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Penny stock trading is becoming more and more popular in the UK, but finding the right broker can be tricky. This is because not all platforms offer these shares. Plus, you need to test and compare various options to identify what best suits your requirements.
I’ve spent hours researching and testing different trading platforms to save you the hassle. Below, I break down the best options and share key tips for beginners.
List of the Best Penny Stock Brokers
- Saxo – Overall Best
- XTB – Top Option For CFD Trading
- Interactive Brokers – Best For UK Professional Traders
- Spreadex – One of the Cheapest Options
In This Guide
Compare Brokers Table
I understand how long it takes to compare brokers. If not compared carefully, you will end up making the wrong choice. That is why I have created this comparison table highlighting the features that distinguish these penny stock brokers UK. I hope it will help you choose a good penny stock broker.
| Best Penny Stock Broker | Licence & Regulation | Support Service | Software | Payment Method | Demo Account | Money Insurance |
|---|---|---|---|---|---|---|
| Saxo | FSA, FCA, MAS, SEBI | 24/5 | SaxoTraderGO, SaxoTraderPRO | Bank Wire Transfer, Debit cards | Yes | Yes (up to £85,000) |
| XTB | FCA, KNF, CNMV | 24/5 | xStation 5, xStation Mobile | Credit/debit cards, Bank Transfers, Skrill | Yes | Yes (up to £85,000) |
| IBKR | FCA, FSA, CFTC | 24/5 | IBKR Mobile, APIs, Trader Workstation | Bank or wire transfers | Yes | Yes (up to £85,000) |
| Spreadex | FCA, SEBI | 24/5 | iPhone App, IPAD App, ANDROID App, TradingView | Bank Wire Transfers, Credit cards | No | Yes (up to £85,000) |
Fees & Commissions
I am an experienced trader and financial expert with more than a decade of experience. I have interviewed other traders and asked the majority of them what they consider when selecting penny stock brokers in the UK. While security is deemed to be important, fees and asset offerings are among the most significant considerations.
For you to make sound decisions and good choices, I hereby present to you two tables showing my recommended penny stock brokers’ fee rates and tradable assets.
Fees
| Best Penny Stock Broker | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| Saxo | From £0.01 commission | £0 | Free | None |
| XTB | From 0.1 pips | £0 | Free | £10 monthly |
| IBKR | From $0.01 commission on US stocks | £0 | Free | None |
| Spreadex | From 0.6 pips | £0 | Free | None |
Assets
| Best Penny Stock Broker | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| Saxo | Yes | Yes | Yes | Yes | Yes |
| XTB | Yes | Yes | Yes | Yes | Yes |
| IBKR | Yes | Yes | Yes | Yes | Yes |
| Spreadex | Yes | Yes | Yes | Yes | Yes |
Brokers Reviews
The share market is gaining momentum. More specifically, over 54% of British adults invested in the stock market in 2025. This percentage is more than 51% in 2024 and 42% in 2023. So, if you’re a novice sceptic hesitant to try investing in this sector, remember that the share market can be a profitable avenue with a good strategy.
The following are my experiential mini-reviews of these brokers. Hopefully, you will be able to understand their services and make a decision accordingly based on your trading requirements.
1. Saxo – Overall Best
After researching a number of penny stock brokers in the UK, I found Saxo to be one of a kind. Its platform is extremely flexible and extremely user-friendly. I appreciate the broker’s emphasis on providing access to quality third-party research tools and to experienced portfolio management features. SAXO offers access to a huge list of penny stocks to purchase at a negligible fee of just £0.01 per share. This low trading cost allows the users to diversify their portfolios quite nicely, mitigating the risk associated with trading.
Other than penny stocks, SAXO also offers access to over 20,000 foreign stocks, including popular ones like Google, Netflix, Apple, and more. I enjoyed trading on its desktop platform and also on the SaxoTraderGO app, which can be accessed on Android and iOS devices. There is no minimum deposit fee for this UK penny stock broker, and all transactions are free.
