Penny stocks are regarded as highly speculated (and high-risk) investments because of their inability to trade, large spreads between bids and offers, low capitalization, and a lack of compliance with regulatory and filing standards. However, some investors prefer to invest in penny stocks because their low cost makes it possible to keep a huge number of shares at a tiny amount of capital, and all those shares mean that investors will earn the gains of the equivalent of a few cents.
Interactive Brokers
Interactive Brokers offers a simplified method of brokerage services, focusing on large market access, lower costs, and efficient execution of trades. The company is well-capitalized and traded publicly. IBKR is home to 1.92 million client accounts and $2.17 million in the monthly value of trades. This discount broker provides an affordable and transparent fee schedule and the lowest margin prices. On the downside, due to the wide range of tools and assets that take the time to navigate through the pricing guidelines and the platform.
Usability
The onboarding process for IBKR is simpler than it has been in the past. Users can create an account and test the platform for 90 days without funding. Because the website is packed with features, investors who are new to the site may encounter somewhat complicated. The website updates assist users in using the user portals, Trader WorkStation, and mobile apps. Support options such as videos, FAQs, phone support, chat, and customer service offer an array of resources to assist users.
Interactive Brokers supports multiple trading platforms, including desktop web, desktop, and a variety of mobile versions that are compatible with Android and iOS devices. The app offers nearly the same capabilities as the web-based platform; however, it isn't as robust compared to Trader Workstation (TWS), the main trading platform for the company.
Fidelity Investments
Fidelity is the largest US brokerage business and is our top selection for the best online broker and a low-cost broker. In 1943, the corporation was created in Boston, MA; Fidelity has 40 million users, $11.3 trillion in assets under management, $4.3 trillion in discretionary assets, and conducts 3.1 million transactions daily.
Usability
It's easy to create an account with Fidelity by following the typical process of all brokers: mail addresses, Social Security numbers, information about your employment, and account opening. Existing customers can set up accounts even faster and can open several types of Fidelity accounts for various purposes. Similar to other brokerage accounts, those who want to trade options or trade on margin must complete additional forms and get approval.
Three platforms are available from Fidelity which can be utilized in tandem. Each platform provides news and quotes on stocks; however, the web platform doesn't provide this data in real time. The web-based platform's basic interface is easier to utilize and will meet the needs of less active investors; however, it will likely appeal to more active traders and investors. Active traders and investors will likely prefer Fidelity's download trading software, Active Trader Pro. Active Trader Pro has many more features and tools than the web-based platform and is extremely customizable. Advanced traders who wish to use tools to analyze options and advanced features like conditional orders can access these functions in Active Trader Pro.
TradeStation
TradeStation provides a service known as TSgo, which lets customers make trades on penny stocks (indeed or all equity) without commissions on their website platform or mobile applications. The data streams are live in real-time. You can modify, place trades, and cancel them via charts or keyboard shortcuts.
Usability
The process of opening an account at TradeStation is simple and quick. You can fund and open an account and begin trading options and equity on the same day. Its TradeStation website has seen several changes over the past few years. It's simple to discover information on pricing, products, and platforms, along with educational resources.
Customers of TradeStation can trade across a variety of platforms and devices. This includes the top TradeStation 10 Desktop platform, a web-based platform that offers the majority of the features offered by the desktop edition, and a fully-featured mobile application available for iOS and Android. Whatever platform you choose, you can view charts that stream live data and news, add technical indicators, and make customized watchlists. The same tools are available across all platforms. There are various methods to make trade orders, including the possibility of using conditional orders, profit targets, and stop-loss orders.
