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.
Best For
Intermediate Traders and Investors
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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.
Best For
- Active traders
- Intermediate traders
- Advanced traders
Pros
- Commission-free trading in over 5,000 different stocks and ETFs
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
- Intuitive trading platform with technical and fundamental analysis tools
Cons
- Does not support trading in mutual funds, bonds or OTC stocks
Best For
Futures Trading
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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
Best For
Options Trading
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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
Best For
Advanced traders
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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.
Best For
- Cost-conscious traders
- Novice traders
- Active/Advanced traders
Pros
- Free Level 2 market data for all users who open an account
- Commission-free trading in over 5,000 different stocks and ETFs
- Over 8,000 different stocks that can be sold short
- $0 contract fee for trading options, no commission either
- Strong market data and analysis tools with over 50 technical indicators
- 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.
- Active trading community with more than 100,000 app users
Cons
- No phone or chat support
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.
