How to Buy Penny Stocks on Robinhood

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Contributor, Benzinga
March 2, 2022

The truth is that trading penny stocks is (by and large) regarded as a bad idea. It’s difficult to source sound information about penny stocks, and they are far more dangerous than other security types. And while many brokerages make it intentionally difficult to invest in penny stocks by placing additional requirements on them, you may appreciate Robinhood for making it easier to invest in these low-priced stocks.

Robinhood is a simple trading platform that offers commission-free services to investors. The platform is compatible with computers through its website and mobile devices through the Robinhood app.

Let Benzinga take you through a step-by-step guide on how to buy penny stocks on Robinhood. We’ll look at how to buy penny stocks via its mobile app and website platform.

How to Buy Penny Stocks on Robinhood

When you find the best penny stocks to buy this week or find some new stocks on Robinhood for 2021, you can use these steps to continue the process and build out your portfolio.

  1. Browse the penny stocks you want to buy.

    To buy penny stocks, you’ll need to browse the available options on the Robinhood app. Start by navigating to the stock’s detail page. Here you’ll find more information about the stock you’re looking to buy, including the historical performance, company earnings, analyst ratings and other helpful details you’ll need when evaluating a stock.

  2. Tap the Trade button.

    Once you’ve made up your mind to buy, scroll to the bottom of the page, hit the Trade button and then buy. Or, you can tap the Buy button, which appears by default if you don’t already own the penny stock.

  3. Enter the amount you want to purchase.

    At this point, you’ll have 2 options to go buy. You can enter the actual dollar amount you want to invest in the stock or order in shares. The drop-down menu on the top right will let you switch between dollars and buying shares. You can use the market price displayed to calculate the number of shares you’ll own with the balance in your Robinhood account.

  4. Review your order.

    Once you’ve determined the number of shares you’d like to buy, you can proceed to review your order. This is where you choose the type of order you want to place on your purchase. Common orders include these:

    A market order is executed at the current market price.
    A limit order can only execute at your specific limit price or better.
    A stop order is an instruction to buy a stock when its price reaches a specific price.

    Be sure to review your order to confirm that every detail is correct since Robinhood won’t take responsibility for any errors made. You can edit your order by tapping the Edit button on the top-left corner.

  5. Swipe to submit.

    Once you’ve confirmed that everything is in order, swipe up to submit your order.

Daily Movers

Take a look at some penny stocks to buy this week, looking for cheap stocks to buy now that can provide you with instant value.

Stock Movers

Gainers

Loser

TickerCompany±%Buy Stock
JOANJOANN$0.31-38.74%224.2KBuy/Sell
ATMCRAlphaTime Acquisition Corp - Right$0.11-27.78%21.2KBuy/Sell
BCDABioCardia$0.47-19.33%258.1KBuy/Sell
SBFMSunshine Biopharma$0.05-17.15%2.2MBuy/Sell
TRNRInteractive Strength$0.41-16.76%550.4KBuy/Sell
APVOAptevo Therapeutics$0.14-16.35%385.9KBuy/Sell
PEGYPineapple Energy$0.06-14.87%3.5MBuy/Sell
AGFYAgrify$0.51-14.69%3.2MBuy/Sell
KITTNauticus Robotics$0.26-10.6%3.3MBuy/Sell
NVVENuvve Holding$0.77-10.57%698.9KBuy/Sell
MVLAMovella Holdings$0.34-10.55%375.6KBuy/Sell
NXUNxu$0.90-10.01%2.5MBuy/Sell
ZOMZomedica$0.14-10%6MBuy/Sell
SHFSSHF Hldgs$0.82-9.9%152.5KBuy/Sell
BIOLBiolase$0.14-9.85%1.9MBuy/Sell
AGRIAgriFORCE Growing Systems$0.17-9.69%3MBuy/Sell
AULTAult Alliance$0.41-9.59%5.1MBuy/Sell
CNXAConnexa Sports Techs$0.26-9.49%9.8MBuy/Sell
WKHSWorkhorse Gr$0.31-8.88%8.1MBuy/Sell
ALGSAligos Therapeutics$1.03-8.86%416.6KBuy/Sell
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How to Buy Penny Stocks With Robinhood’s Web Platform

You’ll follow the same process to buy penny stocks with Robinhood’s web platform. Whether you’re buying penny stocks on Robinhood under $1 or less, you can find penny stocks to buy, review the best penny stocks and use these steps to complete the process.

  1. Navigate to the stock’s detail page to get more information about the company whose stock you want to buy.
  2. Enter the dollar amount you’d like to buy in the order window on the right side of the screen. You can also buy full shares by choosing the Shares option from the drop-down menu next to Invest in.
  3. Hit the Review button to confirm all the order details. Tap the Edit button if you’d like to edit your order.
  4. Hit the Buy button if all looks good.

Remember, when you find penny stocks to watch, you should do your research before buying. Plus, you may want to progress into Robinhood day trading if you wish to change career or increase your profits.

Robinhood Alternatives

Here are Benzinga’s recommendations for online brokers who also accept buy orders for penny stocks. When you find a penny stock list or want to buy into the best penny stock on Robinhood under 10 cents, there are other options like:

Start your Penny Stock Journey with Robinhood

Penny stocks typically change hands in over-the-counter transactions, so you can work directly with stockbrokers to complete transactions. Still, another appeal of investing in penny stocks is that you don’t need much money to get started. Plus, you can easily buy penny stocks on Robinhood because they generally trade below $5 per share. The best cheap stocks to buy now are often the easiest way to build your portfolio and generate diversity among your investments.

You can also explore other Robinhood alternatives if you need more options to dig into.