Top 8 Penny Stocks to Watch on Robinhood in 2026

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.

The Biggest Robinhood Story Right Now: The PDT Rule Is Gone

On April 14, 2026, the SEC eliminated the Pattern Day Trader rule entirely. The $25,000 minimum is gone. The PDT designation is gone. The 90-day account freezes are gone. Effective June 4, 2026, small-account traders can day trade as many times as they want in a margin account — buying power is now calculated on actual position risk, not an arbitrary dollar floor that hadn’t been updated since the dot-com crash.

I’ve taught small-account traders for over 20 years and the PDT rule was always the first friction point they had to navigate around. That friction is now gone. Robinhood stock jumped 7%+ on the announcement for a reason: more traders active more often means more volume, more setups, and more opportunity. Just remember — the rule being gone doesn’t mean you should trade more. It means you’re now allowed to. Discipline still matters more than access.

8 Robinhood Penny Stocks to Watch in May 2026

My top 8 Robinhood penny stocks to watch in May 2026 are:

• SoFi Technologies (NASDAQ: SOFI) — Record Q1 Profits, Sold Off on Guidance, Now at a Potential Dip Setup
• GameStop Corp. (NYSE: GME) — Ryan Cohen Just Bid $56 Billion for eBay
• Lithium Americas Corp. (NYSE: LAC) — The National Security Lithium Play
• American Airlines (NASDAQ: AAL) — Spirit Collapses, United Merger Rumors, Near 52-Week Low
• CleanSpark (NASDAQ: CLSK) — Bitcoin Miner Pivoting to AI, Earnings May 7
• Opendoor Technologies (NASDAQ: OPEN) — Housing Speculation With Earnings May 7
• SoundHound AI (NASDAQ: SOUN) — Up 18%* Today, Earnings May 7
• Aclarion (NASDAQ: AKAN) — Cannabis Squeeze With Jack Kellogg’s Alert Level

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 high volatility and a live catalyst like SoundHound AI (NASDAQ: SOUN) is a good bet for the most promising Robinhood penny stock right now. Remember, we’re traders, not investors. We’re watching these stocks for short-term moves, not predicting which survives to 2030.

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

My top 3 to watch right now (as long as their price action is strong) are SoFi Technologies (NASDAQ: SOFI), GameStop Corp. (NYSE: GME), and Lithium Americas Corp. (NYSE: LAC).

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

Analysts don’t give Robinhood penny stocks strong buy ratings as a category. These are volatile trading vehicles. SOFI and AAL have Buy consensus ratings — but always trade with a plan, not an analyst’s opinion.

Let’s get to the picks …

SoFi Technologies (NASDAQ: SOFI) — Record Q1 Profits, Sold Off on Guidance, Now at a Potential Dip Setup

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My first Robinhood penny stock pick is SoFi Technologies (SOFI).

SOFI just reported record Q1 2026 results: $1.1 billion in revenue, up 41% year-over-year, and $166.7 million in net income — the highest in company history. The company beat analyst estimates on both revenue and EPS. Members grew, loan originations hit records, and the technology platform segment expanded. Then the stock dropped 13%+ in a single session.

Why? Management kept full-year guidance unchanged instead of raising it. Wall Street had expected a raise after a record quarter, and when it didn’t come, analysts at Goldman Sachs, TD Cowen, Deutsche Bank, and Morgan Stanley all cut price targets. That kind of sell-the-news reaction after a genuine beat is the setup I look for. The stock is now trading around $16.21, down from a 52-week high of $32.73. Fourteen analysts have a “Buy” rating with an average target of $22.94 — roughly 42% above where it’s sitting now.

SOFI is also the single most-searched stock on timothysykes.com right now — 23,688 impressions. That’s Robinhood crowd interest at scale. It’s also one of the most-held stocks on Robinhood itself, which means every move gets amplified by retail attention.

