How To Make Money On Penny Stocks for 2021

We found 11 online brokers that are appropriate for Trading Penny Stocks Investment Platforms.

How To Make Money On Penny Stocks Guide

Updated July 22, 2021

How To Make Money On Penny Stocks

Learning how to make money on penny stocks is the hottest trend, and you can make a fortune if you pick these stocks correctly. It takes a bit of experience, research, and determination to know which of these penny stocks make money consistently.

Investing in penny stocks is a great way to get a good start in your investing career. You won't take advantage of huge returns, but since these types of shares trade so cheaply, the returns can be substantial. You don't have to worry about all the hassles and paperwork involved with regular shares, and you don't have to deal with monitoring the business all the time. It's a great way to get started with trading, and even if you lose some money the first few times, you should find that you begin to win more as you practice more. There are many excellent investment options out there, but if you want to start making money on penny stocks, here are some ways to get started.

Buy Companies With Strong Balance Sheets

The ability to buy companies with strong balance sheets is a valuable skill to have in the stock market today. After all, if you are going to invest in a company, you want as much security as possible. One way to accomplish this is to buy companies that have a strong balance sheet.

So, how can one buy companies with strong balance sheets? There are many ways to do so. One of the best ways is to look for penny stocks. Penny stocks are lower-priced stocks than the bigger, more established companies. Since there's less risk, they can be purchased at a smaller price, which means you get even better value when you buy companies with strong balance sheets.

Penny stock investing offers some unique advantages. For instance, since the company doesn't have a huge market capitalisation, it's easier to determine its worthiness with its balance sheets. You can look at different companies financial statements and then make an informed decision on whether or not to buy a stock based on its financial statements, as well as its balance sheets. It can be a big advantage because it allows you to follow a few simple rules.

Buy Profitable Companies

What should you do if you want to buy profitable companies? First, you should look for a company whose stock price has room to grow. You also need to know what kind of business the company is involved in so that you can avoid being taken advantage of. Once you have done your research and found a few companies that look promising, it's time to start shopping around.

Don't go and buy up any old stocks. Penny stocks are risky, so only the most experienced traders will consider buying them. You'll likely have to work with brokers to get good picks, which can be a bit expensive. If you're serious about making money from stocks, it's important to find someone you can trust to give you good advice.

In addition to picking a good stock, you also need to do research. The more you learn about a company, the better. Look for information on the internet, in newspapers, magazines, and on business news shows. There are always news stories about new stocks being introduced or newly launched companies. These give you a good indicator of which stocks are worth your time and money.

Understand The Business

If you want to understand the business of stocks, there are many places to look. For example, you can attend a stock seminar or watch a finance or business television program. You might also read books by experts. These sources of information may not give you the whole picture. After all, these people know so much, and they talk in such a way that makes it seem simple. They can give you hints, but they never show you how to analyse the market data and make predictions of what the stock will do next.

One way to understand the business of stocks is to practice what you have learned in your training courses. Of course, you should not just jump into buying and selling immediately. It would help if you understood the basics first and then moved on to buying and selling stocks. By understanding the basics first, you will make more informed decisions on what stocks to buy.

You have to understand that there are a lot of people out there who are just waiting for you to make a mistake. And they will try to call you an idiot for thinking that your money is better than theirs. They will say that all the rich people know the business of stocks and therefore cannot make any profit. But that is not true. It is possible to make good money from stocks.

Diversify

When it comes to penny stocks or small-cap stocks, it is common to hear about people wanting to diversify their portfolio. Diversification is putting your eggs in a basket of a specific type of stock, like stocks in the healthcare industry.

Diversification protects you against risk. It can mean one of two things. Either you are protecting yourself against market share fluctuations that can result in a loss of profits or protecting against the possibility of a company going out of business. Diversification can also mean that you are spreading your risk of loss amongst a larger group of companies instead of just one. The smaller the group of stocks you have invested in, the less room there is for risk.

#5 Risk What You Can Afford to Lose

Risk comes with any investment. For example, if you are into the stock market, you risk investing in the stock market. For you not to lose everything, you need to understand risk. A stock market is a highly unpredictable place because there are many people involved with these investments. Thus, it is up to you, the investor, to learn how to manage risk so that you will not lose everything in the stock market.

