We compiled a list of the best penny stocks based trade volume, market cap and, of course, price. These are stocks that traded below $5 at the time we compiled the list. The stocks on this list are investment ideas only, and should not be taken as advice. You should still do your own research before deciding to invest.
Our top picks for brokers to buy penny stocks
Best for beginners
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- Min. deposit: $0
- Uninvested cash APY: 0.01%
- Sign up bonus: Get up to $1,000 in stock when you fund a new account within 30 days
Best for options trading
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- Min. deposit: $0
- Uninvested cash APY: N/A
- Sign up bonus: Get $100-$5,000 when you open an account with $5,000 to $1,000,000+
Best for alternative investments
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- Min. deposit: $0
- Uninvested cash APY: 0.01%
- No bonus
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10 best penny stocks to buy now
Here are the top 10 penny stocks based trade volume, market cap and, of course, price. These are stocks that traded below $5 at the time we compiled the list.
| Logo | Stock and ticker | Stock description | YTD return | Volume | Market Cap | |
|---|---|---|---|---|---|---|
 | Bit Digital Inc (BTBT) | BTBT is a cryptocurrency mining company involved in the production of digital assets, notably Bitcoin. | 244.17% | 3.1M | 176.01M | |
 | Bitfarms Ltd. (BITF) | BITF is a cryptocurrency mining company engaged in the mining of Bitcoin and other digital currencies. | 146.77% | 6.9M | 263.25M | |
 | Cybin Inc (CYBN) | CYBN is a biotechnology company dedicated to developing innovative therapies for mental health disorders using psychedelic medicines. | 97.91% | 4.80M | 141.95M | |
 | BigBear.ai Holdings (BBAI) | BBAI is a technology company specializing in artificial intelligence, machine learning, and data analytics solutions. | 77.38% | 2.33M | 184.66M | |
 | American Superconductor Corp (AMSC) | AMSC is a global energy solutions provider, specializing in renewable energy and grid solutions, including wind and power systems. | 72.15% | 2.61M | 192.64M | Buy now |
 | TeraWulf Inc (WULF) | WULF is a cryptocurrency mining company specializing in sustainable Bitcoin mining and utilizing green energy sources. | 65.26% | 6.09M | 242.47M | |
 | Rigetti Computing (RGTI) | RGTI is a quantum computing company that provides quantum hardware, software, and cloud-based services. | 38.51% | 6.60M | 137.64M | |
 | Eos Energy Enterprises Inc (EOSE) | EOSE is a company that focuses on energy storage solutions, particularly zinc-based battery technologies for grid and industrial applications | 12.50% | 8.04M | 224.43M | |
 | Zomedica Inc (ZOM) | ZOM is a veterinary diagnostic and pharmaceutical company known for developing innovative products and solutions for companion animals’ healthcare. | 7.73% | 3.43M | 172.08M | Buy now |
 | VistaGen Therapeutics (VTGN) | VTGN is a biopharmaceutical company dedicated to developing innovative therapies for mental health disorders and neurological conditions. | -1.13% | 2.00M | 74.08M | Buy now |
How to buy the best penny stocks 5 easy steps
- Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table or jump straight to the best stock trading apps of 2024.
- Sign up for an account. Provide your personal information and sign up.
- Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
- Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
- Place your order. Buy the stock. It’s that simple.
Compare more trading platforms to buy penny stocks
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What are penny stocks?
In general, a penny stock refers to a company’s stock that trades below $5 per share, many of which are available on the major exchanges. Some narrow the definition to include only stocks of small-cap companies that trade on the over-the-counter (OTC) market for less than $1 per share. For our list of best penny stocks, we stuck with exchange-listed stocks with share prices below $5 with a “micro” market cap between $50 million and $300 million. These stocks have the potential to make big intraday moves and are relatively cheap enough to build large positions.
Advantages and disadvantages of penny stocks
Generally, penny stocks tend to be riskier and more volatile than, say, a stable company like Apple or Coca-Cola. This is especially true for penny stocks that trade on the OTC market.
