Penny Stock Brokers: How to Determine Which Are the Best?

Understanding the penny stock broker and their main features is what allows you to choose the best broker to suit your needs. As important as it is to choose the right stocks, it is equally as important to choose the right penny stock broker to carry out your investing activity.

What Is a Penny Stock Broker?

A penny stock broker is an individual or on online platform used by a trader to engage in the buying and selling of penny stocks. There are as many stock brokers out there as there are penny stocks. Well, maybe not exactly, but it sure does feel like it. Their main purpose is to provide a means to facilitate the process of trading stocks.

Your broker can also act as an advisor in certain situations and therefore can have an impact on your trading decisions. Ultimately, each penny stock broker is unique with its own advantages and offerings. What is important is to do your research to select the best broker to fit your needs.

What To Look For In a Penny Stock Broker?

A penny stock can offer two ways of making trades. They can either have traders call in to place their buy and sell orders with a live broker or they can use the broker’s online trading platform. Almost all brokers today offer an online trading platform of which most traders have become accustomed to using. Having a fast, easy and secure means to placing trades is a significant asset when looking for a broker. While the call and trade approach does offer the convenience of speaking to another person to place a trade, lengthy waiting times can affect trading prices and significantly impact returns. Additionally, brokers sometimes charge for the ability to speak to a person, the fee commonly built into the transaction cost. For the most part, using do-it-yourself options online are a preferential choice for conducting trades.

The fee structure is another important concern when choosing a broker. Fee structures can vary from broker to broker. Choosing the right fee structure is dependent on the nature of your trading activity. A flat commission charged off of each buy and sell transaction or a charge on each individual share purchased are two common fee structures. If you commonly purchase penny stocks at very cheap prices per share, you may want to avoid the per-share fee structure as it can render it difficult to make a profit. Buying a penny stock at $0.20 per share with a $0.05 per share transaction fee can eat away at your profit margin. When choosing a broker, it is also important to consider minimum opening balances, withdrawal, inactivity, maintenance and potential hidden fees.

Finding A Penny Stock Broker

Before you can begin to trade penny stocks, you must find the right broker and fits your strategy. There is no one size fits all when it comes to choosing your stock broker and the process often requires lots of tedious research. Websites such a stockbrokers.com are often a good place to start as they offer tools to evaluate and compare among the many available brokers.

Some of the more popular stock brokers include:

Like any other part of investing, the more preparation the better. Be prepared and learn more about the choosing the right stock broker with Wall Street Survivor’s course Basics Of The Stock Market.


The Best Stock Newsletters as of June 29, 2025

Ranking of Top Stock Newsletters Based on Last 3 Years of Stock Picks

We are paid subscribers to dozens of stock newsletters. We actively track every recommendation from all of these services, calculate performance, and share the results of the top performing stock newsletters whose subscriptions fees are under $500. The main metric to look for is "Excess Return" which is their return above that of the S&P500. So, based on last 3 years ending June 29, 2025:

RankStock NewsletterStock
Picks
Average
Return
Excess
Return
Percent
Profitable
Max %
Return
1.Seeking Alpha logo
Alpha Picks
7663%40%73%969%
Summary: 2 picks/month based on Seeking Alpha's Quant Rating; Retail Price is $499/yr. See details in our Alpha Picks Review.July, 2025 Promotion:
Save $100
2.Moby logo tiny
Moby.co
30843.3%12.3%74%1764%
Summary: 60-150 stock picks per year, segmented by industry; Retail Price is $199/yr. Read our Moby Review.July, 2025 Promotion:Next pick free!
3.Motley Fool logo
Stock Advisor
7241.2%6.9%78%258%
Summary: 2 picks/month and 2 Best Buy Stocks lists focusing on high growth potential stocks over 5 years; Retail Price is $199/yr.
Read our Motley Fool Review.
July, 2025 Promotion: Get $100 Off
4.Zacks logo
Value Investor
3917.5%6.1%38%410%
Summary: 10-25 stock picks per year based on Zacks' Quant Rating; Retail Price is $495/yr. Read our Zacks Review.July, 2025 PROMOTION:$1, then $495/yr
5.Motley Fool logo
Rule Breakers
6640.0%4.7%61%311%
Summary: 2 picks/month focusing on disruptive technology and business models; Lifetime average return of 355% vs S&P500's 149% since 2005; Now part of Motley Fool Epic. Read our Motley Fool Epic Review.Current Promotion: Save $200
6.TipRanks logo
TipRanks SmartInvestor
12110.6%3.7%55%340%
Summary: About 1 pick/week focusing on short term trades; Lifetime average return of 355% vs S&P500's 149% since 2015. Retail Price is $379/yr. Read our TipRanks Review.Current Promotion: Save $180
7.TheStreet logo
Action Alerts Plus
39420.0%3.4%57%220%
Summary: 100-150 trades per year, lots of buying and selling and short term trades. Read our Jim Cramer Review.Current Promotion: None
8.Motley Fool logo
Stock Advisor Canada
3632.3%0.5%69%378%
Summary: 1 pick/month from the Toronto stock exchange; Retail Price is CD$199/yr. Read our Motley Fool Canada Stock Advisor Review.July, 2025 Promotion: Save $100
Top Ranking Stock Newsletters based on their last 3 years of stock picks' performance through May 31, 2025 as compared to S&P500. S&P500's return is based on average return of S&P500 from date each stock pick is released. NOTE: To get these results you must buy equal dollar amounts of each pick on the date the stock pick is released. Investor Business Daily Top 50 based on performance of FFTY ETF.
Build your wealth faster with best stock picks: See our new June 29, 2025 ranking of the Best Stock Newsletters.

