The best penny stocks under $1 to buy today depend on today’s chart. The fact is, 99.9% of these cheap stocks will eventually be worth less than they are right now. That’s why I tell my students to build a watchlist every day.
The best traders watch more stocks than they trade. That’s essential for getting to know the charts of these stocks — these charts will give you valuable info about their future moves. If you study the patterns these stocks follow, you can find opportunities for the kind of small gains that can grow a small account fast.
Today I’ll show you how to build a watchlist for stocks under $1. Read on for the results!
Table of Contents
- 1 Best Penny Stocks Under $1 to Buy in 2025
- 2 What Are the Best Penny Stocks to Buy Under $1 in March 2025?
- 3 Make This Trade Friday @ 2:59 PM
- 4 Cheap Stocks to Buy Now Under $1
- 5 Stocks Under $1 That Will Explode
- 6 What Are Penny Stocks?
- 7 Where to Buy Penny Stocks Under $1
- 8 Top Platforms to Trade Stocks Under $1
- 9 What Are the Penny Stocks Under $1 with the Highest Potential?
- 10 Stocks Under $1 Investing Strategies
- 11 Risks When Investing in Penny Stocks Under $1
- 12 Penny Stocks Under $1 FAQs
- 12.1 Where can one find the list of companies’ penny stocks under $1?
- 12.2 What are high-volume penny stocks under $1?
- 12.3 What are some great penny stocks under $1 for selling calls and puts?
- 12.4 What is Tim Sykes’ favorite stock under $1?
- 12.5 What are the best stocks to buy under $1 that pay dividends?
- 12.6 What are the best stocks under $1 to consider for trading?
- 12.7 How can penny stocks contribute to portfolio growth and profitability?
- 12.8 What are some tips for finding bargain penny stocks with good upside potential?
- 12.9 Are penny stocks under $1 only listed on the Nasdaq or NYSE?
- 12.10 Can penny stocks in healthcare or therapeutics be profitable?
- 12.11 Do taxes impact profits from penny stocks under $1?
Best Penny Stocks Under $1 to Buy in 2025
The best penny stocks under $1 in 2025 are:
- PLUS THERAPEUTICS Inc. [NASDAQ: PSTV]
- AEON Biopharma Inc. Class A [AMEX: AEON]
- Gold Resource Corporation [AMEX: GORO]
- Ocugen, Inc. [NASDAQ: OCGN]
- SAG Holdings Limited [NASDAQ: SAG]
- Baijiayun Group Ltd [NASDAQ: RTC]
- Lexicon Pharmaceuticals Inc. [NASDAQ: LXRX]
Penny stocks get a bad rap, especially from Wall Street types who dismiss them as scams or lottery tickets. While it’s true that 99% of penny stocks are junk, they also offer some of the best trading opportunities. Where else can you find stocks capable of moving 15–30% in a single day? That’s why I trade them and why I teach my students to focus on volatility, not long-term potential.
These stocks are not for investing — they’re for trading. Penny stocks are cheap because their financials are shaky, their earnings are inconsistent, or their products and services haven’t gained traction in the market. But for traders, this creates the kind of rampant speculation you can profit from if you stick to a solid trading strategy. Here are some of the best penny stocks under $1 to trade in 2024, focusing on volatility, momentum, and potential short-term opportunities.
I’m sharing this so you can see my process. If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.
What Are the Best Penny Stocks to Buy Under $1 in March 2025?
To find the best penny stocks to buy under $1 in March 2025 requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my penny stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
To find watch-worthy penny stocks under $1, I input the following criteria:
- Last Price ≤ $1
- Last Price ≥ $0.25
- Volume ≥ 100,000
- Number of Trades ≥ 100
When I run this screen in March 2025 and sort by percent change, it gives me the following top results:
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Read on for the best penny stocks that I’m watching today!
PLUS THERAPEUTICS Inc. [NASDAQ: PSTV]
Plus Therapeutics Inc is a clinical-stage pharmaceutical company. The company focused on the discovery, development, and delivery of complex and innovative treatments for patients battling cancer and rare diseases.
