75% of retail investors lose money when trading CFDs. 75% of retail investors lose money when trading CFDs.
A lot of investors like to allocate a small proportion of their portfolio into penny stocks. This is because penny stocks are typically up and coming firms that could one day make it big. Although the upside potential is huge, as are the risks. This is why you need to ensure that you do your homework before taking the plunge.
In this guide, we explore the best penny stock app of 2021. On top of discussing our top-rated providers in great depth, we’ll also walk you through the process of making a penny stock investment today.
Plus500 – One of the Best CFD Apps for Penny Stocks
AvaTrade – Penny stock app with MT4
Fineco Bank – Penny stock app with low minimums
Charles Schwab – Access over-the-counter markets
The Best Penny Stock Apps of 2021
If you want to buy penny stocks in a cost-effective and secure manner, you’ll want to stick with a regulated broker. Most providers also offer a fully-fledged stock app, which is great for placing buy and sell orders on the move.
To clarify, the Securities and Exchange Commission (SEC) defines a penny stock as any publicly-traded company with a share price of $5 or less. With this in mind, below you will find a list of the best penny stock apps of 2021
1. eToro – Overall Best Penny Stock App with Zero Commission in UK and US
eToro is a hugely popular stock trading app that is now home to over 12 million investors. Launched in 2007, the platform is fully regulated and holds licenses from the FCA, CySEC, and ASIC. By downloading the eToro stock app – which is available on iOS and Android devices, you will have access to over 1,700 stocks across 17 exchanges, including many of the best stocks to buy.
Many of these equities sit within the SEC definition of a penny stock (share price of $5 or less). You can buy penny stocks at eToro without paying any commissions or share dealing fees. The platform doesn’t charge an ongoing fee or subscription either. Additionally, the eToro free penny stock trading app allows you to invest on a fractional basis. This means that you can trade at an amount you are comfortable with – as long as you meet a $50 minimum investment.
There are over 150+ ETFs on the eToro app – many of which focus on small-cap penny stocks. This allows you to gain exposure to your desired market in a diversified and passive manner. Once again, ETFs can be traded without you needing to pay any commissions. The eToro stock app also offers a Copy Trading feature. This allows you to select an investor that has a great track record of making consistent profits, and then copy their trades like-for-like. You can do this without paying any fees.
In terms of getting started, the eToro penny stock app can be downloaded free of charge. Once you open an account you will be required to meet a minimum deposit of $200. You can fund your account through the app with a debit/credit card or e-wallet. These payment methods are processed instantly. If you deposit in a currency other than the US dollar, a small conversion fee of 0.5% will apply.
Read our comprehensive eToro app review to find out more about what this app offers.
Regulated by the FCA, CySEC, and ASIC
Trusted brand with over 12 million client accounts worldwide
Buy stocks without paying any commission or share dealing charges
Social and copy trading
Buy stocks or trade CFDs with leverage (Non-US)
1,700+ stocks listed on multiple international markets
Personalised eToro account where you can set up trading price alerts
Not suitable for advanced traders that like to perform technical analysis
67% of retail investors lose money trading CFDs at this site.
2. Robinhood – Best 0% Fee Penny Stock App for US Residents
If you’re based in the US, there is every chance that you have heard of the Robinhood stock app. More than 10 million Americans are using the provider to buy and sell stocks – not least because you will not pay any commissions or dealing fees.
Furthermore, the Robinhood penny stock app allows you to trade from just a few dollars – meaning that you can engage in fractional ownership. In terms of its asset library, the Robinhood app covers over 5,000 stocks and ETFs. Options and cryptocurrencies are also supported.
When it comes to funding your account, Robinhood allows you to connect your US checking account. If you’re on the standard account then the first $1,000 that you deposit will be credited instantly. The Robinhood app has great reviews on both the Google Play and Apple Stores. While the former has a rating 4.3, the latter stands at 4.8. Impressively, these ratings are based on over 2 million verified reviews.
3. Capital.com – Best Penny Stock Trading App for Beginners
Capital.com is potentially the best penny stock trading app for beginners located outside of the US. The user-interface is super-clean, making it easy to trade assets at the click of a button. Capital.com specialises in CFD instruments, which comes with several benefits.