Saxo
✔No minimum deposit requirement
✔Low commissions for all asset classes
Pros & Cons
Fees
Trading Assets
Pros
- Plenty of research and learning resources
- Numerous penny stocks to explore
- A user-friendly and customisable trading platform
- Low penny stock trading commission
Cons
- Does not support the MetaTrader platforms
- Saxo VIP account has a high minimum deposit requirement of £1,000,000
Saxo is one of the brokers in the UK with transparent fee structures. While analysing its trading and no-trading charges, we noted that the broker has no hidden charges. This makes it easier for users to plan and budget for their activities without worrying about extra charges once fully invested.
Additionally, we find Saxo affordable since it charges low commissions, starting at $1 on US stocks, ETFs, and futures. For traders interested in options and government bonds, Saxo charges low fees, starting at $0.75 and $0.05%, respectively.
When it comes to Saxo’s minimum deposit requirement, the broker has none. This means that any trader, whether new or budget-conscious, can create a trading account with the broker and start exploring the financial space. However, expect to incur a currency conversion fee, especially when you trade using a different currency from your account’s base denomination. The good news is this fee doesn’t apply to marginal collateral and can never exceed +/- 0.25%.
Financing charges for positions left overnight are also applicable at Saxo. For investors, expect to incur annual custody fees if your account holds stock, bond, or ETF/ETC positions. The exact fee will vary depending on your account. Our analysis showed that you will pay up to 0.15% for the classic account, 0.12% for the platinum account, and 0.09% for VIP accounts.
Lastly, Saxo charges fees for additional services besides those mentioned above. For instance, it imposes a $50 fee for online report requests. Plus, transactions are free, and there is no inactivity fee should your account stay idle for some time.
2. XTB – Top Option For CFD Trading
If you’re looking for a solid penny stock broker for CFD trading, XTB is one I highly recommend. After testing various UK trading platforms, I found XTB to be one of the most reliable options for CFD penny stocks. Plus, it goes beyond just penny stocks – there are additional shares available from over 16 global exchanges, which is great if you want to diversify.
One thing I really appreciate is how user-friendly XTB’s platform is. The xStation 5 web platform and the xStation Mobile app (available on both Android and iOS) are fully customisable. This makes it easier for users to trade even while on the move. Its smooth interface and flexibility enhance the overall experience, which is a big plus for me.
Another standout feature is XTB’s affordability. There’s no minimum deposit requirement, and transactions are free. As a trader, you will never have to worry about unnecessary fees. With commissions starting from 0%, XTB is a great option for budget-conscious traders or beginners who want to start small. On top of that, this broker offers competitive interest rates on uninvested funds up to 4.5% interest rate on GBP of your uninvested funds. This adds even more value, making it an appealing choice for traders looking to maximise returns.
XTB
✔5,700+ financial instruments
✔No minimum deposit requirement
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Adequate penny stocks to explore and diversify your portfolio with
- Quality research and learning tools
- Commission-free penny stock trading
Cons
- Doesn’t feature third-party trading platforms
- Only CFD assets are available
XTB is a cost-effective trading platform. We used a live account to assess its fees and commissions. The first applaudable aspect we noticed is setting up an account with this broker is quick and easy. Furthermore, there’s no set XTB minimum deposit requirement, and the platform supports free transactions. When it comes to withdrawals, transactions above £50 are free.
That aside, we noticed various mandates on the XTB UK trading platform during our exploration. For starters, this entity has a £10 minimum order requirement for shares from companies like the Associated British Food PLC. Additionally, it requires users to cover a 0.5% conversion fee while trading with anything besides the base currency.
Not to forget, XTB charges different spreads for different instruments and requires traders who hold open positions to cover swap costs.
3. Interactive Brokers – Best For UK Professional Traders
If you’re a professional trader looking for a solid penny stock broker, Interactive Brokers (IBKR) is one I’d highly recommend. After testing it myself, I found that it offers penny stock trading at incredibly low commissions, starting from 0% on US-listed stocks. Beyond that, it gives access to over 10,000 assets, including shares from 90+ global markets, forex, commodities, indices, ETFs, and more.
One thing that really stood out to me is the wealth of learning and research materials available. While IBKR doesn’t support third-party platforms like MT4 or MT5, I found its own platforms, namely IBKR Desktop, Trader Workstation, and IBKR Mobile, to be more than reliable. The IBKR GlobalTrader mobile app, in particular, is very user-friendly, making it a great choice for beginners who want to get started without feeling overwhelmed. IBKR has no minimum deposit requirement, offers zero charge transactions, and no inactivity fees.
