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Best Penny Stocks Under 10 Cents

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The best part of investing in penny stocks consists of the fixed amount of risk you need to take upfront to purchase the stock and the risk-reward ratio of the investment. Buying cents per share might seem risky since many stocks trading at that level are on their way to oblivion. Returns can grow quickly if the stock ultimately begins to climb. 

Also, by acquiring a block of stock at such a low price, you always know just where you stand with the risk involved since the lowest the stock can go is $0 and that isn’t far away. 

Highlighted Stocks Under 10 Cents:

Symbol Company Change Price
SFEG Santa Fe Gold
+ 0%
$0.070
PALAF Paladin Energy
+ 0%
$0.083
DLRWF DELTA DRONE ORD by Delta Drone
+ 0%
$0.040
PKLBF Perk Labs
+ 0%
$0.090
DFODQ Dean Foods
+ 0%
$0.090

Overview: Stocks Under 10 Cents

Once you’ve decided to put some money at risk, research the penny stock market for companies with recent news and interesting products or services. Keep in mind that these stocks have an extremely speculative nature, so as a rule of thumb, don’t put any money at risk you can’t afford to lose. 

Because of listing requirements, most penny stocks do not trade on the NASDAQ or other major exchanges, unless the company’s exchange-traded stock has recently failed to meet listing requirements. Trading in these assets is mostly done through the over-the-counter bulletin board (OTCBB). Quotes for penny stocks have traditionally been listed in the “pink sheets,” a quotation publisher that originally published the quotes on pink-colored paper. 

Keep in mind that due to the nature of these stocks, spreads can be wide with a minimum trading block of 10,000 or 100,000 shares in many cases, depending on the stock and the broker. Despite all the risks, the rewards can be considerable, with 1-day returns in the hundreds of percent in some cases.   

Best Online Brokers for Stocks Under 10 Cents

Many online brokers accept orders for stocks under 10 cents. However, be aware that most brokers charge commission for OTC bulletin board stock trades. Interactive Brokers offers Pink Sheet and OTCBB trading for selected stocks in its standard stock trading account and charges a fixed and a tiered rate.

Other online brokers that offer penny stock trading include TD Ameritrade, Charles Schwab Corp., ChoiceTrade, TradeStation and Zacks Trade. Commissions vary for each broker, from no-commission to $0.01 per share. Some brokers tack on a surcharge while others have a share quantity minimum depending on the stock. Call your broker for more details on penny stock trading.  

Commissions
Free
Account Min
$0
Get started securely through Webull’s website
Commissions
Free
Account Min
$0
1 Minute Review

Best For
Pros
Cons
TD Ameritrade
Commissions
$0 $6.95 for OTC Stocks
Account Min
$0
Get started securely through TD Ameritrade’s website
Commissions
$0 $6.95 for OTC Stocks
Account Min
$0
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates
TradeStation
Commissions
$0
Account Min
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Min
$0
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be

Features to Look for in Stocks Under 10 Cents

  • Product and potential future earnings: Due to the minimum listing standards, many penny stocks might be hard to research. Research your potential purchases as much as possible so you know you’re investing in a real company with a viable product or service. You’ll also make sure there’s potential for decent future earnings per share. Keep in mind that the penny stock market is rife with scams, so learn to avoid them. 
  • Assets and liabilities: Study the company’s financials for assets and other tangibles that might make the stock an asset play, which means that stockholders might benefit from a liquidation of the company’s assets. If the company is laden with liabilities, stockholders may not be entitled to the proceeds of the sale of company assets. 
  • Liquidity: Because of their low price and speculative nature, penny stocks could be hard to sell once you’ve acquired a relatively large position. Liquidating a large position in an illiquid market could wind up costing you most of your profits. Dealing in penny stocks with an active and deep market seems best if you plan on taking large positions. 

Stocks Under 10 Cents to Watch Out for This Year

All of the stocks on our list meet the criteria for stocks under 10 cents. They include mining and energy companies, a drone manufacturer, a biopharmaceutical company and a food company. Depending on the prospects for these businesses, these stocks could make a good speculative investment, but you should remain aware of the risks involved in owning any penny stock. 

1. Santa Fe Gold Corp. (OTCBB: SFEG) 

Founded in 1991 and based in Albuquerque, New Mexico, Santa Fe Gold Corp. owns 148 mining claims covering 42 mines and potential mine sites. These sites include the Malone, Patanka, Hillcrest, Barranca and Principal Mines in the Knight’s Peak region of Grant County, New Mexico.

2. Paladin Energy Ltd (OTCBB: PALAF)

Australia-based Paladin Energy explores, develops and operates uranium mines in Australia, Namibia and Malawi. Its largest asset is a 75% interest in the Langer Heinrich uranium mine in Namibia in southern Africa. That mine closed in 2018 due to low uranium prices, but this stock could appreciate substantially once the uranium market heats up. 

3. Delta Drone SA  (OTCBB: DLRWF)

Based in France, Delta Drone specializes in the manufacture of civilian drones for professional use. The company’s business solutions include drones for security, automated warehouse inventory, mine applications, sanitary spraying and onboard security systems. Delta Drone also provides training for drone pilots and custom systems that include software, specific drone missions and data processing. The company is currently expanding operations in Europe, Africa, the Middle East and Australia.  