Read more: SoFi Stock Slides As Strong Earnings Clash With Cautious Outlook

Trade Potential

Bullish scenario: If SOFI holds $16 support and any macro catalyst hits — rate cut expectations, fintech sector rotation, or a fresh upgrade — a move toward $18–$20 is the first target. The head-and-shoulders recovery pattern traders are watching has a neckline near $19.90. A clean break there with volume would be significant.

Bearish scenario: If $16 breaks and the sell-the-news pressure continues, the next support is $14–$15. A securities law investigation from Block & Leviton adds headline risk. Companies that disappoint on guidance after record profits can stay under pressure for weeks. Don’t average down without a new catalyst.

GameStop Corp. (NYSE: GME) — Ryan Cohen Just Bid $56 Billion for eBay

My second Robinhood penny stock pick is GameStop Corp. (GME).

You can’t write a Robinhood watchlist in May 2026 without GME. Ryan Cohen just submitted a non-binding proposal to acquire eBay at $125 per share — a $56 billion deal that would combine a 2,200-store retail chain with one of the world’s largest e-commerce platforms. The stock ran to $27.22 intraday today on 39.5 million shares of volume — more than five times its daily average of 7.85 million. It’s since pulled back to around $23.81, but that intraday range tells you the crowd is still trying to figure out what this means.

Cohen has $368 million in Bitcoin on GameStop’s balance sheet. The company beat Q4 2025 EPS estimates by 32%, posting $127.9 million in net income. Whether the eBay deal happens or not is almost irrelevant to the trade. What matters is that the announcement brought 5x normal volume and put GME on every front page. Former supernova stocks with a live headline and a Twitter-famous CEO are the exact pattern I’ve been trading for 20-plus years.

Read more: GME Stock Jolts Traders With Bold $55B eBay Bid

Trade Potential

Bullish scenario: If eBay deal buzz continues and any follow-on announcement confirms Cohen’s intentions, GME tests the $27–$30 range. A meme stock with $368M in Bitcoin, a live M&A story, and a Reddit army behind it can move fast. The 52-week high is $35.81 — that number will be screenshotted everywhere.

Bearish scenario: If eBay publicly rejects the bid or the market concludes it’s a non-starter, GME fades back toward $20–$21. Non-binding proposals from retail-darling companies get rejected all the time. When the hype dies, so does the volume. Watch the bid size on down days.

More Breaking News

• HPE Stock Jumps As Wall Street Targets AI Infrastructure Upside
• Oracle Stock Jumps As AI Price Targets Surge
• YMAT Soars As J-Star Wins $60M Loan Green Light
• PRFX Soars As PRF Technologies DeepSolar Update Triggers Volatile Spike

Lithium Americas Corp. (NYSE: LAC) — The National Security Lithium Play

My third Robinhood penny stock pick is Lithium Americas Corp. (LAC).

LAC is the critical minerals trade of 2026. The company’s Thacker Pass project in Nevada is one of the largest lithium deposits in North America, and it’s now wrapped in a national security narrative. The Trump administration has been considering a strategic stake in the company. The DOE committed a $2.26 billion loan. GM put in $625 million. Phase 1 production is targeting 60,000 tons of lithium carbonate per year, with full ramp by 2027 — enough for 800,000 EV batteries annually.

The stock is trading around $5.69, bouncing off a 52-week low of $2.47 — it’s more than doubled from that floor. The 52-week high is $10.52, showing the crowd has already been willing to pay nearly double the current price. LAC has 13,589 impressions on timothysykes.com — the second-highest search driver on the site. Traders are researching this name actively.

The US-China trade war is the macro tailwind here. China controls 80%+ of global lithium processing. Every time a trade war headline drops, the case for domestic lithium production — and for LAC specifically — gets stronger. That’s the kind of macro story that keeps bringing new buyers into a small-cap name over and over.

