Choosing a reliable broker is your first stop in penny stock trading — this article analyzes the pros and cons of Chase’s brokerage platform.

J.P. Morgan Chase is one of the biggest banks in the country. It’s also a relative latecomer to the online trading ranks, competing with the likes of Wealthsimple Trade, Charles Schwab, Interactive Brokers, and many more. This can be both a good and bad thing, depending on your trading style.

Is J.P. Morgan Chase a good penny stock broker? Read on to see the penny stock trades you can make with this broker!

Trading on Chase.com

Chase.com’s online brokerage platform is called J.P. Morgan Self-Directed Investing. As the name implies, this platform is geared toward investing, not penny stock trading. It gives users access to stocks, options trades, ETFs, mutual funds, and other investment options.

J.P. Morgan Chase doesn’t offer a desktop trading app, just web-based and mobile options. Both versions of the platform let users customize the platform layout and screener tool settings. However, this customization is basic compared to dedicated penny stock trading apps like StocksToTrade.

You can find listed Nasdaq and NYSE stocks on Chase’s app. If you’re looking to trade stocks from major artificial intelligence firms, biotechs, energy companies, and other established corporations, you won’t have a hard time finding them.

You’ll have a harder time finding cheap stocks and low-priced securities that aren’t listed on major exchanges. You can access the over-the-counter (OTC) markets through the app, but sketchier unlisted penny stocks won’t be tradeable. Crypto and NFT trading is also outside Chase’s purview.

At the time of this writing, margin isn’t available to most J.P. Morgan Self-Directed Investing account holders. If you want to trade on margin or use short selling as part of your strategy, you should look at other brokerages. The broker plans to roll out online margin trading more widely by the end of 2023.

Can I Buy Penny Stocks on Chase?

You can buy penny stocks or micro-cap stocks on Chase, but the selection is relatively limited. Any penny stocks listed on major stock exchanges are available to buy, but Chase doesn’t let you buy OTC stocks priced under $5.

On Chase, you’re barred from trading most of the OTC penny stocks that I watch. If you want to see why that’s a problem, subscribe to my NO-COST weekly watchlist here.

The OTC Marketplace on Chase

The Chase brokerage app doesn’t impose additional charges on OTC transactions. But this has a limited upside — like I said above, your selection is limited to OTC stocks priced at $5 or more. If you’re looking for wider access to the OTC market or pink sheet stocks, you should look for another online broker.

How to Find Penny Stocks on Chase.com

Chase.com’s basic stock screener lets you filter by price — to find penny stocks, search for stocks under $5.

You’ll need a more complete stock screener like StocksToTrade to narrow down your search results. I helped design StocksToTrade to match my trading needs, and its stock screener is no exception. It lets you search by:

• Percent gain over the previous trading day
• 52-week highs
• Volume
• Sector
• Float

There’s much more to every aspect of this pro-level trading platform. Sign up for a 14-day trial of StocksToTrade to see how it changes the way you trade — only $7!

Chase Penny Stock Fees

Chase has no penny stock fees or commissions on most trades, excepting regulatory charges and per-contract options fees. This falls in line with most other online trading options — brokers which charge for OTC transactions usually give traders access to all OTC stocks.

10 Penny Stocks to Watch for on Chase.com

My Chase.com penny stock picks are:

• (NYSE: GOTU) — Gaotu Techedu Inc. — A Volatile Chinese Penny Stock Runner
• (NASDAQ: COMS) — COMSovereign Holding Corp — The Reverse Split Penny Stock
• (NASDAQ: MMAT) — Meta Materials Inc. — The Post-Pump Penny Stock
• (NASDAQ: GLYC) — GlycoMimetics Inc. — The Post-Breakout Panic Penny Stock
• (NYSE: NINE) — Nine Energy Service Inc. — The Multi-Month Breakout Penny Stock
• (NASDAQ: SMMT) — Summit Therapeutics Inc. — The Post-Offering Biotech Penny Stock
• (NYSE: AMAM) — Ambrx Biopharma Inc. — The Biotech Penny Stock Spiker
• (NASDAQ: LUNR) — Intuitive Machines — The Non-Penny Stock Supernova
• (NASDAQ: VLON) — Vallon Pharmaceuticals Inc. — The Reverse Merger Penny Stock
• (NASDAQ: VKTX) — Viking Therapeutics Inc. — The Biotech Breakout Penny Stock

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

1. Gaotu Techedu Inc. (NYSE: GOTU) — A Volatile Chinese Penny Stock Runner

My first Chase penny stock pick is Gaotu Techedu Inc. (NYSE: GOTU).

