Page Summary
This guide helps users to find online brokers in UAE with the best trading platforms for penny stocks. Penny stocks are gaining in popularity among UAE traders as they provide opportunities for high returns (and high loses) with low investment requirements. With the variety of online brokers (safe and fraudulent) that offer access to penny stocks, it can be hard to choose the ideal option for individual trading strategies.
Proper research, review and comparison of different brokers can help investors making an informed decision and selecting a platform with vast range of penny stocks, competitive fees, wide range of fundamental analysis tools and proper regulation.
This guide assesses 33 online brokers in UAE that allow trading with penny stocks. To help users find the ideal option for their needs, the best trading platforms in UAE for penny stocks are listed, reviewed and compared below considering assets (penny stocks, OTC stocks, regular shares, CFDs), fees (trading and non trading), accessibility (web, desktop, mobile app), trading tools & platforms, trading apps, research & education, regulation and customer support.
Top 5 Penny Stock Trading Platforms in UAE
- Interactive Brokers – The best broker for OTC stocks overall
- TradeStation – Top for active traders
- Charles Schwab – Ideal for Investors
- Zacks Trade – Optimal for mobile trading
- CapTrader – Best for research
The Best Penny Stock Brokers in UAE Reviewed
Online brokers with the highest rated platforms for penny stocks are reviewed below.
1. Interactive Brokers – The Best Overall Trading Platform for OTC Penny Stocks in UAE
Min Deposit: $0
Fees: 4.9
Assets available: 4.9
Total Fees:
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.
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
Use the table below to find out more about Interactive Brokers’ penny stock trading fees.
| Penny Stock Type | Taker | Maker |
| 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 share | Trade Value * 0,003 | N/A |
| Routed to OTC link ATS penny stocks >= $1,00 per share | $0,0035 | N/A |
| Routed to OTC link ATS penny stocks < $1,00 per share | $0,00008 | N/A |
| Routed to OTC link ATS penny stocks < $0,01 per share | Trade Value * 0,008 | N/A |
| Routed to external ECN penny stocks >= $1,00 per share | $0,0040 | N/A |
| Routed to external ECN penny stocks < $1,00 per share | $0,00008 | N/A |
| Routed to external ECN penny stocks < $0,01 per share | Trade Value * 0,008 | N/A |
Interactive Brokers offers two plans for penny stock trading:
- IBKR Lite – offer beginner to casual trading features
- 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 Stocks | 3,000+ |
| Trading Fees | Low, fixed fees |
| Trading Platform | Web-based platform & mobile app (Trader Workstation) |
| Account Types | Individual investor or trader, family office, small business, family advisor, non-professional advisor, registered investment advisor, hedge or mutual fund, money manager, proprietary trading group, introducing broker |
| Type of Broker | Broker Dealer |
| Regulatory Bodies | SEC, CFTC, and FCA |
| Deposit Methods | Bank wire transfer, ACH transfer, check |
| Maximum Leverage Ratio | 2:1 |
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
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.
2. TradeStation – Best for Active Traders
Min Deposit: $0 ($2000 – Margin account; $25000 – Day Trading account; $5000 – Futures account)
Fees: 4.8
Assets available: 5.0
Total Fees:
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 Type | Retail Traders | Professional Traders |
| Level 1 | $5/month | $30/month |
| Level 2 | $15/month | $75/month |
| Delayed | Free | Free |
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 Stocks | 346 |
| Trading Fees | Positions under 10,000 shares are commission-free. Positions larger than 10,000 shares are charged $0,005 per share. |
| Trading Platform | Web-based platform, desktop trading platform & mobile app |
| Account Types | Demo, individual, joint, retirement, entity |
| Type of Broker | Broker dealer |
| Regulatory Bodies | SEC, CFTC, and FINRA |
| Deposit Methods | Wire transfer |
| Maximum Leverage Ratio | 4:1 |
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
3. Charles Schwab – Best Penny Stocks Broker for Investors
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 Stocks | 6,165 |
| Trading Fees | Positions under 10,000 shares are commission-free. Positions larger than 10,000 shares are charged at $4,95 per trade. |
| Trading Platform | Web-based platform (Schwab.com), StreetSmart Edge desktop trading platform, and Schwab Mobile app |
| Account Types | Schwab One, Brokerage Account + Support for Trading, Global Account |
| Type of Broker | Broker dealer |
| Regulatory Bodies | SEC, CFTC, and FINRA |
| Deposit Methods | Wire transfer, check, stock transfer from another broker |
| Maximum Leverage Ratio | 2:1 |
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
4. Zacks Trade – Best for Mobile Trading
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.
