Robinhood provides curated lists of stocks under the Trending Lists section of the platform. Unfortunately, penny stocks isn’t one of them. To find the best penny stocks on Robinhood, you’ll need to play with some filters:
Use this same process to find penny stocks on Robinhood’s other curated lists. Select any list and rearrange the stocks in ascending order. You may see repeat stocks across the different lists, but this gives you a way to filter penny stocks on Robinhood.
Yes, it’s possible to day trade penny stocks on Robinhood. But Robinhood margin account holders like Robinhood Instant accounts can only execute up to three day trades in a five trading day period.
A day trade is any security that is bought and sold on the same trading day. But day trading is a highly risky trading method. To execute a profitable day trade, you must be able to competently wield numerous trading strategies alongside a robust understanding of the market you plan to trade in.
The Pattern Day Trading rule is set by the Financial Industry Regulatory Authority (FINRA) and governed by the SEC, and applies to all US brokers. According to the rule, margin account holders are limited to three day trades within a five trading day period, unless they have at least $25,000 of portfolio value at the end of the previous day.
Robinhood account holders who place more than three day trades within a five-day trading period will be flagged as a pattern day trader (PDT). If this happens, you can’t place any day trades for 90 days unless you bring your account value above $25,000.
Keep track of how many day trades you’ve made by scrolling down to the Day Trades section from within the the Investing page of your Account.
Yes, you can day trade by downgrading your margin-enabled account to a cash account. Robinhood cash account holders can trade stocks, exchange-traded products (ETPs) and options without day trade restrictions.
Here’s how to switch to a Robinhood cash account via mobile app:
Even with all the right tools at their disposal, day traders often face sizable losses. And Robinhood isn’t well-equipped to cater to this style of trading. Robinhood has recently improved its advanced charting capabilities, but it still lags behind competitors like Charles Schwab or even Webull in terms of advanced charting and analysis tools. Without these advanced tools and indicators, day trading penny stocks on Robinhood could lead to uninformed trades that result in crippling losses.
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| Response | % of investors |
|---|---|
| Web browser | 44% |
| Mobile app | 23% |
| Desktop trading platform | 33% |
About a quarter (23%) investors say that the use an app for the purposes of investing, behind desktop trading (33%) and using a web browser (44%).
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