Top 8 Penny Stocks to Watch on Robinhood in October 2025

Robinhood penny stocks trade at $5 or less per share, and they hold opportunities for traders building small accounts. These stocks are cheap and often sketchy, and they require different strategies from larger stocks. For beginners, Robinhood is an accessible starting point for trading penny stocks, thanks to its zero fees and no minimum deposit policy. Traders with more experience should consider switching to brokers that cater to advanced trading needs.

8 Robinhood Penny Stocks to Watch on Robinhood October 2025

My top 8 Robinhood penny stocks to watch in October 2025 are:

• NASDAQ: IREN — IREN Ltd — The AI Data Center Stock With the Nvidia Shoutout
• NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing With the Breakthrough Tech
• NYSE: QS — Quantumscape Corp — The Corning Partnership Battery Stock
• NASDAQ: NVTS — Navitas Semiconductor Corp — The Nvidia Partnership Semiconductor Stock
• NASDAQ: INTC — Intel Corp — The Trump Administration Stake Chip Stock
• NASDAQ: RR — Richtech Robotics Inc — The AI-Driven Retail Automation Stock
• NASDAQ: SOUN — SoundHound AI, Inc — The Post-Spike AI Voice Stock
• NYSE: LAC — Lithium Americas Corp — The Trump Bump Lithium Stock

The following are some of the stocks that people on Robinhood have been trading more than most of the market…

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Here’s some background info on Robinhood penny stocks:

• What is the most promising Robinhood penny stock?

A stock with a lot of volatility like Opendoor Technologies Inc. (NASDAQ: OPEN) is a good bet for the most promising Robinhood penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Robinhood penny stocks to buy now?

My top 3 Robinhood penny stocks to buy now (as long as their price action is strong) are Opendoor Technologies Inc. (NASDAQ: OPEN), IREN Ltd (NASDAQ: IREN), and BigBear.ai Holdings Inc (NYSE: BBAI).

• Which Robinhood penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Robinhood penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Let’s get to the picks …

IREN Ltd (NASDAQ: IREN) — The AI Data Center Stock With the Nvidia Shoutout

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My first Robinhood penny stock pick is IREN Ltd (NASDAQ: IREN).

IREN has already surged 790%* in 2025. And it’s not cooling off.

After a bounce off $40 support, the stock is pushing new highs and showing no signs of slowing down.

The catalyst? AI infrastructure and a rare Nvidia nod.

On August 29, IREN revealed its second major GPU order:

• 1,200 air-cooled Nvidia B300s
• 1,200 liquid-cooled GB300s

The $168 million deal supports its 10MW liquid-cooled expansion in Prince George, Canada. A key step in IREN’s pivot from crypto mining to AI supercomputing.

That brings IREN’s total GPU count to 10,900. Including H100s, H200s, B200s, and now the ultra-scarce B300/GB300s.

It’s also now part of Nvidia’s Preferred Partner Program. An elite stamp of approval in a market where credibility matters.

Add in $96 million in non-dilutive funding and a blowout Q2, with $86.9 million in net income and 167.6% YoY revenue growth, and you’ve got a small-cap juggernaut in motion.

Why I Like It

IREN is no longer just a power-heavy miner. It’s morphing into a serious AI data center contender, with 3GW power access and a clear path to $1.25B in revenue.

Trade Potential:

• Bullish Scenario: A break above $50 could spark another leg higher, especially if AI headlines intensify.
• Bearish Scenario: Watch $40. A breakdown there might trigger a retrace toward $35–$30.

With Nvidia chips, real revenue, and chart momentum, IREN is one of the hottest setups on my radar right now.

Rigetti Computing Inc (NASDAQ: RGTI) — The Quantum Computing With the Breakthrough Tech

My second Robinhood penny stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

Rigetti Computing has been one of the most explosive names of 2024–2025, soaring 4,300%* and turning skeptics into believers.

Now, it’s consolidating near $30 after a historic quantum breakthrough.

