Best Trading Platforms in UAE For Penny Stocks

0

In this guide, we break down the best penny stock trading platforms in the UAE. All of the brokers available to UAE users offer different conditions for trading with penny stocks which makes it hard for users to make the right decision.

It is important to understand your knowledge level and trading goals before making any broker decisions. 

For this guide, we compare the 5 best penny stock trading platforms in UAE across  8 different categories to help you make an informed decision. 

Top 5 Penny Stock Trading Platforms in UAE

  1. Interactive Brokers – The best broker for OTC stocks overall
  2. TradeStation – Best for active traders
  3. Charles Schwab – Best for Investors
  4. Zacks Trade – Best for mobile trading
  5. CapTrader – Best for research
RANKBROKERGENERALPLATFORM SCOREPRICINGWEBSITE
#1Interactive Brokersoffers premium services4.9/5$.0035/shareOfficial website
#2TradeStationaward-winning platforms4.8/5$0 Official website
#3Chares Schwabbest offer for long term investments4.8/5$0 Official website
#4Zacks Tradebest for mobile trading4.7/5$0,01/shareOfficial website
#5CapTraderbest for research4.7/5$0,01/shareOfficial website

The Best Penny Stock Brokers in UAE Reviewed

Below is a detailed breakdown of the best penny stocks trading platforms in UAE including pros, cond and key takeaways. 

01. Interactive Brokers – The Best Overall Trading Platform for OTC Penny Stocks in UAE

interactive-brokers-logo

Interactive Brokers allows users to go long and short on over 3,000 different U.S. and international penny stocks at low fixed fees ranging from $0,00003 to $0,0040 per share.

Their Trader Workstation (TWS) platform offers a broad range of research tools for OTC stocks trading such as IBKR GlobalAnalyst, PortfolioAnalyst, and the Investor's Marketplace. With additional access to “up-to-split-second” real-time margin calculations, it is one of the most complete platforms for trading penny stocks. 

The Interactive Brokers platforms offer access to penny stocks like:

  • Rolls-Royce
  • Lloyds Banking
  • Banco Sabadell
  • Agatos
  • Casta Diva Group
  • American International Holdings
  • Cannabis Global
Penny Stock TypeTakerMaker
All penny stocks >= $1,00 per share$0,00029$0,001
All penny stocks < $1,00 per share$0,00003$0,00
All penny stocks < $0,01 per shareTrade Value * 0,003N/A
Routed to OTC link ATS penny stocks >= $1,00 per share$0,0035N/A
Routed to OTC link ATS penny stocks < $1,00 per share$0,00008N/A
Routed to OTC link ATS penny stocks < $0,01 per shareTrade Value * 0,008N/A
Routed to external ECN penny stocks >= $1,00 per share$0,0040N/A
Routed to external ECN penny stocks < $1,00 per share$0,00008N/A
Routed to external ECN penny stocks < $0,01 per shareTrade Value * 0,008N/A

Interactive Brokers offers two plans for penny stock trading: 

  1. IBKR Lite – offer beginner to casual trading features 
  2. IBKR Pro –  allows traders to choose between fixed or tiered pricing models and allows the usage of IBKR APIs. (great for algo and high-frequency traders)

Note that regardless of the trading plan, new users have to request penny stock trading permission in order to start trading with penny and OTC stocks.

Minimum Deposit$1
Available Penny Stocks3,000+
Trading FeesLow, fixed fees
Trading PlatformWeb-based platform & mobile app (Trader Workstation)
Type of BrokerBroker Dealer
Regulatory BodiesSEC, CFTC, and FCA
Deposit MethodsBank wire transfer, ACH transfer, check
Maximum Leverage Ratio2:1

Pros

  • Very competitive trading fees on penny stocks
  • Professional trading platform with many useful tools for penny stock trading
  • Many different research tools for penny stock trading

Cons

  • Different trade execution for IBKR Lite and IBKR Pro users
  • Trading platform can be overwhelming for beginners
  • Users have to manually request permission to trade penny stocks

02. TradeStation – Best for Active Traders

trade-station-rating

With access to 346 penny stocks, zero commission charges on low volume trades (less than 10,000 shares/trade) and a trading platform that offers real-time OTC data and an advanced equity screener, TradeStation is a great choice for active traders.

Their trading platform is intuitive and available for desktop, web and mobile. Users are allowed to use the Stock Screener addon with the maximum price set at $5 per share.

