Freetrade penny stocks
In the world of the share market, penny stocks are some of the most unstable options. It is hard to predict their market trend as you never know what their prices will achieve. However, they are affordable, and many people pick penny stocks as their primary option for investments. Additionally, with some research, you can find the perfect penny stocks that will justify your investments.
So what are penny stocks? What do you mean by high-risk high-reward? Why should you invest in penny stocks? If you are new to the world of the share market and want to learn more about penny stocks, you have landed on the right page. This guide will help you to understand the concept of penny stocks and how you should invest in penny stocks.
The guide also provides a breakdown of some of the best penny stocks available on Freetrade with their share prices and market cap. Penny stocks can be highly beneficial if you invest in them with the right approach.
So without further ado, let’s dig deep.
What are penny stocks?
When we talk about investing in stocks, we usually think about big names, such as Tesla or Facebook. However, penny stocks concentrate more on investing in shares of lesser-known or smaller companies. In general, penny stocks are stocks of smaller companies that amount to less than $5 per share. However, you can also trade penny stocks on platforms, such as the New York Stock Exchange.
You can choose stocks from thousands of smaller companies listed on exchanges worldwide. However, it would be best to research and evaluate these stocks as you might incur a loss. Penny stocks are available in different segments and prices, making them an ideal investment for many people.
Where do you trade penny stocks?
Penny stocks are available in different stock exchanges worldwide. However, you will find the most popular ones on the US and UK stock exchanges. These exchanges sell penny stocks of thousands of small companies at a variety of different prices.
In the US, you can trade penny stocks in the New York Stock Exchange and Nasdaq. Since penny stocks come with lower trading volumes, you may not all of them outside the US. However, you
can access US penny stocks using the Over The Counter or OTC market, which allows you to select your preferred stocks.
You can purchase OTC stocks directly from financial services or brokers. However, it would be best to do some research before investing in these stocks as they carry a higher level of risk. Since companies issuing penny stocks on the OTC market don’t adhere to regularity standards, you cannot buy them from exchanges.
This irregularity makes OTC penny stocks vulnerable, and you should be very careful while purchasing penny stocks from these markets.
In the UK, Alternative Investment Market or AIM lists different penny stocks. AIM is a branch of the London Stock Exchange (LSE) that deals with penny stocks.
You can find thousands of stocks from different companies listed on the platform. AIM has been profitable for various companies and people but also shares some misfortunes in its bag. However, AIM has a different listing standard than London Stock Exchange, and it would be best to evaluate before investing in stocks listed in AIM.
What do you mean by High Risk, High Reward?
Since newer and smaller companies lack transparency, we can characterize penny stocks as high-risk investments. These reasons make them highly unpredictable, and you may incur loss due to the lack of information.
Here are some of the things to avoid before investing in penny stocks:
- Unsolicited stock advice from spam mails
- Stock information from unknown messages or telephone calls
- Newsletter from various sources even though they provide the correct information about the stock progress
- Lack of listing standards
Since these companies don’t adhere to listing standards or follow the rules, you become vulnerable and incur a loss. Additionally, penny stocks don’t require minimum shareholders or assets, making them more vulnerable than regular stock investments.
Although you have a high risk associated with penny stocks, they can be rewarding as well. Since finding accurate information about a new company is challenging, you can capitalize if you find it first. Additionally, you can gain higher rewards with minimal investments, making penny stocks an irresistible option for many investors.
You can assume penny stocks as the entry point to emerging companies before they turn lucrative. Furthermore, penny stocks are an excellent entry point into trading, especially for beginners. They serve as an ideal learning ground for stock market fundamentals without spending a fortune.
Penny stocks have seen a surge in demand in recent years, and people from different age groups prefer them for trading. If you choose the right penny stock, you can make the most out of it. However, it would be best to evaluate and research before investing in penny stocks.
How to invest in penny stocks?
You can buy penny stocks with most investment accounts. However, some accounts will allow you to buy more stocks than others based on liquidity issues. Since penny stocks have low trading volumes, brokers find it harder to offer them. It would be best to check a broker’s stock list before investing.