4. Perk Labs (OTCBB: PKLBF)

Canada-based Perk Labs is the owner of Perk Hero, a yet-to-be released reward and mobile payments platform. The company changed its name from Glance Technologies Inc. in February 2020 due to its large restaurant clientele closing its in-dining services. Perk Labs is now in the process of shifting its business strategy to appeal to the Gen Z and millennial demographic. 

5. Dean Foods Company (OTCBB: DFODQ)

Probably the only recognizable name on our list, Dean Foods filed for bankruptcy in November 2019 and its stock price has sold off significantly in the last 2 years. The company is currently selling off its assets and has just completed the sale of 44 fluid and frozen facilities to the Dairy Farmers of America. Emerging from bankruptcy or other favorable news could spark a significant rise in the stock price. 

Biggest Movers of the Day

Premarket movers in the penny stock market consist primarily of companies releasing important financial data or news. Other big moves can be seen among the stocks of takeover candidates. 

If a penny stock makes a large move in the absence of any news, this could result from a large transaction or rumors of a major news item that has yet to be released. So-called “pump-and-dump” schemes can also be responsible for significant price changes. 

Gainers

Session: May 27, 2020 4:00 pm – May 28, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy AVCTW Stock – Trade For Free AVCTW
American Virtual Cloud Technologies, Inc. – Warrant expiring 4/7/2020
0.03 0.06 0.03 78.24% 97.88K
Buy OXBRW Stock – Trade For Free OXBRW
Oxbridge Re Holdings Limited – Warrant
0.03 0.04 0.02 68.00% 21.54K
Buy IEAWW Stock – Trade For Free IEAWW
Infrastructure and Energy Alternatives, Inc. – Warrant
0.03 0.05 0.02 64.23% 14.82K
Buy AGFSW Stock – Trade For Free AGFSW
AgroFresh Solutions, Inc. – Warrants
0.01 0.02 0.01 64.22% 25.95K
Buy TBLTW Stock – Trade For Free TBLTW
ToughBuilt Industries, Inc. – Warrant
0.04 0.05 0.01 25.00% 18.81K
Buy CHEKZ Stock – Trade For Free CHEKZ
Check-Cap Ltd. – Series C Warrant
0.05 0.06 0.01 19.80% 18.19K
Buy TACOW Stock – Trade For Free TACOW
Del Taco Restaurants, Inc. – Warrants
0.06 0.07 0.01 19.80% 25.84K
Buy EYESW Stock – Trade For Free EYESW
Second Sight Medical Products, Inc. – Warrants expiring 3/14/2024
0.10 0.11 0.02 15.02% 20.75K
Buy PAACW Stock – Trade For Free PAACW
Proficient Alpha Acquisition Corp. – Warrant
0.07 0.08 0.01 14.29% 13.37K
Buy KBLMW Stock – Trade For Free KBLMW
KBL Merger Corp. IV – Warrant
0.05 0.05 0.01 11.11% 18.00K
Buy CETXW Stock – Trade For Free CETXW
Cemtrex Inc. – Series 1 Warrant
0.03 0.03 0.00 5.76% 8.10K

Losers

Session: May 27, 2020 4:00 pm – May 28, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy ROSEW Stock – Trade For Free ROSEW
Rosehill Resources Inc. – Warrants
0.02 0.01 -0.01 -26.32% 73.01K
Buy DRIOW Stock – Trade For Free DRIOW
DarioHealth Corp. – Warrant
0.02 0.02 -0.01 -24.27% 3.45K
Buy DSKEW Stock – Trade For Free DSKEW
Daseke, Inc. – Warrant
0.05 0.04 -0.01 -22.22% 32.66K
Buy KBLMR Stock – Trade For Free KBLMR
KBL Merger Corp. IV – Rights
0.09 0.07 -0.02 -21.48% 12.17K
Buy AIRTW Stock – Trade For Free AIRTW
Air T, Inc. – Air T Funding Warrants to Purchase Trust Preferred
0.05 0.04 -0.01 -21.15% 1.95K
Buy CLRBZ Stock – Trade For Free CLRBZ
Cellectar Biosciences, Inc. – Series A Warrants
0.07 0.06 -0.01 -20.00% 2.13K
Buy KTOVW Stock – Trade For Free KTOVW
Kitov Pharma Ltd. – Warrants
0.05 0.04 -0.01 -14.68% 79.50K
Buy APOPW Stock – Trade For Free APOPW
Cellect Biotechnology Ltd. – Warrants to Purchase ADR (1 WT and $7.50 to purchase 0.2 ADS)
0.12 0.10 -0.02 -13.04% 1.30K
Buy ESSCW Stock – Trade For Free ESSCW
East Stone Acquisition Corporation – Warrant
0.08 0.07 -0.01 -11.13% 17.55K
Buy AMRHW Stock – Trade For Free AMRHW
Ameri Holdings, Inc. – Warrant
0.03 0.03 0.00 -3.32% 0.40K
Buy SHIPW Stock – Trade For Free SHIPW
Seanergy Maritime Holdings Corp – Class A Warrants
0.01 0.01 0.00 -1.80% 23.28K

Should You Invest in Penny Stocks?

The answer to this question depends on your goals as an investor or speculator and your pain threshold when it comes to risk tolerance. The first and foremost consideration before jumping into the penny stock market is if you can afford to lose your entire investment. 

If you answered “no,” you’d probably be better off buying the stock of more established companies such as stocks under $20, stocks under $10 and stocks under $5 that meet your needs. With that said, profits from penny stocks can significantly surpass gains in other investments if you pick the right stock to buy. 

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