Data TypeRetail TradersProfessional Traders
Level 1$5/month$30/month
Level 2$15/month$75/month
DelayedFreeFree

TradeStation is SEC and FINRA-regulated, meaning clients are protected up to $500,000 compensation in the case of fraud or insolvency through a Financial Compensation Scheme.

Minimum Deposit$2,000
Available Penny Stocks346
Trading Fees0$ up to 10,000/shares
$0,005/share for positions larger than 10,000/shares
Trading PlatformWeb-based platform, desktop trading platform & mobile app 
Account TypesDemo, individual, joint, retirement, entity
Type of BrokerBroker dealer
Regulatory BodiesSEC, CFTC, and FINRA
Deposit MethodsWire transfer
Maximum Leverage Ratio4:1

Pros

  • Very competitive trading fees for OTC and penny stocks
  • Professional and reliable trading platform with fast trade execution for OTC and penny stocks (26 ms on average)
  • Vast range of penny stocks research tools

Cons

  • Many add-on research tools are not free
  • High minimum deposit required
  • Relatively small selection of penny stocks and OTC stocks

03. Charles Schwab – Best Penny Stocks Broker  for Investors

charles-schwab-rating

Charles Schwab is a reputable online stock broker that offers users commission-free access to 6,165 US and Canadian (OTCBB and Pink Sheet) penny stocks. With their trading platform offering fundamental and technical analysis tools like the Idea Hub, advanced Screeners (All-in-one Trade Ticket) and charting with pattern-based intraday analysis, it seems like a great choice for professional investors.

Their trading platform is easy to use and is available as a web (Schwab.com), desktop (StreetSmart Edge) and mobile version (Schwab Mobile app). Users have access to beginner and advanced order types including Market, Limit, Stop Limit, Trailing Stop, and Trailing Stop Limit orders.

The desktop version (StreetSmart Edge) has a built-in stock screener to easily spot penny stock opportunities according to your preferred parameters. This allows you to open and close trades with a single mouse click.

Minimum deposit for UAE residents is $1,000 and can be funded using write transfer, check or stock transfer from another broker. 

Minimum Deposit$1,000
Available Penny Stocks6,165
Trading Fees0$ up to 10,000/shares
$4,95/share for positions larger than 10,000/shares
Trading PlatformWeb-based platform (Schwab.com), StreetSmart Edge desktop trading platform, and Schwab Mobile app
Account TypesSchwab One, Brokerage Account + Support for Trading, Global Account
Type of BrokerBroker dealer
Regulatory BodiesSEC, CFTC, and FINRA
Deposit MethodsWire transfer, check, stock transfer from another broker
Maximum Leverage Ratio2:1

Pros

  • Great choice of different OTC stocks
  • Very competitive trading fees
  • Many useful research tools and advanced screeners

Cons

  • High account minimum for non-US investors
  • Doesn’t accept credit and debit card deposits
  • Only American and Canadian penny stocks available

04. Zacks Trade – Best for Mobile Trading

zacks-trade-rating

With their mobile app offering access to the latest stock market news, real-time BATS stock-price data and even commentary on open trades from Zack's expert traders, it is an interesting choice for mobile traders.

Their mobile app also offers access to real-time trade alerts and Zacks Rank –  a proprietary stock research service that gains an average of +24,51% annually and is popular among casual traders.

Mobile traders can also obtain time-delayed intra-day quotes, see the market overview for OTCBB and Pink Sheet penny stocks, add stocks to their Watchlist, and get investing ideas by reading the latest market news and articles. 

Zacks Trade charges low trading fees of $0,01 per share on stocks and ETFs priced higher than $1 per share and 1% of the trade value on shares valued at less than $1 each. One of the biggest advantages of trading with Zacks Trade is that they offer broker assisted trades for free. 

Minimum Deposit$2,500
Available Penny Stocks1,000+ OTCBB and Pink Sheet stocks
Trading Fees$0,01/share on stocks and ETFs priced higher than $1/share
1%/trade value on shares valued at less than $1/share
Trading PlatformZacks Trade Pro, Client Portal, and Mobile App
Account TypesStocks Cash Account, Stock Options Level 1 Account, IRA Account, and Roth IRA Account
Type of BrokerBroker dealer
Regulatory BodiesSEC, CFTC, and FINRA
Deposit MethodsWire transfer, check, stock transfer from another broker
Maximum Leverage Ratio6:1

Pros

  • Very competitive trading fees for OTC penny stocks trading
  • Offers free broker-assisted trades
  • Great trading platform with a robust set of tools for OTC stocks

Cons

  • High account minimum
  • Desktop trading platform can be overwhelming for beginners
  • Slow and difficult account opening process

05. CapTrader – Best Research Tools For Penny Stocks

cap-trader-rating

With free access to subscription-based services including Thomson Reuters, Morningstar, Dow Jones, Validea, and TheLeadingEdge that all provide real-time analysis, in-depth reports, and post model portfolios, it is easy to understand why CapTrader is a great platform for penny stocks research. 