The company recently announced 99.5% median two-qubit gate fidelity on its 36-qubit system.

That milestone cuts error rates in half compared to its previous Ankaa™-3 platform. By tiling modular 9-qubit chiplets, Rigetti is demonstrating a scalable path to 100+ qubit systems by year-end.

Read more about RGTI’s milestone.

That’s not all. Rigetti’s proprietary ABAA process, backed by a $5.48 million U.S. Air Force grant, reinforces its technical edge and credibility.

Partnerships with Quanta Computer, Iowa State, and Lawrence Livermore Lab show that industry and academia are taking Rigetti seriously.

But the story isn’t just about science. It’s also about speculation …

With the Quantum Leadership Act of 2025, “Q-Day” fears around encryption, and the AI–quantum crossover narrative, traders are betting that Rigetti sits at the center of the next trillion-dollar revolution.

Why I Like It

RGTI is volatile, speculative, and way ahead of fundamentals — But it’s also one of the few small-caps showing real technical progress in quantum hardware.

Trade Potential:

• Bullish Scenario: A move over $34 could ignite the next leg higher, with FOMO-driven buyers chasing the quantum hype.
• Bearish Scenario: If $28 cracks, RGTI could slide back toward $20. Its pre-breakout level.

With hype, government contracts, and a technical milestone fueling momentum, Rigetti is a classic breakout and dip buy setup worth watching closely.

More Breaking News

• Rumble’s Strategic Partnership with Perplexity Sends Stock Surging Over 12%
• PTC Therapeutics Announces New Employee Stock Grants Amid Strategic Developments
• Dragonfly Energy Surges with Major Nevada Funding and Patent Wins
• Cognex Corporation’s Q2 Results Spark Market Optimism

Quantumscape Corp (NYSE: QS) — The Corning Partnership Battery Stock

My third Robinhood penny stock pick is Quantumscape Corp (NYSE: QS).

QuantumScape has already spiked 260%* in 2025. And after a strong September rally, it’s now testing July’s highs around $15.

Traders are dialed in following the September 27 announcement of a major collaboration with materials giant Corning.

The deal centers on scaling ceramic separator production, the core tech behind QuantumScape’s solid-state lithium-metal batteries.

These separators are critical for enabling faster charging, higher energy density, and better safety.

The market loved it. QS jumped over 12% on the news, reaching multi-month highs.

For a company often critiqued for slow commercialization, Corning’s vote of confidence is a change of pace.

Here’s why this matters…

Corning brings decades of ceramic expertise. And its involvement could fast-track QuantumScape’s move from the lab to the production floor. This builds on June’s launch of the Cobra process, a 25x faster separator manufacturing method that already entered baseline production.

Add this to existing partnerships with Murata and interest from auto giants like Volkswagen, and you’ve got a startup assembling a legit industrial supply chain.

Read more about QS stock catalysts here.

Why I Like It

QS is finally pairing battery innovation with industrial execution. And this Corning partnership could be the turning point toward large-scale rollout.

Trade Potential:

• Bullish Scenario: A clean breakout over $15 could ignite a run toward $18–$20, especially if the EV narrative heats up.
• Bearish Scenario: Failure to hold $12 might send QS back to $10, near its earlier consolidation zone.

This is a speculative setup with real technical and narrative catalysts. And it’s one of the top battery plays I’m watching right now.

Navitas Semiconductor Corp (NASDAQ: NVTS) — The Nvidia Partnership Semiconductor Stock

My fourth Robinhood penny stock pick is Navitas Semiconductor Corp (NASDAQ: NVTS).

Navitas is one of 2025’s under-the-radar monsters. It already spiked 390%* on the year. And now it’s bouncing hard off $6 support as traders eye a breakout over $9.50.

What’s driving the move? Power and Nvidia.

In May, Nvidia partnered with Navitas to co-develop 800V high-voltage DC architecture for its next-gen rack-scale systems, including the newly announced Rubin Ultra GPUs.

This puts Navitas in the middle of Nvidia’s push to solve one of its biggest threats: Power bottlenecks.

