stocks and ETFs, and there is no charge for trading over-the-counter stocks at Fidelity, unlike at many brokerage firms that offer free stock and ETF trading.

Interactive Brokers (IBKR) was one of the first adopters of technological innovation in the financial markets, and the company, headquartered in Greenwich, Connecticut, remains an innovator in bringing new trading tools and technologies to the markets. The company is publicly traded and had more than 2.5 million accounts and more than 2,950 employees around the world in 2023. It is the broker of choice for institutional investors and higher-volume traders because of its superior trading technology, unrivaled breadth of offerings around the globe, and low commissions.

Trading penny stocks at IBKR is not free, but it is cost-effective, especially for people who want a strong technology platform, the ability to automate, and full control over their trading. The most active traders want the ability to have great control over their OTC orders because it is such an illiquid market that can see big swings in price discovery. Mobile customers have the ability to manage orders with great specification, including sophisticated tools for managing positions and, for IBKR Pro clients, the ability to route their own trades. Further, IBKR offers strong stock screeners, has low margin rates and a real-time margin calculator, supports fractional shares, allows for tax-lot selection, and provides portfolio management tools.

TradeStation, an early charting and online brokerage platform, launched its namesake software product for desktop charting and its trading software program in 1991. The company, originally started in 1982 as Omega Research, Inc., went public with an IPO on the Nasdaq in 1997. 

Through the company's TS Select plan, penny stock trades are $0 for the first 10,000 shares and $0.005 per share after that (an additional $0.005 per share is charged if you route the order to a specific venue). TradeStation offers an updated mobile app that is cleaner and more user friendly than the previous version. While the cross-platform similarities between desktop and mobile are a bit limited, the app's Matrix feature allows active mobile traders to move and trade easily between different assets.

Charles Schwab’s founder, Chuck Schwab, established an investment newsletter in 1963, launched broker-dealer operations in 1971, and changed the name from First Commander Corporation to Charles Schwab & Co. in 1973. One of the first discount brokers, the company today is giant, especially after acquiring TD Ameritrade in 2020: It has $8.9 trillion in client assets and more than 35 million brokerage accounts as of April 30, 2024.

Scwhab has multiple mobile platforms, including the very popular thinkorswim mobile app, to cater to traders at different experience levels and needs. All the platforms have helpful tools such as charting and scanners, as well as educational features to help customers learn about investing and trading topics. This makes Schwab a great place for novice penny stock traders and investors to learn about this specialized form of trading.