Getting started investing with a small account can be daunting. It feels like there’s no way to gain any traction when the best blue chip dividend stocks cost hundreds of dollars per share, if not thousands.

But, there are ways you can start building a stock portfolio with just a little bit of capital. Sure, you could trade fractional shares – or you could consider the best penny stocks under 10 cents. We’ll unveil some of the most attractive 10 cent penny stocks right now, including:

  1. Akoustis Technologies (AKTS)
  2. SunHydrogen (HYSR)
  3. Maxeon Solar Technologies (MAXN)
  4. AgriFORCE Growing Systems (AGRI)
  5. LuxUrban Hotels (LUXH)
  6. BIOLASE (BIOL)
  7. Motus Holdings (MOTS)
  8. Loop Media (LPTV)
  9. Verb Technology (VERB)
  10. PaxMedica (PXMD)

More importantly, you’ll learn about the pros and cons of these types of stocks along with tips on actually trading them. From analyzing opportunities and finding your entry/exit, tools to streamline the process, and more, learn all about investing in penny stocks below!

Should You Really Invest in 10 Cent Penny Stocks?

Before we unveil the best penny stocks under 10 cents, let’s take a step back and figure out if this stock investment strategy is even worth pursuing or not.

These stocks are typically issued by smaller, lesser-known companies and trade at very low prices – often below a dime per share, hence the name “penny stock.”

It’s easy to get lured in by the ultra-low price, but investors need to be aware of both sides of the coin. These types of stocks are associated with highly speculative companies. Here are the pros and cons of penny stock trading.

Benefits

  • Low Barrier to Entry: You can buy thousands of shares with very little capital, giving you solid leverage without a major cash commitment.
  • High Percentage Returns: If a 10-cent stock rises by even a few cents, that’s a massive percentage gain. The ability to generate outsized returns in a short time frame is attractive.
  • Potential for Rapid Growth: Penny stocks typically belong to emerging companies or industries that are in the early stages of growth. Discovering the right opportunity before it experiences a breakout can quite literally be life-changing.

Drawbacks

  • High Volatility: These are some of the most volatile stocks today. Prices can swing dramatically within minutes or hours with no rhyme or reason. While volatility creates opportunities, it also exposes you to downside when prices plummet.
  • Lack of Liquidity: Penny stocks, especially those under 10 cents, tend to be thinly traded. This makes it challenging to buy or sell shares at your desired price. In worst-case scenarios, you might not be able to sell at all, and you could miss out on profit or worse, get stuck taking a loss.
  • Limited Financial Information: Knowledge is power, but it can be very difficult to access reliable financial information about the company behind a penny stock, increasing the risk of investing in unknown or poorly performing businesses.

Are They Worth it?

Ultimately, only you can determine if the pros outweigh the cons or vice versa.

If you’d rather focus on more established companies, we have similar guides on the best dividend stocks, from the highest paying dividend stocks to safe dividend stocks, falling stocks to buy, the best stocks for Roth IRA, the best stocks for covered calls 2024, and more.

But, we do believe that 10 cent penny stocks are some of the best stocks to buy for beginners who want to make the most of limited capital.

Plus, you can avoid many of the drawbacks we mentioned by choosing the best penny stocks under 10 cents and understanding how to analyze stocks before buying. Our stock advisory can also help streamline things and set you up for success.

So, let’s get into the top choices right now.

The Best Penny Stocks Under 10 Cents Right Now

Keep in mind that what we consider to be the best penny stocks under 10 cents changes just as quickly as these stocks themselves.

That’s why you should always do your due diligence before investing in a specific stock, and why you’re better off learning how to pick a stock rather than simply relying on our list of the top 10 cent penny stocks.

That being said, these 10 stocks have great potential, and we encourage you to add them to your watchlist and learn more about them.

Akoustis Technologies (AKTS)

This company designs, manufactures, and sells radio frequency filter products for smartphones, tablets, and the cellular infrastructure equipment industry here in the US. It also operates overseas in Asia and Europe. The company’s origins can be traced back to 2013.

The stock itself is currently trading at 7 cents per share but has a consensus price target as high as $1. With a market cap of $6.71 million and more than 8 million shares in trading volume, it’s a great choice for anyone interested in the top penny stocks under 10 cents.

SunHydrogen (HYSR)

SunHydrogen is focused on creating the next generation of renewable energy systems. Its main product is a novel solar-powered nanoparticle system that separates hydrogen from water mimicking photosynthesis, hence the name.

The stock itself is one of the most affordable options on this list at just over 2 cents per share. It has a market cap of $129 million and an impressive trading volume of more than 18 million.

Maxeon Solar Technologies (MAXN)

Another energy stock, Maxeon Solar Technologies creates, markets, and sells solar panels and a variety of related equipment around the world.

Its primary customer base is dealers, project developers, system integrators, distributors, and resellers, but it does occasionally sell directly to end users.

As a relatively new company that just came to market less than 5 years ago, MAXN has already earned a market cap of $4.35 million and has a solid average trading volume of 37.54 million shares. The consensus price target of $4.41 implies massive upside potential.

AgriFORCE Growing Systems (AGRI)

This company was founded in 2017 with the goal of transforming the modern agricultural development realm with technology the industry had never seen before. This includes fertigation and clean nutrients, AI and automation, facility and light design, and more.

The stock now falls under the umbrella of 10-cent penny stocks after shedding nearly all of its value this year. It’s been a steady journey to rock bottom from its 52-week high of $9/share. Today, it sits at just $0.05/share.

