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.
Terms apply. Cryptoassets are highly volatile. Your capital is at risk. Available in the US, CA, UK and AU
Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.
Trade $0 commission stocks, ETFs, and options with as little as $1
After-hours trading available
Earn 4.5% interest on uninvested cash with Gold
24/7 customer support
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
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.
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.
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.
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.
Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio
Matt's expertise
Matt has written 208 Finder guides across topics including:
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
