Penny Stock Trading UK Guide
Updated June 15, 2021
Penny Stock Trading UK
If you are looking for crypto like explosive growth, then penny stocks should be your first choice in the Stock Market! As the name suggests, these stocks have a very low price but are very volatile. As a result of this volatility, it is not a rare sight to see massive gains within the span of a few days.
For UK traders looking for greater returns on their investments, these microcap stocks can prove to be the preferred choice. However, with significant returns comes significant risk, and that's true in this situation.
What makes these small companies so volatile? These small companies are usually low on cash, unestablished, and do not have the resources to compete against the big names. You could say that such companies are the underdogs of their respective sectors.
Penny Stocks Explained
Newly listed companies or companies which are small usually have a lower share value. The stock of such companies is called penny stocks. The explosive returns and low prices of these stocks attract both seasoned & amp; new investors alike.
In the UK, any company whose share price is worth less than 1 and less than 100 million caps is considered a micro-cap or cheap stock.
Is It Allowed to Trade Penny Stocks In UK?
Yes, is it legal and allowed to trade penny stocks in the United Kingdom. FTSE AIM index, which tracks the performance of all companies listed on the London Stock Exchange, can be used to find such stocks. You will find these stocks under Alternative Investment Market (AIM) in FTSE AIM. As these stocks are a bit risky, they are kept in a separate category.
Process of Buying Microcap Stocks
The first step is selecting a suitable trading platform. Once you find a platform that offers good services, you have to open an account with them.
Once the account has been set up, you can fund your account and start trading these low-cost shares.
Criteria Of A Penny Stock
In simple terms, any stock that has a low price can be considered a penny stock. However, just for the sake of simplifying things, you can look for these criteria to find such stocks
- New or small company
- No dividend payments
- Very limited financial data
- Stock price lower than 1
Blue Chip vs Microcap Stocks
These 2 are the opposite of each other. Blue-chip are established and financially sound companies that have been around for a long time with a history of positive P/E ratio, dividend payments, and large market capitalisation.
On the other hand, microcap is a newly listed company with little to no financial history, no dividend payments, and a price of less than 1. Since these are risky investments, they are kept separate and can be found in the Alternative Investment Market (AIM) category in the UK.
Should You Trade These Small Stocks?
Before investing in this investment vehicle, consider these things.
- High Risk These are considered high-risk investments.
- High Volatility Volatility in these small stocks is many times higher than those medium and big-cap companies.
- Money Management Managing money and cutting losses is really important in this case.
Tips for Trading Penny Stocks
You need to have a game plan for trading this investment vehicle. Although these are just stocks, their high volatility makes them high risk. We have listed some tips you can use for trading.
Strategy
Strategy Trading without a strategy is risky in itself, and when trading such items, it becomes crucial. Create some rules for entry, profit-taking & amp; when to cut losses. Once you have established these rules, it is best to stick to them.
Money Management
Money Management Knowing how much volume to trade and when to exit a trade separates the good traders from bad traders. When trading high-risk items, your money management must be on point. It is not uncommon for penny stocks to move 100% or even more.
Stock selection
Stock selection Just choosing some random cheap stocks is not going to get you anywhere. Your stock selection must be based on information, news & amp; financial data. The chances of a company going bankrupt are very high in these small & amp; newly established companies.
Pros & amp; Cons of Trading Microcap Stocks
Let's take a look at what you can expect from trading these type of stocks
Microcap Stocks Pros
- Good Returns You can expect high returns from these small-cap shares.
- Low Prices Low prices mean that you can buy shares in high volumes without spending as much money as in blue-chip companies.
- Thrill If you are getting bored of trading the big names, then you can get a lot of thrill in this market due to massive fluctuations in prices.
- Day Trading If you want to get involved in day trading, these small-cap shares are the best.
Microcap Stocks Cons
- No Dividend Do not expect to get paid any dividends or income.
- High Risk These stocks belong to the high-risk category and require good money management.
- Very Volatile If you are not used to 50%, 100%, and even 200% movements in price during a short time, then penny stocks might not be for you.
We've collected thousands of datapoints and written a guide to help you find the best Penny Stock Trading UK 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 Stock Trading Investment Platforms below.
Reputable Penny Stock Trading UK Checklist
There are a number of important factors to consider when picking an online Penny Stock Trading Investment Platforms trading brokerage.
- Check your Penny Stock Trading Investment Platforms broker has a history of at least 2 years.
- Check your Penny Stock Trading Investment Platforms broker has a reasonable sized customer support of at least 15.
- Does the Penny Stock Trading Investment Platforms broker fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
- Check your Penny Stock Trading Investment Platforms broker has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
- Does your Penny Stock Trading Investment Platforms broker have an international presence in multiple countries. This includes local seminar presentations and training.
- Make sure your Penny Stock Trading Investment Platforms can hire people from various locations in the world who can better communicate in your local language.
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 Stock Trading Investment Platforms.
We compare these features to make it easier for you to make a more informed choice.
- Minimum deposit to open an account.
- Available funding methods for the below Penny Stock Trading Investment Platforms.
- What you are able to trade with each brokerage.
