Best Trading Platforms in UAE For Penny Stocks

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

RANK	BROKER	GENERAL	PLATFORM SCORE	PRICING	WEBSITE
#1	Interactive Brokers	offers premium services	4.9/5	$.0035/share	Official website
#2	TradeStation	award-winning platforms	4.8/5	$0	Official website
#3	Chares Schwab	best offer for long term investments	4.8/5	$0	Official website
#4	Zacks Trade	best for mobile trading	4.7/5	$0,01/share	Official website
#5	CapTrader	best for research	4.7/5	$0,01/share	Official 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

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

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.

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02. TradeStation – Best for Active Traders

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.

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03. Charles Schwab – Best Penny Stocks Broker  for 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. 

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04. Zacks Trade – Best for Mobile Trading

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. 

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05. CapTrader – Best Research Tools For Penny Stocks

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.

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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.

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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.