As always, this means you can profit from both rising and falling markets. You can also apply leverage – with limits determined by the asset class and your country of residence. You will not pay any trading commissions when trading at Capital.com – and spreads are often industry-leading. In terms of tradable markets, Capital.com is particularly strong in the stock CFD space.
For example, it gives you access to lots of penny stocks listed on the UK’s Alternative Investment Market (AIM). This stock exchange is home to hundreds of small-cap and newly launched entities – making a great for penny stock trading. What we also like about Capital.com is that it allows you to open an account with a minimum deposit of just £20.
This can be achieved with a debit/credit card or e-wallet. There are no fees to deposit or withdraw funds, either. The Capital.com app is available on iOS and Android devices. The provider also offers a subsidiary app that is focused on trading education. Finally, this free penny stock trading app provider is licensed by the FCA.
76.25% of retail CFD accounts lose money when trading CFDs with this provider.
4.Stash – User-Friendly Stock Trading App for US Residents
Stash is a great option if you’re based in the US and want to start off with a beginner-friendly stock app. The provider has designed the application so that it appeals to newbie investors that want to buy and sell stocks in a complex-free manner.
It takes just minutes to get started and there is no minimum deposit. You will have access to an abundance of stocks on the app – all of which can be purchased commission-free. You will, however, need to meet a small monthly charge of $1 to gain access to the app.
Stash also offers accounts at $3 and $9 per month, which offer additional features (such as retirement accounts). Much like Robinhood, Stash supports fractional ownership on stocks and shares.
This means that you can make an investment from just a couple of dollars. This is great for diversification purposes, too. Stash requires you to deposit funds with a US checking account, which is fairly straight forward to do once you are set up
Read our comprehensive Stash app review to find out more about what this app offers.
No minimum deposit
Offers fractional stock
More than 1,200+ stocks and ETFs
Best-suited for newbie traders
Avialable on both iOS and Android
Lots of educational resources
Monthly fee of between $1 and $9 depending account type
Does not support instant deposits with a debit/credit card or e-wallet
5. Trading 212 – Leading UK Penny Stock App – 0% Commission on Shares
Trading212 is a great option if you want to access the penny stock scene from the UK. The regulated provider offers over 4,000 stocks and ETFs. This covers markets in the UK, US, and much more.
You can invest in these stocks in the traditional sense, or trade them via CFDs. If opting for latter, you will have access to leverage facilities of up to 1:5 on stock CFDs, and even more on other asset classes.. The penny stock CFD option at Trading 212 is also useful if you are planning to short-sell a share.
Going back to the traditional stock dealing segment of the app, Trading212 allows you to invest from just £1. This is because the application offers full support for fractional ownership. Additionally, Trading212 offers a Stocks and Shares ISA for all UK residents. This means that the first £20,000 invested this financial year(eligible assets) will remain tax-free.
In terms of pricing, Trading212 does not charge any share dealing fees. Its CFD trading facility is also commission-free and there are no going maintenance charges or subscriptions required. If you like the sound of Trading 212, the mobile app is compatible with Android and iOS devices. You should have no concerns regarding safety, as the provider is licensed by the FCA and your funds are protected by the FSCS.
6. IG – Best Penny Stock App for UK Residents (10,000+ Stocks)
IG is well worth considering if you’re based in the UK. The brokerage firm – which was launched in the 1970s, has a stock library that consists of over 10,000 equities. This covers dozens of stock exchanges – not just in the UK but overseas, too. In particular, this broker gives you access to heaps of penny stocks – all of which can be purchased online or via the mobile app.
Regarding the latter, this is available on iOS and Android devices – and can be downloaded free of charge from the IG website. In terms of fees, IG charges £8 per trade – which you will pay when you place an order and again when you cash your investment out. If you trade more than three times in a 30-day period, then this fee is reduced to just £3.
Alternatively, you might consider the spread betting or CFD trading department at IG. This covers an impressive 17,000+ financial instruments. On top of stocks, you can also trade bonds, indices, ETFs, commodities, cryptocurrencies, and more. You won’t pay any commissions in the CFD/spread bettinf department unless you decide to trade stocks. If you do, the specific fee varies depending on the exchange, albeit, this averages 0.10%.