Though the Financial Industry Regulatory Authority (FINRA) regulates the OTC Bulletin Board market and requires companies to submit current financial reports to the SEC, this isn’t the case with the privately owned OTC Link. Companies that trade on OTC Link tend to be very small, with illiquid stocks. They’re also not required to file periodic reports or audited financial statements with the SEC, making it difficult for investors to find current, reliable information about them.
Despite the added risks, penny stocks are attractive for multiple reasons. It’s their low entry price that makes them particularly appealing. It allows investors to purchase a relatively large number of shares, providing the potential to make quick, and sometimes significant, gains if the stock rises.
Pros and cons of penny stocks
Pros
- Lower stock prices can allow investors to buy more shares for less money, which can result in bigger profits.
- Increased volatility can lead to rapid gains.
Cons
- OTC Link companies are high-risk, as they don’t have the same level of disclosure requirements as the major exchanges.
- Liquidity issues can prevent investors from being able to sell if share prices rise.
- Increased volatility can lead to rapid losses.
- A low share price could be a signal the company isn’t doing well.
Frequently asked questions about penny stocks
-
According to our analysis, as of October 2023, the top 3 penny stocks to buy right now are:
- MSP Recovery Inc (LIFW)
- Canoo Inc (GOEV)
- Meta Materials Inc (MMAT)
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According to our analysis, as of October 2023, the top 20 penny stocks are:
Company Ticker Market Cap Price Volume MSP Recovery Inc LIFW $82.55M $0.25 109,619,179 Canoo Inc GOEV $282.45M $0.45 6,928,368 Meta Materials Inc MMAT $108.72M $0.23 5,126,065 SoundHound AI Inc SOUN $71.98M $1.92 5,037,710 Bitfarms Ltd. BITF $242.72M $1 4,661,202 Workhorse Group Inc WKHS $81.81M $0.39 4,393,361 TeraWulf Inc WULF $242.14M $1.10 3,045,263 Terran Orbital Corp LLAP $126.49M $0.73 2,709,982 Tingo Group Inc TIO $195.12M $0.95 2,595,602 Lilium N.V LILM $268.13M $0.66 2,506,643 Esperion Therapeutics Inc. ESPR $99.34M $0.93 2,186,282 Rigetti Computing Inc RGTI $161.58M $1.22 2,157,366 Seres Therapeutics Inc MCRB $262.83M $2.05 2,131,318 Cybin Inc CYBN $133.81M $0.56 1,865,276 X4 Pharmaceuticals Inc XFOR $152.38M $0.93 1,790,038 Zomedica Corp ZOM $159.14M $0.16 1,456,660 Gevo Inc GEVO $262.33M $1.11 1,336,735 Bit Digital Inc BTBT $173.89M $2.05 1,314,039 D-Wave Quantum Inc QBTS $92.46M $0.93 1,090,927 Canaan Inc ADR CAN $264.19M $1.77 864,768 -
Yes, penny stocks traded in a taxable brokerage account are subject to the same taxes as any other stock.
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Robinhood supports seven of the 10 best penny stocks mentioned in our list. These include:
- Nomura Holdings, Inc. ADR (NMR)
- Mizuho Financial Group, Inc. ADR (MFG)
- Nokia Corp ADR (NOK)
- Ambev S. A. ADR (ABEV)
- Banco Bradesco S. A. ADR (BBD)
- IRSA Inversiones Y Representaciones Sociedad Anónima (IRS)
- Lloyds Banking Group PLC ADR (LYG)
How to buy penny stocks on Robinhood
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The best penny stocks platform would have to be Interactive Brokers, which offers $0 commission trades on US-listed stocks and low commissions on OTC stocks and stocks that trade on foreign exchanges.
Bottom line
- Many penny stocks are risky, but dedicating a small portion of your portfolio to these speculative stocks shouldn’t derail your investment goals.
- Always do your own due diligence before investing, especially in penny stocks.
- Though we hear stories of people getting rich from trading penny stocks, a majority turn out to be losers.
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