Here’s why it matters …

Nvidia’s hyperscalers are deploying over 70,000 Blackwell GPUs per month. That kind of scale demands massive energy. And traditional silicon just can’t keep up.

Navitas’ Gallium Nitride (GaN) chips offer up to 40% smaller, cooler, more efficient solutions.

The partnership could improve Nvidia’s energy efficiency by 5%, saving millions of gigawatt-hours over time. And that’s just the start.

Navitas is already making noise outside of AI, with wins in EVs (BYD), solar (Enphase), and consumer tech (Dell). Over 60% of its revenue now comes from non-AI sectors. That’s up from just 15% last year.

Why I Like It

NVTS isn’t just riding Nvidia’s coattails. It’s helping lead a power semiconductor revolution across multiple verticals.

Trade Potential:

• Bullish Scenario: Breakout over $9.50 could spark a parabolic run back to double digits, with AI energy headlines acting as fuel.
• Bearish Scenario: If $6 cracks, the stock could retest the $4.50 highs from early 2025.

With sector tailwinds, real tech, and Nvidia’s backing, Navitas is a breakout-and-dip-buy setup with huge asymmetric potential.

Intel Corp (NASDAQ: INTC) — The Trump Administration Stake Chip Stock

My fifth Robinhood penny stock pick is Intel Corp (NASDAQ: INTC).

Intel just landed a catalyst that could reshape its future.

The Trump administration announced an $8.9 billion equity investment in Intel, acquiring a 9.9% ownership stake.

More Trump admin stocks to watch.

This isn’t just bullish. It’s unprecedented.

Washington is directly backing Intel’s plan to spend +$100 billion on U.S.-based chip fabs, reinforcing national leadership in advanced semiconductor manufacturing.

Unlike prior CHIPS Act grants, this isn’t a subsidy. It’s an actual equity position tied to the Secure Enclave program.

The government bought in at $20.47 per share and holds warrants that could expand its stake as Intel’s foundry business evolves.

The market has already responded. Shares surged 39% in August and another 45% in September. now consolidating above $30.

A breakout above $36 could trigger a new momentum leg, especially with institutions likely to follow the U.S. government’s lead.

Why I Like It

This setup is bigger than a chart pattern. It’s a national security trade.

When government policy aligns with technical strength, the upside can be significant.

Trade Potential

• Bullish Scenario: A push through $36.30 on volume could open a run toward $40+, fueled by AI and defense headlines.
• Bearish Scenario: Weakness under $32 would damage the setup, risking a pullback toward $30 or lower if broader markets stumble.

With politics, defense, and AI all converging, Intel now sits in a rare position to drive both headlines and price action.

Richtech Robotics Inc (NASDAQ: RR) — The AI-Driven Retail Automation Stock

My sixth Robinhood penny stock pick is Richtech Robotics Inc (NASDAQ: RR).

Richtech Robotics Inc just put itself on the map.

It landed a master services agreement with one of the largest retailers in the world.

And this isn’t just a one-off contract. It’s a two-year deal with automatic annual renewals, opening the door to multi-phase projects and deep integration of Richtech’s AI-powered robotics across massive retail networks.

Details are under wraps, but the potential scale here is huge.

The stock exploded 110%* in August, hitting a high of $3.88 on August 27 before pulling back and consolidating. Then it surged to $5.71 in September.

The full move since August now measures 210%*.

How Richtech keeps climbing.

With flagship robots like Matradee (server assistant), Titan (industrial payload transport), and DUST-E (cleaning), Richtech is positioning itself as the go-to automation provider across industries. From restaurants to hospitals and mega retail centers.

Why I Like It

Strong momentum, AI-driven tech, and a game-changing retailer partnership make RR a compelling watch for September.

Trade Potential:

• Bullish Scenario: A confirmed breakout over $5.70 with volume could trigger a squeeze to the $6+ range.
• Bearish Scenario: If support near $4 fails, the stock may slide to retest the $3 zone. A former resistance and base from earlier in the summer.