Interactive Brokers
✔No minimum deposit requirement
✔Zero inactivity fees for individual trading accounts
Pros & Cons
Fees
Trading Assets
Pros
- No account minimum requirement
- Less than £1 per share on penny stock trading
- Excellent research resources
- Hosts a virtually funded Free Trial account for testing its performance and gauging your skill level
Cons
- A challenging desktop platform to navigate
- No third-party platforms like the MT4/5
Numerous factors, including the £0 Interactive Brokers minimum deposit UK requirement, made our exploration easier and more enjoyable. This trading platform allows users to trade and invest with whatever they can afford, making it ideal even for traders and investors working with a restricted budget.
We were also wowed by the friendly Interactive Brokers fees UK policies. For starters, this company offers free deposits to people who use supported payment methods, including bank transfers. Only people who use physical currency deposits are subjected to a 1% special handling fee. Moreover, this service provider has zero inactivity fees and commissions as low as £0.0005 for stocks and ETFs.
4. Spreadex – One of the Cheapest Options
If you’re looking for a budget-friendly way to trade penny stocks in the UK, Spreadex is one of the best trading platforms UK I’ve come across. There’s no minimum deposit requirement, and all transactions are free. This makes it a great choice for beginners or traders who want to start small. I traded several penny stocks from its vast selection and found the trading fees to be among the lowest available.
The platform itself is user-friendly, catering to traders of all experience levels. One thing that really stood out to me was the quality of customer support. I reached out during my testing, and the team was not only responsive but also provided genuinely helpful solutions. While they don’t operate 24/7, you can get in touch via email, phone, or live chat.
Another plus is the solid selection of learning and market research materials, available both on Spreadex’s proprietary platform and through TradingView. However, one downside is the lack of a demo account, which would have been useful for testing strategies before trading real money.
Spreadex
✔10,000+ financial instruments
✔Zero account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- A comprehensive selection of penny stocks for diverse investment opportunities
- Competitive pricing, thus enhancing affordability for traders
- Exceptional support services, providing guidance and insights for penny stock trading
Cons
- No demo account
- Limited market analysis resources compared to its peers
We analyzed Spreadex’s fees and commissions since these elements can impact a trader’s profitability. The first impressive aspect that caught our attention is this broker’s £0 minimum deposit requirement. You can deposit any amount into your Spreadex account and start trading almost instantly. Furthermore, the broker charges zero account maintenance and inactivity fees.
What’s more, Spreadex has tight spreads and commissions. While trading with this broker, you can enjoy low spreads starting from 0.9 pips for GBP/USD, 0.001 pips for USD/INR, and 0.6 pips for EUR/USD. However, note that this broker charges overnight financing fees for positions held overnight.
Find out more about the Innovations in Trading in our other guide.
How to Choose Penny Stock Broker
Trading penny stocks in the UK is much more than choosing cheap shares. There is research, a strategy, and, most importantly, the right broker. I know how painstaking it may be to try to find a broker that fits your trading style and budget from sifting through all the options. So, if you are wondering where to start, let me tell you the key things I keep in mind when selecting a penny stock broker.
Licences/Regulations
Platform
Charges
Available Assets
Customer Service
Demo Account
User Testimonials
The first thing I check is whether the broker is licensed and regulated, which would be non-negotiable for me. All the brokers I have recommended above are FCA-regulated, meaning they comply with stringent financial standards and thus offer larger protection for your funds. If you are investigating other brokers, then settle with ones regulated by the Financial Conduct Authority (FCA) or any other reputable regulatory authority. Trading with an unregulated broker may make you a victim of scammers.
Penny stocks are volatile, so you need the best online trading platform in the UK that is able to keep up with price moves. I always choose brokers that place importance on real-time trade execution. That way, I don’t encounter price slippage when I need to make a quick decision. The platform should also have an intuitive interface, customisation options, and be available on desktop and mobile so that I can trade at any time and place. Additional elements like research tools and learning resources will go a long way in helping find good trades.
Penny stocks are cheap but trading these is not always free. Before agreeing to trade with any broker, I always intervene to have a close analysis of its fee structure. Some brokers provide commission-free trading, while others charge fees for transactions, inactivity, or even deposits and withdrawals. Hidden costs can eat into your profits, so always check the fine print.