Read more: LAC Stock Climbs As Thacker Pass Build-Out Accelerates

Trade Potential

Bullish scenario: Any announcement of the Trump administration formally taking a strategic stake would be an explosive catalyst. A move toward $7.50–$8 is the first target. A trade war escalation headline or a Phase 1 production milestone update would also fuel a run.

Bearish scenario: If the strategic stake news never materializes and lithium prices stay depressed, LAC drifts back toward $4–$4.50. Mining projects run on execution, and Thacker Pass has been delayed before. The macro tailwind is real; the timeline is not guaranteed. Cut if $5 breaks cleanly on volume.

American Airlines (NASDAQ: AAL) — Spirit Collapses, United Merger Rumors, Near 52-Week Low

My fourth Robinhood penny stock pick is American Airlines (AAL).

The airline sector just got reshuffled. Spirit Airlines shut down operations on May 1 after a $500 million bailout deal fell apart. That’s a direct benefit for American Airlines — fewer seats in the market means more pricing power, and AAL is already seeing it. Q1 2026 revenue came in at $13.91 billion, up 10.8% year-over-year and above analyst estimates. The loss per share of $0.40 beat the $0.47 consensus by 15%.

Then the merger drama: United Airlines CEO Scott Kirby confirmed publicly that he approached American Airlines about a merger. American rejected it, calling the deal harmful to competition. That sent AAL down about 4.5% on the rejection news — but it also put the idea in every trader’s head. M&A rumors in a consolidating airline industry don’t disappear overnight.

AAL is trading around $11.76, near the 52-week low of $10.09 but well off the 52-week high of $16.50. Thirteen analysts have “Buy” ratings with an average target of $14.86 — about 26% above current levels. Q2 guidance is for revenue growth of 13.5–16.5% year-over-year.

Read more: American Airlines Stock Draws Traders As Q2 Guidance Lifts Sentiment

Trade Potential

Bullish scenario: If Spirit’s exit drives meaningful load factor and pricing improvement into Q2, AAL recovers toward $13–$14. Renewed merger speculation or a United Airlines capitulation on the deal would add fuel. Volume returning on green days is the confirmation signal.

Bearish scenario: AAL has $34.7 billion in total debt, and fuel costs hit $4 billion in Q1 alone. If fuel spikes further or macro weakness hits travel demand, the Q2 guidance looks aggressive. Below $10 and the 52-week low becomes the next conversation. Airlines with this debt load are unforgiving in a downturn.

CleanSpark (NASDAQ: CLSK) — Bitcoin Miner Pivoting to AI, Earnings May 7

My fifth Robinhood penny stock pick is CleanSpark (CLSK).

CleanSpark is in the middle of one of the most common pivots in the market right now: Bitcoin miner trying to become an AI data center. The company is in advanced discussions with hyperscalers for data-center capacity, and just expanded its Texas footprint with a major power acquisition near Houston. Price target raised to $18. Earnings are May 7.

The stock is trading around $12.59, between its 52-week low of $7.82 and high of $23.61. Bitcoin price volatility creates the floor risk: when BTC drops, mining stocks drop harder. The AI data center pivot is the ceiling story: if hyperscaler discussions convert to a real deal announcement, this is a completely different stock. Analysts have a median 12-month price target of $19.

CLSK also has meaningful short interest — it’s one of the most heavily shorted large-cap Bitcoin mining names. That creates squeeze potential on the right catalyst. A hyperscaler deal announcement on or around the May 7 earnings call would be that catalyst.

Read more: CleanSpark (CLSK) Rallies As Bitcoin Output And Hashrate Climb

Trade Potential

Bullish scenario: If the May 7 earnings call confirms hyperscaler discussions are progressing and any deal outline is announced, CLSK moves toward $16–$18 fast. The combination of Bitcoin sector recovery and AI infrastructure narrative is exactly the kind of dual catalyst that brings retail and institutional buyers simultaneously.

Bearish scenario: If earnings show wider-than-expected losses and no hyperscaler deal progress, the stock loses $11 and tests $10. Mining companies that pivot to AI without showing concrete progress get re-rated back to their mining fundamentals quickly. BTC weakness is always an independent headwind.