IG is heavily regulated, with licenses from several bodies. This covers the FCA, ASIC, and others. The parent company – IG Group Holdings plc, is listed on the London Stock Exchange with a market capitalisation of just below £3 billion. Getting started with this penny stock app requires a minimum deposit of £250. You can instantly fund your account with a debit/credit card through the app if using an Android. However, iOS users must do this through the main IG website.
7. Plus500 – One of the Best CFD Apps for Penny Stocks
Plus500 is a global trading platform that specialises in CFDs. This covers everything from commodities and indices to cryptocurrencies. Additionally, the Plus500 platform is home to thousands of stock CFDs from heaps of international markets. Many of these instruments come with a share price of less than $5 – ensuring that that sit within the remit of penny stocks.
You can trade at Plus500 without paying any fees or commissions, other than the spread. We find that during standard market hours, the spreads are competitive on this platform. Plus500 also offers a fully-fledged mobile app – which is available for Android and iOS users. As you will be traded penny stock CFDs, you will always have the option of going long or short. Put simply, this means that you stand to make gains irrespective of how the markets are performing.
Trading via the Plus500 app also gives you access to leverage facilities. Your limits will depend on where you are based. For example, those based in the UK and Europe are capped by ESMA limits – meaning 1:30 is the maximum leverage on offer. Those based outside of the aforementioned regions will have access to much higher limits. Getting started at Plus500 takes no more than a few minutes.
You simply need to download the app, register an account, and meet a minimum deposit of £100. The application supports debit/credit cards and Paypal for instant deposits. After that, you can start trading penny stock CFDs straightaway. In terms of safety, Plus500UK Ltd is authorised & regulated by the FCA (#509909). If you’re based outside of the UK, you will fall under the scope of an alternative regulatory body.
AvaTrade is an established online CFD trading platform that also allows you to trade via an iOS and Android mobile app. The platform is regulated in several jurisdictions and has a great reputation in the online space.
This CFD trading provider offers thousands of financial instruments – including lots of stock CFDs. AvaTrade does not charge any commissions and spreads are typically super-low. For example, major stocks come with an average spread of just 0.13%. Those that fall within the remit of penny stock CFDs are slightly higher at 0.19%, albeit, this is still competitive.
What we really like about AvaTrade is that you will have full access to MT4. This is ideal if you are planning to install an automated penny stock trading robot. Once installed via your desktop device, you can then monitor the robot through the MT4 mobile app. All you need to do is log in with your AvaTrade credentials.
AvaTrade offers heaps of fundamental research tools and market insights. The mobile app requires a minimum deposit of just $100 – which is great if you are planning to start off with small trading volumes. The mobile app supports several payment methods – including debit/credit cards and a bank wire. Additionally, it is worth noting the pros and cons.
Thousands of financial instruments supported
Super-tight spreads on forex pairs
Several trading platforms – including MetaTrader 4 and 5
There is no guarantee you will make money with this provider.
9. Fineco Bank – Best Penny Stock App For Low Fees and Small Stakes
Fineco Bank is a large-scale financial institution based in Italy. It now offers retail investment and trading services – both online and via a native mobile app. You will have access to thousands of shares from multiple marketplaces, as well as CFD trading facilities.
This stock app stands out for several reasons. First and foremost, Fineco Bank allows you to buy penny stocks at a fee of just £2.95 per trade. You won’t need to pay a monthly fee either – unless you plan on investing in ETFs. If you do, this starts at just £2.95 per month – which includes one free ETF trade.
Fineco Bank also supports for a CFD trading facility – of which you can access on your phone. This allows you to trade penny stocks on a commission-free basis. As always, this comes with the added benefit of applying leverage and short-selling. All deposits must be facilitated from a bank account transfer and meet a £100 minimum. As a huge European bank, it comes as no surprise to learn that this trading provider is heavily regulated.
Buy shares from just £2.95
Thousands of shares, ETFs, and funds supported
Trade CFDs via shares, indices, commodities, and more
Low minimum deposit of just £100
Heavily regulated and trusted repuation
No fees to deposit
ETFs require a monthly payment of £2.95 (includes 1 free ETF trade)
There is no guarantee you will make money with this provider.
