If you are not new to stock trading, you probably heard about the term penny stocks. Penny stocks are company stocks that sell below the 5 USD mark per share. The list of shares available on Revolut is not long, however, there are several companies shares available that would classify as penny stocks.
Your capital is at risk.
Common penny stocks risks
Penny stock trading comes with additional risks. Some of these stocks can be only bought ‘over the counter‘ (OTC). However, some companies can be acquired and sold on online trading platforms like Revolut trading or similar alternatives. The most common risks associated with penny stock trading are:
- Penny stock companies may not be able to provide enough financial data to supervisory authorities. It leaves room for potential fraud or illegal activities by the company management. Usually, more common for companies that sell ‘over the counter’.
- Less valuable companies may still fight for their market share to survive in the market.
- The company may be in financial trouble. I.e. The company is filing for bankruptcy, so their further existence is under question.
- These companies are usually less liquid, and you may not be able to sell them at the price you desire.
However, there are multiple tiers for penny stocks, and you can avoid some of the risks mentioned above. Revolut made available only penny stocks that are traded on exchanges like NASDAQ, NYSE and NYSE AMERICAN. These companies are required to meet a certain criterion to be listed on these exchanges.
30 Penny stocks on Revolut
|#||Company name||Symbol||Stock price (USD)||Sector||Industry||Market|
|1||McEwen Mining Inc||MUX||$1.15||Non-Energy Minerals||Metals Mining||NYSE|
|4||Qudian||QD||$1.91||Technology Services||Credit Solutions||NYSE|
|5||Uxin||UXIN||$2.15||Technology Services||Car Dealership||NASDAQ|
|6||New Age Beverage||NBEV||$2.23||Consumer Non-Durables||Beverages||NASDAQ|
|7||Companhia Energética de Minas Gerais||CIG||$2.43||Utilities||Energy Production||NYSE|
|8||BBVA Banco Francés||BBAR||$2.55||Finance||Banking||NYSE|
|9||Mizuho Financial Group||MFG||$2.83||Finance||Banking||NYSE|
|10||Ambev||ABEV||$2.92||Consumer Non-Durables||Beverages: Alcoholic||NYSE|
|11||Chico’s FAS||CHS||$2.98||Retail Trade||Apparel Retail||NYSE|
|12||Iamgold Corp||IAG||$3.34||Non-Energy Minerals||Gold Mining||NYSE|
|13||YPF||YPF||$3.75||Energy Minerals||Oil & Gas||NYSE|
|14||Invesco Mortgage Capital||IVR||$3.81||Finance||Real Estate||NYSE|
|16||Ultrapar Participações||UGP||$3.86||Energy Minerals||Oil & Gas||NYSE|
|17||Southwestern Energy||SWN||$3.91||Energy Minerals||Oil & Gas||NYSE|
|18||Banco Bradesco S.A. – Preferred Shares||BBD||$4.24||Finance||Banking||NYSE|
|19||Opko Health||OPK||$4.27||Health Technology||Pharmaceuticals||NASDAQ|
|20||MFA Financial||MFA||$4.32||Finance||Real Estate||NYSE|
|21||BRF||BRFS||$4.33||Consumer Non-Durables||Food Production||NYSE|
|22||Diversified Healthcare Trust||DHC||$4.42||Finance||Real Estate||NASDAQ|
|23||New York Mortgage Trust||NYMT||$4.59||Finance||Real Estate||NASDAQ|
|24||EnLink Midstream LLC||ENLC||$4.63||Industrial Services||Oil & Gas||NYSE|
|25||Five Star Senior Living Inc||FVE||$4.70||Health Services||Senior Living Home||NASDAQ|
|26||Yamana Gold||AUY||$4.77||Non-Energy Minerals||Gold Mining||NYSE|
|27||RPC||RES||$4.77||Industrial Services||Oil & Gas Equipment||NYSE|
|28||Harmony Gold Mining Company Limited||HMY||$4.79||Non-Energy Minerals||Metals Mining||NYSE|
|30||Lexicon Pharmaceuticals||LXRX||$4.97||Health Technology||Biotechnology||NASDAQ|
Questions about penny stocks
Penny stock is a company stock that is publicly traded and is priced below 5 USD per share.
Penny stocks are riskier than any other stocks so you must be careful. A good penny stock to buy must not be overpriced and should have good market potential. You may find a good penny stock in the list above.
To day trade penny stocks, you should look at first tier penny stocks that are available on stock trading platforms and have enough liquidity. Such companies are usually already listed on most popular stock exchanged like NYSE, NASDAQ and others.
To buy a penny stocks, you must have an account with a stock broker. Then you can look for stocks that are priced below 5 USD and submit a buy order. However, not all penny stocks are available in online trading platforms. Some penny stocks are traded ‘over the counter’.
You can buy some more established penny stocks on trading platforms or apps like Revolut Trading (in Europe) and Robinhood (in the US). For less valuable penny stocks that are priced below 1 USD, you can use online trading platforms like Interactive Brokers or TD Ameritrade.