This is an ed-tech penny stock that gained over 600% in December 2022. It’s been bouncing around its highs for most of 2023.

Why We Like It

Look back in GOTU’s chart a few years. What was this penny stock doing above $100 you might ask?

I’d guess that there were some reverse splits in this stock’s history, in order to remain compliant with NYSE rules. The NYSE requires that stocks stay at $1 or more to remain listed…

Sketchy penny stocks that will eventually collapse completely often have trouble with that!

That’s okay. I got into this niche because it is sketchy. When you know the patterns, you can trade these stocks SAFELY.

Like when I last traded this stock in December — a dip buy for a $431 profit (starting stakes $11,220) — I’m waiting for this stock to panic.

2. COMSovereign Holding Corp (NASDAQ: COMS) — The Reverse Split Penny Stock

My second Chase penny stock pick is COMSovereign Holding Corp (NASDAQ: COMS).

If you want to see a reverse split in action, look at COMS’s chart.

On February 10, this U.S. telecom stock conducted a 1-for-100 reverse stock split. That brought its share price back into compliance with Nasdaq’s $1 minimum, and provided a short-term catalyst as COMS spiked 69% in the aftermath.

As of late February, this stock is back in its death spiral — down about 50% off its recent highs. This is step 7 of my 7-step pennystocking framework — ‘the long kiss goodnight.’

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

Why We Like It

Let’s ignore COMS’ terrible price action for the moment. After its reverse split, its float is just above 2.5 million shares.

Low float stocks spike more when they move on a catalyst. There are only so many shares to go around, and sellers will usually hold out for a profit when the stock is surging.

When you add in the short interest that a crappy stock like COMS often attracts, it can make for short squeeze potential.

This stock traded 400 million shares in one day not so long ago. If it can attract a fraction of that volume in the future, COMS will have some trading potential.

3. Meta Materials Inc. (NASDAQ: MMAT) — The Post-Pump Penny Stock

My third Chase penny stock pick is Meta Materials Inc. (NASDAQ: MMAT).

MMAT stock has been trending down since December. That should come as no surprise to those who followed the MMTLP saga…

The good news about big losses is that they can be the start of your new life as they should help you realize how important education/preparation is. All those who got annihilated by $MMTLP $MMAT $COSM promoters remember your mistake & vow never to be so trusting/unprepared again

— Timothy Sykes (@timothysykes) December 9, 2022

Now MMAT has just gotten authorization to sell another $100 million worth of shares. At its current valuation, that will more than double its already bloated float.

Why We Like It

Why am I watching this post-pump stock?

It’s a foregone conclusion that MMAT will dilute its stock at the next possible opportunity. What will give it that opportunity? That’s right — another pump.

Smart traders can ride these pumps. Memorize this chart, and make sure you take small gains when you have the chance.

4. GlycoMimetics Inc. (NASDAQ: GLYC) — The Post-Breakout Panic Penny Stock

My fourth Chase penny stock pick is GlycoMimetics Inc. (NASDAQ: GLYC).

Something had to stop GLYC’s momentum. A massive financing was always going to be the likeliest culprit.

I traded it three times over its three-month breakout for total gains of $1,289 (click the link to see my individual trades). During that time it grew over 550%.

Any biotech worth its salt will dilute while the iron is hot.

Why We Like It

Despite a 63% drop after its share offering, this stock is still attracting investment. A private equity firm bought over 1.5 million shares after the dip.

Since then, the stock is up by 20%.

GLYC also got some lukewarm news recently — its drug will not be fast-tracked like some thought. Despite the news, its drug is still far along in development. GLYC’s future is as certain as any biotech’s.

5. Nine Energy Service Inc. (NYSE: NINE) — The Multi-Month Breakout Penny Stock

My fifth Chase penny stock pick is Nine Energy Service Inc. (NYSE: NINE).

NINE is a multi-month breakout stock that hasn’t fallen apart. But in the last month it’s lost some momentum.

This might have something to do with its recent $350 million shelf offering — which means it can dilute at any time.

Why We Like It

NINE may have hit its peak in mid-January. Since then, it’s fallen by almost 50%.

As it continues to panic, I’ll be watching for dip buy opportunities.

6. Summit Therapeutics Inc. (NASDAQ: SMMT) — The Post-Offering Biotech Penny Stock

My sixth Chase penny stock pick is Summit Therapeutics Inc. (NASDAQ: SMMT).

SMMT had its breakout in December. Now, after a share offering, it’s trending down.