10. Charles Schwab – Access Penny Stocks on Over-the-Counter Markets
Charles Schwab is one of the largest brokerage firms globally. This US-based platform stands out for us as it is one of the few options available when it comes to accessing the OTC (Over-the-Counter) marketplace. After all, this is where penny stocks typically trade – especially those with super-low market capitalisations.
In particular, Charles Schwab allows you to buy penny stocks that are listed on the Pink Sheets and Over the Counter Bulletin Board (OTCBB). You can do this online or via your mobile device. In terms of fees, this brokerage house charges just $4.95 per trade – which is very competitive.
Charles Schwab also stands out as it does not have a minimum account balance is place. This is ideal if you want to buy penny stocks but you don’t want to risk large amounts of capital. Charles Schwab accepts several payment methods – including the ability to deposit checks via the mobile app. The application is available to download free of charge on Google Play and the Apple Store.
There is no guarantee you will make money with this provider.
How to Choose the Best Penny Stock App for You
So now that we have reviewed the best penny stock trading apps of 2021 – we are now going to discuss some of the factors that you need to look out for before opening an account. After all, you are going to be risking your own capital, so it’s crucial to assess whether or not the app is right for you.
It goes without saying that your chosen penny stock app provider should be in full possession of a license. This license should be issued by a reputable regulatory body – such as the SEC (US), FCA (UK) or CySEC (Europe). These bodies provider a wealth of regulatory protections – such as client fund segregation.
The free penny stock trading app in question will also need to comply with anti-money laundering and KYC requirements – and will have its books audited on a regular basis. Ultimately – if you come across a penny stock app that isn’t regulated – or one that holds a license from a shady location, avoid it.
Penny Stock Assets
Once you are confident that your chosen penny stock app is regulated by a reputable body, you then need to look at its asset library. More specifically, explore what penny stocks you will have access to. As we briefly mentioned earlier, the SEC defines a penny stock as a publicly-listed firm with a share price of $5 or less.
Interestingly, this covers the vast bulk of the London Stock Exchange – as UK shares are priced in pennies as opposed to pounds. Some penny stock trading apps – notably Charles Schwab, also give you access to the OTC markets. This includes both the Pink Sheets and OTCBB – which is where most US-based penny stocks are listed.
You do, of course, also need to look at what fees you will be expected to pay to invest in your chosen penny stocks. This can vary quite wildly depending on the penny stock app you sign up with. For example, the likes of eToro, Robinhood, Plus500 and Capital.com allow you to trade without paying any commission.
The aforementioned brokers also refrain from charging a monthly fee. With that said, some penny stock investment apps will charge a flat commission that is payable at both ends of the trade. For example, Charles Schwab charges $4.95 and Fineco charges £2.95. Additionally, you need to look at other fees that might come into play – such as those linked to deposits and withdrawals.
Platform & Usability
Some penny stock apps are designed specifically for the everyday investor. That is to say, the application will be simple to use and requires no prior knowledge of trading.
In particular, stock apps like eToro, Stash, and Capital.com offer heaps of educational resources and low account minimums. This is ideal for those of you that are just starting out in the penny stock arena.,
Education, Research & Analysis
Education tools like user-friendly guides, blogs, and video explainers are crucial if you have little to no knowledge of how penny stocks work. Webinars are also useful, as they allow you to tap into the mind of an experienced investor.
When it comes to analysis, some penny stock apps will give you access to technical indicators and chart drawing tools. However, this is often difficult to deploy when using a mobile app – due to the smaller screen size. It’s handy to have nonetheless.
If you’re looking for the best penny stock app for Android, then you’ll want to make sure that your chosen provider is compatible with your device. Similarly, if you’re after a penny stock app for iPhone, check that the provider covers iOS devices.
If your chosen penny stock app isn’t compatible with your phone, you might be able to access the investment suit via your standard mobile web browser.
You will be required to deposit funds into your penny stock trading app – so check to see what payment methods the provider supports. If you’re looking to deposit funds instantly, it’s best to stick with platforms that support debit/credit cards and e-wallets like Paypal.
After all, bank transfers can take several days to arrive. You should also explore whether the penny stock app charges fees to deposit with your preferred payment method, and how long it takes to authorize withdrawal requests.
