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​​5 Top Penny Stocks to Buy on Webull

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Written by Timothy Sykes
Updated 4/27/2023 18 min read

Webull is a mobile-friendly online stock broker often put in the same box as Robinhood. However, Webull recently let its users trade select OTC stocks and make short sales, which Robinhood still doesn’t allow. Even if you can’t trade sketchy OTCs that sometimes yield the best gains, Webull is still worth looking at.

Is Webull a reputable broker? What are the most popular penny stocks on Webull? Read on to find out!

What Is Webull?

Webull is an online broker that aims to help beginners jump right into trading or investing. Since it’s a mobile-first brokerage, Webull offers a robust mobile app that prioritizes ease of use.

Who Uses Webull?

Webull says it’s geared toward beginners, but I think it’s better for intermediate traders. While the app is very user-friendly, there aren’t a lot of educational resources, and the customer service is mediocre, which doesn’t help if new users run into trouble.

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What Makes Webull Different

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Webull is often compared to Robinhood because both brokerages are designed for new traders. However, Webull offers more advanced features like in-depth analysis tools, paper trading, and price alerts that also cater to intermediate or advanced traders.

I’ve written about Robinhood being too bare-bones for retail traders looking to get into penny stocks. Webull is somewhat better than Robinhood’s overly simplified platform, thanks to its more advanced features.

Benefits of Using Webull

So, what do you get when you use Webull? Here are some advantages of this platform for retail traders:

Appeals to Both Beginner and Intermediate Traders

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While the learning resources might be a bit thin, I think Webull is still a good option for both beginner and intermediate traders, giving it a broader appeal than beginner-focused brokers like Robinhood.

Webull provides advanced features like technical indicators, advanced orders, and in-depth charting with a clean, intuitive, and user-friendly interface. This means intermediate traders can use them immediately, and beginner traders will have an easier time learning these tools.

Offers a Lower Barrier to Entry

Fractional shares aren’t the same thing as penny stocks. They don’t have the same risks or rewards — which is what small-account traders should be focused on.

But any time a broker has an additional offering, I consider it a plus, even if I don’t use it. The same goes for the small list of OTCs that Webull started trading in 2022.

Provides Competitive Fees and Rates

In these days of no commission trading, it’s easy to overlook the fees that brokers do charge. Webull allows traders to short, which is a minefield for these sneaky charges… But the 6.99% margin rate that most small-account traders will pay through the broker is quite reasonable.

Webull doesn’t charge commission fees on stock trades, like most brokers. One small difference between Webull and other brokers is that it doesn’t charge for options trades… Most brokers charge around $0.65.

Potential Drawbacks of the Platform

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No stock broker is perfect, and Webull is no exception. Here are some drawbacks to consider before choosing the platform:

Limited Access to the Penny Stock Market

In June 2022, Webull changed its longtime policy and started to allow OTC stock trading on a very limited basis. This is a move away from similar major exchange-only brokers like Robinhood, but still only allows access to a small portion of the penny stock market.

You’re limited to just 200 of the most valuable OTC companies, all of which have a $5 billion or greater market cap. That means that most of these stocks aren’t penny stocks.

Complicated Penny Stock Trade Requirements

Since Webull’s OTC selection isn’t penny stock heavy, most penny stocks on Webull are on major exchanges. NYSE and Nasdaq both require the stocks they list to be over $1 per share — or risk being delisted — so we already know that the number of sketchy penny stocks on Webull is going to be limited.

Add in the penny stock buying requirements that we’ll cover below, and Webull complicates penny stock trading more than your average broker.

No StocksToTrade Integration

If you use StocksToTrade like me, you’ll want to integrate it with your broker and simplify your stock buying process. Unfortunately, Webull doesn’t offer StocksToTrade integration yet.

Penny Stocks on Webull Under $1

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Most OTC stocks on Webull aren’t penny stocks, which cuts down on the majority of sub-$1 penny stocks. Due to the major exchanges’ listing requirements, most sub-$1 penny stocks on Webull are from companies in danger of being delisted.

Additionally, there are strict and complicated requirements for sub-$1 penny stock transactions:

  • You can’t buy sub-penny stocks at all.
  • You must buy at least 1,000 shares of stocks priced between $0.01 and $0.099.
  • You must buy at least 100 shares of stocks priced between $0.10 and $0.99.

