Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user guides, offers market insights, and ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavors.
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Many of today’s thriving brands started as penny stocks that traded for less than £1. That includes UK giants like ASOS, B&M Retail, and Poundland Group PLC. Risk takers who invested in these companies while their stocks were going for a buck or less on AIM, the LSE, and other exchanges have made life-changing returns today.
Try your luck with some of today’s popular penny stocks. They may experience meteoric growth and change your life for the better. You can buy and trade these assets with several reputable, FCA-regulated penny stock brokers, including the ones I’ve recommended below. I handpicked all of them after spending several weeks testing and rating the most credible service providers in the UK.
IG Markets – Best Penny Stocks Broker for Market Variety
Saxo – Best Penny Stocks Broker for Professional Traders
eToro – Best UK Penny Stocks Broker for Social Trading
OANDA – Best Penny Stock Broker for CFD Trading Enthusiasts
In This Guide
Compare Brokers Table
My search for the best UK penny stock brokers wasn’t easy for a couple of reasons. First off, only a few brokers support penny stock trading in the UK. Furthermore, this venture mainly involves young companies that have yet to sink their roots, which carries many risks.
After spending days researching every platform in the UK and checking if they have this particular trading vehicle, I identified a handful of fitting and reputable providers. I then rolled up my sleeves, tested and compared these brands, and picked 5 that are unquestionably the best penny stock brokers in the UK.
Here’s a brief comparison of the service providers I handpicked:
Let’s now take a closer look at each of the platforms. I assure you that all of them operate under the hawk-eyed FCA’s regulations.
Furthermore, these brokers aren’t new players in the industry – they’ve cemented a reputation for serving millions of users worldwide without failure. That is why they have stellar ratings and testimonials on Google Play, the App Store, Trustpilot, and other review sites.
Our Expert Opinion about Penny Stock Brokers
Let’s now take a closer look at each of the platforms. We assure you all of them operate under the hawk-eyed FCA’s regulations.
Furthermore, these brokers aren’t new players in the industry–they’ve cemented a reputation of serving millions of users worldwide without failure. Their customer care department also scored massive points.
1. Interactive Brokers – Best Penny Stocks UK Broker for Advanced Trading
FCA-regulated Interactive Brokers (FCA Reference Number 208159) has earned the top spot. I’m not the only one who holds it in high regard. Thousands of traders have given this company high ratings on popular review sites like Trustpilot (4.0 stars) and Google Play (4.1 stars), a genuine indicator of its stellar reputation.
I love this penny stock broker for a myriad of reasons. First, it has no minimum deposit and has zero withdrawal or deposit activity fees. Its users can also remain dormant for any period without fretting over accumulating inactivity fees. Not to mention, its commission rates are among the lowest in the industry, starting from as low as 0% for US-listed stocks. All of this makes IBKR a splendid service provider even for low-budget traders.
Interactive Brokers is also a gateway to more than 90 market centres worldwide. That means you can spread your wings and explore opportunities beyond the UK territories. For instance, you can trade small-cap firms in North America, Asia, and Europe to diversify your portfolio. The broker’s professional-grade trading platforms will ensure you have enough firepower to conquer the markets.
While trading penny stocks with Interactive Brokers, you can dip your toes in other investment pools, including CFDs on ETFs, futures, and options. You’ll have plenty of assets for diversifying your portfolio and increasing income streams.
Countless advanced features, including powerful market scanners
Robust research and educational resources
Cons
No third-party trading platforms
Available platforms can be overwhelming to noobs
After conducting thorough research and extensive assesments, we can confidently categorize Interactive Brokers as one of the most affordable service providers out here. As we’ve already mentioned, this company has no minimum deposit requirement. Plus, it allows traders to fund their accounts with payment methods like ACH and wire transfer at no additional cost. We also highly recommend IBKR because, unlike other brokers, it doesn’t require traders to pay inactivity fees for dormant accounts.
Here’s an overview of the Interactive Brokers fees and charges our team unearthed during our evaluation and exploration:
Type
Fee
Account opening and maintenance
$0
Deposit
$0
Withdrawal
Yes
Inactivity
$0
Overnight charges
Yes
Currency conversion
0,5%
Tens of thousands of instruments are available on Interactive Brokers, which is one of the reasons we highly recommend this service provider. You should have an easy time finding your favorite assets and diversifying your portfolio on IBKR. Here’s a brief rundown of the assets we discovered while researching and assessing this terrific broker:
Stocks: IBKR offers thousands of stocks, and they come with juicy commissions starting from $0.