- Trading Platforms offered by these brokers.
- Spread type (if applicable) for each brokerage.
- Customer support levels offered.
- We show if each brokerage offers Micro, Standard, VIP and Islamic accounts.
Top 15 Penny Stock Trading Investment Platforms of 2021 compared
Here are the top Penny Stock Trading Investment Platforms.
Compare Penny Stock Trading Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Penny Stock Trading Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Penny Stock Trading Investment Platforms that accept Penny Stock Trading Investment Platforms clients
| Broker |
XTB
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SpreadEx
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Swissquote
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forexmart
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hdfcsecurities
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icicidirect
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sharekhan
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Zerodha
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Robinhood
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Trading212
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eoption
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| 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 |
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| 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+ |
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| 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) |
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| Learn More |
Sign
Up with xtb |
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Up with spreadex |
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Up with swissquote |
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Up with forexmart |
Sign
Up with hdfcsecurities |
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Up with icicidirect |
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Up with sharekhan |
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Up with zerodha |
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Up with robinhood |
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Up with trading212 |
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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 Stock Trading Investment Platforms in more detail
You can compare Penny Stock Trading 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 Stock Trading Investment Platforms for 2021 article further below. You can see it now by clicking here
We have listed top Penny Stock Trading Investment Platforms below.
Penny Stock Trading UK Table of Contents
- Penny Stock Trading UK Explained
- 6 Factors to Consider when Choosing Penny Stock Trading UK
- Are Your Penny Stock Trading UK Trusted And Established?
- Are The Penny Stock Trading UK World Leading?
- What are the Penny Stock Trading UK Commissions and Fees?
- What are the Penny Stock Trading UK Funding and Withdrawl Methods?
- Find Penny Stock Trading UK with Round-the-clock support?
- Make sure the Penny Stock Trading UK Offer Comprehensive Trader resources?
- Why Penny Stock Trading UK needs to be regulated?
- Penny Stock Trading UK FAQ
- What are the best Penny Stock Trading Investment Platforms brokers?
- What is the best Penny Stock Trading Investment Platform broker?
- Related Penny Stock Trading UK Reviews
- Related Penny Stock Trading UK Alternatives
- Related Penny Stock Trading UK Comparisons
Penny Stock Trading UK Explained
Trading the financial markets with Penny Stock Trading UK when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for Penny Stock Trading UK is the platform that a Penny Stock Trading UK offer.
Choose Penny Stock Trading UK that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need Penny Stock Trading UK that you can rely on.
6 Factors to Consider when Choosing Penny Stock Trading UK
Follow these five rules for selecting a broker that's right for you:
Are Your Penny Stock Trading UK Trusted And Established?
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets. The top rated Penny Stock Trading UK broker is XTB. Established in 2002, and in operation for 16 years XTB have a head office in Poland.
XTB is regulated. This means XTB are supervised by and is checked for conduct 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) regulatory bodies.
Another top rated broker is SpreadEx.
SpreadEx was established 1999, and in operation for 19 years SpreadEx have a head office in UK.
SpreadEx is regulated. This means SpreadEx are supervised by and is checked for conduct 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) regulatory bodies.
| Broker |
XTB
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SpreadEx
|
Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
|
| Year Established | 2002 | 1999 | 1999 | 2015 | 2000 | 1994 |
| Head Office | Poland | UK | Switzerland | Cyprus | India | India |
| 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 |
| Used By | 250,000+ | 10,000+ | 300,000+ | 10,000+ | 2,000,000+ | 2,000,000+ |
| Negative balance protection | Yes | No | No | Yes | Yes | Yes |
| Guaranteed Stop Loss | No | Yes | No | Yes but 10% | No | No |
| Learn More | Visit XTB | Visit SpreadEx | Visit Swissquote | Visit ForexMart | Visit HDFC Securities | Visit ICICI Direct |
| 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 |
Are The Penny Stock Trading UK World Leading?
Choose a broker that's at the forefront of innovation and generally considered an industry-leader. XTB Segregates clients funds and offers over 4000 instruments. XTB offers both an online trading platform as well as a mobile platform giving clients easy access to markets.
In addition, the XTB platform enables access to a variety of financial markets worldwide. XTB is a world-leader when it comes to innovation and they are always looking at ways to improve and to maintain their competitive advantage.
Another good choice when looking for Penny Stock Trading UK is SpreadEx . SpreadEx Segregates clients funds and offers over 15000 instruments.
