Investing in new penny stocks can provide lucrative opportunities to trade shares of young promising companies.
This page gives you a thorough review of the best penny stocks that are currently trading in the US stock market. We have also covered the leading trading platforms supporting these stocks to help you get started as soon as possible.
Best New Penny Stocks at a Glance
Here’s a list of new penny stocks in 2024.
| Penny Stock | Code | Price (As per 9 Feb.) | Market Cap | Hedge Fund Holders |
| Brera Holdings | NASDAQ: BREA | $2.38 | $27.8 M | N/A |
| Cadrenal Therapeutics | NASDAQ: CVKD | $1.92 | $22.3 M | N/A |
| MGO Global | NASDAQ: MGOL | $1.99 | $26.6 M | N/A |
| Adamas One | NASDAQ: JEWL | $1.54 | $31.03 M | N/A |
| Virgin Orbit | NASDAQ: VORB | $1.56 | $524 M | 7 |
| Starry Group | NYSE: STRY | $0.03 | $4.37 M | 23 |
| WISeKey International | NASDAQ: WKEY | $0.28 | $34.87 M | 2 |
| Taysha Gene Therapies | NASDAQ: TSHA | $1.05 | $65.56 M | 26 |
| Vaxxinity | NASDAQ: VAXX | $3.3 | $415 M | 20 |
| Yoshiharu Global | NASDAQ: YOSH | $1.51 | $19.58 M | N/A |
Pros and Cons of the New Penny Stocks
Here are some of the benefits and drawbacks of trading new penny stocks
- Potential for High Returns - Investors stand to reap huge profits if the price of the new stock increases.
- Low Share Price - As the stocks are of startups with prices less than $5; thus, makes it possible to buy many shares.
- Limited Information - Information about these companies is normally limited.
- High Risk - Difficult to predict stock price movement as the value of new penny stocks can reduce to zero. Thus, it is quite riskier.
- Lacks Liquidity - As these stocks are associated with small companies, so there is a limited number of buyers.
Brera Holdings
Brera Holding is an Irish company with headquarters in Ireland, Dublin, aiming to expand the social impact of American Football. It aims to achieve this by developing a portfolio of emerging football clubs worldwide and offering incentives like tournament prizes.
The company held its IPO in January 2023, with share prices starting at $5.
Cadrenal Therapeutics
Cadrenal Therapeutics is a clinical-stage biopharmaceutical company advancing patient care in cardiorenal diseases. It was founded in 2022 and has headquarters in Ponte Vedra, Florida. The organization is working on a novel drug - tecarfarin- to prevent systemic thromboembolism in patients with end-stage renal disease and atrial fibrillation.
Cadrenal held its IPO in January 2023, starting with a price of $5.
MGO Global
MGO Global is a lifestyle brand portfolio company focusing on inspiring people to express their authentic selves through distinctive brands. The company was founded in 2018 with headquarters in Florida.
It has a team of professionals for design, development, manufacturing, sales, marketing, and distribution. The team aims to launch and manage brands and position them effectively.
The company held its IPO in January 2023 with shares priced at $5. .
Adamas One
Adamas One, incorporated in 2018 and headquartered in Scottsdale, Arizona; leverages proprietary technology to produce high-quality, single-crystal, lab-grown diamonds and diamond materials through a controlled manufacturing process. These high-quality diamonds are used for various industrial and gemstone applications.
The company floated its IPO in December 2022, starting with a share price of $4.50.
Virgin Orbit
Virgin Orbit is an aerospace company providing premier small satellite launch service, founded by Sir Richard Branson in 2017 with headquarters in Long Beach, California where it operates its LauncherOne.
It began with its commercial services in 2021 and this well-renowned organization already launched satellites for commercial, civil, military, and civil purposes.
The company had an IPO in December 2021, expected to raise close to $500M. It recorded revenues of $30.9 million in Q3 of 2022. Net loss stood at $43.6 million compared to $38.6 million in the same period in 2021. Virgin Orbit looks to increase revenue in 2023 by doubling the launch rate and offering premium mission-unique solutions.
Starry Group
Starry group is an internet service provider connecting people and communities with high-speed broadband. It has headquarters in Boston, Massachusetts, and was publicly listed on the NYSE in March 2022. Currently, the firm operates in New York, Boston, Washington, DC, Denver, and Columbus.
The platform uses wideband hybrid-fiber fixed wireless technology to streamline its services and serves approximately 5.3 million households.
WISeKey International
WISeKey is a cybersecurity company delivering integrated security solutions to different industries and ecosystems. It has its headquarters in Zug, Switzerland. This technological firm provides secure authentication and authorization in physical and virtual environments for IoT, blockchain, and AI.
The organization was listed in December 2019, and the leadership expects continued growth, with estimates putting revenue at 34% higher than in 2021.
Taysha Gene Therapies
Taysha Gene Therapies focuses on discovering, developing, and commercializing gene therapies for treating monogenic diseases of the central nervous system. This was founded by RA Session with headquarters in Dallas, Texas.
The firm was started in 2019 and listed in 2020, with share prices starting at $20. It.
Vaxxinity
Vaxxinity is a biotechnology company developing and commercializing prophylactics and vaccines to tackle neurological diseases and coronavirus. This prestigious firm was co-founded by Mei Mei Hu and Louis Resse in 2014 with headquarters in Dallas, Texas, and listed in November 2021.