With the AI + automation narrative heating up, and RR locking in real revenue potential through this new partnership … It’s time to take this low-float mover seriously.

SoundHound AI, Inc (NASDAQ: SOUN) — The Post-Spike AI Voice Stock

My seventh Robinhood penny stock pick is SoundHound AI, Inc (NASDAQ: SOUN).

SoundHound AI is building the infrastructure that powers how people and machines communicate across industries.

The company develops independent voice AI systems used in cars, TVs, IoT devices, restaurants, and customer service platforms across the U.S., Europe, and Asia.

From natural language understanding to real-time voice interaction, SOUN is becoming a foundational name in conversational AI.

And the stock? It’s proven it can run, big time.

SOUN was one of the first AI runners when ChatGPT went viral in 2023, spiking +100%* twice.

It followed up in 2024 with a 400%* rally and then another 300%* spike into new all-time highs.

In 2025, it’s already surged 190%*, with a 25% gain on its strongest single session of the year after beating Q2 expectations and raising full-year guidance.

At the core of the buzz is SoundHound’s Vision AI platform. Plus tools like Houndify, Smart Answering, and Dynamic Interaction.

These products are now gaining real commercial traction.

What traders need to know.

Why I Like It

A proven runner with improving fundamentals, global customers, and not to mention a surge in September.

Trade Potential:

• Bullish Scenario: A clean break over $19 could ignite a squeeze back toward $24, especially if analyst upgrades roll in.
• Bearish Scenario: Weakness under $14 could trigger a drop to $12 support. A key psychological and technical level.

With smart tech, expanding partnerships, and momentum back on its side, SOUN is a top AI watch heading into fall.

Lithium Americas Corp (NYSE: LAC) — The Trump Bump Lithium Stock

My eighth Robinhood penny stock pick is Lithium Americas Corp (NYSE: LAC).

LAC has ripped 140%* in 2025, with a 90% surge in a single day, after reports revealed the Trump administration is considering a 10% strategic stake in the company.

The move is tied to Thacker Pass, one of the largest lithium deposits in North America. This Nevada-based project is now front and center in the U.S. push to secure domestic supplies of this critical EV battery metal.

Trump’s backing is part of a broader trend: Government investments in key strategic resources, like we’ve seen with Intel, MP Materials, and more recently, LAC.

And the fundamentals are real.

LAC is targeting 60,000 tons/year of lithium carbonate at Thacker Pass, with Phase 1 production set for 2026 and full ramp by 2027. That’s enough lithium for 800,000 EV batteries annually.

Add in DOE’s $2.26 billion loan and GM’s $625 million investment, and this isn’t just a speculative bet, it’s a nationally backed project.

Will the surge continue?

Why I Like It

LAC is now a lithium power play tied to U.S. policy, with upside from both supply chain reshoring and long-term EV battery demand.

Trade Potential:

• Bullish Scenario: A move over $7.50 could trigger a run to $10, especially if more federal interest headlines hit.
• Bearish Scenario: If $5 cracks, the stock could revisit its $3.50 support zone from late July.

This is a geopolitical momentum setup.

It’s where energy security, EV trends, and Washington converge. High-risk, high-reward. But for traders who thrive on these federal catalysts, LAC is the lithium name to watch right now.

*Past performance does not indicate future results

What Is a Good Penny Stock to Buy on Robinhood?

A few of the stocks I’ve been watching lately are accessible to Robinhood traders. Just remember …

This is only a watchlist. I have no plans to trade these stocks — and I won’t unless they fit into one of my preferred setups.

I want you to focus on my process, not my stock picks. If you want to become a self-sufficient trader, you’ll need to create your own watchlists.

Get a new no-cost watchlist sent to you each week by signing up here.

Trading on Robinhood

Robinhood is an easy-to-use, no-commission trading platform accessible to just about anyone. It also offers zero minimum deposits … You can even buy partial stock with its fractional shares feature.