AEON Biopharma Inc. Class A [AMEX: AEON]
AEON Biopharma, Inc. is a bio-pharmaceutical company. The Company is focused on developing ABP-450 (prabotulinumtoxinA) injection for the treatment of debilitating medical conditions with an initial focus on the neurology and gastroenterology markets.
ABP-450 contains a 900 kDa botulinum toxin type-A complex produced by the bacterium clostridium botulinum. The active part of the botulinum toxin is the 150 kDa component, and the remaining 750 kDa of the complex is made up of accessory proteins. When injected at therapeutic levels, ABP-450 blocks peripheral acetylcholine release at presynaptic cholinergic nerve terminals by cleaving SNAP-25, a protein integral to the docking and release of acetylcholine from vesicles situated within the nerve endings leading to denervation and relaxation of the muscle. It is also engaged in the Phase Il clinical study of ABP-450 for the treatment of cervical dystonia. Cervical dystonia, also known as spasmodic torticollis, is a neurological condition.
Gold Resource Corporation [AMEX: GORO]
Gold Resource Corp is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. It targets low capital expenditure projects with potential for generating high returns on capital. The Company offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
Cheap Stocks to Buy Now Under $1
For traders seeking quick returns, penny stocks under $1 present unique opportunities to trade volatility without requiring large accounts. These low-priced stocks often gain momentum in sectors like renewable energy or mining, driven by news, analyst ratings, or shifts in market conditions. Unlike ETFs or mutual funds, which prioritize stability, penny stocks thrive on speculation, making them ideal for short-term trades. By focusing on stocks with clear price targets and keeping an eye on consensus ratings, traders can identify setups with strong growth potential while managing the risks tied to low liquidity and financial instability.
Here are two more cheap stocks that made the watchlist:
Ocugen, Inc. [NASDAQ: OCGN]
Ocugen Inc is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and developing a vaccine to save lives from COVID-19. The breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with one drug one to many and novel biologic product candidate aims to offer better therapy to patients with underserved diseases such as wet age-related macular degeneration, diabetic macular edema and diabetic retinopathy. The company is co-developing Bharat Biotech’s COVAXIN vaccine candidate for COVID-19 in the U.S. and Canadian markets.
SAG Holdings Limited [NASDAQ: SAG]
SAG Holdings Limited, through its subsidiaries, distributes and sells automotive and industrial spare parts in the Asia Pacific, the Middle East, Europe, Africa, and the Americas. It operates in two segments, On-Highway Business and Off-Highway Business. The On-Highway Business segment supplies genuine original equipment manufacturer (OEM) and aftermarket parts, engine and chassis parts, wear and tear parts, body parts, and spare parts and lubricants for use in passenger and commercial vehicles. This segment serves resellers, such as distributors and dealers of automotive parts, retailers, workshops, end-users, and fleet owners. The Off-Highway Business segment supplies a range of filters, batteries, lubricants, components, and industrial spare parts for internal combustion engines for various sectors, including marine, energy, mining, construction, agriculture, and oil and gas.
This segment serves distributors and dealers of industrial parts that are resold to workshops, industrial manufacturing facilities, shipyards, and heavy-duty transport fleet owners. The company also manufactures and distributes automotive spare parts and lubricants under the REV-1, VETTO, NUTEQ, GENTEQ, and SUNBLADE brands. In addition, it offers its products through retail outlets. The company was incorporated in 2022 and is based in Singapore. SAG Holdings Limited is a subsidiary of Soon Aik Global Pte Ltd.
Stocks Under $1 That Will Explode
Stocks priced under $1 have the potential for explosive growth, especially in high-speculation sectors like biotechnology and renewable energy. Companies working on innovative solutions, such as cancer therapies targeting tumors, can experience sharp moves on positive trial results or regulatory updates. While these stocks lack the financial stability of funds or ETFs, they create opportunities for traders who monitor price targets, analyst ratings, and sector-specific developments. Staying informed through accounting disclosures, market news, and shifts in finance or tax policies can help traders navigate these high-risk setups and capitalize on significant price movements.