The company is developing products for conditions like migraines, heart disease, coronaviruses, Alzheimer's, and Parkinson’s.
Yoshiharu Global
Yoshiharu is a restaurant operator offering modernized Japanese dining globally, founded in 2016 by James Chae with headquarters in Buena Park, California. The restaurant gained fame in 2016 for its ramen dishes.
Revenue grew from $3.2 million in 2020 to $ 6.5 million in 2021, although the company continues to experience a net loss.
The Best Platforms for Trading New Penny Stocks
Robinhood - Best for Trading New Penny Stocks on Mobile
Robinhood is a multi-asset trading platform famed for being user-friendly. It features new penny stocks listed on the NASDAQ and NYSE. Customers can instantly deposit funds in their accounts to start trading.
The platform is authorized and regulated by FINRA. It’s a member of the Securities Investor Protection Corporation(SIPC), which insures customers’ assets up to $500,000.
The mobile app has over 10 million downloads on the Android play store with a four-star rating by its customers.
| Account minimum deposit | $0 |
| Commission | 0% |
| KYC Required | Yes |
| Demo Free Account | No |
| Price | Free |
| Investment types | Stocks, EFTs, Options, Mutual Funds |
| App | Yes |
Charles Schwab - Best Variety of New Penny Stocks
Charles Schwab has a vast array of penny stocks and provides a simple way to trade. Customers can open a standard brokerage account and start trading penny stocks after account approval.
The trading platform packs powerful features that make it easy to identify opportunities on the stock market. Users can make informed decisions using the platform's insights, tools, and educational materials.
It is easy to use and navigate and can be used on a smartphone, desktop, or web interface. Traders can buy new penny stocks using the Over the Counter Bulletin Platform (OTCBB) across these multiple platforms.
Schwab is licensed and regulated by FINRA; thus, it has a solid reputation with a good safety record. It also guarantees coverage of losses in case of unauthorized activity on an account.
The mobile app has over one million downloads on Android with an above-average customer rating.
| Account minimum deposit | $0 |
| OTCBB fees | $6.95 |
| Commission | 0% |
| KYC Required | Yes |
| Demo Account | Yes |
| Price | Free |
| Investment types | Stocks, Annuities, EFTs, Bonds, Mutual Funds |
| App | Yes |
TD Ameritrade - Best for User Experience
TD Ameritrade offers a robust and user-friendly trading platform for penny stocks. Traders can access these stocks through the OTCBB or pink sheet. The platform has powerful features, including advanced stock screeners, technical analysis tools, and a charting package; it also provides an asset protection guarantee.
It utilizes 128-bit encryption on all data transmitted. Additionally, the broker is regulated by FINRA and is a member of SIPC.
The TD Ameritrade mobile app has over one million downloads on the Android play store. Customers recommend the app for its numerous assets, ease of use, and beginner friendliness.
| Account minimum deposit | $0 |
| Stock trading commission | 0% |
| OTC fees | $6.95 per trade |
| KYC Required | Yes |
| Demo Account | Yes |
| Price | Yes |
| Investment types | Stocks, EFTs, Mutual Funds, Futures, Forex, Bonds |
| App | Yes |
What Are New Penny Stocks and How Do They Work?
New penny stocks are low-priced stocks from young companies that trade for less than $5 per share. Newly listed or founded companies with little market cap and price form the bulk of new penny stocks. Many trading platforms offer traders new penny stocks listed on major exchanges like NYSE and NASDAQ.
These stocks are traded on the OTC markets, OTCBB, or Pink sheets on online trading platforms. Traders must carry out due diligence before making investment decisions.
Leading platforms like TD Ameritrade and Charles Schwab offer OTCBB capabilities for clients interested in trading new penny stocks. However, you will need to open a brokerage account on platforms like Robinhood without visiting a physical location.
Trading platforms will charge you a fee per share for trading every penny stock. But, platforms like Fidelity will allow you to trade stocks without the standard trading fee.
How Much Money Do You Need to Get Started with New Penny Stocks?
You will not require any amount to sign up because most trading platforms have scrapped the minimum deposit requirement. However, you must deposit money to buy new penny stocks.
Traders with low capital can identify and trade new penny stocks with as little as $100. Your investment will depend on your trading strategy, risk tolerance, and financial goals. Many traders start with between $2,000 - $10,000.
In addition, To begin investing in penny stocks, the minimum amount required can vary depending on the brokerage platform you choose. However, with some of the Best ETF Platforms, you may find options that allow you to start with as little as a few hundred dollars.
Are New Penny Stocks Platforms Safe?
The Safety of a platform is determined by its ability to adhere to regulatory compliance and the measures it has instituted to protect clients’ funds and assets. It’s also prudent to confirm the reputation of an online trading platform to avoid scams. TD Ameritrade and Charles Schwab are some of the safest penny stock brokers.
Regulatory compliance requires authorization by FINRA. Other protective measures include assets and funds segregation, using data encryption technologies, data backup, and regular system audits.
Most online brokers are part of the SIPC, which protects clients’ securities. Some providers also offer in-house insurance coverage for the securities they hold.
Trading platforms also face risks, including hacking, market manipulation, regulatory risks, and technical failures.
