Robinhood brokerage app is a popular commission-free app that has gained significance over the years. It is user-friendly and one of the main areas of interest for people who invest in Robinhood penny stocks. Now what are the penny stocks? This might be a question in your mind. These stocks are priced low and traded at $5 or less. To invest in penny stocks, Robinhood has proven to be the cheapest course. It helps investors buy penny stocks at low investment.
Penny stock shares are priced at less than $5 and are associated with smaller companies facing financial challenges or in the early development stages.
Penny Stocks Appeal on Robinhood
The appeal of Robinhood penny stocks is because of the significant gains one gets from this investment. These penny stocks hold explosive price movements with the possibility of significant returns in a short period. So, people who love to make risky investments and are afraid of making their first investment can easily invest in this. Moreover, the commission-free platform of Robinhood makes investment free of any additional costs and removes the cost barrier.
Pros and Cons of Investing in Robinhood Penny Stocks
Reddit penny stocks come with many risks, pros, and cons, like many others. Following are some of the listed below
Affordability: Robinhood stocks are affordable with penned stocks of a price less than 45.
No additional charges: This commission-free charge does not charge anything extra other than the investment
Accessibility: The user-friendly instructions and interface of the Robinhood app make it accessible to the customers
High-Return potential: These penny stocks on Robinhood have the potential to provide you with high returns
Speculative Opportunities: Some investors like speculations and are attracted to the speculative nature of penny stocks.
Lack of Information and Transparency: Many penny stock companies are associated with smaller lesser known sectors that should be subject to inquiry as they might be fraudulent.
Lack of Liquidity: Limited Liquidity means more buyers and sellers might need this kind of trading in the market. Penny stocks also lack liquidity.
Risks Associated with Penny Stocks
Investment always comes with risks, but one should know the risks of penny stocks. Some risks that penny stocks hold include lack of liquidity, volatility, limited track record, and long-term viability. Though the Robinhood penny stocks are easy to invest in, one should always educate oneself about the major risks to avoid big moss.
Top 5 Penny Stocks to Invest
If you are looking to invest in good penny stocks in Robinhood, look at the top five penny stocks to invest in. These are the most common penny stocks people watch on Robinhood to invest in.
SoFi Technologies Inc. (NASDAQ: SOFI) The First Robinhood penny stock investors mostly pick is SoFi Technologies Inc. SoFi, a company that trades under the symbol SoFi.It is a trading company that provides a range of digital financial services to different companies out there. The company uses different technologies and data-driven insights to provide the best financial services, solutions, user-friendly platforms, and tools.
This is part of a sector that deals with seismic crises/shifts due to the banking crises, financial or fintech crises. Despite its crises of 2022 and previous ones, SoFi has managed to stand out in its value of stocks and company through its spellbound services. Undoubtedly, it is one of the companies preferred for investment in penny stocks.
Top Financial Group Limited (NASDAQ: TOP)
This NASQAD-registered company is Top Financial Ltd. As the name suggests, it is one of the top penny stocks companies and the best to invest in. It launched its small TOP sector for up to 3700%; the rest was history. The short-lived sectors called the Chinese IPOs, were also formed.
GSI, Technology Inc. (NASDAQ: GSIT)
The third penny stocks company on Robinhood for you is GSI Technology Inc, which involves a Reddit stock. You heard it right; the GSIT is a penny stock Reddit. It is now categorized as a meme stock trader because people are interested in investing in memes. Many things could move against this GSIT penny stocks company, but its growth is not a mirage. The 350% increase in the value of its stocks truly defines how your investment will fly to heights of profit.
We Trade Group Inc. (NASDAQ: WETG)
It is known as the ‘’ Low Float AI Stock with news’’, the new AI Robinhood stock in the market. Its work on its large proprietary stocks has increased its stock to 150%. So, the 16 million shares it holds can impact the supply of its stocks because of the 5 lac shares it had stocked. You should also focus on the average 60-day volume, just over 1 lac shares of stocks.
These cheap dividend stocks help you invest in their digital products, technical solutions, and some other helpful financial services through its e-commerce platform. This involves your penny stocks investment which in return drives profits and sometimes risks to your investment.
Blue Apron Holdings Inc. (NYSE: APRN)
Blue Aprons Holdings deals with food-related products and services. It is a US-based company involved in discovering new ingredients, kitchen product recipes, cooking techniques, etc. These food-related things and recipes are curated to be delivered to the customers, and this company is also very good for women to invest in as their interest and expertise lie in this stuff, so they would know better which penny stocks or products to invest in.
Investment is good, but investments requiring lesser money with ease of access are much better. Check out the Robinhood penny stocks to navigate the world of penny stocks.
For more details about the investment, please go through our investment guide.