ETFs: With an IBKR account, you can trade different ETFs around the clock and enjoy low commissions starting from $0.
Options: Many options are available on the IBKR trading platform, and the best part is they come with commissions as low as $0.15 per contract.
Futures: IBKR offers its users access to futures on a broad selection of asset classes, from cryptocurrencies and metals to agriculture, energy, and interest rates. The contracts come with tight commissions starting at $0.25 per contract.
Currencies: While trading with IBKR, you can access over 100 currency pairs with spreads as sharp as 0.1 pips. Popular pairs range from GBP/USD and EUR/USD to USD/JPY and USD/CAD.
US spot gold: IBKR allows US spot gold enthusiasts to trade their favorite asset and enjoy low, transparent commissions. The best part is that with this broker, you can leverage efficient pricing in low quantities starting from 1 ounce.
Bonds: This broker gives traders unmatched access to a humongous selection of 1 million+ global bonds. These products have low commissions and zero built-in spreads or mark-ups.
2. IG Markets – Best Penny Stocks Broker for Market Variety
IG Markets is an unparalleled gateway to a wide range of markets. I tested this broker and verified that it indeed gives access to over 15,000 global markets. You won’t miss access to your favourite penny stocks from over 12,000 shares across countries like the US, the UK, and Australia.
I also noticed the variety of penny stock trading styles supported by IG Markets. The broker allows its clients to leverage trades with the tax-efficient spread betting, making it an outstanding spread betting service provider. I highly recommend spread betting because it doesn’t attract stamp duty and CGT. Alternatively, you can opt for CFD trading for leverage and price speculation without owning actual penny stocks. If you desire to own these assets, Share Dealing will sort you out.
Any delay in execution speed can make a massive difference in penny stock trading. I assure you, IG Markets ticked all the boxes here. While trading, my orders were executed in less than a second, so I was able to exploit every opportunity that crossed my path.
The broker doesn’t overlook trust and security in penny stock trading. It operates under the watchful eyes of the FCA (reference number: 195355) and several other top-tier regulatory bodies. And since its inception, it has built a long-standing reputation. Verifiable documents show that it currently boasts 346,000 clients worldwide.
Both low-budget and high-budget individuals can trade on IG Markets since this broker has no minimum deposit requirement. You can top up your account with whatever is within your budget limitations after signing up with this terrific service provider. Note that IG Markets charges spreads and commissions that vary from one asset to another. For instance, the spreads for currency pairs like AUD/USD and EUR/USD start at 0.6 points. On the other hand, the charges for shares start at 0.08% commission per side. You can also trade spot gold and other commodities, whose spreads start at 0.3 points.
We’ve highlighted some of the fees and charges that our experts discovered while exploring and evaluating IG Markets.
Fees and Charges
Details
Account opening charge
$0
Spreads and commissions
Starting from 0.1 points/ 0.08% commission per side
Overnight funding
Yes
Guarantee stop premiums
Yes
Direct Market Access
Variable commission
Live price data fees
Variable monthly fee
Currency conversion fee
0.8%
Account inactivity fee
$0
Presently, traders registered with IG Markets have access to 17,000+ financial instruments. There is a high chance that this broker has your favourite products and then some. Building a diversified portfolio should be a dream while trading with IG Markets.
Here’s a sneak peek of the financial assets offered by the IG Markets broker:
Indices: IG Markets allows its users to take positions on 80+ indices, including popular markets like Wall Street, FTSE 100, and US 500. Such products give you the opportunity to profit from entire economies and sectors.
Forex: Different forex products are available on the IG Markets trading platform, including popular pairs like AUD/USD, EUR/JPY, and USD/CHF. Many of these instruments have competitive spreads. For instance, the EUR/USD, GBP/USD, and USD/JPY spreads are 0.6 points, 0.9 points, and 0.7 points, respectively.
Shares: IG Markets gives traders uncapped access to over 13,000 international shares, with competitive commissions starting from 0.08% per side for Australian products. Diverse categories of shares are available on the platform, from Hong Kong SAR and New Zealand to Australia and South Africa.
Commodities: Iron, nickel, cobalt, copper, and other commodities are available for trading on the IG Markets platform. After signing up with this broker, the commodities you will get access to belong to different product categories, from energies to precious metals.
