Penny stocks let UK investors buy shares of small, high-growth companies trading under £1.
These stocks are high-risk but can offer significant upside if managed carefully. The best penny stock brokers in the UK are FCA-regulated, offer low dealing fees, and provide access to AIM and OTC markets.
This guide compares the top platforms for trading penny stocks safely and cost-effectively.
Quick answer: What are the best penny stock brokers in the UK?
In short, the best penny stock brokers in the UK are Admiral Markets, AvaTrade, and IG. Admiral Markets stands out for its advanced trading tools, educational support, and access to AIM-listed shares. AvaTrade is a low-fee, FCA-regulated broker offering multiple trading platforms and excellent customer support. IG, one of the UK’s most trusted brokers, provides broad market access, cutting-edge charting tools, and professional-grade trading features for active investors.
Top brokers to buy penny stocks ranked
Here’s a quick overview of the best penny stock brokers in the UK, based on expert testing and platform analysis:
- Trading 212
- Webull
- Interactive Brokers
Online penny stock broker reviews
In 2024, around 42% of UK adults invested or traded financial assets, up from 36% in 2021 (ONS data)1. This steady growth shows that more Britons are taking control of their finances and exploring higher-risk opportunities like penny stocks.
Choosing the right broker is especially important for beginners, as penny stocks can be volatile and often trade on less liquid markets.
After years working within the UK retail investment sector and testing multiple platforms used by everyday traders, this guide identifies the most reliable and low-fee brokers for trading penny stocks safely.
Each recommendation below has been assessed for usability, regulation, trading fees, research tools, and educational resources.
All featured brokers are FCA-regulated, ensuring they meet strict standards for transparency and investor protection under UK law.
You can read about how we test platforms here.
This article was reviewed by Tobi Opeyemi Amure, a trading expert and writer at Investopedia, Investing.com, and Trading.biz.
1. Trading 212 – Overall best penny stock broker in the UK
Why is Trading 212 a top choice for penny stock trading?
Trading 212 is one of the best penny stock brokers in the UK thanks to its commission-free trading, FCA regulation, and beginner-friendly mobile app. It’s ideal for investors who want to trade small-cap or low-cost shares with minimal fees and a simple, intuitive interface.
How much does Trading 212 charge?
Trading 212 charges no commission on stock or ETF trades and has a 0.15% FX fee for non-GBP transactions. The minimum deposit is just £1, making it one of the most accessible platforms for new investors. There are also no inactivity or withdrawal fees, which keeps overall costs low.
Can you buy penny stocks on Trading 212?
Yes. Trading 212 offers access to penny stocks listed on major exchanges such as the LSE, NASDAQ, and NYSE, including popular UK names like Rolls-Royce and Lloyds Banking Group. However, some highly illiquid OTC stocks are restricted to reduce volatility and ensure compliance with regulatory standards.
What platforms and features does Trading 212 offer?
Trading 212 provides a web and mobile platform with fractional share trading, real-time data, and an integrated demo account for practising strategies. Its clean design, one-click execution, and educational tools make it especially suited to beginners exploring penny stock investing.
Is Trading 212 FCA-regulated?
Yes. Trading 212 is authorised and regulated by the Financial Conduct Authority (FCA) and client funds are protected under the Financial Services Compensation Scheme (FSCS) up to £85,000. This ensures a secure and transparent trading environment for UK investors.
Trading 212 at a glance
| Feature | Details |
|---|---|
| Regulation | FCA-authorised, FSCS protection up to £85,000 |
| Minimum deposit | £1 |
| Dealing fees | £0 commission on stocks and ETFs, FX fee 0.15% on non-GBP trades |
| OTC and penny stocks | Selection available, with some OTC names ISA-eligible; highly illiquid microcaps may be restricted |
| Platforms | Trading 212 app and web, fractional shares, Practice mode (demo) |
| Account types | Invest, Stocks & Shares ISA, CFD |
What are the main pros and cons of Trading 212?
Pros
- Commission-free stock and ETF trading
- £1 minimum deposit and fractional shares
- FCA-regulated with FSCS protection
- Fast account opening and user-friendly app
Cons
- Some illiquid penny stocks are restricted
- FX fee (0.15%) applies on non-GBP trades
Is Trading 212 worth it for penny stock traders?
Yes. With zero commission trading, low entry requirements, and strong UK regulation, Trading 212 is one of the most accessible and trustworthy brokers for penny stock investors in 2025. It’s best suited for those starting out or seeking an easy, low-cost way to build a small-cap portfolio.