CapTrader users also have access to trading ideas, containing profitable entry and exit points, a vast library of fundamental data, and over 120 technical indicators. 

With fees ranging from $0,01 per US share ($2/order minimum) and 0,1% of the order volume on German and European stocks ( €2/order minimum), their overall fees are low. 

Users have access to over 100 order types at CapTrader, including advanced order types like Iceberg/Reserve, Sweep-to-Fill, and Pegged-to-Market. They can also generate additional passive income flows by lending out their fully paid (penny) stocks to active traders.

Minimum Deposit$2,000
Available Penny Stocks3,000+
Trading Fees$0,01 per US share with a minimum of $2/order
Trading PlatformTrader Workstation, Trading App, Client Portal, AgenaTrader, iBot, external APIs
Account TypesSingle, Joint, Family, Company, Managed, Cash, and Margin Accounts
Type of BrokerIntroducing broker (to IBKR)
Regulatory BodiesSEC, CFTC, and FINRA
Deposit MethodsBank wire transfer
Maximum Leverage Ratio5:1

Pros

  • Wide variety of research tools for OTC stocks
  • Many different order types for penny stocks trading
  • Competitive fees for OTC stock trading

Cons

  • High account minimum for non-US investors
  • Doesn’t accept credit and debit card deposits
  • Fee structure not suitable for active traders

How To Choose The Right Penny Stocks Broker? 

To get our list of the top trading platforms for penny stocks in UAE we have compared 79 online brokers in 8 different categories. They are all listed below to help you make an informed decision:

  • Amount of OTC stocks (Penny stocks) offered by the broker or trading platform
  • Trading fees charged and other trading conditions for OTC stocks trading
  • Trading platform features for OTC and penny stocks trading
  • Mobile OTC or penny stocks trading features
  • The quality of the customer support
  • Research and Education offered (on OTC penny stocks)
  • Available deposit and withdrawal methods
  • UAE availability (whether UAE residents can open an account and trade OTC penny stocks and make use of all offered penny stocks trading services)

*Pro Tip: Make sure you trade with a penny stocks broker that charges flat fees rather than per-share fees. This will help you save money on fees as you will be trading large amounts of shares as a penny stock trader.

What are Penny Stocks? 

Penny stocks are shares in companies that are priced below $5. These stocks are highly volatile because of large spreads and small market capitalizations.

Penny Stocks Trading Tips

  • Only Follow Credible Sources – Make sure to always find credible sources and not to fall for brokers or other people telling you they have inside information about penny stocks. Pump and dump schemes spread this false information to create a buying frenzy that will raise or ”pump” the price and mislead investors.
  • Don't’ Fall For Short and Distort Schemes – Avoid falling for reversed pump and dump schemes, where the promoters short a certain penny stock to then spread false news about it to further decrease its price. 
  • Avoid Long-term Averaging Techniques – Try to avoid sophisticated forms of pump and dump schemes that work with a cyclical scheme where investors are told to invest in a certain penny stock at low prices and then sell at a later moment to gain gigantic returns. 

Don't Short Penny Stocks – Penny stocks are highly volatile and therefore require high knowledge and trading experience to be used for short selling.

FAQ

We review online brokers with real accounts and money. Our results depend on 105 criteria, including portfolio, safety, and platforms.

Which penny stocks broker charges the lowest fees? 

Interactive Brokers charge the lowest fees on penny stocks.

Which penny stocks broker offers the most penny stocks? 

With access to over 6,000 stocks valued at less than $5, Charles Schwab is the OTC stocks broker with the largest selection of penny stocks. 

Which broker is the most recommendable for advanced penny stock traders? 

With advanced trading and research tools, Interactive Brokers is the best choice for advanced penny stock traders in the UAE.


Methodology 

The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.

Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.

Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.

Disclosure

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

Previous articleBest Trading Platform in Pakistan 2022 | TOP 5 Revealed
Next articleBest Trading Platforms in UAE With No Minimum Deposit
Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.

LEAVE A REPLY

Please enter your comment!
Please enter your name here