The minimum deposit for UAE users to open a penny stock trading account is $2,500.
| Minimum Deposit | $2,500 |
| Available Penny Stocks | 1,000+ OTCBB and Pink Sheet stocks |
| Trading Fees | $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 |
| Trading Platform | Zacks Trade Pro, Client Portal, and Mobile App |
| Account Types | Stocks Cash Account, Stock Options Level 1 Account, IRA Account, and Roth IRA Account |
| Type of Broker | Broker dealer |
| Regulatory Bodies | SEC, CFTC, and FINRA |
| Deposit Methods | Wire transfer, check, stock transfer from another broker |
| Maximum Leverage Ratio | 6:1 |
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
5. Captrader – Best Research Tools For Penny Stocks
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.
UAE residents can get started trading penny stocks at CapTrader from $2,000 or practice with the $1,000,000 notional capital paper trading account that mirrors the real markets instead.
| Minimum Deposit | $2,000 |
| Available Penny Stocks | 3,000+ |
| Trading Fees | $0,01 per US share with a minimum of $2 per order, 0,1% of the order volume on German and European stocks with a minimum of €2 per order. |
| Trading Platform | Trader Workstation, Trading App, Client Portal, AgenaTrader, iBot, external APIs |
| Account Types | Single, Joint, Family, Company, Managed, Cash, and Margin Accounts |
| Type of Broker | Introducing broker (to IBKR) |
| Regulatory Bodies | SEC, CFTC, and FINRA |
| Deposit Methods | Bank wire transfer |
| Maximum Leverage Ratio | 5:1 |
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 Find The Ideal Penny Stocks Broker and Platform in UAE?
Criteria to be considered to select an online broker with the best-suited trading platform for penny stocks in UAE are listed below.
- 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.
The Top Penny Stock Brokers Compared
Key features of online brokers with the highest ranked penny stock platforms are compared in the table below.
| Broker | Penny Stocks | Stock Trading Fees | Trading Tools & Platforms | Third-party Integrations | Research & Analysis Tools | Customer Support |
|---|---|---|---|---|---|---|
| Interactive Brokers | Yes | $0.0035/share | Trader Workstation, Client Portal, IBKR Mobile | Extensive API offering | Extensive and high-quality research and analysis tools | Phone, chat, and email support |
| TradeStation | Yes | $0 on all listed markets | TradeStation 10, Web Trading, TradeStation Mobile | EasyLanguage scripting language, API offering | RadarScreen (real-time scanner), research from third-parties | 24/7 Phone support, live chat, email |
| Charles Schwab | Yes | $0 commission on U.S. stocks and ETFs | StreetSmart Edge, StreetSmart.com, Schwab Mobile | Limited, integration with Schwab’s other services | Schwab’s proprietary and third-party research, Screeners | 24/7 Phone support, live chat, email |
| Zacks Trade | Yes | $0.01/share | ZacksTrader, ZacksTrade Pro, Mobile | Limited, integration with Zacks Research | Proprietary Zacks Research and other tools | Phone, chat, and email support |
| CapTrader | Yes | $0.005/share | AgenaTrader, Trader Workstation, Mobile app | API offering | News, analysis and research tools, AgenaTrader | Phone, chat, and email support |
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 capitalisations.
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.
Conclusion
There is a great number of online brokers in UAE offering access to penny stocks at different conditions, which makes it hard to find the ideal option for individual needs. Conducting proper research and comparison can be stressful and requires time and knowledge.
This guide does the hard work for you by comparing and evaluating the top choices for different types of traders and trading goals. The results of our assessment of brokers in UAE with the best trading platform for penny stocks are wrapped up in the table below.
| 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 |
FAQ
Are penny stocks legal in the UAE?
There are no specific laws that explicitly prohibit the trading of penny stocks in the United Arab Emirates. However, the trading of penny stocks, like all forms of trading, is subject to regulations by the SCA on the federal level and DFSA and FSRA on the economic free zone level.
Are penny stocks recommended for beginners?
Penny stocks are generally not recommended for beginners because of their high volatility, potential for fraud, low liquidity and high risk of total loss.
Which penny stocks broker charges the lowest fees?
Interactive Brokers is the online brokers with the lowest fees on penny stocks in UAE.
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 in the UAE.
Which broker is the most recommendable for advanced penny stocks traders?
With advanced trading and research tools, Interactive Brokers is the best choice for advanced penny stock traders in the UAE.
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Stefan Grasic is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level.