Robinhood gives you access to over 5,000 U.S. listed stocks and ETFs, as well as ADRs in foreign listed companies. As of this year, Robinhood now allows trading in select OTC stocks as well.

How to Find Penny Stocks on Robinhood

Robinhood has curated stock lists under its “Trending Lists” section, but, unfortunately, it doesn’t feature a list of penny stocks. You might need to play around with some filters on Robinhood to see these cheap stocks.

Here’s how you access penny stock lists on Robinhood:

1. Log into your Robinhood account.
2. Select the magnifying glass, and click on the “Trending Lists” menu.
3. Select the business sector of your choice and sort in ascending order to see the cheapest stocks listed. Alternatively, you can push the filter button and set a maximum share price of $5, so you only see penny stocks.

You can rinse and repeat these steps to find the best penny stocks on any curated list Robinhood creates. If you’re confused because you find duplicate stocks across the lists, you can just write down which companies offer penny stocks and create a custom penny stock list.

What to Consider When Trading Penny Stocks on Robinhood

Trading penny stocks on Robinhood requires a clear understanding of both the platform and the nature of penny stocks. Robinhood offers an accessible way to enter the stock market with its user-friendly interface and commission-free trades.

But this ease of access comes with limitations — especially when dealing with highly volatile, low-priced small-cap stocks.

To navigate these challenges, you need to understand penny stock trading, and how Robinhood’s features and limitations can impact your trading strategy.

Understand the Nature of Penny Stocks

Penny stocks trades are volatile and unpredictable, so while there’s a chance of big gains, there’s also the risk of major losses. This means you shouldn’t invest in penny stocks — just trade them.

Penny stocks are defined by:

• Price per share: Typically trading for less than $5.
• Market capitalization: Often small-cap stocks with market caps below $300 million.
• Trading venues: Found on OTC markets as well as major exchanges.

Common characteristics of penny stocks include:

1. High volatility: Prices can swing dramatically within a short period.
2. Low liquidity: Fewer shares are traded, which can lead to significant price movements. Learn more about the most active penny stocks to keep an eye on here.
3. Risk of manipulation: Due to their low price and trading volume, they are often targets for pump-and-dump schemes.
4. Lack of information: Reliable data and analysis can be hard to find.

Research the Stocks Thoroughly

If you’re getting into penny stocks, it’s not enough just to read my stock picks. You need to build your own knowledge account so you can make informed decisions.

Before trading penny stocks, thorough research is crucial. Unlike blue-chip stocks, penny stocks often lack extensive analyst coverage and detailed financial reports. This makes doing your due diligence even more critical.

To research penny stocks effectively, follow these steps:

1. Review financial statements: Look at the company’s balance sheet, income statement, and cash flow statement. Keep a healthy sense of skepticism — penny stocks are notorious for inflating their value claims.
2. Understand the industry: Know the sector in which the company operates and its competitive position.
3. Monitor market trends: Be aware of broader market conditions and trends that could impact the stock.
4. Check recent news: Stay updated on recent developments or announcements from the company.
5. Evaluate management: Research the background and track record of the company’s leadership team.

Consider Robinhood’s Limitations

When trading penny stocks on Robinhood, you have to be  super aware of the platform’s limitations. These are the big ones:

• Trade execution speed: Execution may be slower compared to other platforms, impacting your ability to react swiftly in volatile markets.
• Limited research tools: Robinhood offers fewer analytical tools and research resources than other brokerages.
• Restrictions on certain stocks: Some penny stocks won’t be available for trading on Robinhood — especially the sketchy OTC stocks that I love to trade!

These limitations can significantly affect your trading strategy. Slower execution speeds mean you might miss optimal buy or sell points, which really matters in fast-moving penny stocks. And if you can’t trade the stocks that are making moves, you’re limiting your options for no reason.

Webull is a worthwhile Robinhood alternative, with the same focus on mobile-first trading and ease of use. Its advantages includes advanced charting options, real-time market data, and extended trading hours. By utilizing these features, traders can make more informed decisions and capitalize on market opportunities. For an in-depth look at the best penny stocks to buy on Webull, check out my Webull penny stocks watchlist.