| Broker |
XTB
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SpreadEx
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Swissquote
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forexmart
|
hdfcsecurities
|
icicidirect
|
| Instruments Available | 4000 | 15000 | 100 | 111 | 5000 | 5000 |
| 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 |
| Excluded Countries | US, AU, CA, JP, KR, KP, SG, MU, IL, TR, IN, PK, BA, ET, UG, CU, SY, BD, NG, ID, BE, LY, MO, KE, YE, VU, GY, CD, CG, AF, LA, MZ, IQ, IR | US | US | Cuba, Iran, North Korea, Syria, Crimea | Cuba, Iran, North Korea, Syria, Crimea | |
| Forex pairs offered | 57 | 55 | 150 | 100 | 0 | 0 |
| Forex pairs offered | 57 | 55 | 150 | 100 | 0 | 0 |
| Major forex pairs | Yes | Yes | Yes | Yes | No | No |
| Minor forex pairs | Yes | Yes | Yes | No | No | No |
| Exotic forex pairs | Yes | Yes | Yes | No | No | No |
| Cryptocurrencies (availability subject to regulation) | Yes | Yes | No | Yes | No | Yes |
| Commodities Offered | 21 | 16 | 7 | 0 | 14 | 14 |
| Metals | Yes | Yes | Yes | Yes | No | No |
| Energies | Yes | Yes | Yes | Yes | No | No |
| Agricultural | Yes | Yes | No | Yes | No | No |
| Stocks Offered | 1696 | 1000 | 0 | 53 | 5000 | 5000 |
| UK Shares | Yes | Yes | Yes | Yes | No | No |
| US Shares | Yes | Yes | Yes | No | Yes | Yes |
| German Shares | Yes | Yes | Yes | No | No | No |
| Japanese Shares | Yes | Yes | Yes | No | No | No |
What are the Penny Stock Trading UK Commissions and Fees?
Ensure that your broker is transparent with fees and those dues are competitive.
The best rated Penny Stock Trading UK broker XTB offers competitive offers for Forex, CFDs, Cryptocurrency. XTB minimum deposit is 0.
Another top rated Penny Stock Trading UK broker SpreadEx offers Forex, CFDs, and spread betting. SpreadEx minimum deposit is 1. Please note that any cryptocurrency availability with any broker is subject to regulation.
| Broker |
XTB
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SpreadEx
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Swissquote
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forexmart
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hdfcsecurities
|
icicidirect
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| Min Deposit | 0 | 1 | 1000 | 1 | 0 | 0 |
| Withdrawl Fees | varies | 0, minimum £50 | No | 5 | No | No |
| Inactivity Fees | Yes | No | No | No | No | No |
| Deposit Fees | No | No | No | Yes | No | No |
| CFD Commission Fees | Yes | No | No | Yes | No | No |
What are the Penny Stock Trading UK Funding and Withdrawal Methods?
When dealing with Penny Stock Trading UK having convenient funding and withdrawl facilities makes the trading process and your trading experience smoother.
| Broker |
XTB
|
SpreadEx
|
Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
|
| Bank transfer | Yes | Yes | Yes | Yes | Yes | Yes |
| Credit Cards | Yes | Yes | Yes | Yes | No | No |
| Paypal | Yes | No | No | No | No | No |
| Skrill | Yes | Yes | No | Yes | No | No |
| Payoneer | Yes | Yes | Yes | No | No | No |
| Neteller | Yes | No | No | Yes | No | No |
Find Penny Stock Trading UK with Round-the-clock support?
Customer service is very important when dealing with Penny Stock Trading UK.
When investing and dealing with brokers customer support can be a range of customer services to assist customers in making cost effective and correct use the brokers services. It can include assistance in installation, training, troubleshooting, upgrading, and cancelation of a product or service.
Penny Stock Trading UK customer support can include Phone answering services, Live chat support and Email customer service support.
XTB support a wide range of languages including English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish
SpreadEx support a limited number including English
XTB and SpreadEx offer support where clients are able to call or contact the helpdesk via email or a chat service.
| Broker |
XTB
|
SpreadEx
|
Swissquote
|
forexmart
|
hdfcsecurities
|
icicidirect
|
| Support |
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| Languages | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian, and Turkish | English | English, German, French, Italian, Spanish, Arabic, Russian, and Chinese | English, Spanish, Czech, Chinese, German, French, Italian, Polish, Portuguese, Romanian, Slovenian,Hindi, Hebrew, Arabic, Russian | English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文 | English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文 |
| Learn More | Visit XTB | Visit SpreadEx | Visit Swissquote | Visit ForexMart | Visit HDFC Securities | Visit ICICI Direct |
| 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 |
Make sure the Penny Stock Trading UK Offer Comprehensive Trader resources?
Make sure your broker offers free resources like analysis, education and risk-management tools. With a wealth of knowledge from top analysts, XTB and SpreadEx work together to bring the latest news and insights to traders.
For most traders, the first – and sometimes only – concern is pursuing their 'edge'. While that is surely important, along with sound money management habits, to navigating the markets; that step alone does not represent the full preparation. As each trader dives into this important venture, it is important not to forget the most rudimentary yet crucial steps such as selecting the best broker to access the markets.
Why Penny Stock Trading UK needs to be regulated?
A regulated Penny Stock Trading UK broker lowers your risk.
Broker regulation protects consumers. Too little broker regulation can lead to poor services and possibly financial harm.
Penny Stock Trading UK brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated. This amounts to fraud if client money is used to conduct the business. Regulation is required to make sure this does not happen.
Penny Stock Trading UK List
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, Mirror Trader, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
MT4,WEB,desktopCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account
Funding methods
Bank transfer Credit Card PaypalPlatforms
Web Trader, Tablet & Mobile appsCustomer support
Live chat Phone support Email supportAccount Types
Micro account Standard account Islamic account VIP account