Here are the basic precautions that you need to take before investing in penny stocks:
- Evaluate the amount of money you can afford to lose if your plan does not work.
- Check for hidden commission charges levied by brokers.
- Conduct thorough research on the companies offering penny stocks before investing.
- Don’t expect long-term results. Penny stocks are excellent for short-term profits.
Why should you invest in penny stocks?
Although penny stocks are volatile and carry a higher risk than traditional stocks, they can be lucrative with the right approach. Here are some of the advantages of investing in penny stocks.
- Affordable: Unlike traditional stocks, penny stocks are inexpensive. They are the perfect entry point for beginners into the trading world. Since you spend less, you will have little to lose if something goes wrong. Additionally, you can divide your investments into different companies and see which one provides the best results.
- High reward: As we mentioned earlier, penny stocks can benefit you a lot if you plan your approach. If you invest in a new company that you feel will grow into a giant, you can reap higher benefits than your actual investment. You could discover a company that turns your fortune overnight and reap higher benefits.
- Ideal for beginners: Penny stocks are the ideal trading ground for beginners. For instance, if you have $500 to trade, you can only buy four to five shares of an established company, whereas the number could be in thousands if you invest in penny stocks. This ability will help a beginner or small investor to understand the stock market fundamentals more conveniently with minimal commitment.
- Faster results: Unlike traditional stocks, penny stocks derive more immediate results. You don’t have to wait years to reap benefits from your stock investments. If you plan and research, you can reap significant benefits within days of investing in penny stocks, making them a delight for beginners.
- Potential growth: Although there is a higher risk associated with penny stocks, they can promise potential growth if approached correctly. However, you will have to plan and research before investing in penny stocks and pick the right ones.
Investment tips for beginners
Penny stocks are the perfect platform for beginners to foray into the trading world. Since penny stocks are affordable, you can start with a minimal amount before expanding your reach. You can get familiar with stock market fundamentals and experiment with different companies with minimal commitment.
To help you get started, here are four tips that beginners should follow before investing in penny stocks.
- Invest in growth: Choosing the right industry is crucial for any investor to capitalize on their investments. It would be best to look for companies that have potential growth in the future to minimize the risk. For instance, Green energy is a promising sector in the future since the world is looking forward to natural resources as an alternate energy source. Other prospects can be pharma and precious metal companies.
- Company background: Planning and researching a company is a good start before investing in penny stocks. Background research of a company will reveal their experience and position in the real world, which will make it easier for you to decide before investing.
- Check the financial background: Although penny stock companies don’t follow the same listing regulations as their bigger counterparts, they have to make some of their accounts public. You can check these accounts for profits and debts to minimize risk. If they have dues, ensure that they have enough money to clear them.
- Don’t buy because it is cheap: As mentioned earlier, penny stocks are affordable and alluring to beginners. However, performing proper research will ensure that you remain on the safe side. If your research suggests that you are investing in the right one, you can go for it. Otherwise, it is better to evaluate rather than buying something cheaper than others.
Freetrade Penny Stocks
Freetrade is an excellent platform to buy penny stocks. Whether you are an avid investor or a beginner, Freetrade will help you grow your investments and savings. Additionally, its transparent charges/fees make it convenient for users to purchase stocks from the platform.
Why should you invest with Freetrade?
Like we mentioned earlier, investing in penny stocks is an effortless task on Freetrade. It has a simple design with an easy-to-use interface, making it one of the top choices for investors
worldwide. Here are the benefits of investing with Freetrade:
- Easy to use interface
- Transparent charges/fees
- Lots of options for investment
- Affordable prices
- Excellent for beginners
- It covers different markets and sectors worldwide
- You can buy from UK and US stock exchanges
- Fast and friendly customer support
Freetrade has a lot of options for investments. However, not all of them provide the same results. While many customers may want to invest in upcoming companies, we recommend conducting research first before investing.
