Top Benefits Of Penny Stocks for 2020

We found 10 online brokers that are appropriate for Trading Benefits Of Penny Stocks.

Best Benefits Of Penny Stocks Guide

Benefits of Penny Stocks

Some people are sceptical about trading penny stocks.

But some people are fond of penny stocks and would recommend them to their partners and colleagues.

Lets see what the deal is with penny stocks.

Defining the penny stock

The penny stock is defined as small company stock which does not cost too much for traders.

In common cases, it is even less than $5 per share. But the small value of the share does not mean that it is less valuable than the other stocks.

Some penny stocks are even traded in the prominent platforms like New York Stock Exchange or NYSE.

The penny stocks are usually traded through the Over-The-Counter or OTC methods.

Where is it transacting?

Transactions take place through the OTC Bulletin Board or OTCBB.

If you're looking for an alternative, you could check on the Pink Sheets.

The quotations of penny stocks are conducted in digital measurement.

The market associates penny stocks with smaller companies.

It is different from conventional trades because it is only viable if the companies lack liquidity or there are ready buyers in the marketplace.

That is also the reason why the stocks prices are very low.

Because of the low liquidity, investors will have problems in selling their stocks because there might be much lower number of buyers when that happens.

The low liquidity also challenges the investors to find the price which really shows the conditions of the market.

Because of several reasons we have mentioned above, we could conclude that penny stocks are highly speculative.

That means even a tiny change in the penny stocks, the investors can possibly lose an enormous amount of all of their investments.

What drives the penny stocks prices?

As with other kinds of stocks, the prices of penny stocks can fluctuate.

These stocks usually come from growing companies or young companies with limited resources and funds.

If you have been around in the world of trading, you will surely get familiar with how the risk can happen. A long established company's stock is not too risky to take.

Small companies are the growing. They have not matured yet to deliver the great results for the investors.

Thats why it is not surprising that penny stocks are a great choice for traders who have a high tolerance to risk.

Although there are many ways to look at the penny stocks potentials, these have higher levels of volatility, resulting in higher rewards potential, and vice versa.

Obviously, with such high risk, it is not for the faint-hearted.

The advantages of penny stocks

Penny stocks, despite the risks which we mentioned above, come with abundant advantages. You can surely benefit from penny stocks if you do your research.

The low share price with potential high gain

From the moment you have heard about penny stocks, you know what to expect.

They are called penny stocks because they cost pennies to attain.

You can even get a stock trading for $.0001.

You can trade for that low.

With those kinds of share prices, you can purchase tons of them at once.

It does not require large capital

The stock market is not so friendly for small time investors.

Investment in financial markets usually requires large amounts of funds to invest.

It is undeniable that those with larger investment capital can use their funds to gain greater exposure.

But it will not work for most of us who do not have as much capital.

Penny stocks allow traders to trade with comparitively lower outlay.

Penny stocks are indeed risky

But these can give huge windows of opportunities for the small investors to make more profits.

Diversifying your investments portfolio

By adding the penny stocks to your investment portfolio, you will have more diversity in investments.

Having a diverse portfolio can help you to reduce the loss from other financial products in your portfolio overall.

Penny stocks can be perfect additions to your investment portfolio.

You can always spread penny stocks in between several stocks.

Help you to learn about the volatility in the market

It is true that penny stocks have greater volatility.

Analysing the volatility with the penny stocks can be a great learning experience.

Penny stocks may help you refine a more matured strategy to trade again with later.

Faster prices movement

If you are bored with a long term investments, then you could switch to penny stocks which can be traded intraday or daily.

It can provide you with a much faster pace of trading.

The price moves take place quickly with penny stocks.

But keep in mind that the price movement can be up or down.

It will happen in much shorter time than larger stocks.

If you are interested in faster price movements, penny stocks may be for you.

But of course, you need to strategize and be aware of the risks.

We've collected thousands of datapoints and written a guide to help you find the best Benefits Of Penny Stocks for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best benefits of penny stocks below. You can go straight to the broker list here.

