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.
- 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.
- 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.
- 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.
- 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. - 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
| Ticker | Company | ±% | Buy Stock | |||
|---|---|---|---|---|---|---|
| MVST | Microvast Holdings | $0.80 | 341.39% | 2.4M | Buy/Sell | |
| NMHI | Nature's Miracle Holding | $0.14 | 67.79% | 11.8M | Buy/Sell | |
| DBGI | Digital Brands Group | $0.18 | 42.68% | 10.6M | Buy/Sell | |
| ELAB | Elevai Labs | $0.02 | 30.26% | 59.3M | Buy/Sell | |
| MAPS | WM Tech | $0.87 | 20.96% | 484K | Buy/Sell | |
| KOPN | Kopin | $0.86 | 18.6% | 1M | Buy/Sell | |
| XTIA | XTI Aerospace | $0.06 | 18.55% | 17.3M | Buy/Sell | |
| IBACR | IB Acquisition Corp. - Right | $0.09 | 18.5% | 3.4K | Buy/Sell | |
| PXLW | Pixelworks | $0.80 | 18.34% | 280.3K | Buy/Sell | |
| LQR | LQR House | $0.86 | 17.8% | 358.3K | Buy/Sell | |
| TANH | Tantech Hldgs | $0.17 | 16.92% | 12M | Buy/Sell | |
| ZKIN | ZK International Gr Co | $0.58 | 16.27% | 338.7K | Buy/Sell | |
| MSOX | AdvisorShares MSOS Daily Leveraged ETF | $0.89 | 15.06% | 3.3M | Buy/Sell | |
| SOS | SOS | $0.91 | 13.87% | 234.9K | Buy/Sell | |
| IBG | Innovation Beverage Group | $0.76 | 13.25% | 574.5K | Buy/Sell | |
| SY | So-Young Intl | $0.80 | 12.47% | 109.7K | Buy/Sell | |
| SNAX | Stryve Foods | $0.93 | 12.21% | 143.2K | Buy/Sell | |
| STI | Solidion Technology | $0.37 | 12.12% | 5M | Buy/Sell | |
| CNTM | ConnectM Technology | $0.86 | 12.07% | 662.9K | Buy/Sell | |
| TMTCR | TMT Acquisition Corp - Rights | $0.38 | 11.76% | 36.1K | Buy/Sell | |
Loser
| Ticker | Company | ±% | Buy Stock | |||
|---|---|---|---|---|---|---|
| SRVr | NXG Cushing Midstream Energy Fund Rights (expiring November 14, 2024) Rights | $0.13 | -84.65% | 140.4K | Buy/Sell | |
| PET | Wag Group | $0.21 | -68.35% | 134.7K | Buy/Sell | |
| BLEUR | bleuacacia ltd - Rights | $0.01 | -64.5% | 27.6K | Buy/Sell | |
| IAUX | i-80 Gold | $0.38 | -57.63% | 5M | Buy/Sell | |
| XFOR | X4 Pharmaceuticals | $0.28 | -52.72% | 1.1M | Buy/Sell | |
| ADD | Color Star Tech | $0.07 | -39.03% | 2.8M | Buy/Sell | |
| HTOO | Fusion Fuel Green | $0.38 | -37.45% | 161K | Buy/Sell | |
| PIII | P3 Health Partners | $0.25 | -35.97% | 655.3K | Buy/Sell | |
| LYRA | Lyra Therapeutics | $0.20 | -27.79% | 995.1K | Buy/Sell | |
| ALUR | Allurion Technologies | $0.52 | -27.07% | 174.7K | Buy/Sell | |
| PAPL | Pineapple Financial | $0.60 | -23.08% | 114.2K | Buy/Sell | |
| PTIX | Protagenic Therapeutics | $0.63 | -21.68% | 299.3K | Buy/Sell | |
| CERO | CERo Therapeutics Hldgs | $0.21 | -20.78% | 42.2M | Buy/Sell | |
| PBM | Psyence Biomedical | $0.06 | -20.03% | 6.2M | Buy/Sell | |
| LGMK | LogicMark | $0.14 | -19.95% | 25.9M | Buy/Sell | |
| CTXR | Citius Pharma | $0.39 | -19.42% | 1.2M | Buy/Sell | |
| TKLF | Tokyo Lifestyle | $0.30 | -18.98% | 604.4K | Buy/Sell | |
| EYEN | Eyenovia | $0.41 | -18.67% | 1.6M | Buy/Sell | |
| RHEpA | Regional Health Props | $0.45 | -17.42% | 2.7K | Buy/Sell | |
| FGEN | FibroGen | $0.32 | -17.23% | 1.2M | Buy/Sell | |
- Beginners
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.
- Navigate to the stock’s detail page to get more information about the company whose stock you want to buy.
- 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.
- Hit the Review button to confirm all the order details. Tap the Edit button if you’d like to edit your order.
- 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:
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Best For:Global Broker for Short SellingVIEW PROS & CONS:securely through TradeZero's website
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.