Sign up with Robinhood now
- $0 stock trade fee
- $0 min. deposit to open
- Make unlimited commission-free trades, plus earn 4% interest on uninvested cash in your account with Robinhood Gold.
Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure
Robinhood is one of the few brokers that offers access to penny stocks — stocks that can be purchased for $5 or less. Here’s how to find and purchase penny stocks on Robinhood.
Yes, you can buy penny stocks on Robinhood — but the selection is limited to US exchange-listed penny stocks and specific penny stocks that trade over-the-counter (OTC). As of September 21, 2022, Robinhood supports over 300 American Depository Receipts (ADRs) that trade on the OTC market. Of those, we counted 64 ADRs that qualify as penny stocks.
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 dig around and 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.
If you don’t have an account with Robinhood, you’ll first need to sign up and open an account then follow these steps:
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 TD Ameritrade 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.
*Signup bonus information updated weekly.
Information on this page is for educational purposes only. Finder is not an advisor or brokerage service, and we don't recommend investors to trade specific stocks or other investments.
Finder is not a client of any featured partner. We may be paid a fee for referring prospective clients to a partner, though it is not a recommendation to invest in any one partner.
Your simple and straightforward guide to ETFs, how they work and the different types available.
Read more…Find out how stock lending works, the extra income you could potentially earn and the risks you should be aware of. Plus, compare stock trading platforms that offer stock lending.
Read more…Learn about stock analysis and how to use it to find the right company to buy.
Read more…Everything we know about the TXO Energy IPO, plus information on how to buy in.
Everything we know about the Brera IPO, plus information on how to buy in.
What you need to know about investing in the leading indicator for the overall US stock market.
Buying an IPO is as simple as buying any other stock, but not every trading platform offers IPO stocks.
Steps to owning and managing NVOS, with 24-hour and historical pricing before you buy.
Your simple and straightforward guide to ETFs, how they work and the different types available.
Find out how stock lending works, the extra income you could potentially earn and the risks you should be aware of. Plus, compare stock trading platforms that offer stock lending.
Everything we know about the SONDORS IPO, plus information on how to buy in.
Everything we know about the Bullfrog AI Holdings IPO, plus information on how to buy in.
Learn about stock analysis and how to use it to find the right company to buy.