Reputable Benefits Of Penny Stocks Checklist

There are a number of important factors to consider when picking an online Benefits Of Penny Stocks trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Benefits Of Penny Stocks.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Benefits Of Penny Stocks of 2020 compared

Here are the top Benefits Of Penny Stocks.

Compare Benefits Of Penny Stocks min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are benefits of penny stocks. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more benefits of penny stocks that accept benefits of penny stocks clients

Broker eToro Trading212 XTB City Index SpreadEx Swissquote forexmart hdfcsecurities icicidirect sharekhan
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS) Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) Cyprus Securities and Exchange Commission (CySEC) Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
Min Deposit 200 1 No minimum deposit 25 1 1000 1 No minimum deposit No minimum deposit No minimum deposit
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 14,000,000+ 250,000+ 14,000+ 10,000+ 300,000+ 10,000+ 2,000,000+ 2,000,000+ 1,500,000+
Benefits
  • Offers STP
  • Low min deposit
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Allows scalping
  • Allows hedging
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
Accounts
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Demo account
  • Standard account
  • Demo account
  • Mini account
  • Standard account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps MT4,WEB,desktop Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
Sign Up with
trading212
Sign Up with
xtb
Sign Up with
cityindex
Sign Up with
spreadex
Sign Up with
swissquote
Sign Up with
forexmart
Sign Up with
hdfcsecurities
Sign Up with
icicidirect
Sign Up with
sharekhan
Risk Warning 75% of retail investor accounts lose money when trading CFDs with this provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 74% of retail investor accounts lose money when trading CFDs with this provider Losses can exceed deposits Losses can exceed deposits Your capital is at risk Your capital is at risk Your capital is at risk Your capital is at risk
Demo eToro
Demo
Trading 212
Demo
XTB
Demo
City Index
Demo
SpreadEx
Demo
Swissquote
Demo
ForexMart
Demo
HDFC Securities
Demo
ICICI Direct
Demo
Sharekhan
Demo
Excluded Countries US, IR, KP, BE, CA, JP, SY, TR, IL, HK US US, IN, PK, BD, NG , ID, BE US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW US, TR US

All Benefits of penny stocks in more detail

You can compare Benefits Of Penny Stocks ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

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We have listed top Benefits of penny stocks below.

Benefits Of Penny Stocks List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)
Trading212
(4/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading 212 offers Stocks, Forex, Commodities, Indices

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 250000+ traders. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. XTB offers Forex, CFDs, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego
City Index
(3/5)
Min deposit : 25
City Index was established in 1983 and is used by over 14000+ traders. 74% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS)
SpreadEx
(4/5)
Min deposit : 1
SpreadEx was established in 1999 and is used by over 10000+ traders. Losses can exceed deposits SpreadEx offers Forex, CFDs, and spread betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
Swissquote
(4/5)
Min deposit : 1000
Swissquote was established in 1999 and is used by over 300000+ traders. Losses can exceed deposits Swissquote offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
forexmart
(4/5)
Min deposit : 1
ForexMart was established in 2015 and is used by over 10000+ traders. Your capital is at risk ForexMart offers Forex trading, CFD trading, Social trading, Share Dealing, Crypocurrency trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,WEB,desktop

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
hdfcsecurities
(3/5)
Min deposit : 0
HDFC Securities was established in 2000 and is used by over 2000000+ traders. Your capital is at risk HDFC Securities offers Demat Account, Trading Account, NRI Account, Commodity Trading, Currency Trading, Mutual Fund Account, NPS Account

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
icicidirect
(3/5)
Min deposit : 0
ICICI Direct was established in 1994 and is used by over 2000000+ traders. Your capital is at risk ICICI Direct offers Equity Trading, Derivatives Trading, Mutual Fund & IPO, Fixed Deposit, Bond, NCD, wealth products

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
sharekhan
(3/5)
Min deposit : 0
Sharekhan was established in 2000 and is used by over 1500000+ traders. Your capital is at risk Sharekhan offers Equity, Commodities, Mutal funds

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange