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. However, if you’d like to access more cheap stocks from more markets, you can have a look at DEGIRO, which is rated as the “Top Rated Overall Investment Platform & Investment App 2020” by Investors Chronicle & Financial Times (UK).
Investing involves a risk of loss.
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 or similar stock trading platform 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.
How to buy the best penny stocks online?
Buying penny shares is simple if you’re using the Revolut stock trading app. You can buy penny shares from 31 companies on the Revolut stock trading app. On the trading platform, you’ll have access to common penny stock companies that are listed on popular exchanges like NYSE and NASDAQ. As mentioned above, these are the best penny stocks to buy since they are not traded ‘Over the counter’, are safer and more liquid.
To buy penny shares, you need a stock trading account with a stock trading broker. Once your stock trading account is activated, you need to look for company stocks priced below 5 USD per share.
31 Penny stocks on Revolut
|#||Company name||Symbol||Stock price (USD)||Sector||Industry||Market|
|1||McEwen Mining Inc||MUX||$1.05||Non-Energy Minerals||Metals Mining||NYSE|
|2||New Age Beverage||NBEV||$1.41||Consumer Non-Durables||Beverages||NASDAQ|
|3||Qudian||QD||$1.49||Technology Services||Credit Solutions||NYSE|
|4||New Oriental Education & Tech Group||EDU||$2.09||Consumer Services||Education||NYSE|
|5||Iamgold Corp||IAG||$2.26||Non-Energy Minerals||Gold Mining||NYSE|
|7||Companhia Energética de Minas Gerais||CIG||$2.59||Utilities||Energy Production||NYSE|
|9||Mizuho Financial Group||MFG||$2.80||Finance||Banking||NYSE|
|10||Ultrapar Participações||UGP||$2.81||Energy Minerals||Oil & Gas||NYSE|
|11||Harmony Gold Mining Company Limited||HMY||$3.18||Non-Energy Minerals||Metals Mining||NYSE|
|12||Invesco Mortgage Capital||IVR||$3.24||Finance||Real Estate||NYSE|
|13||B2Gold Corporation||BTG||$3.39||Non-Energy Minerals||Metals Mining||NYSE AMERICAN|
|14||Diversified Healthcare Trust||DHC||$3.53||Finance||Real Estate||NASDAQ|
|15||Opko Health||OPK||$3.58||Health Technology||Pharmaceuticals||NASDAQ|
|16||ATI Physical Therapy||ATIP||$3.79||Finance||Physical Therapy||NYSE|
|17||Talkspace||TALK||$3.84||Technology Services||Digital Healthcare||NASDAQ|
|18||TransEnterix||TRXC||$3.85||Commercial Services||Surgical Robotics||NYSE AMERICAN|
|19||BBVA Banco Francés||BBAR||$3.86||Finance||Banking||NYSE|
|21||Yamana Gold||AUY||$3.89||Non-Energy Minerals||Gold Mining||NYSE|
|22||Banco Bradesco S.A. – Preferred Shares||BBD||$3.99||Finance||Banking||NYSE|
|23||Five Star Senior Living Inc||FVE||$4.22||Health Services||Senior Living Home||NASDAQ|
|24||New York Mortgage Trust||NYMT||$4.31||Finance||Real Estate||NASDAQ|
|25||Clovis Oncology||CLVS||$4.47||Health Technology||Pharmaceuticals||NASDAQ|
|26||MFA Financial||MFA||$4.61||Finance||Real Estate||NYSE|
|27||YPF||YPF||$4.67||Energy Minerals||Oil & Gas||NYSE|
|28||Chico’s FAS||CHS||$4.80||Retail Trade||Apparel Retail||NYSE|
|29||Lexicon Pharmaceuticals||LXRX||$4.82||Health Technology||Biotechnology||NASDAQ|
|30||Tal Education Group||TAL||$4.82||Consumer Services||Education||NYSE|
- MUX – McEwen Mining Inc
- QD – Qudian
- EDU – New Oriental Education & Tech Group
- IAG – Iamgold Corp
- SUPV – Grupo Supervielle
- CIG – Companhia Energética de Minas Gerais
- ABEV – Ambev
- MFG – Mizuho Financial Group
- UGP – Ultrapar Participações
- HMY – Harmony Gold Mining Company Limited
- IVR – Invesco Mortgage Capital
- ATIP – ATI Physical Therapy
- BBAR – BBVA Banco Francés
- GNW – Genworth Financial
- AUY – Yamana Gold
- BBD – Banco Bradesco S.A. – Preferred Shares
- MFA – MFA Financial
- YPF – YPF
- CHS – Chico’s FAS
- TAL – Tal Education Group
- NMR – Nomura
- NBEV – New Age Beverage
- DHC – Diversified Healthcare Trust
- OPK – Opko Health
- TALK – Talkspace
- FVE – Five Star Senior Living Inc
- NYMT – New York Mortgage Trust
- CLVS – Clovis Oncology
- LXRX – Lexicon Pharmaceuticals
- TRXC – TransEnterix
- BTG – B2Gold Corporation
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 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 the most popular stock exchanged like NYSE, NASDAQ and others.
To buy penny stocks, you must have an account with a stocks 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 on 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.
At the moment, the cheapest stock on Revolut available for trading is McEwen Mining Inc (MUX), which is currently traded below 2 USD per share.