Like we mentioned earlier, choosing the right industry and market is vital for success. Likewise, it would be best to look for sectors and companies with potential growth in the future or stick with players that provide steady returns.
If you are still confused about your investment, here are seven companies and sectors that will provide you with steady returns.
1. SAR Sareum
SAR Sareum is one of the best options on the Freetrade platform, with a market cap of 79.242m (GBP). It is a UK-based company and has been growing consistently in recent years. If you are a beginner and want to invest, SAR Sareum is worth considering.
Sareum Holdings PLC is a company engaged in the development and discovery of therapeutic drugs. They combine medicinal chemistry, biology, and computational chemistry skills to produce these drugs. It has a drug discovery platform known as the Sareum Kinase Inhibitor Library that helps develop these drugs.
The company produces three types of drugs, including TYK2/JAK1 Kinase, Aurora+FLT3 Kinase, and Checkpoint Kinase 1. The company also has collaborations with the Sierra Oncolgy, Inc. and the Medical University Biomedical Engineering Center.
Sareum Holdings PLC share price
The share price of SAR Sareum is 2.46 GBX. According to the latest report, its share opened at 2.42 GBX and closed at 2.46 GBX, gaining a 3.66% rise against its opening amount on 14th May 2021.
Should I invest in SAR Sareum?
SAR Sareum has been consistently growing in recent years. If you are looking to buy shares and don’t know which company to invest in, Sareum Holdings PLC is worth considering.
2. PHE PowerHouse Energy Group PLC
The energy sector is one of the best options to purchase shares. If you consider buying shares in this sector on Freetrade, PowerHouse Energy Group PLC with a market cap of 200.017m is worth considering. It started its operations in 2000 at Bingley, United Kingdom, and has been lucrative for many shareholders.
PowerHouse Energy Group PLC is one of the major suppliers of electrical energy and hydrogen systems in the UK and internationally. It is a company that designs plastic regeneration processes and delivers them across the world. It also provides Distributed Modular Generation technology to prepare synthetic gas from calorific waste streams. Additionally, it also offers customer testing and engineering services.
PHE PowerHouse Energy Group PLC share price
The share price of PHE PowerHouse Energy Group PLC is 5.10 GBX. According to the latest standings, its share opened at 4.89 GBX and closed at 5.10 GBX, gaining a 6.25% rise from its opening figures.
Should I invest in PHE PowerHouse Energy Group PLC?
Like we mentioned earlier, the energy sector is one of the fastest-growing sectors in the trading world. With a consistent rise in its shares’ value, PHE PowerHouse Energy Group PLC is undoubtedly worth considering.
3. NGHT nightcap PLC
Nightcap PLC is another profitable penny stock that you can buy on Freetrade. The company has a market cap of £35.8m and operates from the United Kingdom. It runs hundreds of restaurants and bars across the UK and has a reputation for doing well in the trading world.
Nightcap is a company that deals in different kinds of drinks. It is a famous face in the UK’s bar and restaurant industry and operates in all the major cities of the United Kingdom. It has acquired significant recognition in the UK with thousands of happy consumers.
Nightcap has several reputed acquisitions under its belt, with London Cocktail Club being its significant and profitable cocktail bars. This club operates at nine different locations in London. The success behind this chain is its sophisticated cocktails, first-class service, and vibrant environment.
NGHT nightcap PLC share price
The share price of NGHT nightcap PLC is 26.62 GBX. According to the latest listings, its share opened at 26.80 GBX and closed at 26.62 GBX, maintaining a consistent performance in the trading world.
Should I invest in NGHT nightcap PLC?
Nightcap is consistently performing well in the stock market. With the company planning more expansions and acquisitions, the company will generate more wealth, making it an ideal option for investors.
4. PNPL Pineapple Power Corporation PLC
The Pineapple Power Corporation is a lucrative company based in the United Kingdom and one of the best on Freetrade. It has a market cap of 4.54m and has thousands of satisfied shareholders under its belt.
The company listed itself on the London Stock Exchange as an acquisition company. The trading symbol of the company is PNPL and operates in the traditional market of the LSE. Its vision is to acquire clean energy or renewable companies across the world.
