The cheapest penny stocks can be bought for less than a dollar. There are many companies in this category with undervalued shares or when the company is still in its formative stages. Some of these stocks present great opportunities for traders.
The article identifies the best and cheapest penny stocks with potential significant returns. We also identify the best stock trading platforms where you can buy the cheapest penny stocks.
The Best Cheap Penny Stocks at a Glance
Here’s a list of the top cheap penny stocks in 2023. Best stocks.
| Penny Stock | Code | Price | Market Cap | Hedge Fund Holders |
| Compugen | NASDAQ: CGEN | $0.84 | $81.44M | 29 |
| Biolase | NASDAQ: BIOL | $0.54 | $13.76M | 8 |
| MEI Pharma | NASDAQ: MEIP | $0.35 | $46.19M | 27 |
| Helbiz | NASDAQ: HLBZ | $0.20 | $18.85M | 10 |
| Mullen Automative | NASDAQ: MULN | $0.39 | $648.7M | $25 |
| GuardForce AI | NASDAQ: GFAI | $0.54 | $22.38M | N/A |
| Troika Media Group | NASDAQ: TRKA | $0.21 | $16.27M | 8 |
| Ideanomics | NASDAQ: IDEX | $0.16 | $99.97M | 26 |
| Cenntro Electic Group | NASDAQ: CENN | $0.66 | $173.8M | 20 |
| PowerBridge Technologies | NASDAQ: PBTS | $0.11 | $22.94M | N/A |
Pros and Cons of the Cheapest Penny Stocks
Here are some of the benefits and drawbacks of trading
- Potential For High Returns _ Investors stand to reap huge profits if prices increase.
- Low Share Price _ Makes it possible to buy many shares
- Low Entry Barrier _ Traders with low capital have an opportunity with cheap penny stocks
- High Risk _ The value of cheap penny stocks can reduce to zero, so it's quite riskier.
- Lack of Stability _ Difficult to predict price movement Volatility: Penny stock prices are volatile in nature as these are traded by a small number of investors, which inflates the price.
Compugen
Compugen engages in the research and development of therapeutic and diagnostic products against immuno-oncology and autoimmune diseases. The company was formed in 1993 and has headquarters in Holon, Israel.
The CGEN stock has a 52-week range of $0.51 - $3.57. Its one-year performance is -73.06%, while the year-to-date (YTD) performance is +17.83%.
The company has a potential upside due to its novel procedures, although risk persists.
Biolase
Biolase is a medical technology company that manufactures laser systems for dentistry and medicine which can be used for tooth whitening, gum surgery, and removal of tooth decay. The company was formed in 1987 with headquarters in Lake Forest, California.
The BIOL share has a YTD performance of -17.23% and the 52-week price range has seen lows of $0.37 and highs of $10.7. With a price below $1, the stock may provide great value to investors considering a positive price increase within one year.
The stock has experienced positive momentum due to a solid revenue report in Q4 2022. With significant market cap opportunity, it shows good expectations for high revenue growth for 2023.
MEI Pharma
MEI Pharma is a clinical-stage oncology firm developing new cancer treatments. It was founded in 2000 and is headquartered in San Diego, California. After research and development, the company commercializes novel therapies.
The MEIP stock’s 52-week range is $0.2 - $2.2 and its performance is down by -81.15% for the past year. However, the YTD performance shows a positive uptrend, with +41.63%. The stock has struggled significantly over the past five years, with the price plunging by -84%.
The price for the stock is currently really low. However, the positive YTD supports the purchase of this stock.
Helbiz
Helbiz offers electric micro-mobility solutions for consumers globally. It was incorporated in 2015 and has headquarters in Newyork. The organization offers several products, including e-scooters and e-bikes, which are accessible through its digital platform.
In addition to this, it also runs a fleet management system, AI, and environmental mapping to offer sustainable transport solutions. .
The share price has grown by 85.9% since the start of 2023. This provides a window of opportunity for traders who can take advantage of this trend. The 52-week price range is between $0.1 - $3.96.
Mullen Automotive
Mullen Automotive is an electric vehicle manufacturer, formed in 2010 and based in Brea, California, for commercial and passenger vehicles.
The company’s share has plunged by 90% in the past 12 months. This is despite the high average trading volume due to the low cost per share, making the stock appealing.
The stock is likely to remain actively traded due to the low prices. It has seen highs of $4.17 and lows of $0.18 in the past 52 weeks, which shows the upside potential of the share.
GuardForce AI
Guardforce AI was incorporated in 2018 and is based in Singapore. It offers cash management and logistics solutions including cash handling,
ATM management, cash in transit, and cash processing. The primary customers include banks, government authorities, coin-manufacturing mints, and major retail chains.
The one-year performance for this stock is -20.68%, while the YTD performance is up by 326%. Its 52-week range is between $0.11 and $1.96. The recent rise in prices makes the stock attractive since the prices are still way below the 52-week high.
Troika Media Group
Troika Media is a multimedia company with headquarters in New York, leveraging data and technology to produce integrated branding, media, marketing, and analytics.
It offers holistic solutions to help clients achieve their branding and marketing strategies.
The stock is down by -81% based on its one-year performance while its YTD prices are 83.53% is positive. Its 52-week range is between $0.095 and $1.5 and has a beta of 0.8.