The best trading platform UK will not just give access to a few shares. It gives access to thousands from various companies. I also prefer brokers that allow me to diversify into forex, ETFs, commodities, etc. This way, I will be able to go around different markets without needing to open up multiple accounts.
What I learned over the years is that good customer service can make a difference, especially in navigational issues while trading. Some offer 24/7 support; others are only approachable during business hours. No matter when they are available, I always check brokers that offer various contact methods, including live chat, email, and phone support. A quick test message to support may provide great insight.
I never trade live before I run through my test with the broker. It is a risk-free way of trying the platform, scrutinising its trading conditions, and finally deciding whether or not it fits me. Any competent broker will offer a demo account, but it is especially important for one with slightly heavier charges and a higher minimum deposit.
Even after ticking all the boxes above, I still go on to do some digging about customer reviews. The experiences of other traders will tell you about things not found in a broker’s promotional material. Generally, I look around on Trustpilot, Google Play, and the App Store, just to find out what people say about everything from platform quality, customer service, withdrawal processes, and fees.
How to Start with Penny Stock Broker
Now that you’ve got a solid list of penny stock brokers in the UK, the next question is—how do you actually get started? I remember how overwhelming it felt when I opened my first account, but trust me, it’s a straightforward process once you know what to do. Here’s a step-by-step guide to help you set up your account and start trading penny stocks.
Step 1: Visit your broker’s official website
Step 2: Create a penny stock trading account
Step 3: Participate in account verification
Step 4: Make a deposit
Step 5: Trade penny stock
Once you’ve picked a broker, head over to its official website. If you’re going with one of my recommended brokers, you can click the links above to get there quickly. Before diving in, I always take a moment to review the broker’s terms and conditions—boring but necessary. Also, if it has a mobile trading app, I install it right away so I can keep an eye on my trades even when I’m on the go.
Next, you’ll need to create an account by entering personal details like your name, email, phone number, and sometimes even your source of income. At this stage, I always make sure to set a strong password because online security is a big deal when it comes to trading. Just make sure all the information you provide is accurate—you’ll need to verify it later.
Before you can start trading, your broker will ask you to verify your identity. This is standard for all FCA-regulated brokers, and while it might seem like a hassle, it’s actually a good thing. It keeps the platform secure and protects traders from fraud. Usually, I just upload a government-issued ID, passport or driver’s license and a recent utility bill or bank statement to confirm my identity and address. Most brokers process this within a few hours, but some might take up to a day.
Once your account is verified, you will get an email notification letting you know that you can deposit funds. Before sending money, always check the broker’s minimum deposit requirements and any transaction fees. Plus, choose a payment method that’s convenient for you—whether that’s a bank transfer, credit/debit card, or e-wallet. Some deposits are instant, while others, like bank transfers, might take a bit longer.
With funds in your account, it’s time to start trading! I usually begin by researching the listed penny stocks to find the best opportunities. Depending on your strategy, you can trade penny stocks as CFDs or indices or even buy the shares outright and hold onto them. It is crucial to set risk management controls like stop-loss and take-profit levels to protect your trades from major losses if the market moves against you.
How we test
InvestingGuide comprises a team of professionals with decades of experience. Before making recommendations, my partners and I test them and approve them first. Penny stock brokers are no exception. Our research starts with collecting hundreds of FCA-regulated brokers in the UK. We test their performances and compare their features before shortlisting those that meet our specifications.
We also visit Google Play, the App Store, and Trustpilot to analyse user testimonials and ratings. We believe doing so and combining the findings with our test results help us remain unbiased in this process. You can visit our “How We Test” page to learn more about our testing process.
Final Thoughts
Penny stock trading allows traders to venture into the stock market without spending a lot of money. With the right broker, you can explore the UK shares market with as little as £1. Simply conduct thorough market research to select an option that aligns with your requirements.
As mentioned earlier, the stock market is volatile, and while you may earn profits from penny stock trading, losses are inevitable. Therefore, consider keeping a trading diary that entails all your trading strategies. This will help you easily identify your mistakes and avoid repeating them. Plus, start exploring the share market with a broker’s demo account and spread your risks across multiple shares.
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Great article! I’ve traded with brokers like XTB and Interactive Brokers, and both offer great low fees and a wide range of assets.