Penny Shares UK

Penny Shares UK list conducted by professional stock trading experts, In this article you will know how to open trading account with the best Penny Stocks UK brokers.

Penny Shares UK Introduction For Beginners

What are Penny Stocks?

It is not true that penny stocks cost one penny to buy. Penny stocks or penny shares refer to shares that are speculative in nature because of their low value. There are different criteria used by financial analysts to define a stock as a penny stock. Some analysts use the market capitalisation of less than 100 million pounds while others use the price of a share from 50p to 3pounds as a definition of a penny share.

Whatever criteria an analyst uses to describe a penny stock, the bottom line is that these companies will have a small amount of net tangible assets and a very short history. Because of this, penny stocks are very speculative and volatile which makes them both exciting trading prospects or very risky.

If penny stocks are so risky, why would anyone trade in them? The main reason to trade in penny shares is the profits one can make. If a blue chip company were to increase in value by 50p, it would not make a big difference in your profits. However, a penny stock you bought at 50p increasing in value by 50p will give you 100% profits.

Trading is penny stocks is not for everybody. The chances of a penny stock doing well are slim especially in the present market. If you believe in the product or service that a company offers or think it is going to be an emerging market, then you may consider investing in penny stock.

If you are still new in the stock market or have limited stock trading capital, you should avoid trading in penny stocks. Borrowing money to trade in penny shares is a sure way to lose money. Penny stocks are for the informed investor and you should take your time and do a lot of research before investing in them.

In the UK, the Alternative Investment Market (AIM) created in 1995 to gives small and young companies access to public financing. This is the main market where you can trade in penny shares before they are listed in the London Stock Exchange (LSE). The LSE also allows penny shares if they have a 3-year operating history and have 25% of their shares held by the public.

The Off Exchange (OFEX) is another market where you can trade in penny shares. The OFEX is not a regulated market and new traders should avoid it. Most penny shares are biotechnology companies, internet companies and very new share issues. The risk is high but the rewards for penny stocks can be huge.

Because of the volatility of penny stocks many online companies have created newsletters that they sell to investors, which they claim, have the best penny stocks. Some of these online companies are pure frauds and new investors should avoid them. However, some research companies have proved over the years that they can make profitable stock choices to the benefit of their members.

It is up to the individual investor to do due diligence to find out if penny stocks are good for them. Otherwise, new investors are encouraged to avoid penny shares until they are properly capitalised and have done good research.

What is a Stockbroker ?

A stockbroker is a professional individual who is usually associated with a brokerage firm that specializes in buying and selling stock and/or other securities through various investment markets or over the counter for a fee or commission.  The title of a stockbroker varies by profession depending on the type of license they hold, type of investment they sell or services they provide and country in which they are based.

In the United Kingdom, a stockbroker has to pass a series of exams in order to obtain a license and requirements vary from country to country, as do salaries for the profession.

Online Penny Shares UK Brokers List

All of the UK stock brokers in this list are regulated.


Fxpro Forex Broker Founded in 2006, London-based FXPro is an online broker offering Stocks and Forex trading along with CFD’s. The MT4, MetaTrader5 and cTrader online trading platforms are available.


Plus500 is a company providing online trading services to retail customers. Plus500 broker provides Stocks and binary options trading.

IG Group

IG Group is a UK-based stock company, While the majority of the IG Group’s activities are based in the UK, the company has expanded internationally. IG Markets is the oldest broker.

CMC Markets

CMC Markets is a UK-based financial derivatives dealer. The company offers online trading in spread betting, contracts for difference and foreign exchange across world markets.


24option is one of the world’s leading binary options trading platforms. Trade binary options on 60-second options of commodities, indices ,stocks and Forex.


HYCM previously known as HY Markets broker is headquartered in London and is authorized and regulated by the Financial Conduct Authority of the United Kingdom.


eToro is a social trading and multi asset brokerage company that has registered offices in Cyprus, Israel and the United Kingdom.

ETX Capital

ETX Capital broker provides Forex, Spread betting and CFD trading options for all types of investors – from tools and education to trading. broker offers seamless trading of over 300 trading assets. Trade stock, indices, currency, Binary options and CFDs with zero commission or fees on our top notch trading platforms, mobile or web.


AvaTrade was founded in 2006 in Dublin, Ireland and is licensed and fully regulated in the EU and BVI, as well as Australia, Japan and South Africa.

The CFD broker was established in 2009 in the Republic of Cyprus using the name Trading Point of Financial Instruments Ltd. The broker is regulated by CySEC as well as the UK’s Financial Services Authority (FSA).


Alpari Ltd was created in Russia in 1998 but moved its headquarters to the UK where it is registered and strictly regulated by the Financial Securities Authority (FSA), Alpari UK has merged with Alpari Global and Alpari US is registered with and overseen by a number of regulatory agencies.


FXTM is an acronym for, The FXTM forex broker is owned and operated by its holding company FT Global Services Ltd and is based in Cyprus, Belize and Europe’s trading capital of London, UK.  


The easyMarkets broker is the result of the re-branding of “easy forex“, the name under which this broker was established in 2003.

London Capital Group

London Capital Group Ltd was founded in 1996 in the United Kingdom and regulated by the Financial Conduct Authority (FCA) of the UK. LCG trading began offering capital spreads in 2003.


Fxstay UK broker provides professional Forex managed accounts service to its clients.

TD Ameritrade

TD Ameritrade UK is an online broker. TD Ameritrade Holding Corporation is the owner of TD Ameritrade Inc.


FMR LLC or Fidelity Investments is an American multinational financial services corporation and support UK traders.

Interactive Brokers

Interactive Brokers Group Inc is a true online ECN brokerage, You can trade bonds, stocks, Forex, options and futures in bulk orders with this broker.

The broker Owned by parent company GAIN Capital . Operating since 1999, was a first mover in bringing currency markets to the retail trader.


Forex Capital Markets, better known as FXCM, is an online stock broker based in the United Kingdom.


OANDA broker is a Canadian-based company and support UK traders, In 1996, OANDA Corporation, the US subsidiary, was incorporated in the state of Delaware.

Other Penny Shares UK Brokers

The UK brokers list below is without Any Rating and its just for your information to know more about other brokers, If you want to open demo or live online trading account then use brokers at top of this page, this list will update.

HotForexInstaForexGCI TradingFxopenTrade360TradeoIQ optionExness

Best Penny Shares UK Brokers Conclusion

If you like this article about Best Penny Shares UK Brokers conducted by ForexSQ stock trading experts then share it please, Please note investing in the stock market contains risk of losing your capital so invest the amount you can afford to lose it.

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