Ideanomics
Ideanomics is a global group accelerating the commercial adoption of electric vehicles (EVs) and providing all services about EVs under one roof. The company was founded by Shane McMahon in 2004 with headquarters in New York.
It offers clients charging and financial solutions for an easier transition and operation of an EV fleet.
The stock’s YTD performance is -0.37% and the one-year performance for the stock stands at -84.58%. The average daily trading volume of the IDEX stock is 9.96M.
Cenntro Electric Group
The Cenntro Electric Group, is an electric vehicle manufacturer based in Freehold, New Jersey, and formed in 2017. They design and produce medium and light-duty commercial electric vehicles.
Cenntro’s share prices have a YTD performance of +51.16%. However, the one-year price performance is negative at -55.06% and a beta of 0.88. Its 52-week range is between $0.26 and $3, giving the stock a 52-week price range ratio of 19.72%.
Recently, the share prices have been rising due to the start of European shipments and the likelihood of unveiling the Logistar EV line in 2023.
PowerBridge Technologies(PBTS)
PBTS is a provider of multi-industry tech solutions, software solutions, IOT platform services, intelligent fixtures, and services for global trade. The solutions cut across retail, metaverse, supply chain, and social live-streaming.
The stock was down by -74% in the last year but YTD performance shows a positive rise of 10.17% in share prices.
Recently, the company announced the strategic acquisition of DTI Group, which helps in its trade digitization program.
It has also announced the successful launch of a soccer NFT on Ali Auction and the recognition of its smart monitoring platform.
What Are the Best Platforms for Buying Cheap Penny Stocks?
Fidelity - Best for Active Penny Stock Trading
Fidelity offers a sophisticated platform filled with useful features for stock trading, including access to news, tools, and educational resources for penny stock traders. Its advanced technology assists traders in making informed decisions.
The app offered by Fidelity is user-friendly and accessible, providing traders with many penny stocks to trade.
| Account minimum deposit | $0 |
| Stock trading commission | 0% |
| OTC fees | $0 per trade |
| KYC Required | Yes |
| Demo Account | Yes |
| Price | Yes |
| Investment types | Stocks, EFTs, Mutual Funds, Futures, Forex, Bonds |
| App | Yes |
TD Ameritrade - Best for User Experience
TD Ameritrade provides a user-friendly and robust trading platform for trading penny stocks, accessible via the Over the Counter Bulletin Platform(OTCBB) or pink sheet.
The platform boasts advanced features like customizable stock screening, technical analysis tools, charts, and backtesting abilities, making it an ideal tool for traders.
TD Ameritrade's mobile application has over one million downloads on the Android Play Store. Customers have praised the app for its intuitive interface, tools, user-friendly interface, and accessibility for beginners.
| 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 |
Charles Schwab - Best Overall For Penny Stock Trading
Charles Schwab provides an exceptional experience for trading penny stocks, offering an extensive range of options for selection. Investors can buy the cheapest penny stocks using a standard brokerage account on the OTCBB.
The trading platform features advanced tools that make trading easy and investors can make informed decisions using the platform's extensive research tools, education, and stock market insights.
It is user-friendly and can be accessed on multiple platforms, catering to beginner and experienced traders.
Charles Schwab is licensed and regulated by FINRA and has a long-standing reputation as a reliable broker. Additionally, it guarantees coverage of losses in case of unauthorized account activity.
With over one million downloads on Android, the app has received above-average ratings from customers.
| 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 |
What Are the Cheapest Penny Stocks and How Do They Work?
Penny stocks are common low-priced stocks that trade for less than $5 per share in the USA. There are many stocks of little-known companies with limited financial resources and history.
Many of these companies have no history of sustained profitability. These penny stocks are traded on the OTC markets, OTCBB, or Pink sheets.
Traders must do proper due diligence and market research before making investment decisions and can open a brokerage account on a trading platform to trade penny stocks.
Leading trading platforms like TD Ameritrade and Charles Schwab offer OTCBB capabilities for clients interested in trading cheap penny stocks.
Trading platforms will charge you a fee per share for trading every penny stock. However, platforms like Fidelity will allow you to buy and sell penny stocks without the standard fee.
How Much Money Do You Need to Get Started with the Cheapest Penny Stocks?
You can sign up for an account without any minimum balance on most trading accounts and can start buying the cheapest penny stocks for less than one dollar.
The amount you decide to invest will depend on your fundamental analysis of the stock, risk tolerance, capital availability, and financial goals.
Are Penny Stocks Platforms Safe?
The safety factor of the trading platforms depends on several factors, including regulatory compliance, reputation, and other measures to protect clients.
If the platform is authorized and regulated by FINRA, it is considered to be safe and secure. Protecting assets and funds can be done by segregating funds, using data encryption technologies, data backup, and regular system audits.
Charles Schwab is considered one of the safest penny stock trading platforms to trade financial assets.
Most platforms are part of the Securities Investor Protection Corporation(SIPC), which protects clients’ securities. Some providers, like Interactive Broker, also offer in-house insurance coverage for the securities they hold.
Trading platforms, however, are not without risks. Cyber security risks, market cap manipulation regulatory risks, and risks of technical failures are inherent risks that penny stocks trading platforms face.