Opendoor Technologies (NASDAQ: OPEN) — Housing Speculation With Earnings May 7

My sixth Robinhood penny stock pick is Opendoor Technologies (OPEN).

OPEN is the Robinhood housing trade. The company buys homes directly from sellers, renovates them, and resells — the “iBuying” model that the retail crowd loves when interest rates look like they might drop. Earnings are May 7. The market is de-risking ahead of the report: the stock is down on housing jitters and high rates, sliding to around $5.12. The 52-week range is $0.51–$10.87 — this stock has shown it can make enormous moves in both directions.

That 52-week low of $0.51 is the most important number on this write-up. OPEN has been a fraction of a dollar in the past year and is now trading above $5. Traders who remember the sub-dollar lows see $5 as a completely different stock. The crowd that missed the recovery from $0.51 to $5 is watching every earnings report for signs of another leg.

The risk is equally obvious. iBuying is a capital-intensive model that gets crushed when home prices stall and borrowing costs stay high. The company is still losing money. And May 7 earnings projections show continued losses and declining revenues. This is a trade on the setup and the crowd reaction, not a bet on the business fundamentals.

Read more: OPEN Stock Extends Rally As WallStreetBets Buzz Builds

Trade Potential

Bullish scenario: If Q1 results beat low expectations and management guides for any rate-cut benefit in H2, OPEN bounces toward $6.50–$7. The 40+ million daily average volume means the crowd is always watching this name. Any Federal Reserve pivot hint would light it up independently of earnings.

Bearish scenario: If Q1 shows wider losses and management signals continued pressure from high rates, OPEN tests $4. A stock with a 52-week low of $0.51 can always revisit uncomfortable levels. Housing macro is binary right now: it either recovers or it doesn’t, and OPEN has no hedge.

SoundHound AI (NASDAQ: SOUN) — Up 18%* Today, Earnings May 7, The Robinhood AI Name

My seventh Robinhood penny stock pick is SoundHound AI (SOUN).

SOUN is moving right now. The stock is up 18%* today to around $9.50 on 52 million shares of volume — 56% above its 30-day average. Earnings are May 7. That’s three days away. When a stock with a known earnings date starts moving 18% on above-average volume before the number drops, traders are positioning. The 52-week range is $5.83–$22.17, and the crowd has a very clear memory of what the high end of that range looks like.

SoundHound is the Robinhood AI name. Every time NVDA moves and retail traders go looking for a cheap AI play, SOUN gets the first bid. That retail hive-mind is a real and consistent pattern. Casey’s General Stores expanded its SoundHound voice AI ordering partnership across 2,600+ locations. The company also just agreed to acquire LivePerson for $43 million in equity — a deal that adds an enterprise messaging platform, $74 million in cash, and a stated path to $350–$400 million in 2027 revenue. Revenue grew 84.6%* year-over-year. Q4 EPS beat estimates by 202%.

Read more: SOUN Stock Jumps As LivePerson Deal Targets $400M Revenue

Trade Potential

Bullish scenario: If May 7 earnings show revenue acceleration and the Casey’s partnership contributing measurable numbers, SOUN pushes toward $11–$12. Former Robinhood runners with improving fundamentals can go parabolic when the retail crowd re-engages in force.

Bearish scenario: An 18% pre-earnings run that disappoints on the number can give back everything in one afterhours session. RSI is in overbought territory. Don’t hold through the earnings print without a plan for the downside. Set your exit before the report drops.

Aclarion (NASDAQ: AKAN) — Cannabis Squeeze With Jack Kellogg’s Alert Level

My eighth Robinhood penny stock pick is Aclarion (AKAN).

