Robinhood Penny Stocks – $0 Commissions!

robinhood penny stocks

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If you are looking for the cheapest stocks on Robinhood penny stocks are an obvious place to being your search.

But it won’t take long before you discover that the best stocks under $1 are not necessarily the best places to invest your hard-earned money.

While it’s tempting to buy marijuana stocks that are low-priced or scan a list of blockchain stocks under $1 in the hopes of a big payday, the odds are against you hitting bingo.

But that doesn’t mean you can’t find true penny stocks worth buying on Robinhood. Here’s why…

Best Robinhood Penny Stocks

Even though most traders think of penny stocks as companies whose prices trade under $1 per share, the SEC defines a company whose share price is trading under $5 as a penny stock.

Using that definition, Robinhood penny stocks are plentiful. For example, daily deals site, Groupon [GRPN], is counted among the numerous penny stocks available to trade.

Plug Power Inc [PLUG] is another highly rated stock. Although less well known to consumers, Plug Power is an alternative energy technology provider that has an enviable customer list, including Amazon.

Analyst expectations are high for Plug. Most rate the company a Buy and forecast large revenue increases over the next year.

UTStarcom Holdings [UTSI] is counted among the top penny stocks on Robinhood too. Though not a household name, UTStarcom develops technology for cloud-based services, mobile, and streaming, as well as WiFi products and optical fiber.

Robinhood Penny Stocks Under $1

Although it’s possible to find stocks under $5 on Robinhood, which technically according to the SEC are categorized as penny stocks, finding stocks under $1 is likely to leave you disappointed.

Investors who trade penny stocks usually find them on the Over-The-Counter market, or OTC, which is commonly called the Pink Sheets.

The over-the-counter market is not actually an exchange. Trading takes place between buyers and sellers with no exchange oversight.

Often, stocks trading on the OTC market are good early-stage companies. Solid companies with tens of millions of dollars in revenues but that do not qualify for a public IPO listing on the NYSE or NASDAQ market may decide to raise money by going public on the over-the-counter market.

Equally, companies trading on the OTC market could be low quality companies that have been delisted from the NYSE or NASDAQ exchanges.

The challenge for investors is picking the good companies from the bad ones. And here’s where the plot thickens!

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No matter how hard you look, you won’t find a list of Robinhood penny stocks trading on the OTC market.

Generally, stocks trading under $1 on the pink sheets are considered speculative and Robinhood avoids them.

So, if you’re looking for a Robinhood penny stocks list, you’re stuck with companies trading on the NASDAQ or NYSE.

When you find NYSE stocks under $1 or NASDAQ stocks under $1 on Robinhood you can bet your bottom dollar they won’t be there for long because both exchanges delist low-priced stocks within about a month usually.

That means the best penny stocks to watch on Robinhood are stocks under $5 but over $1.

How To Trade
Penny Stocks Under $1

An alternative to trading penny stocks on Robinhood is to find a broker that supports the pink sheets.

Even top options brokers like tastyworks who you might intuitively guess support stocks under $1 come up short.

Instead, you’ll need to sign up to TD Ameritrade or another top broker. TD Ameritrade has a few trading platforms under its umbrella but the most complete one is thinkorswim.

Finding a list of penny stocks on thinkorswim is a breeze.

A thinkorswim penny stock screener is all you need to quickly scan and find stocks under $1.

As one of the best trading platforms, thinkorswim can perform just about any screen or scan you might fathom.

Heck, you can even use thinkScript, an embedded programming language, to create your own technical studies if you wish!



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Best Types Of
Penny Stocks To Trade

Once you move past the restriction of trading penny stocks on Robinhood, the world is your oyster at thinkorswim.

You can screen for the best types of penny stocks to trade.

As tempting as you might find articles on the top 10 penny stocks to trade or the best penny stocks under 10 cents, scout for companies with world-changing potential instead.

When you’re buying stocks priced under $1, your aim is to find big winners, which may include:

  • Fundamentally strong penny stocks
  • Explosive penny stocks

Screen for industries that could change the world too. Cryptocurrencies like Bitcoin and Ethereum, as well as other digital coins are popular so perhaps blockchain penny stocks are worth checking out.

Companies like Block One Capital [BLOK] and 360 Blockchain [CODE] might fit the bill.

Biotech penny stocks are another popular source of ideas. Companies like Ekso Bionics Holdings [EKSO] may be worth exploring.

No matter which company you select, make sure the trading liquidity is high. If the price chart looks like a step function rather than a smooth line, it suggests the trading volumes may be low and the price is susceptible to large swings.

Penny Stocks For Dummies

If it’s your first time trading low-priced stocks, create a checklist so you don’t fall victim to common penny stock scams.

Although regulators have cracked down on the pump-and-dump merchants who tout cheap stocks in the hopes of cashing in as they rocket higher only to quickly crash back to earth, it’s best to keep your wits about you.

If you hear about a new drug therapy that could cure cancer, call the Investor Relations department of the company and ask for more information.

Make your investment decisions calmly to avoid buying on emotion.

>> Read this primer on behavioral finance biases and how they affect investment decision-making if you’re a stock market beginner.

And be wary of any free stocks tips that friends share with you. It’s one of the common trading pitfalls and often a costly one.

Penny Stocks Summary

If you’re looking for a list of Robinhood penny stocks to trade that are the next high fliers, you might be in for some disappointment.

While the SEC defines stocks under $5 as penny stocks, and many stocks on the free Robinhood app fall into this category, traders looking for the cheapest stocks under $1 will be disappointed.

The company that made free stock trading famous does not support over-the-counter stocks.

A better bet is to choose one of the best brokers like TD Ameritrade and specifically its thinkorswim platform.

Screen for fundamentally strong penny stocks or ones with good odds of powering higher through game-changing technology or innovative medicines.

No matter which path you choose, steer clear of the common penny stock trading mistakes like buying because a friend told you so or picking stocks that have very low trading volumes.

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