Cryptocurrencies: IG Markets offers CFDs on 11 popular crypto assets like Bitcoin, Ether, and Cardano. The broker’s users also have access to the Crypto 10 Index and 2 crypto crosses, Bitcoin/Ether USD (£1) and Bitcoin Cash/Bitcoin.
Specialist markets: After becoming an IG Markets user, you’ll gain unlimited access to ETFs, options, and interest rates. The broker also allows its clients to earn returns from bonds, sectors, and knock-out trading.
3. Saxo – Best Penny Stocks Broker for Professional Traders
Saxo is your best choice if you’re a professional penny stock trader. Why? Because of its global reach, friendly fees, and deep market access.
Saxo is your best choice if you’re a professional penny stock trader. While vetting this broker, I discovered numerous factors that led me to this conclusion, including global reach, friendly fees, and deep market access.
Sign up with Saxo today and get access to over 23,500 stocks across 50+ global markets, including London, New York, and Hong Kong. This international exposure is crucial in diversifying your trades and spreading risks. You can trade penny stocks from the UK or Euronet exchanges and enjoy commissions as low as 0.008%.
One objective of buying and selling penny stocks is to minimise costs. That said, here’s another factor that has encouraged me to recommend Saxo: this broker’s users can invest in stocks with as little as £1. It also has ultra-low commissions, especially when you scale up through its tiered account system.
While trading with Saxo, you’ll stay on top of your portfolio’s performance with an exquisitely designed portfolio tracker. Everything from history to costs and returns is right in front of you. You’ll also be free to invest in ETFs, bonds, and funds, and trade CFDs on forex, commodities, and other financial instruments.
Pros & Cons
Pros
23,500+ stocks from 50+ worldwide markets
Users can also invest in bonds, funds, and ETFs
The lowest investment amount is £1
Extended trading hours
In-depth educational and research resources
No minimum funding requirement
Cons
Doesn’t host third-party trading software
It can be too complex for beginners
4. eToro – Best UK Penny Stocks Broker for Social Trading
Shove aside that fear of heightened risks in penny stock trading – eToro’s copy-trading and social-trading tools help you learn from experienced traders. I tried out this broker’s CopyTrader software and was amazed by its exceptional ability to replicate successful investors automatically. While using it, all I had to do was cherry-pick a top performer from over 20 million registered users on the platform; the software did the rest!
Transparency is unmatched on CopyTrader. eToro’s website includes images, names, and returns of seasoned investors for your convenience. For example, I came across and had the pleasure of copying a super-successful investor called NoImportan3, who boasted a 73.46% return at the time. I assure you, finding a guru to copy will be a breeze.
If you prioritise trading with a broker with a wide variety of assets, eToro won’t disappoint. With this service provider, you can trade and invest in over 6,000 stocks. As if that isn’t super impressive already, you can also buy/sell crypto and trade CFDs on company shares, forex pairs, commodities, and other securities.
Before trading in penny stocks, I urge you to use this broker’s rich educational resources, such as eToro Academy, News and Analysis, and Retail Investor Beat. After that, try out the platform using its demo account. This feature comes with £100,000 virtual for your practice and building your trading confidence. And guess what? The account is open for copy trading, too!
eToro
✔ User-friendly trading platform
✔ Over 6000 trading instruments
7,000+ financial instruments for traders and investors
Lower UK minimum deposit requirement
Users can copy top traders and investors
Comprehensive collection of educational resources
Investors can buy and stake crypto assets
Cons
£10 monthly inactivity fee
Higher commission and spreads than its peers
eToro has a transparent fee structure that is easy to understand and helps you plan accordingly. From our analysis, we discovered the following trading and non-trading eToro fees.
Trading and Non-Trading Charges
Details
Account Opening
$0
Management Fee
$0
From $50, depending on your jurisdiction
0.6
Commission
From 0% on stocks and ETF trading
Spreads
From 1 pip on major currency pairs
Deposits and Withdrawals
$5 withdrawal
Inactivity
$10 monthly
Currency Conversion
1.5% or 3.0%, depending on the currency or payment method
Overnight Funding
Varies based on global market conditions
Copy Trading
Free
We discovered that eToro allows users to trade and invest in global markets. You can go long or short in a single portfolio. Overall, there are more than 6,000 instruments, which are spread across multiple classes. Investment options are stocks, which allow you to buy and take ownership of global stocks across various sectors. Fractional share purchases are also supported at eToro. This will enable you to fill your portfolio with leading stocks from global exchanges. ETFs are also other investment assets at eToro.