Why We Like It

I don’t short stocks too often these days…

yah shorting was much easier a few years ago, now so many newbies do it too early and they create massive squeezes so terrible risk/reward, but good for buyers now as the squeezes create more upside!

— Timothy Sykes (@timothysykes) February 23, 2019

I think there’s too much risk. But some traders, like my former student and Trading Challenge mentor Ellis Hobbs, manage to do it to good effect.

Here’s an article about a Challenge webinar Ellis gave on an SMMT trade. 

He used my pennystocking framework to identify a shorting opportunity here.

I still don’t recommend shorting to newbies. But if you’re willing to put in the time, you’ll be able to trade penny stocks however they’re moving.

7. Ambrx Biopharma Inc. (NYSE: AMAM) — The Biotech Penny Stock Spiker

My seventh Chase penny stock pick is Ambrx Biopharma Inc. (NYSE: AMAM).

At the time of writing, AMAM is on a four-day breakout. News about its prostate cancer treatment candidate started the rally.

Why We Like It

Since the news dropped, AMAM is up over 200%. This sustained run is especially impressive compared to a December spike, which lasted for just one day before falling apart.

This is the kind of sustained momentum I like to trade with. My favorite pattern these days is the panic dip buy…

There’s a better chance of a bounce when the stock is trending up.

8. Intuitive Machines (NASDAQ: LUNR) — The Non-Penny Stock Supernova

My eighth Chase penny stock pick is Intuitive Machines (NASDAQ: LUNR).

This was never a penny stock. It’s acting like a penny stock anyway.

It’s a space exploration company that went public via SPAC. SPACs have been hot…

But LUNR is something else. The internet has been calling this “the next HKD.”

Now $HKD is at $1400/share and the entire sunup people have been talking smack and short sellers have been getting absolutely decimated…watch my FREE https://t.co/fAEEdTrygy webinar & join my https://t.co/occ8wKmlgm challenge AND STUDY SUPERNOVAS NONSTOP TO BE FULLY PREPARED! pic.twitter.com/9AxG7jXq8m

— Timothy Sykes (@timothysykes) August 2, 2022

Why We Like It

Meme stocks like LUNR have their own logic to them…

Like penny stocks, they WILL eventually fall apart.

Like penny stocks, there are trades to be made.

Millionaire trader Jack Kellogg doesn’t trade as scared as I do. Traders with his experience can find opportunities in volatile high-priced stocks like LUNR.

Read this article to see how he trades meme stocks.

For most of you, LUNR will just be a watch. It’s hard to limit risk with a stock like this.

Watching the chart of a stock like this will teach you some awesome lessons about supernovas.

9. Vallon Pharmaceuticals Inc. (NASDAQ: VLON) — The Reverse Merger Penny Stock

My ninth Chase penny stock pick is Vallon Pharmaceuticals Inc. (NASDAQ: VLON).

A reverse merger happens when a smaller company absorbs a larger company. That’s what just happened with VLON and GRI Bio, which makes treatments for inflammatory, fibrotic, and autoimmune diseases.

Reverse mergers aren’t always a catalyst. But in the last year, there have been some real success stories.

When a stock like VLON shoots up almost 400% on reverse merger news, it’s proof of concept.

Why We Like It

VLON has lost more than 50% off its highs. I teach my students to be wary of IPOs, SPACs, and reverse mergers. They don’t have enough of a chart to identify patterns in.

VLON has proven to be choppy. I’m watching it to see if it chooses a direction.

10. Viking Therapeutics Inc. (NASDAQ: VKTX) — The Biotech Breakout Penny Stock

My tenth Chase penny stock pick is Viking Therapeutics Inc. (NASDAQ: VKTX).

VKTX spiked in December as a sympathy play. It’s built its gains since then on the strength of a reasonable valuation and strong cash position.

Why We Like It

This is another uptrending stock that I’ll watch for panics.

It spiked again in February on earnings. It still isn’t turning a profit, and the market may turn on this stock eventually.

Key Takeaways

At its core, the J.P. Morgan Self-Directed Investing platform is geared toward investors and not traders. That’s why it lacks the advanced options and features of other online brokers and platforms.

If you’re looking for a penny stock trading platform, there are better brokers out there. But if Chase’s app fits into your comfort zone, don’t listen to the haters. There is no one-size-fits-all in trading — it’s all about finding the tools that work best for YOU.

Picking a broker doesn’t have to be a lifelong decision. If you’re curious about a platform try it out. That’s a direct deposit to your knowledge account, and will teach you more about what fits you than any amount of advice.

Have you used Chase’s online platform to trade penny stocks? Share your experiences in the comments!