Here are a couple stocks that I think will explode — in a good way or a bad way!
Baijiayun Group Ltd [NASDAQ: RTC]
Baijiayun Group Ltd and its subsidiaries is a video-centric technology solution provider with core expertise in SaaS/PaaS solutions. The company is committed to delivering reliable, high-quality video experiences across devices and localities. It offers SaaS and PaaS products centered on live on-demand, dual-teacher classrooms, SaaS online schools, BRTC, cloud products such as privatized online schools, video conferencing, and system solutions such as video Al, smart campus, and smart learning. plan. The firm provides video technology solutions to enterprises and government agencies in various fields such as automobiles, finance, education, and medical care through a rich product matrix plan.
Lexicon Pharmaceuticals Inc. [NASDAQ: LXRX]
Lexicon Pharmaceuticals Inc is a biopharmaceutical company. It is engaged in the discovery, development and commercialization of pharmaceutical products for the treatment of human disease. Some of its drugs candidates are LX9211, an orally-delivered small molecule drug candidate, as a treatment for neuropathic pain; and sotagliflozin, an orally-delivered small molecule drug candidate, as a treatment for heart failure and type 1 diabetes.
What Are Penny Stocks?
Penny stocks are shares of companies that trade for less than $5. These are often small-cap firms with a market cap under $300 million. They’re high-risk but can offer substantial rewards. The stock market is full of these opportunities, but you need to know where to look and what to avoid. In my years of trading and teaching, I’ve seen a TON of people make the mistake of diving into penny stocks without proper research… and it’s not pretty.
Everybody sees the gains that penny stocks are capable of — but they tend to ignore the collapses.
Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp
— Timothy Sykes (@timothysykes) February 28, 2021
How Much Money Do You Need to Get Started with Stocks Under $1?
You don’t need a fortune to start trading penny stocks. With as little as $500, you can build a diversified portfolio. However, remember that trading these stocks comes with high risks. Small gains add up.
Is Investing in Stocks Under $1 Profitable?
Investing in stocks under $1 can be profitable, but it’s not worth the risk. I never invest in these sketchy stocks — I only trade them!
If trading stocks under $1 is too sketchy, check out my list of stocks priced under $5. These stocks can provide a broad range of opportunities while maintaining affordability. Here’s my curated list of penny stocks under $5!
Where to Buy Penny Stocks Under $1
Buying penny stocks under $1 is easier than ever, thanks to a variety of platforms. These platforms offer accessibility to stocks priced affordably, making them a popular choice for beginner traders looking for potential high returns. However, it’s crucial to perform thorough research and due diligence when selecting a platform for trading penny stocks to ensure it meets your trading needs and provides a secure environment.
Online Brokerage Platforms
Several online brokerage platforms support penny stock trading, each with its unique fee structures and restrictions:
- I use a few different brokers, depending on what I want from them — E-Trade and Interactive Brokers are usually prominent.
- No broker is perfect — check out this article I wrote on the best brokers for penny stock trading.
- Fees vary for penny stock trades, from close to free for penny stocks on major exchanges at the majority of US brokers, to $6.95 per OTC transaction. I don’t mind fees — any trade you make should consider the fees and still be profitable!
To set up an account and start trading on these platforms, follow these steps:
- Choose a Platform: Select an online brokerage that suits your trading style and budget.
- Create an Account: Provide necessary documentation, such as a government-issued ID and proof of address.
- Fund Your Account: Make the initial deposit required by the brokerage.
- Start Trading: Use the platform’s tools to research and execute trades.
Over-the-Counter (OTC) Markets
OTC markets are decentralized markets where securities not listed on major exchanges are traded. Unlike traditional exchanges, OTC markets have less stringent listing requirements, making them accessible for many penny stock companies.
Risks and Benefits of Trading on OTC Markets:
- Benefits:
- Access to a wide range of undervalued and speculative stocks.
- Potential for high returns due to lower share prices.
