Best for Risk Management
Interactive Brokers (IBKR) is the best platform for active risk management. When trading high-risk financial instruments such as penny stocks, traders will want a platform designed to help identify that risk as much as possible. Tools such as the risk navigator, vetted orders, and real-time monitoring systems make IBKR an excellent platform for managing the risk on your trades.
Best for Advanced Traders
IBKR is also the best brokerage for advanced traders. Its premium platform, the Trader Workstation, is designed specifically for advanced traders and offers sophisticated features such as advanced order types, technical research, customizable charts, and more.
Interactive Brokers, founded in 1977 and headquartered in Greenwich, Connecticut, is rightly considered one of the premier brokerage platforms in the industry. Available internationally in 200+ countries and territories and providing access to over 160 markets, traders worldwide can utilize this platform to trade stocks, bonds, options, and, of course, penny stocks.
Penny stocks are considered to be more risky financial instruments than regular stock or ETFs. While mitigating risks falls onto the trader, IBKR does its best to help clients keep their portfolios safe by providing tools such as the IB Risk Navigator tool, designed specifically to monitor open positions.
IBKR offers various platforms to cater to any trading style. Traders can choose from web, mobile, and desktop applications. More sophisticated traders can take advantage of Trader Workstation (TWS), IBKR’s proprietary trading software designed to handle complex order types, provide advanced charting capabilities, customizable alerts, and access to tools and research capabilities.
IBKR has many features that traders can benefit from, but it’s important to note that it also comes with a rather complex fee structure. Traders can choose between the IBKR Lite, IBKR Pro—Fixed, and IBKR Pro—Tiered fee structures. Overall, traders seeking a platform best for risk management, as well as advanced traders will find that Interactive Brokers will serve them well.
As with Fidelity, IBKR requires that users sign a disclaimer before enabling penny stock trading capabilities. With IBKR Lite, there is no commission, but with IBKR Pro, it will be $0.005 per share, capped at 1% of trade value. IBKR provides trading and market data for U.S. penny stocks, same as Fidelity.
Read the full Interactive Broker review.