The Best U.S. Brokerages as of June 30, 2025

Ranking of Top U.S. Stock Brokerages Based on Fees, Features, and Sign-Up Bonuses

We are experienced users of dozens of stock trading platforms. We stay up to date on these platforms' service offerings, subscription fees, trade commissions, and welcome bonuses. The brokerages listed below are for U.S.-based investors, and are ranked in order of overall value received after taking advantage of their sign-up and/or referral offers.

Rank Brokerage Fees Features Sign-Up Bonus Read Our Review
1. robinhood-review Robinhood $0 ✅ U.S. stocks, ETFs, options, and cryptos
✅ Now 23 million users
✅ Cash mgt account and credit card
Free stock up to $200 with new account, plus up to $1,500 more in free stock from referrals Robinhood Review
2. Moomoo $0 ✅ Free Level 2 Nasdaq quotes
✅ Access to U.S. and Hong Kong markets
✅ Educational tools
60 free stocks with $5k deposit; or 25 free stocks with $2k deposit Moomoo Review
3. Interactive Brokers $0 ✅ Access 150+ global stock exchanges
✅ IBKR Lite & Pro tiers for all
✅ SmartRouting™ and deep analytics
Refer a Friend and Get $200 Interactive Brokers Review
4. Robinhood Gold $5 ✅ 4% APY on cash
✅ 3% IRA match
✅ Level II data
✅ No interest on first $1,000 of margin
 Save with Annual Fee Robinhood Gold Review
5. M1 Finance

$3 monthly

10k in assets

✅ Automated investing “Pies”
✅ Banking & low-interest loans
✅ No trading fees with scheduled trades
$75-$500 Tiered Sign-up bonus M1 Finance Review
6. Webull $0 ✅ Extended-hours trading
✅ Great charts and screeners
✅ Commission-free options trading
$10 and a 30-day complimentary subscription to Webull premium;
$200-$30,0000 Tiered Sign up bonus
Webull Review
7. Public $0 ✅ Fractional shares
✅ No payment for order flow model
✅ “Alpha” tool with earnings calls
$100-$10,000 Tiered Cash Account Transfer Bonus Public Review
8. Composer $32 a month ✅ Invest in automated strategies
✅ Build custom strategies easily
✅ IRAs
$49 per successful referral with no limit on the number of referrals Composer Review
9. Stash

Growth $3;

+ $9 Month

✅ Stock-Back® debit card rewards in fractional shares
✅ Auto-invest and budgeting tools
✅ Curated theme portfolios
$5 when you invest $5 Stash Review
10. Acorns

Bronze $3; Silver $6; Gold $12 a month

✅ Automated investing portfolios
✅ ESG curated portfolios
✅ Acorns Early Invest for Kids' Accounts
Get a $20 bonus when you start saving & investing Acorns Review
11. Etoro $0 ✅ CopyTrading™ to follow top traders
✅ Trade U.S. stocks, ETFs, and crypto
✅ Trades with themed portfolios
$10 Crypto Sign-Up Bonus Etoro Review
12. Cash App $0 ✅ U.S. stocks and bitcoin; $1 minimum
✅ Peer-to-peer payments
✅ Beginner-friendly financial ecosystem
Up to $200 in free overdraft coverage and earn 4% on cash Cash App Review
Fees, features, sign-up bonuses, and referral bonuses are accurate as of May 31, 2025. All information listed above is subject to change.

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