When it comes to CFD trading, this broker offers it with flexible leverage limits for both new and professional traders. From our experience, retail traders get up to 1:30 leverage limit and professionals up to 1:400. With CFD assets, you can go long or short and speculate on both rising and falling asset prices.
That being said, here is the number of tradable assets available at eToro.
Asset Class
Number Offered
Forex
55+ currency pairs
Shares
5558+
Indices
21+
Commodities
35+
Cryptocurrencies
100+
ETFs
680+
Note that eToro also supports options trading but is limited to US clients only. You can also explore diverse non-fungible tokens (NFTs) via its Delta platform.
Disclaimer: CFD trading is risky and complex, thus not suitable for all types of traders. This is primarily due to the application of leverage attached, which can give you good profits as well as leave you with massive losses. So far, over 76% lose their money in CFD trading. That is why it is important to conduct extensive research and understand CFD trading risks before you invest your money in it.
5. OANDA – The Best Penny Stock Broker for CFD Trading Enthusiasts
If you prefer to speculate on the price movement of penny stocks rather than owning the actual assets, I recommend signing up with OANDA (FCA Reference number: 542574). Its platform supports CFD trading on over 1,600 shares from different corners of the globe, from Belgium, Portugal, and Denmark to the UK, Spain, and France. You’ll be more than spoilt for choice.
While trading CFDs on penny stocks, you’ll have uncapped opportunities to increase potential earnings and hedge against risk with many other assets. They range from index and ETF CFDs to forex pairs and commodities CFDs. To get started, open your account today and deposit whatever your budget allows; there’s no minimum funding requirement.
And if, at any future date, you feel like investing in real financial assets, you won’t need to find another broker. Your current OANDA account will also give you access to over 2,100 shares from the UK, the US, Europe, and many other regions. You can buy them anytime and sell whenever market conditions are to your liking.
OANDA
✔Offers a negative balance protection
✔Customizable trading platform
CFD enthusiasts can trade over 1,600 financial instruments
Traders can also invest in real shares from all over the globe
Unused margin earns interest
Top-notch trading platforms, including MT5 and TradingView
Superior customer support service
No minimum funding requirement
Cons
£10 monthly inactivity fee
Limited learning tools and materials
OANDA broker has a clear fee structure with no hidden charges. This makes it easier for you to know how much you will be paying once you make a commitment. Some of the fees to incur at OANDA include the following:
Trading and Non-Trading Charges
Details
Account Opening
$0
Management Fee
$0
Minimum Deposit Requirement
From $0, depending on your jurisdiction
Commission
From 0% on US-listed shares
Spreads
From 0.6 points
Deposits and Withdrawals
Free deposits. Withdrawal fees apply based on the payment method used
Inactivity
$10 after 12 months
Overnight Funding
Varies based on global market conditions
Currency Conversion Fee
Calculated by applying a 0.5% mark-up or mark-down
From our analysis, we discovered over 8,000 trading instruments at OANDA. The assets are spread across various classes, including forex, shares, commodities, cryptos, indices, ETFs, and more. Note that some asset availability is limited to specific regions. For instance, while the broker mostly focuses on CFD trading and spread betting, real stock investing is offered to clients within the EU. You can invest in real shares from Germany, France, Spain, and the United Kingdom.
The best element about trading at OANDA is an opportunity to apply leverage in CFD and spread betting trades. Retail traders are given favorable limits up to 30:1. In contrast, professionals get 200:1. This makes it easier for you to manage larger positions with a small capital, thus increasing your chances of earning good returns.
Here is a breakdown of the assets offered at OANDA for informed decisions:
Asset Class
Number Offered
Forex
70+ currency pairs
Shares
2200+
Indices
14+
Commodities
14+
Cryptocurrencies
30+
ETFs
40+
Bonds
6+
Disclaimer: CFD assets are complex, and carry the risk of losing money due to leverage. While many traders have earned good returns from the activity, more than 76% of retail clients lose their money. Therefore, consider whether you understand how CFD trading works and if you can afford to manage the risk of losing your money before venturing into such assets.