Read our Trading 212 review.
2. Webull
Why is Webull a good option for penny stock trading?
Webull suits UK penny stock seekers who want low fees, fractional shares, and a powerful mobile and desktop platform. It is easy to use, with strong charting, quick onboarding, and a £0 minimum deposit.
How much does Webull charge?
Webull UK charges a 0.025% trading commission and a 0.35% FX fee when converting GBP to USD. There are no inactivity or withdrawal fees, which helps frequent traders keep costs down.
Can you buy penny stocks on Webull?
Yes, Webull offers many US-listed penny stocks. Availability of OTC micro-caps can vary by region, and some illiquid names may be restricted. If you are on a small budget, fractional shares are available as an alternative to high-risk micro-caps.
What platforms and features does Webull offer?
Webull provides intuitive web and mobile apps plus a downloadable desktop platform with multi-chart layouts, screeners, alerts, and a practice (demo) mode. News and in-app education are integrated to support research.
Is Webull FCA-regulated in the UK?
Yes, Webull operates in the UK under FCA oversight. Savings products accessed via Webull Savings are FSCS-eligible through participating banks. Note, Webull UK currently does not offer ISA or SIPP accounts.
Webull at a glance
| Feature | Details |
|---|---|
| Regulation | FCA oversight (UK) |
| Minimum deposit | £0 |
| Dealing fees | 0.025% per trade |
| FX conversion | 0.35% GBP→USD |
| Penny stocks | US-listed, OTC availability may vary |
| Platforms | Web, Mobile, Desktop; Demo mode |
| Accounts | Invest (no ISA/SIPP) |
| Extras | Fractional shares, Webull Savings (FSCS via banks) |
Pros and cons
Pros
- Low trading commission and competitive FX fee
- Fractional shares and £0 minimum deposit
- Strong charting on mobile and desktop
- Integrated news, research, and demo account
Cons
- No ISA or SIPP in the UK
- OTC micro-cap access can be limited
- US stocks only, no UK or EU shares
Is Webull worth it for penny stock traders?
Yes, for low-cost access to US penny stocks, clean interfaces, and advanced charts, Webull is a solid choice. It fits active traders and learners, though long-term UK investors may prefer a broker with ISA/SIPP and broader markets.
3. Interactive Brokers
Why is Interactive Brokers a strong choice for penny stocks?
Interactive Brokers suits UK traders who want ultra-low costs, deep market access, and pro-grade tools. It covers 90+ markets, offers robust order types, and has excellent routing and data for thinly traded names.
How much does Interactive Brokers charge?
Penny stock and OTC trades use a per-share model: $0.005 per share, $1 minimum, 1% maximum of trade value. FX conversion is competitive. There are no inactivity or withdrawal fees.
Can you buy penny stocks on Interactive Brokers?
Yes. You can trade US and international penny stocks, including OTC. You must request penny stock trading permission and enable 2FA. Use TWS scanners to filter shares under $1 or $5.
What platforms and research tools are available?
You get Trader Workstation (TWS), IBKR Mobile, and Client Portal. Tools include advanced screeners, Level II, smart routing, options chains, and pre-trade margin and fee estimates. A paper trading account is available.
Is Interactive Brokers FCA-regulated in the UK?
Yes. Interactive Brokers operates in the UK with FCA oversight. Client money is held in segregated accounts, and eligible cash may be covered by FSCS limits. Always review account-specific disclosures.
Interactive Brokers at a glance
| Feature | Details |
|---|---|
| Regulation | FCA oversight, segregated client money |
| Minimum deposit | £0 |
| Penny stock fees | $0.005 per share, $1 min, 1% max |
| Markets | 90+ global exchanges, OTC access |
| Platforms | TWS, Client Portal, IBKR Mobile, Paper trading |
| Access | Permission needed for penny stocks, 2FA required |
| Extras | Fractional shares, powerful scanners and routing |
Pros and cons
Pros
- Very low per-share pricing with caps
- Huge market coverage and OTC access
- TWS offers advanced charting, routing, and scanners
- Paper trading to test strategies
Cons
- Per-share fees can add up on very large order counts
- Learning curve for TWS
- Permission steps required for penny stocks
Is Interactive Brokers worth it for penny stock traders?
Yes. If you want the lowest total costs at scale, professional tools, and global reach, Interactive Brokers is hard to beat. It fits experienced traders and disciplined beginners who value control and transparency.
