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 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 Etoro or Revolut stock trading app. You can buy penny shares from 21 companies on the Revolut stock trading app, but in the Etoro platform, you can buy penny shares from many more companies, as well as from multiple regions or markets. On both trading platforms, 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.
21 Penny stock on Revolut
|McEwen Mining Inc||MUX||1,32||Non-Energy Minerals||Metals Mining||NYSE|
|New Age Beverage||NBEV||2,24||Consumer Non-Durables||Beverages||NASDAQ|
|Companhia Energética de Minas Gerais||CIG||2,42||Utilities||Energy Production||NYSE|
|Qudian||QD||2,45||Technology Services||Credit Solutions||NYSE|
|Mizuho Financial Group||MFG||2,88||Finance||Banking||NYSE|
|Iamgold Corp||IAG||2,9||Non-Energy Minerals||Gold Mining||NYSE|
|BBVA Banco Francés||BBAR||3,32||Finance||Banking||NYSE|
|Harmony Gold Mining Company Limited||HMY||3,68||Non-Energy Minerals||Metals Mining||NYSE|
|Ultrapar Participações||UGP||3,8||Energy Minerals||Oil & Gas||NYSE|
|TransEnterix||TRXC||3,85||Commercial Services||Surgical Robotics||NYSE AMERICAN|
|Invesco Mortgage Capital||IVR||3,92||Finance||Real Estate||NYSE|
|Opko Health||OPK||4,08||Health Technology||Pharmaceuticals||NASDAQ|
|Diversified Healthcare Trust||DHC||4,15||Finance||Real Estate||NASDAQ|
|B2Gold Corporation||BTG||4,19||Non-Energy Minerals||Metals Mining||NYSE AMERICAN|
|Yamana Gold||AUY||4,19||Non-Energy Minerals||Gold Mining||NYSE|
|New York Mortgage Trust||NYMT||4,43||Finance||Real Estate||NASDAQ|
|YPF||YPF||4,55||Energy Minerals||Oil & Gas||NYSE|
|MFA Financial||MFA||4,6||Finance||Real Estate||NYSE|
- MUX – McEwen Mining Inc
- QD – Qudian
- SUPV – Grupo Supervielle
- CIG – Companhia Energética de Minas Gerais
- MFG – Mizuho Financial Group
- IAG – Iamgold Corp
- ABEV – Ambev
- GNW – Genworth Financial
- UGP – Ultrapar Participações
- BBAR – BBVA Banco Francés
- IVR – Invesco Mortgage Capital
- MFA – MFA Financial
- HMY – Harmony Gold Mining Company Limited
- NBEV – New Age Beverage
- OPK – Opko Health
- DHC – Diversified Healthcare Trust
- NYMT – New York Mortgage Trust
- LXRX – Lexicon Pharmaceuticals
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 penny stocks, you must have an account with a stockbroker (i.e. Etoro). 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 Etoro, 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.