AKAN is a cannabis name that squeezed hard into Friday’s close last week. Jack Kellogg has an active alert set above $15 to trade it as a breakout setup. Jack’s commentary: “It’s a better stock to buy into strength as it’s breaking out and selling into all the shorts that are covering.” That’s exactly the kind of short squeeze pattern that made names like this run in prior cycles — shorts pile in during the morning fade, and then the afternoon reversal burns them.

Aclarion itself is actually a healthcare AI company that uses machine learning to help clinicians treat chronic low back pain — the cannabis label is a legacy ticker thing, but traders don’t always check the underlying business before hitting buy. What matters for this trade is the squeeze mechanics: elevated short interest, a crowd that has watched it move before, and an alert level that Jack Kellogg is watching publicly. When a stock has a named trader with a named price level, that level becomes a self-fulfilling setup.

Watch the $15 level closely. A clean breakout above that on volume with shorts covering is the entry signal Jack is waiting for. A failure below $15 on heavy selling is the rejection signal. Trade the reaction, not the prediction.

Jack’s watchlist note (week of April 27): “I set alerts if it gets over $15.00 to trade it as a breakout setup. It’s a better stock to buy into strength as it is breaking out and selling into all the shorts that are covering.” — Jack Kellogg’s weekly watchlist

Trade Potential

Bullish scenario: Clean breakout above $15 on elevated volume with short covering visible in the tape. If the morning squeeze sets up a higher low and the afternoon session extends the move, AKAN can run 20–40%* from that breakout level. Low float + short squeeze is the formula.

Bearish scenario: A fake breakout above $15 that fails immediately on heavy selling tells you the shorts are in control. If AKAN can’t hold the breakout level, the trade is over and the pattern resets. Don’t add to a losing position in a squeeze that isn’t squeezing.

*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 offers zero minimum deposits and fractional shares. You can access over 5,000 U.S. listed stocks and ETFs, plus select OTC stocks and ADRs in foreign listed companies.

How to Find Penny Stocks on Robinhood

Robinhood has curated stock lists under its “Trending Lists” section, but doesn’t feature a dedicated penny stock list. Here’s how to access penny stock lists on Robinhood:

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

You can rinse and repeat these steps to find the best penny stocks on any curated list Robinhood creates.

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

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

What Is a Good Penny Stock to Buy on Robinhood?

This is a watchlist, not a buy list. I have no plans to trade any of these stocks unless they fit my preferred setups. Focus on my process, not the picks. A few stocks I’ve been watching lately with Robinhood accessibility: SoFi Technologies (SOFI), Lithium Americas (LAC), and American Airlines (AAL).

What is the most promising Robinhood penny stock?

A stock with high volatility and a clear current catalyst is the most promising setup. Right now that’s SOUN ahead of May 7 earnings, or GME on the eBay bid news. Remember: we’re traders, not investors. We’re watching for short-term moves, not predicting which of these companies survives to 2030.

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

My top 3 to watch right now (price action dependent) are SoFi Technologies (SOFI), GameStop Corp. (GME), and Lithium Americas Corp. (LAC). SOFI for the dip-off-record-earnings setup, GME for the eBay headline volume, and LAC for the ongoing critical minerals narrative.

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

SOFI has a Buy consensus from 14 analysts with a $22.94 average target. AAL has 13 Buy ratings with a $14.86 average target. But analyst ratings don’t matter as much as price action and catalyst timing. Always trade with a plan.

Can you buy stocks under $1 on Robinhood?

Yes. Listed penny stocks will occasionally fall below $1. Buying is as easy as buying any other stock — choose the stock, pick your order type, input share count, submit. OTC stocks on Robinhood tend to be the pricier, more regulated names. The sketchiest sub-$1 OTC names often aren’t available on the platform.

Can You Become Rich Just Trading Penny Stocks on Robinhood?

Small gains add up. That’s the real answer. You can find hundreds of penny stocks on Robinhood, and the right strategy with the right tools produces consistent gains over time. Don’t expect instant riches. Think discipline, preparation, and process. If you want to actually learn this game, apply for my Trading Challenge and reading my FREE book.