Manage Risk Effectively

Effective risk management is HUGE when trading penny stocks, given their high volatility and potential for significant losses.

Risk management techniques include:

• Stop-loss orders: Automatically sell a stock when it reaches a certain price to limit potential losses.
• Take-profit orders: Set a specific price to automatically sell and secure profits.

Diversification and position sizing are also important for managing risk. Here are two of the basic techniques traders use:

1. Diversification: Spread your trades across multiple stocks to reduce the impact of any single stock’s poor performance.
2. Position sizing: Limit the amount of capital allocated to any single penny stock, preventing significant losses from a single trade.

Develop a Trading Strategy

A well-defined trading strategy is vital. Key components of a successful strategy include:

• Clear entry and exit points: Define when to enter and exit trades based on specific criteria.
• Risk management rules: You can use stop-loss and take-profit orders, or be disciplined in follow your trading plan. Stick to your position sizing limits.
• Regular review and adaptation: Continuously assess and adjust your strategy based on market conditions and trading performance.

Some of the most popular trading strategies include momentum trading, where you target stock trends, and breakout trading, where you enter trades when a stock moves beyond a resistance level. Here are some other strategies I’ve used over the years:

Identifying penny stocks before they spike can really boost your trading success. This involves thorough research and understanding market indicators that signal potential upswings. One effective strategy is to analyze historical data and monitor social media trends for emerging stocks. Additionally, using specialized screeners and trading algorithms can help pinpoint these opportunities early. Check out my strategies for finding penny stocks pre-spike here.

Robinhood Stocks Under $5

The appeal of hot sector stocks accessible on platforms like Robinhood, especially those classified as penny stocks, is compelling for both novice and seasoned investors. The energy and technology sectors, for instance, are witnessing rapid growth and innovation, making stocks within these domains particularly attractive for those on the lookout for the next breakout investment. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

Nonetheless, it’s imperative to navigate these waters with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 on platforms such as Robinhood hinges on a selective and strategic approach. The goal is to tap into the explosive growth potential of sectors like renewable energy and technology while implementing robust risk management practices. By zeroing in on companies poised for leadership within their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

Can You Buy Stocks Under $1 on Robinhood?

Yes, you can definitely buy stocks under $1 on Robinhood. Listed penny stocks will often fall beneath the $1 minimum listing threshold.

The OTC stocks that Robinhood allows access to are often on the pricier side.

Buying penny stocks is as easy as buying any other stock on the app, too. Just choose your stock, pick your order type, input how many shares you’re buying, and submit your order.

Penny Stocks on Robinhood Under 10 Cents

Looking to trade the cheapest stocks on Robinhood? Penny stocks under 10 cents will occasionally pop up, but not too often.

If you’re looking to trade stocks under 10 cents, the OTC markets have the biggest selection. Unfortunately, Robinhood doesn’t allow trading of the sketchiest OTC stocks.

Learn how I choose which stocks to trade in this guide. Use this stock scanner to further improve your trading game.

Robinhood Penny Stocks Market

Finding penny stocks on Robinhood is just the beginning of your trading journey. Understanding the market trends and sectors can significantly enhance your trading strategy.

For those interested in targeting specific sectors, additional resources — like my sector watchlists — can be valuable. Explore the hot sector of biotech penny stocks by looking at the stocks I’m watching this month!

How to Buy Penny Stocks on Robinhood

Buying penny stocks on the Robinhood app or website is just like buying any other stock. Now that you’ve learned how to find penny stocks on Robinhood, here’s how to buy them:

1. Log into your Robinhood account.
2. Use your debit card or bank account to transfer funds into your Robinhood account.
3. Choose a penny stock to buy.
4. Select your order type (i.e., market, limit, stop loss, stop limit, or trailing stop order … I never use market orders for trading penny stocks).
5. Input how many shares you want to buy.
6. Review your order and ensure everything is correct.
7. Confirm your trade.