If you don’t want to fulfill these transaction minimums, there are no such requirements on penny stocks priced at $1 or more. And the minimums aren’t hard to hit — they start at $10 per order.

Why Buy Penny Stocks on Webull

Webull has many restrictions on penny stock trades, so why use this broker? I don’t discourage you from using Webull — it still has pretty good margin rates and the tools are powerful enough for some intermediate traders. You want the broker that works best with your trading style, whatever it is.

However, if you want to use StocksToTrade as your trading platform, you’ll need to look for another broker.

Want to try trading penny stocks with StocksToTrade? Sign up for a 14-day trial now and experience all of its features — only $7!

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5 Top Penny Stocks to Buy on Webull

My top Webull penny stock picks are:

  • (NASDAQ: MMAT) — Meta Materials Inc. — The Pump All-Star Penny Stock
  • (NASDAQ: SOBR) — Sobr Safe Inc. — The Exciting Tech Penny Stock Former Runner
  • (NASDAQ: TBLT) — Toughbuilt Industries Inc. —The Recovered Reverse Split Penny Stock
  • (NASDAQ: HUDI) — Huadi International Group Co. — The Low Float Energy Penny Stock
  • (NASDAQ: HLBZ) — Helbiz Inc. — The Sub-Penny Meme Stock

Remember: This is a watchlist, not a buy list. I won’t trade these stocks unless they fit my preferred setups.

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. Meta Materials Inc. (NASDAQ: MMAT) — The Pump All-Star Penny Stock

My first Webull penny stock pick is Meta Materials Inc. (NASDAQ: MMAT).

MMAT’s subsidiary ticker, Meta Materials Preferred Shares (OTCPK: MMTLP), was one of the biggest OTC stories of the past few months… until FINRA halted trading in this stock, as it fell to its lowest levels in 2 months.

MMTLP’s boosters are accusing FINRA of short seller collusion. But the only thing I see is these worthless shares getting saved from imploding even further.

Government regulators have been quiet on the future of MMTLP, but they recently dropped some news about MMAT’s predecessor, Torchlight Energy, which traded under TRCH. One of the stock’s promoters, who tweeted about a merger with Tesla while selling all his shares, was recently named in a $100 million lawsuit filed by the SEC.

What does this all mean? Just that MMTLP was a nest of promoters, and MMAT is never far from their stink…

Here’s the thing: I don’t care that MMTLP’s run was built on lies. I still made $4,144 in total earnings trading it. I actually like when a stock is being pumped as obviously as MMTLP was… I just don’t want newbie traders to buy into their lies.

MMAT gained 300% during MMTLP’s run. The pumpers didn’t ignore the parent stock… even if the short squeeze they were touting for MMTLP is far more unlikely with MMAT’s 320 million share float.

During the MMTLP promotion, several pumpers said that they were going to take their MMTLP profits and sink them all into MMAT. Could they be telling us their game plan for the next pump?

2. Sobr Safe Inc. (NASDAQ: SOBR) — The Exciting Tech Penny Stock Former Runner

My second Webull penny stock pick is Sobr Safe Inc. (NASDAQ: SOBR).

Here’s a penny stock that hasn’t been pumping, and it has the lame chart to show for it.

SOBR burst onto the scene in September, when a government report propelled it to a 300% rally. As usual, StocksToTrade’s Breaking News Chat had the scoop:

Quick digression: if you want to trade hyped-up penny stocks like SOBR, you NEED a good news scanner. It’s rare to find one as discerning as Breaking News Chat, which is why I love it. When penny stock news breaks, time is of the essence — and Breaking News Chat is the way I get in early on so many good trades.

Try StocksToTrade and Breaking News Chat together for 14 days and see how experts trade — only $17!  

SOBR makes touch-based alcohol detection devices, and the government report hinted that these devices will one day go mainstream. Most of the other news SOBR has had since has dealt with small private contracts, checking the sobriety of employees who drive for a living or work in heavy industry.

This stock is trending below $1, and its float is less than 10 million shares. It’s shown a propensity for running, especially at this price level. Will it go on another run soon? I don’t know, but I won’t want to miss it if it does.

3. Toughbuilt Industries Inc. (NASDAQ: TBLT) — The Recovered Reverse Split Penny Stock

My third Webull penny stock pick is Toughbuilt Industries Inc. (NASDAQ: TBLT).

No, TBLT wasn’t worth $60 per share a year ago. It was just on its way to a 1-for-150 reverse stock split that happened in April… then it kept trending down, getting as low as $1.50.