Read our Interactive Brokers review.
The ultimate guide to trading penny stocks in the UK
What are penny stocks?
Penny stocks are shares of small, often early-stage companies trading at low prices, typically below £1 in the UK or under $5 in the US.
They appeal to investors seeking high returns from small price movements but come with high volatility and low liquidity.
In the UK, most penny stocks trade on the AIM (Alternative Investment Market) or over-the-counter (OTC) markets, where reporting standards are less strict than for FTSE-listed firms.
Why are penny stocks risky?
Unlike established companies, penny stock issuers often have limited financial transparency, low trading volume, and few institutional investors.
This makes prices more sensitive to speculation and sentiment rather than fundamentals. Sharp swings in price are common, and wide bid–ask spreads can make entry and exit challenging.
How do penny stocks work?
Penny stocks trade like regular shares but differ in market depth and liquidity. Market makers set the bid and ask prices, but due to thin order books, even small trades can trigger large moves.
Many penny stocks are traded off-exchange (OTC), where trades occur directly between brokers, introducing additional counterparty and price manipulation risks.
Understanding how trading volume, news catalysts, and share float affect price movement is key to spotting momentum shifts before they peak.
How to start trading penny stocks in the UK
- Track sentiment: Use real-time news feeds and social trading tools to monitor unusual volume surges or price spikes.
- Open an FCA-regulated account: Choose a trusted broker with access to AIM-listed and OTC penny stocks.
- Verify and fund your account: Complete KYC verification and deposit securely via debit card or bank transfer.
- Research companies: Review RNS filings, financial statements, and market updates to confirm legitimacy.
- Use screeners: Filter stocks by volume, price, and market cap to find active opportunities.
- Start small: Begin with limited capital to understand liquidity behaviour and manage risk exposure.
How to choose the best penny stock broker in the UK
Why does broker choice matter?
Selecting the right broker is one of the most important steps in penny stock trading. Low-priced shares often have limited liquidity, so you need a trusted, low-fee, and well-regulated platform that offers fast execution and transparent pricing.
1. Regulation and trustworthiness
Always choose an FCA-regulated broker. This ensures your broker operates under strict UK financial standards and keeps your funds in segregated accounts. FCA oversight also provides access to FSCS protection of up to £85,000 in the event of broker insolvency.
2. Trading platform and tools
The best penny stock brokers provide real-time quotes, customisable charts, and advanced order types such as limit and stop-loss orders. A user-friendly platform is vital for reacting quickly to volatile price moves. Mobile trading apps should also offer live news and alerts.
3. Commissions and fees
Compare commission rates, spreads, and FX fees across brokers. Since penny stock traders often place frequent small trades, low-cost pricing can significantly improve profitability. Avoid brokers with high inactivity or withdrawal fees that can eat into returns.
4. Market access
Ensure your broker offers access to AIM and OTC markets, where most penny stocks are listed. Some brokers only cover major exchanges, so confirm that you can trade micro-cap shares from the UK, US, and other regions you’re targeting.
5. Research and education resources
Choose brokers with stock screeners, RNS access, and technical indicators to analyse small-cap opportunities. Platforms that include educational tools and market explainers help you learn how to assess high-risk assets more effectively.
6. Customer support
Fast, responsive support is crucial when dealing with illiquid or volatile assets. Look for brokers with live chat or 24/5 assistance and strong reputations for resolving technical or account issues quickly.
7. Account requirements
Check the minimum deposit and available account types. Some brokers offer dedicated accounts for active traders, while others cater to beginners with no minimum balance or a demo trading mode for practising penny stock strategies.
8. User reviews and reputation
Read independent user reviews and research each broker’s execution quality and reliability. Feedback from experienced traders can highlight platform strengths or potential issues such as delayed order fills or limited market coverage.
The risk of trading penny stocks
Why are penny stocks high-risk?
Penny stocks are speculative and volatile assets that trade at very low prices, often below £1. They typically belong to small or unproven companies with limited financial history and low trading volume. Because of this, they face wide bid–ask spreads, illiquidity, and sharp price swings driven by speculation rather than fundamentals.
What are the main dangers to watch for?
Many penny stocks trade on AIM or OTC markets, where reporting standards are lower and transparency is limited. This creates room for price manipulation, including pump-and-dump schemes, where hype inflates a stock’s value before it collapses. Without clear financial disclosures, investors may struggle to distinguish genuine opportunities from artificial spikes.
How can you manage risk?
