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Personal digital devices such as smartphones and tablets have revolutionized life across the globe. Small and microtechnology companies are innovating change at an unprecedented pace and being an early investor in these penny stocks can help you grow your wealth.
Are you looking for low-cost stocks with high returns? Take a look at these tech penny stocks that are thriving in the market.
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Overview: Tech Penny Stocks
There is no doubt that technology has transformed the lives of people. But most of the tech companies that have helped build that modern infrastructure to make digitalization possible started out small.
Privately-held tech companies will often make their initial public offering (IPO) before making big price moves in the market. Apart from cutting-edge product launches, new approvals from governing bodies like the Federal Trade Commission or the Federal Communications Commission can drive its stock value to exponential prices.
Tech stocks are also good for buy-and-hold trading strategies. These tech firms gain value over time by growing their yearly revenue and maintaining a high degree of customer satisfaction. But be careful as investing in these micro-cap companies can be more volatile compared to bigger tech companies.
Best Online Brokers for Tech Penny Stock
Online brokers let you trade penny stocks, stocks, mutual funds, exchange-traded funds (ETFs) and foreign currencies at the click of a button. These platforms are equipped with tons of educational resources and professional trading tools to help you research your investments better.
Here’s a rundown of the top online brokers to get you started.
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
SoFi’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing.
The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners and one-on-one advising with professional career coaches. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.
- IPO Investing
- Mobile Investing
- U.S.-based customer service
- Highly-rated mobile app for iPhone and Android
- Only available in the U.S.
Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.
Get started right away by downloading Moomoo to your phone, tablet or another mobile device.
- Cost-conscious traders
- Active and Advanced traders
- Over 8,000 different stocks that can be sold short
- Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
- No minimum deposit to open an account.
- No chat support
eToro is a broker that offers access to over 25 of the world’s most popular cryptocurrencies, forex and over 1600 stocks. They have a few unique education and useability tools. Traders can begin buying and selling in as little as 10 minutes.
eToro’s unique CopyTrader feature allows new investors to “copy” the buy and sell orders of professional investors, while the company’s eToro Club feature provides investors with a range of additional education tools and resources.
- Traders looking for an easy-to-use platform
- Traders who want to practice their trades using a virtual account before entering the market
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- High non-trading fees
E*TRADE is an online discount trading house that offers brokerage and banking services to individuals and businesses. One of the first brokers to embrace online trading, E*TRADE not only survived both the dot-com bubble and Recession — it thrived. You can choose from two different platforms (one basic, one advanced). E*TRADE is a suitable broker for traders of most skill levels, whether you want to buy mutual funds and hold them for decades or dabble in options swing trading. E*TRADE offers a library of research and education materials to help you out.
- Active traders
- Derivatives traders
- Retirement savers
- Sophisticated trading platforms
- Wide range of tradable assets
- Exceptional customer service
- Limited currency trading
- Higher margin rates than competitors
- No paper trading on its standard platform
This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.
Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.
Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.
- Price earnings growth valuations
- Easily evaluate investment opportunities
Features to Look for in Tech Penny Stock
- Positive earnings per share: The earnings per share (EPS) of a company is a measure of its profitability. You can calculate the EPS of a stock by dividing the price of a stock by its total number of outstanding shares.
- Low price-earnings ratio: The price-earnings (P/E) ratio can help you determine if a stock is undervalued or overpriced. The P/E ratio can help you assess the performance of a stock compared to similar tech companies in the same price range.
- Tech innovations: Tech stocks are among the most innovative companies out there. Keeping a close watch on new tech developments and product launches can give you powerful insights about when to buy or sell shares.
Small Investments for Big Returns
Penny stocks give you an easy entry into the tech industry at incredibly low costs. These micro-companies are dedicated to improving their technology solutions and most of these firms serve global customers. You can consider investing in these tech penny stocks to diversify your portfolio with global stocks at unbelievable prices.