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

Robinhood Penny Stocks: Top Picks and How to Buy

Learn how to buy penny stocks on Robinhood and what to watch out for.

Like most brokers, Robinhood offers access to penny stocks — stocks that trade for less than $5 per share.

Here’s how to find and purchase penny stocks on Robinhood using its different screeners and trending lists.

How to buy penny stocks on Robinhood

  1. Open and fund your account. Navigate to Robinhood’s website or select Go to site below to sign up for an account. Link your bank account or debit card and deposit funds for investing.
  2. Pick a stock. Follow our instructions on this page to find penny stocks on Robinhood. Research potential stocks until you’re comfortable investing your money.
  3. Select your order type. Choose between a market, limit, stop loss, stop-limit or trailing stop order.
  4. Enter the number of shares to buy. Choose between buying in whole shares or fractional shares. With fractional shares, you can invest specific dollar amounts, as low as $1.
  5. Review your order. Select Review Order and look over the details of your order to ensure the information is correct.
  6. Submit. Confirm your purchase by swiping up on mobile or selecting Buy on the desktop platform.
Robinhood logo

Sign up with Robinhood now

  • $0 stock trade fee
  • $0 min. deposit to open
  • Make unlimited commission-free trades, plus earn 4.5% interest on uninvested cash in your account with Robinhood Gold.

How to find penny stocks on Robinhood

Robinhood provides curated lists of stocks under the Trending Lists section of the platform. Unfortunately, penny stocks isn’t one of them. To find the best penny stocks on Robinhood, you’ll need to play with some filters:

  1. Log in to your Robinhood account.
  2. Select the magnifying glass in the upper right corner to pull up the search function. Next to Stock screeners, select Create to create a custom screener.
  3. Select Add filter, then select Share price from within the Price section.
  4. Select Under $5 to create a custom screener that filters available penny stocks.
  5. Select Show 250+ items to view the results.

Use this same process to find penny stocks on Robinhood’s curated lists. Select any list and rearrange the stocks in ascending order. You may see repeat stocks across the different lists, but this gives you a way to filter penny stocks on Robinhood.

Penny stocks on Robinhood

If you follow the instructions on this page, you’ll populate a list of over 250 penny stocks on Robinhood that will update as market prices change. Further filter the stocks on this list by sorting by price, one day percentage change, volume or market cap.

The following penny stocks currently trade under $5 as of August 2024, have analyst recommendations of Buy or better and have over 1 million in average volume for liquidity. All are available on Robinhood.

StockYear-to-date performanceLink to invest
Clover Health Investments (CLOV)177.8%

Buy now

Beamr Imaging (BMR)151.0%

Buy now

Ocugen (OCGN)127.4%

Buy now

Personalis (PSNL)124.8%

Buy now

Aquestive Therapeutics (AQST)110.4%

Buy now

Geron (GERN)110.0%

Buy now

Mira Pharmaceuticals (MIRA)88.8%
Nuvation Bio (NUVB)82.8%

Buy now

American Rebel Holdings (AREB)80.7%

Buy now

CXApp (CXAI)80.6%

Source: Finviz. Performance accurate as of August 15, 2024.

Penny stocks require diligent research, and even then, they can be volatile and unpredictable. It’s essential to approach them with a clear strategy and a willingness to accept potential losses.

Risks to consider before you buy penny stocks

  • Limited track record. Low-dollar stocks tend to come from companies with a limited financial history, which may make it difficult for you to vet the stock.
  • Lack of transparency. Penny stocks that trade on the OTC Link market are not required to submit audited financials to the Securities and Exchange Commission (SEC).
  • Illiquidity. Penny stocks tend to trade at a lower volume than well-known companies or blue-chip stocks, which can make them more difficult to buy and sell.
  • Unpredictable. Penny stocks have a reputation for volatility: They’ve been known to experience drastic swings in price — sometimes over the course of a single day — which can lead to substantial losses.

Can I day trade penny stocks on Robinhood?

Yes, it’s possible to day trade penny stocks on Robinhood. But Robinhood margin account holders like Robinhood Instant accounts can only execute up to three day trades in a five trading day period.

A day trade is any security that is bought and sold on the same trading day. But day trading is a highly risky trading method. To execute a profitable day trade, you must be able to competently wield numerous trading strategies alongside a robust understanding of the market you plan to trade in.

The Pattern Day Trading rule

The Pattern Day Trading rule is set by the Financial Industry Regulatory Authority (FINRA) and governed by the SEC, and applies to all US brokers. According to the rule, margin account holders are limited to three day trades within a five trading day period, unless they have at least $25,000 of portfolio value at the end of the previous day.

Robinhood account holders who place more than three day trades within a five-day trading period will be flagged as a pattern day trader (PDT). If this happens, you can’t place any day trades for 90 days unless you bring your account value above $25,000.

Keep track of how many day trades you’ve made by scrolling down to the Day Trades section from within the the Investing page of your Account.

Can I day trade if I downgrade to a Cash account?

Yes, you can day trade by downgrading your margin-enabled account to a cash account. Robinhood cash account holders can trade stocks, exchange-traded products (ETPs) and options without day trade restrictions.