How to Start with a Penny Stock Broker
If you’re about to trade penny stocks in the UK for the first time, your next stop should be on a learning hub like eToro Academy. It doesn’t matter whether you want to buy/sell penny stocks, trade CFDs, or bet on spreads. You need a solid understanding of both basic and complex concepts to conquer the markets. Then proceed to the following:
Step 1: Choose the best penny stock broker
Step 2: Register a new account
Step 3: Verify your details and location
Step 4: Fund your account
Step 5: Trade penny stocks and other assets
Needs and preferences vary from one trader to the next. A broker that may be the best for me might not be your cup of tea. For this reason, I have recommended not one but five credible penny stock brokers. You’ve read through their reviews, right? You can now use your trading goals, needs, and expectations to choose the most appropriate service provider.
After taking your pick, visit the broker’s official site and conduct an independent evaluation. All the recommended service providers support demo trading, so you can gauge their reliability and suitability without using your own funds.
Once you’ve established that your chosen broker is nothing short of ideal, open your account. Doing it from the official site is the easiest option, but you can download the mobile app and sign up through it if that’s what you prefer.
Signing up is simply sharing personal information like your name and email address with the broker. You’ll also be required to secure your account with a strong password and 2FA in some cases. Either way, ensure your funds and assets are as safe as humanly possible by setting the best password you can and adding whichever extra layers of protection you can.
No FCA-regulated penny stock broker will allow you to enjoy full privileges without completing account verification. It’s nothing personal; these service providers are required to do that by the FCA to avoid inadvertently facilitating criminal activities and suffering the consequences.
Verification is quite simple. For instance, your broker may ask you to verify your identity with a government-issued ID and share any document that confirms your address, like a recent utility bill. If you decide to take pictures of the required document, use a good camera that takes clear pictures without blurring crucial details.
A verified account will beg you to do one thing: top it up. Check your broker’s supported funding methods, which will likely include bank transfer and debit/credit card, pick the most fitting option, and load your account. Always deposit an amount that is either equal to or more than the stipulated minimum.
Penny stocks are volatile. Don’t fund your trading account with anything you can’t afford to lose. If you’re a noob, start with approximately 5% of your total income. If you lose it all, note down your mistakes, go back to trading in demo mode, and work on them.
After funding your account, search for your preferred penny stocks and start trading. Don’t get too greedy and risk your entire capital all at once. You might rake in a decent profit, but you might also lose everything if things don’t work out. Don’t cross your fingers and hope for the best. Protect yourself from severe financial setbacks by risking a small percentage of your capital on each position, preferably 2-5%.
How We Test
The BrokerRaters team has toiled day and night to build the reputation we enjoy today. As the best broker reviewer in the UK, we promise to share factual, objective information. That applies to every single guide, including this one.
While searching for the best penny brokers in the UK, my colleagues and I used an exhaustive process to test, evaluate, and rate available service providers. It factored in the most important aspects, starting from regulation and authorisation to online ratings and testimonials. The brokers I’ve recommended bagged the highest ratings.
Trading with the recommended penny brokers is guaranteed to be fun and safe. But it won’t protect you from issues that can only be staved off through responsible trading, including hefty losses. In other words, I urge you to trade responsibly and do your absolute best to mitigate your risk exposure.
Bottom Line
There are countless penny stocks that you can invest in today and rake in decent profits a few years down the line. My personal favourites range from Begbies Traynor Group, Serabi Gold, and Ultimate Products to Polar Capital Holdings, Van Elle Holdings, and Sosandar. They are listed both on AIM and the LSE. Check them out.
Also, note that the recommended penny stock brokers offer penny stocks from other global exchanges and OTC markets. You don’t have to invest exclusively in UK products. You can buy and trade penny stocks from the US, France, Germany, etc., build a diversified portfolio, and maximise potential returns.
Have you been privileged to get trading insider information? But who doesn’t want that unfair advantage? Meet your insider source, Thadeus Geodfrey. He provides insider information on anything trading. But the information he shares is not the kind that would get you in trouble with regulators. Thadeus writes on trade and investment.
With more than a decade of experience, Thadeus has an eagle eye for spotting opportunities and risks. If he tells you a specific broker isn’t to be trusted, you better believe him. He has been swimming in these trading waters long enough to spot scam brokers from afar. Thadeus’s priority is your safety as an investor or trader.
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Fact checked
I prefer Interactive Brokers for its low fees and global market access