The risk is also associated with the type of investments you will make. There are some types of investments that are very risky, while there are some other types of investments that are less risky. Examples of risky investments include stocks, bonds, commodities, interest rates, and real estate. On the other hand, some less risky investments include government bonds, money market funds, treasury bills, corporate bonds, and CDs. Knowing how to manage risk is very important in the world of the stock market.

We've collected thousands of datapoints and written a guide to help you find the best How To Make Money On 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 Penny Stocks Investment Platforms below.

Reputable How To Make Money On Penny Stocks Checklist

There are a number of important factors to consider when picking an online Penny Stocks Investment Platforms 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 Penny Stocks Investment Platforms.

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

Top 15 Penny Stocks Investment Platforms of 2021 compared

Here are the top Penny Stocks Investment Platforms.

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

All brokers below are Penny Stocks Investment Platforms. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more Penny Stocks Investment Platforms that accept Penny Stocks Investment Platforms clients

Broker XTB SpreadEx Swissquote forexmart hdfcsecurities icicidirect sharekhan Zerodha Robinhood Trading212 eoption
Rating
Regulation 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, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) 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 Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Unregulated
Min Deposit No minimum deposit 1 1000 1 No minimum deposit No minimum deposit No minimum deposit No minimum deposit No minimum deposit 1 500
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
  • Bank transfer
  • Credit Card
  • Paypal
Used By 250,000+ 10,000+ 300,000+ 10,000+ 2,000,000+ 2,000,000+ 1,500,000+ 1,500,000+ 10,000,000+ 15,000,000+ 10,000+
Benefits
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • 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
  • 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
  • Guaranteed stop loss
  • Offers Negative Balance Protection
Accounts
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Standard account
  • Demo account
  • Mini account
  • Standard account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • MAM/PAMM 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
  • fixed spreads
  • variable spreads
Platforms MT4, Mirror Trader, 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 Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps DealBook (Desktop, Mobile, iPhone, iPad, iPod touch, Web)
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
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
xtb
Sign Up with
spreadex
Sign Up with
swissquote
Sign Up with
forexmart
Sign Up with
hdfcsecurities
Sign Up with
icicidirect
Sign Up with
sharekhan
Sign Up with
zerodha
Sign Up with
robinhood
Sign Up with
trading212
Sign Up with
eoption
Risk Warning 77% 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. 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 Your capital is at risk Your capital is at risk 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. Your capital is at risk
Demo XTB
Demo
SpreadEx
Demo
Swissquote
Demo
ForexMart
Demo
HDFC Securities
Demo
ICICI Direct
Demo
Sharekhan
Demo
Zerodha
Demo
Robinhood
Demo
Trading 212
Demo
eoption
Demo
Excluded Countries US, IN, PK, BD, NG , ID, BE, AU US, TR US CU, IR, KP, SY, UA US, CA

All Penny Stocks Investment Platforms in more detail

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

We also have an indepth Top Penny Stocks Investment Platforms for 2021 article further below. You can see it now by clicking here

We have listed top Penny Stocks Investment Platforms below.

How To Make Money On Penny Stocks List

XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 250000+ traders. 77% 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. Cryptocurrency availability with XTB is subject to regulation.

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, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG)
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
(3/5)
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
(3/5)
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
Zerodha
(3/5)
Min deposit : 0
Zerodha was established in 2010 and is used by over 1500000+ traders. Your capital is at risk Zerodha offers Stocks, 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 Securities and Exchange Board of India (SEBI), Member of the Bombay Stock Exchange
Robinhood
(3/5)
Min deposit : 0
Robinhood was established in 2013 and is used by over 10000000+ traders. Your capital is at risk Robinhood offers Stocks, 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)
Trading212
(2/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 15000000+ 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)
eoption
(3/5)
Min deposit : 500
eoption was established in 2008 and is used by over 10000+ traders. Your capital is at risk eoption offers Forex trading, CFD trading, Social trading, Share Dealing.

Funding methods

Bank transfer Credit Card Paypal

Platforms

DealBook (Desktop, Mobile, iPhone, iPad, iPod touch, Web)

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account

Learn more Learn more about XTB.
77% 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.