Clean energy investments have seen a surge in recent times, and this company intends to participate as a fund-raising platform for various enterprises. It is an ideal option for beginners to access the international capital markets.
PNPL Pineapple Power Corporation PLC share price
The share price of PNPL Pineapple Power Corporation PLC is 7.23 GBX. The latest standings opened at 7.75 GBX and closed in 7.23, maintaining a consistent run on the share market.
Should I invest in PNPL Pineapple Power Corporation PLC?
Clean energy is one of the best sectors for investments, and growing companies, such as the Pineapple Power Corporation, can be lucrative. It is one of the best penny stocks available on Freetrade and is undoubtedly worth considering.
5. PAF Pan African Resources PLC
Companies related to the exploration of precious metals are very lucrative and offer high value for their shareholders. If you are looking for a company that deals in precious metals, the Pan African Resources PLC is worth considering. The company has a market cap of 370.972m and operates from Johannesburg, South Africa.
Pan African Resources PLC is a company that deals with precious metals. It explores potential sites for valuable metals. It operates from Johannesburg, South Africa, and the Barberton gold project is its principal property. This property consists of underground mimes at Fairview, Mpumalanga Province, and Sheba.
The company is operating since 2000 and has been a consistent performer in the trading world, making it a delight for investors.
PAF Pan African Resources PLC share price
The share price of PAF Pan African Resources PLC is 19.22 GBX. The latest standings opened at 18.74 GBX and closed at 19.22 GBX, offering an excellent value for shareholders.
Should I invest in PAF Pan African Resources PLC?
Companies dealing with precious metals have always been a lucrative option for investors. The PAF Pan African Resources PLC is a profitable company with a consistent performance in the share market.
6. BMK Fish Food
The farming and food industries have a proven track record of performing well in the trading world, and if you are interested in this industry, you can buy penny stocks of the Benchmark Holdings PLC on Freetrade. It has a market cap of 414.823m and has been a lucrative option for many investors.
Benchmark Holdings PLC provides technical products and services for the development of farming and food industries globally. It operates through health, advanced nutrition, and genetics segments. The company’s genetics segment provides salmon breeding production facilities and technologies.
The company has an advanced nutrition segment that provides health and nutrition products. Benchmark Holdings PLC operates from Sheffield, United Kingdom, and works in the aquaculture industry.
BMK Fish Food share price
The share price of BMK Fish Food is 61.90 GBX. The latest standings opened at 59.05 GBX and closed at 61.90, gaining a 2.31% rise against its opening figures.
Should I invest in BMK Benchmark Holdings PLC?
If you are interested in the aquaculture industry, the penny stocks from Benchmark Holdings PLC are undoubtedly worth considering. The company is a delight for thousands of happy investors as it performs well in the trading world.
7. REDX Pharma PLC
If you want to invest in a pharmaceutical company with consistent growth, you can consider REDX Pharma PLC. It has a market cap of 186.243m and is one of the leading pharmaceutical companies in the United Kingdom.
The company engages in pre-clinical development, licensing activities, and drug discovery in the UK. It develops drugs for treating fibrosis and anti-cancer for less developed areas. The company also develops inhibitors to treat various diseases, including pancreatic, gastric, colorectal, and biliary cancers.
The company also collaborates with other pharmaceutical companies, including Jazz Pharmaceuticals PLC, to develop drugs. It operates from Macclesfield, United Kingdom, and has been a consistent performer in the trading world.
REDX Pharma PLC share price
The share price of REDX Pharma PLC is 62.50 GBX. According to the latest standings, the company has been performing well in the trading world.
Should I invest in REDX Pharma PLC?
Pharmaceutical companies can be a boon for investors and have a proven track record of performing consistently in the share market. REDX Pharma PLC is one of the best options on Freetrade and is undoubtedly worth considering.
Freetrade is an excellent platform for investments in penny stocks. However, it would be best to plan, research, and evaluate your options before investing in penny stocks.