Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

10 best penny stocks

These are the 10 best penny stocks to buy now on the NYSE and Nasdaq.

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

Alternative pick for crypto trading

Go to site
  • $0 commission trading
  • Instant withdrawals with a 1.75% fee
  • Supports 250+ cryptocurrencies
  • High-yield account earns up to 4.65% APY
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.

Top pick for advanced traders

Go to site
  • Trade options, futures, options on futures, stocks, ETFs
  • $0 commission to close options
  • Pro-grade platform and risk analysis tools

Top pick for best mobile experience

Go to site
  • 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.

LogoStock and tickerStock descriptionYTD returnVolumeMarket Cap
MSP Recovery Inc logoBit Digital Inc (BTBT)BTBT is a cryptocurrency mining company involved in the production of digital assets, notably Bitcoin.244.17%3.1M176.01M
Bitfarms Ltd logoBitfarms Ltd. (BITF)BITF is a cryptocurrency mining company engaged in the mining of Bitcoin and other digital currencies.146.77%6.9M263.25M
Cybin Inc logoCybin Inc (CYBN)CYBN is a biotechnology company dedicated to developing innovative therapies for mental health disorders using psychedelic medicines.97.91%4.80M141.95M
BigBear.ai Holdings logoBigBear.ai Holdings (BBAI)BBAI is a technology company specializing in artificial intelligence, machine learning, and data analytics solutions.77.38%2.33M184.66M
American Superconductor Corp logoAmerican Superconductor Corp (AMSC)AMSC is a global energy solutions provider, specializing in renewable energy and grid solutions, including wind and power systems.72.15%2.61M192.64M

Buy now

TeraWulf Inc logoTeraWulf Inc (WULF)WULF is a cryptocurrency mining company specializing in sustainable Bitcoin mining and utilizing green energy sources.65.26%6.09M242.47M
Rigetti ComputingRigetti Computing (RGTI)RGTI is a quantum computing company that provides quantum hardware, software, and cloud-based services. 38.51%6.60M137.64M
Eos Energy Enterprises Inc logoEos Energy Enterprises Inc (EOSE)EOSE is a company that focuses on energy storage solutions, particularly zinc-based battery technologies for grid and industrial applications12.50%8.04M224.43M
Zomedica Inc logoZomedica Inc (ZOM)ZOM is a veterinary diagnostic and pharmaceutical company known for developing innovative products and solutions for companion animals’ healthcare.7.73%3.43M172.08M

Buy now

VistaGen Therapeutics logoVistaGen Therapeutics (VTGN)VTGN is a biopharmaceutical company dedicated to developing innovative therapies for mental health disorders and neurological conditions.-1.13%2.00M74.08M

Buy now

How to buy the best penny stocks 5 easy steps

  1. Choose an online stock trading platform. Choose from our Top Picks above or jump straight to the best stock trading apps of 2024.
  2. Sign up for an account. Provide your personal information and sign up.
  3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
  4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
  5. 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.

Frequently asked questions about penny stocks

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.

More on investing

Inflation stocks

Inflation stocks

Here are the stocks that benefit from inflation, as well as industries to keep an eye on to reduce the impacts of inflation on your portfolio.

Read more…
Matt Miczulski's headshot
Written by

Editor, Investments

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 207 Finder guides across topics including:
  • Trading and investing
  • Broker and trading platform reviews
  • Money management

More guides on Finder

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site