Treat penny stocks as a small, speculative part of your investment portfolio. Before trading, verify company legitimacy via official filings, such as Companies House records or RNS statements. Diversify across sectors and avoid overexposure to any single stock. Always use stop-loss orders and position size limits to contain potential losses.
Avoiding penny stock scams
How to spot and avoid manipulation
- Ignore unsolicited tips: Avoid “hot stock” emails, Telegram groups, and social media calls promoting unknown tickers.
- Verify filings: Check Companies House and London Stock Exchange announcements to confirm financial data.
- Watch trading volume: Be cautious of sudden volume spikes without related company news, a common sign of market manipulation.
- Avoid guaranteed-return claims: Legitimate companies and brokers never promise profits.
- Confirm broker legitimacy: Trade only through FCA-regulated brokers with transparent ownership and clear contact details.
Final thoughts
Penny stocks can offer big upside but come with equally high risk.
Their volatility, low liquidity, and lack of transparency make it essential to trade carefully and only with money you can afford to lose.
For safe, low-cost access, the best penny stock brokers in the UK include Admiral Markets, Trading 212, Webull, and Interactive Brokers, all FCA-regulated and trusted by UK investors.
Always start small, research thoroughly, and use proper risk controls such as stop-loss orders and portfolio diversification to protect your capital.
FAQs
Can you buy penny stocks in the UK?
Yes, it is possible to buy penny stocks in the UK. These stocks are available on various stock exchanges, such as the London Stock Exchange (LSE), Alternative Investment Market (AIM), or over-the-counter (OTC) markets. You can use online brokerage accounts to purchase and trade penny stocks in the UK.
Are penny stocks safe?
Penny stocks are typically considered high-risk investments due to their volatility, lack of liquidity, and limited information availability. They often belong to small, unproven companies and are susceptible to market manipulation. While it’s possible to make substantial gains, the risk of significant losses is also high. Therefore, they might not be considered “safe” in the traditional investment sense. As always, due diligence and risk management are crucial when investing in such assets. Make sure to be cautious of fraud and scams2.
Are penny stocks available on Trading 212?
Trading 212 offers access to a selection of penny stocks listed on major UK and US exchanges. However, not all OTC or micro-cap securities are available due to regulatory restrictions. Traders can use the stock screener to locate companies trading below £1 or $5.
What are some cheap stocks to buy now in the UK?
Cheap stocks change frequently based on market conditions. As of 2025, sectors such as renewable energy, mining exploration, and biotech continue to host several low-priced equities on the AIM exchange. Always conduct research before purchasing any stock purely based on its price.
What is the 7% rule in stock trading?
The 7% rule suggests that traders should limit losses to no more than 7% of the investment capital on any single trade. This principle, widely adopted in active trading, protects capital by enforcing consistent stop-loss placement.
Is it wise to buy penny stocks?
Penny stocks can offer high upside potential but come with elevated risk and limited transparency. They may suit aggressive investors with strong risk management skills but are not ideal for conservative portfolios or long-term wealth accumulation.
Was Amazon a penny stock?
Amazon was not technically a penny stock. Its IPO in 1997 was priced at $18 per share, which, adjusted for stock splits, equates to less than $2 per share, but the company already had significant institutional backing and market credibility.
How do beginners buy penny stocks?
Beginners can open an account with a regulated online broker, deposit small funds, and use research tools to identify listed penny stocks. Practicing on demo accounts and studying market behaviour is recommended before trading real capital.
Why is Rolls-Royce considered a penny stock?
Rolls-Royce briefly traded below £1 per share in previous years due to pandemic-driven revenue declines, leading some traders to label it a “penny stock.” However, it remains a large-cap company listed on the London Stock Exchange, not a typical penny stock.
What does “penny stock exempt” mean?
“Penny stock exempt” refers to securities that do not meet the definition of a penny stock under regulatory standards. For example, companies with higher market capitalisation, consistent revenue, and transparent reporting can be exempt from penny stock classification.
When is the best time to buy a penny stock?
Optimal entry points occur when liquidity increases and confirmed news drives momentum, such as positive earnings, new contracts, or operational updates. Avoid buying immediately after large price spikes, as they often indicate speculative bubbles.
How does a company get listed as a penny stock?
A company becomes a penny stock when its market capitalisation and share price drop below specific thresholds, often under £1 per share in the UK. Listing can occur through smaller exchanges like the AIM or as an OTC security after delisting from a primary exchange.
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