Here’s how to switch to a Robinhood cash account via mobile app:

  1. Head to the Account tab (picture of a silhouette) in the bottom-right corner of the screen.
  2. Tap the hamburger menu (three horizontal bars) in the top-right corner of the screen, and then select Investing.
  3. Scroll down and select Day trade settings.
  4. Select Switch to cash account.

Is Robinhood good for day trading?

Even with all the right tools at their disposal, day traders often face sizable losses. And Robinhood isn’t well-equipped to cater to this style of trading. Robinhood has recently improved its advanced charting capabilities, but it still lags behind competitors like Charles Schwab or even Webull in terms of advanced charting and analysis tools. Without these advanced tools and indicators, day trading penny stocks on Robinhood could lead to uninformed trades that result in crippling losses.

Compare Robinhood to other stock trading platforms

1 - 9 of 9
Name Product USFST Ratings Available asset types Stock trade fee Minimum deposit Cash sweep APY Signup bonus
SoFi Invest®
Finder Score: 4.2 / 5: ★★★★★
SoFi Invest®
★★★★★
Stocks, Options, Mutual funds, ETFs, Alternatives
$0
$0
0.02%
Get up to $1,000 in stock
Zero-commission stocks, ETFs and options, with no options per-contract fees. Plus, a no-advisory-fee robo-advisor and complimentary access to financial planners.
Tastytrade
Finder Score: 4.4 / 5: ★★★★★
Tastytrade
★★★★★
Stocks, Options, ETFs, Cryptocurrency, Futures, Treasury Bills
$0
$0
N/A
Get $50-$5,000
Competitive, capped options commissions, with a reliable trading platform designed for serious traders.
Robinhood
Finder Score: 4.5 / 5: ★★★★★
Robinhood
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
4.5%
Get a free stock
Trade stocks, options, ETFs and crypto without commissions and on a user-friendly platform. Plus, a 1% IRA match and no options contract fees.
OPTO
Finder Score: 3.1 / 5: ★★★★★
OPTO
★★★★★
Stocks, ETFs
$0
$0
N/A
Earn up to $300
AI-driven thematic investing, with proprietary research, fractional shares and commission-free stocks and ETFs.
eToro
Finder Score: 4 / 5: ★★★★★
EXCLUSIVE
eToro
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
4.9%
FINDER EXCLUSIVE: Get a guaranteed $15 bonus and $10 in free crypto
No commission stock, ETF and options trades, with 4.9% interest on your options account balance and no options contract fees.
Public.com
Finder Score: 4.3 / 5: ★★★★★
Public.com
★★★★★
Stocks, Bonds, Options, ETFs, Cryptocurrency, Alternatives, Treasury Bills, High-yield cash account
$0
$0
4.6%
Get up to $10,000 and transfer fees covered
Build a diversified portfolio of stocks, bonds, options, ETFs, crypto and alternative assets, with a high-yield cash account and options contract rebates.
Stash
Finder Score: 3.7 / 5: ★★★★★
Stash
★★★★★
Stocks, ETFs
$0
$0
0.1%
Get $10 when you sign up and deposit $5
Automated investing, individual stock and ETF investing and banking services for as low as $3 per month.
Wealthfront
Finder Score: 4.5 / 5: ★★★★★
Wealthfront
★★★★★
Stocks, ETFs
$0
$500
5%
Get $50
Automated stock and bond ETF investing with the ability to trade individual stocks for as little as $1 apiece.
Zacks Trade
Finder Score: 3.8 / 5: ★★★★★
Zacks Trade
★★★★★
Stocks, Bonds, Mutual funds, ETFs, CDs
$0.01
$250
2.83%
Get up to $500
Trade stocks, options, ETFs, mutual funds and bonds, with powerful trading tools and low margin rates.
loading

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.

Frequently asked questions

Can I buy penny stocks on Robinhood?

Yes, you can buy penny stocks on Robinhood — but the selection is limited to US exchange-listed penny stocks and specific penny stocks that trade over-the-counter (OTC). As of August 2024, Robinhood supports over 300 American Depository Receipts (ADRs) that trade on the OTC market. Of those, we counted 67 ADRs that trade for under $5 per share.

How hard is it to sell penny stocks?

Selling penny stocks can be hard if that particular penny stock lacks liquidity, which means it trades infrequently.

What are OTC penny stocks?

OTC penny stocks are stocks sold through the electronic OTC Bulletin Board (OTCBB) or on the OTC Link market instead of through a publicly traded exchange like the Nasdaq or NYSE.

What are the cheapest penny stocks on Robinhood?

As of August 15, 2024, the cheapest penny stocks on Robinhood are:

  • Esprit Holdings (ESPGY) – $0.03
  • Vocodia Holdings (VHAI) – $0.04
  • ENDRA Life Sciences (NDRA) – $0.05
  • AgriFORCE Growing Systems (AGRI) – $0.06
  • Verb Technology (VERB) – $0.07

Is Robinhood good for penny stocks?

Robinhood offers decent access to penny stocks. As of August 2024, Robinhood offers access to over 250 penny stocks.

More on investing

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 213 Finder guides across topics including:
  • Trading and investing
  • Broker and trading platform reviews
  • Money management
Shannon Terrell's headshot
Co-written by

Editor

Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise. She holds a bachelor’s degree in communications and English literature from the University of Toronto Mississauga. See full bio

's expertise
has written 169 Finder guides across topics including:
  • Share trading
  • Robo-advisors
  • Merchant services

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