What Is the Minimum Amount to Buy Penny Stocks on Robinhood?

Robinhood doesn’t have a minimum amount for penny stocks — or any stocks — that cost $1 or more. You can start trading fractional stocks when a stock reaches that threshold.

Trading Fees on Robinhood

Robinhood doesn’t impose trading fees on its users. However, the Financial Industry Regulatory Authority (FINRA) is legally obliged to charge a fee, which you have to pay, on stock sales.

The trading activity fee for stock sales is $0.00013/share and $0.00218/share for options sales, with a maximum fee cap of $6.49. Robinhood only charges this fee if you sell more than 50 shares in one penny stock transaction.

Can You Become Rich Just Trading Penny Stocks On Robinhood?

Repeat after me: small gains add up. Can you become rich trading penny stocks on Robinhood? It’s a question, and one that requires a level-headed analysis. You can find hundreds of penny stocks on platforms like Robinhood, and while some Wall Street analysts tout them as undervalued assets, the reality is often more complex. Penny stocks are often speculative and lack the capitalization that more established stocks offer. With the right strategy, tools like a stock screener, and an eye on breaking news, gains are possible. But don’t expect instant riches. Think of Robinhood Gold, offering extended trading hours, but it can’t transform an unstable investment into gold overnight.

What Are the Risks Associated with Trading Penny Stocks on Robinhood?

Still with me? Good. Let’s dig into the risks. Trading penny stocks on Robinhood or other brokers can be a game of swings and roundabouts. Illiquidity and volatility can be a trader’s nightmare. The lack of depth in the market cap of these stocks means wild price swings are common, and if you’re not careful, losses can accrue quickly. Even with Robinhood’s simplicity and user-friendly interfaces, it doesn’t eliminate the risks associated with speculative investments in categories like marijuana penny stocks. Be mindful of the reality and keep your portfolio balanced. Don’t put all your eggs in the penny stock basket; diversify with other assets, products, or services.

Looking for more money-making tips with penny stocks? Learn from my 20+ years of experience by applying for the Trading Challenge and reading my FREE book right now.

Key Takeaways

Penny stock trading is a great way to build your account as a new trader. Robinhood is an okay place to trade stocks as a beginner because it doesn’t have fees and minimum deposits. However, it’s missing many of the capacities I look for in a broker. I recommend you move to another broker as soon as you can.

Key Considerations:

• A lot of penny stocks are shady. Risk in Robinhood penny stocks can be heightened due to limited company information and unsavory promotion.
• There’s a possibility for big gains. I trade penny stocks because you can trade conservatively and still rack up gains. These stocks can go supernova at any time. Aim for “the meat of the move.”
• These companies are often young. Some Robinhood penny stocks are newer companies, and can dramatically shift their market trajectory and valuation.

While I’ve given you eight stocks to watch on Robinhood, don’t just copy my penny stock picks blindly. Learn why I picked them and choose your own stocks to watch.

Have you traded penny stocks on Robinhood? Write “I always trade with a plan” in the comments!

Penny Stocks to Watch on Robinhood FAQs

In which countries is Robinhood available for trading penny stocks, and who are its main competitors?

Robinhood is primarily available in the United States but has been expanding to other countries. Its main competitors in the penny stock trading space include apps from Charles Schwab, E-Trade, and Webull. Availability might vary depending on regulations and market conditions in specific countries.

How is the page design on Robinhood’s app, and does it include any gamification elements (games) to engage users in penny stock trading?

Robinhood’s app is being designed with a sleek and user-friendly page layout that aims to make trading accessible to all. Some users feel that the app’s interface has gamification elements, including games and interactive visuals, making the trading experience more engaging, especially for younger investors.

How can one purchase penny stocks on Robinhood, and what are the payment options, including using a cash account or credit?

Purchasing penny stocks on Robinhood is a straightforward process that can be done through the app or web platform. Payment options include using a cash account or linking a credit/debit card. The purchase can be done with a few taps, and users can track their investments on the main page of the app.