- Risks:
- Higher susceptibility to fraud and manipulation.
- Lower liquidity, which can lead to difficulty in executing trades.
OTC markets are where you’ll find the cheapest penny stocks on the market, such as those under 10 cents. These ultra-low-priced stocks can be highly volatile and offer substantial upside potential for traders who can navigate the risks effectively. Monitoring these stocks requires a hell of a lot of discipline and a strong understanding of market trends and trading plan building. My 10 cent penny stock watchlist has the stocks that I’m watching the closest!
Stock Trading Apps
Mobile apps have revolutionized penny stock trading by offering user-friendly interfaces and real-time updates. Popular apps include Robinhood, Webull, and Acorns — but all of the major brokers have apps that work well enough.
Remember: the best trading platform is the one you have on you!
Effective Use of Stock Trading Apps:
- Set up real-time alerts to stay updated on trading volume and price changes.
- Utilize educational resources within the app to enhance your trading knowledge.
- Monitor and analyze trends using in-app tools.
Directly from Company Offerings
Some penny stock companies offer stocks directly to investors through Direct Stock Purchase Plans (DSPPs). This method can provide direct access to shares without intermediary fees.
Steps to Evaluate and Participate in Direct Offerings:
- Research the Company: Investigate the company’s financial health and business model.
- Check Eligibility: Ensure you meet the requirements for participating in the DSPP.
- Apply for Participation: Follow the company’s application process to purchase shares directly.
Penny Stock Exchanges
Penny stock exchanges are specialized markets for low-priced stocks. Major exchanges where penny stocks under $1 are frequently traded include the OTC Bulletin Board (OTCBB) and the Pink Sheets.
Regulatory Standards and Listing Requirements: These exchanges have less stringent requirements compared to major exchanges, which can affect the quality of stocks listed. Always verify the legitimacy and financial health of companies before trading.
Top Platforms to Trade Stocks Under $1
When it comes to trading penny stocks, the platform you choose can make or break your experience. Look for platforms that offer robust analysis tools, real-time data, and low fees.
What Are the Penny Stocks Under $1 with the Highest Potential?
Look up at the charts of the stocks above. Do you see any spikes in their long-term chart? That’s a good sign.
History doesn’t repeat, it rhymes. And that’s a good thing for former runners…
https://t.co/gIIuF22exF Former runners can run again, never forget!
— Timothy Sykes (@timothysykes) December 7, 2020
Stocks Under $1 Investing Strategies
Investing in stocks under $1 requires a different strategy than traditional stock trading. Focus on risk management, diversification, and timely entry and exit points. I’ve been teaching these strategies for years, and they’ve been instrumental in my success and that of my students.
Stocks priced under 50 cents can be even better at running — but they’ll test your discipline even more than $1 stocks! Diversifying your investments across different price ranges and industries can give you exposure to some of the best opportunities in the market. My watchlist of the best penny stocks under 50 cents has some of the penny stocks I’m watching the closest right now.
Risks When Investing in Penny Stocks Under $1
Investing in low-priced penny stocks involves significant risks. Understanding these risks is crucial to managing your investments effectively and protecting your capital.
Read on for the biggest risks on my radar!
High Volatility
Volatility refers to the price fluctuations of a stock. Penny stocks are highly volatile, which can lead to substantial gains or losses in a short period.
Traders need volatility — but it can blow up your account if you don’t learn to CUT YOUR LOSSES QUICKLY!
Risk Management Strategies:
- Use stop-loss orders to limit potential losses.
- Diversify your portfolio to spread risk.
Liquidity Issues
Liquidity is the ability to buy or sell a stock without affecting its price. Penny stocks often face liquidity challenges, making it difficult to execute trades at desired prices.
Always look for volume when building a trade.
Assessing Liquidity:
- Check trading volume regularly.
- Avoid stocks with consistently low volume.
Potential for Total Loss
Penny stocks carry a high risk of total loss due to the speculative nature of the companies involved. Never invest in these shady stocks — only trade them!
Mitigating Total Loss Risk:
- Cut your losses quickly.