Trading Tools & Features
Whether you are planning to invest on a long-term basis or day trade via CFDs – it’s important that you choose a penny stock app that gives you access to financial tools and features. This might include a wide selection of order types or the ability to apply leverage.
In the case of eToro, the stock app goes one step further by offering Social Trading features. At the forefront of this is the ability to copy an expert stock trader by automatically mirroring their ongoing buy and sell positions.
Last but not least, have a quick look at what customer support channels the penny stock app offers. If you want to stick exclusively to your mobile phone, then the best contact method available is live chat. This is because you can speak with a live agent via the app without needing to pay for a telephone call.
In some cases, penny stock apps will limit their support line to email. This can be frustrating for users are you won’t benefit from real-time support. Finally, check to see what hours the customer service team is available. At a minimum, this should be on a rolling 24/5 basis to mirror the penny stock markets.
How to Get Started with a Penny Stock App
Once you have selected a penny stock that you like the look of, you will need to go through the process of:
Opening an account
Verifying your identity
Depositing some funds
Placing an order
The above steps remain somewhat constant across most penny stock apps. With that said, we are going to walk you through the process with top-rated provider eToro – which allows you to invest and trade equities without paying any commissions.
Step 1: Download and Install the eToro App
Visit the eToro homepage and download the mobile app. It’s best to do this directly from the broker’s homepage as opposed to searching for the app via Google Play or the Apple Store. This will ensure you download the official application and not an imitation. This is more common than you think in the mobile investment space – so it’s better to be safe than sorry.
Step 2: Open a Stock Trading Account
Once you have installed the app you will need to open an account. This requires some personal and contact information from you and should take no more than a couple of minutes.
The eToro app will then ask you to take a picture of your government-issued ID. In most cases, you will also need to take a picture of a recently issued utility bill or bank account statement. Digital PDFs are fine if this is something you have to hand.
Step 3: Deposit Funds
You will now be asked to fund your newly created eToro stock trading account. This needs to be at least $200 and you can choose from a debit/credit or e-waller for an instant deposit.
Step 4: Trade Penny Stocks
You now have access to over 1,700 stocks from 17 international exchanges. If you know which stock you wish to trade, simply search for it and click on the result that pops up.
Once you have found a stock to trade, you will need to set up an order. Opt for a buy order if you think the stock will increase in value or a sell order if you think the opposite. You’ll need to enter your stake and whether or not you wish to apply leverage. You can also set up a stop-loss and take-profit order – which will allow you to trade in a risk-averse manner.
Finally, confirm the order to place your commission-free stock trade.
Penny stocks are great for those of you that seek a higher risk/reward ratio. In other words, while the risks of investing in penny stocks are much higher than established blue-chip companies, the potential rewards follow suit.
With that said, you’ll need to find a reliable penny stock app if you wish to invest on your phone. Your chosen provider needs to be regulated, offer heaps of tradable markets, and support your preferred payment method.
Although we have discussed 10 potential apps for you to try, we would argue that eToro sits at the top of the tree in this marketplace. You can instantly deposit funds with a debit/credit card or e-wallet, and there are no commissions or ongoing fees to trade. This heavily regulated stock app is also super-user-friendly and requires no prior knowledge of mobile trading!
You can get started with eToro right now by clicking on the link below!
eToro – Overall Best Penny Stock App with 0% Commission
67% of retail investor accounts lose money when trading CFDs with this provider.
What are penny stocks?
According to the SEC, penny stocks are equities with a share price of $5 or less.
How do you buy penny stocks?
You will need to go through a third-party broker if you wish to buy penny stocks. There are many options in this respect - 10 of which you will find on this page.
Are penny stock apps safe?
Most penny stock apps are safe. But, this is on the proviso that your chosen app is licensed by a reputable regulatory body. Think along the lines of the FCA, SEC, or ASIC.
Can you buy penny stocks from the OTC markets?
You can, but very few brokers give retail clients access to the OTC markets. With that said, US-based broker Charles Schwab gives you access to both the Pink Sheets and OTCBB at a commission of just $4.95 per trade.
What is the best penny stock app for iPhone?
The best penny stock app for iPhone is arguably eToro. The app is home to over 12 million investors and has an Apple Store rating of 4.8/5.