Finally, in July, this stock showed some signs of life. It twice threatened to break above $10. It traded more than 60 million shares 5 times, which had a big effect on its suddenly small float.

What was the market excited about? This company started charting a course that showed real growth potential. The catalyst for its run was its impressive Amazon sales, but that’s just the tip of the iceberg. Its domestic and international e-commerce sales have put its growth rate ahead of some of its bigger competition.

Some traders also speculated about a short squeeze…

Then TBLT diluted, killing its summer momentum… But that only increased its float to 13 million shares.

It got another earnings bump in November. Now it’s trended back down. It still isn’t making money, but it looks like it’s setting up to.

The market wants to believe in this stock. Another positive move might set off a run.

4. Huadi International Group Co. (NASDAQ: HUDI) — The Low Float Green Energy Penny Stock

My fourth Webull penny stock pick is Huadi International Group Co. (NASDAQ: HUDI).

Here’s another feather in Breaking News Chat’s cap — HUDI’s 500%, two-day run in early November.

Back then, HUDI wasn’t a penny stock. It ran all the way from the mid-$20s to the low $190s on news that it was entering the clean energy sector.

The volume spike on its 3 million share float also gave it admission to a different sector — the low-float squeeze play.

It quickly fell back to earth, helped in no small part by a $25 million new share offering. But I don’t care about its downward spiral over the past five weeks. What I care about is still there:

  • Low float — even post-dilution, its has a float of 4 million shares
  • Former runner
  • Responds well to news
  • Hot sector

Studying its chart would have given you a clue for its November run. In October, just two weeks before its big run, it spiked 125% on far less volume.

Then it gave most of its gains back the next day.

This is why you have to study charts to become a self-sufficient trader. HUDI’s news was the reason for its move, but its chart tells you how to trade it.

Putting this stock on your watchlist is what being prepared looks like.

5. Helbiz Inc. (NASDAQ: HLBZ) — The Sub-Penny Meme Stock

My fifth Webull penny stock pick is Helbiz Inc. (NASDAQ: HLBZ).

Right now, this stock is the cheapest on this watchlist…

That wasn’t so one year ago. One month after its IPO, this stock broke above $40. Now that it’s under $1, HLBZ’s September 2021 run seems like a fever dream.

That is absolutely NOT the lesson I want you to take from this watchlist pick. Don’t think of HLBZ as an “investment” that’s lost 99% of its value…

Think of it as the crappy penny stock it is — one that’s showed how much it can run.

My students know that former runners are a good thing. They want to see that a stock can capture the market’s interest…

They know to cut losses quickly, so they protect themselves from the downside of penny stock gravity. They don’t get the FOMO that penny stock newbies are affected with when they see a supernova they missed out on… They know that 99% of penny stocks will fail.

They also know that former runners can run again.

HLBZ has shown signs of life in recent months…

  • In August, it ran 300% while trading 450 million shares over 3 days
  • In October and November, it posted 100% gains on heavy volume

Those last two runs were in response to big capital infusions for this e-bike and food delivery company. If the market gets this excited about HLBZ raising more money — imagine when it has actual news to share.

Do you have any favorite stocks on Webull? Share with me in the comments!

Top Penny Stocks on Webull FAQs

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What are the best penny stocks on Webull?

You can find my list of the best penny stocks on Webull above. Want more penny stock picks from me? Subscribe to my NO-COST weekly watchlist! You’ll receive my weekly penny stock picks so you can learn the process I follow when researching them.

As always, don’t blindly copy my list of penny stock picks — build your own. Do the research, create your own watchlists, and react to the penny stock market instead of predicting what will happen.

Subscribe to my NO-COST weekly stock watchlist here!

What are the cheapest stocks you can buy on Webull?

My list above contains some of the cheapest stocks you can buy on Webull. Since Webull doesn’t give you access to the cheapest OTC stocks, you’re left with the cheapest stocks on major exchanges — some of which are in danger of being delisted.

When a stock is delisted and Webull doesn’t add it to its OTC list, you can only sell your shares.

How do I make money on Webull?

You can make money trading penny stocks on Webull just like you can with any other broker. How you trade is the most important part — craft a good trading plan, outline your goals and risks, create a penny stock watchlist, and make sure your executions are precise.

Want to learn how to make money with penny stock trading? Apply for my Trading Challenge today!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”