- Diversify investments across different stocks and sectors.
- Limit the size of your positions to minimize potential losses.
Lack of Analyst Coverage
Penny stocks typically receive less attention from financial analysts, resulting in less publicly available information. Twitter/X pumps is what they have in place of actual news.
Do Your Due Dilegence!
- Analyze financial statements and company news.
- Use online forums and trading communities to gather insights.
Economic Sensitivity
Penny stock companies are often more sensitive to economic changes, which can significantly impact their performance.
Monitoring Economic Indicators:
- Keep an eye on macroeconomic trends that could affect the sector.
- Stay informed about regulatory changes and market conditions.
Penny Stocks Under $1 FAQs
Just because a stock trades for under $1 doesn’t make it cheap. Read on for some more questions you might be asking…
Where can one find the list of companies’ penny stocks under $1?
Get a powerful stock screener like the one in StocksToTrade, and start building parameters. When I’m looking for tradable penny stocks under $1, I want their volume to be great enough for the stock to be liquid. This way I can enter and exit a position more easily.
What are high-volume penny stocks under $1?
A penny stock under $1 needs high volume for me to trade it. When I’m building my stock scan, I’ll typically look for stocks that have traded over 1 million shares so far that day.
The scanner I’m using in this article is set to look for penny stocks that have traded more than 100,000 shares. This will help you identify watch-worthy stocks — even if you’re looking in pre-market.
What are some great penny stocks under $1 for selling calls and puts?
Options are only offered on certain stocks. Many stocks under $1 won’t qualify.
What is Tim Sykes’ favorite stock under $1?
I don’t have a “favorite” stock under $1 — I think penny stocks are bad investments, and I don’t trust them at all. Trading scared has helped me make some profitable trades. One ticker that is ALWAYS on watch is Ozop Energy Solutions Inc. (OTCPK: OZSC) — I’ve made $45k over the years trading this penny stock (click the link for my individual trades).
What are the best stocks to buy under $1 that pay dividends?
Stocks that trade under $1 don’t usually pay dividends. Stocks that cost this little generally don’t have much going for them.
What are the best stocks under $1 to consider for trading?
The best stocks under $1 often include companies with strong growth potential and high trading volume. Look for affordable stocks that show consistent price movements and have recent news or catalysts. Always check Wall Street recommendations and perform thorough research to identify potential gainers.
How can penny stocks contribute to portfolio growth and profitability?
Penny stocks can offer significant growth due to their low entry price and high volatility. These stocks provide a unique chance for substantial returns, especially when bought at a bargain price. However, profitability requires careful selection and constant monitoring of trading patterns and company performance.
What are some tips for finding bargain penny stocks with good upside potential?
To find bargain penny stocks with upside potential, start by researching companies with recent positive developments or strong financial reports. Pay attention to sectors with increasing investor interest and cash flow. Use trading platforms and forums to gather ideas and insights from experienced traders.
Are penny stocks under $1 only listed on the Nasdaq or NYSE?
Penny stocks under $1 can be found on various exchanges including the Nasdaq and NYSE, but many also trade over-the-counter (OTC). Stocks on major exchanges may offer more transparency and better trading volume, making them easier to buy and sell. However, OTC stocks often experience more volatility, which can create opportunities for traders seeking quick profits.
Can penny stocks in healthcare or therapeutics be profitable?
Healthcare and therapeutics penny stocks often present unique trading opportunities, especially when tied to clinical trials or new drug developments. Stocks in these sectors can experience significant price swings on trial results or FDA news, creating potential for fast profits. However, these trades carry high risks, as setbacks in trials or regulatory delays can cause sharp declines in stock price.
Do taxes impact profits from penny stocks under $1?
Any profits made from trading penny stocks are subject to taxes, just like profits from other stock, crypto, or currencies trades. Depending on how long you hold the stock, your gains will be classified as short-term or long-term, affecting the tax rate. Keeping detailed records of your trades, including sales and costs, is essential for accurate tax reporting and minimizing potential issues with tax authorities.