But, the stock has a solid average trading volume of more than 18 million with a market cap of more than $5 million. The company has proven it can deliver, and has a plan to crawl itself out of the hole it’s found itself in, making it a worthy consideration for penny stocks under 10 cents.

LuxUrban Hotels (LUXH)

LUXH barely made the cut on this list since it’s currently trading at $0.09 per share. The company’s business model involves leasing entire hotels and then renting out the individual rooms, with a portfolio of properties ranging from New York to DC, Miami, LA, and more.

The stock itself only has an average trading volume of 2.23 million shares, so it’s not the most popular security – but it does have a market cap of $3.94 million. Some experts have put a consensus price target as high as $4 per share, too.

BIOLASE (BIOL)

BIOLASE, inc. is an innovative company that creates laser dental systems so that professionals can perform a wide range of minimally invasive procedures, from cosmetic and restorative work to complex surgical applications.

It has a massive field sales force and distributor network, with a reputation spanning all the way back to 1984 – making it one of the most well-established penny stocks you can buy for less than 10 cents.

It’s currently trading for just under 7 cents per share with a market cap of $2.5 million and a trading volume of 458,000. So, you will need to be aware of this liquidity concern if you choose to trade this stock. But, the consensus price target of $1.20 does suggest an impressive upside.

Motus Holdings (MOTS)

Motus Holdings also operates in the medical field as a device manufacturer. Its flagship product is the Pure-Vu system, which helps clean poorly prepared GI tracts to facilitate more seamless colonoscopies and endoscopies.

The Fort Lauderdale-based company was born in 2008 and has had a tumultuous journey to find itself here on our list of the best penny stocks under 10 cents. At one point, it traded for thousands of dollars per share.

Today, it sits at just $0.05 per share and only has one analyst tracking it today – who has placed a consensus price target of $37.50, which would be an astronomical 81,000% growth. The stock has one of the smaller market caps on this list at just $265,000 and only 675,000 average trading volume.

Loop Media (LPTV)

Loop Media is a US-based digital video platform media company with relationships spanning across a multitude of major and independent record labels.

From Warner Music Group to Universal Music Group, Sony Music Entertainment, and more, Loop Media streams over 200 free media that reach millions of viewers. Its most recent earnings update featured a mixed bag where revenue fell, but profits improved.

The stock itself has potential. It traded as high as $1.30 just last year but has plummeted to the point where you can buy it today at just under 4 cents per share. Its market cap sits at $3.19 million per share and the average trading volume is just over 2 million shares.

Verb Technology (VERB)

Verb Technology is a SaaS company (software as a service) that’s based on a proprietary interactive video technology. It has more than a decade of business behind it and offers an array of sales enablement business solutions that are sold on a subscription basis.

The stock was originally listed at more than $6 per share but it has really struggled over the last year specifically, losing 93% of its value since September of 2023. Now, it sits at just over 5 cents per share.

Some experts aren’t convinced the end is here for VERB, though, with multiple buy ratings and a consensus price target as high as $4. The stock only has a market cap of $6.25 million but does have an average trading volume of over 16 million shares.

PaxMedica (PXMD)

Finally, we want to touch on one more great 10 cent penny stock to consider – PXMD just fell under the threshold and currently sits at 9 cents per share.

The biopharmaceutical company is engaged in developing anti-purinergic drug therapies that treat a number of disorders, but its main product of interest is PAX-101. It’s currently in the third phase of clinical trials, and approval could be huge for the company and its investors.

Just two years ago the stock closed at over $87/share. It has seen much of its value erode since then, and its market cap has plummeted as well to just $669,000.Meanwhile, the average trading volume is only 895,000.

However, some believe this stock could climb back up to as high as $3/share. The company is developing a few other treatments as well which are in phase 2. If any of these turn out to be a smash success, the implications could be massive.

Tips on Trading Penny Stocks Under 10 Cents

There you have it, all the top penny stocks under 10 cents! But as we prefaced earlier, it’s not as simple as buying all of these stocks and then waiting for the profits to roll in.

It’s easy to get caught up in the excitement of these low-priced stocks, but staying level-headed and having a plan is key. So, follow these tips below as you get started investing in penny stocks.

Start With a Goal

First, why are you investing in penny stocks? Is it for long-term wealth accumulation, or are you trying to earn income right now? This will influence the specific penny stocks you buy and how long you hold them for.

You might choose to day trade or swing trade penny stocks as a way to capitalize on short-term price swings. This is known as buying the dip and it can be incredibly lucrative.

Otherwise, you might be more interested in buying and holding stocks long-term if you don’t need income for present day. This tends to be a better approach with penny stocks. You can buy them today and wait patiently for years – all it takes is one of them to hit and become the next NVDA, after all!

Always Do Your Own Research

We know that investing, more specifically, stock analysis, is complex and time-consuming. It’s easy to want to find a list like this and just buy whatever is recommended. But, this is a surefire way to watch your portfolio erode in value over time.

You need to learn how to find undervalued stocks and purchase them at the right time before they rise in value. Easier said than done, of course – which is where understanding how to combine fundamental and technical analysis becomes so important.

Focus on the Fundamentals

Good stocks are associated with good companies. So take a step back and look at whether or not the company itself has sound fundamentals. This includes:

  • Revenue Growth: Even if sales growth is small, it indicates the company is at least heading in the right direction. It rarely makes sense to invest in a company that’s shown repeated quarters of backward growth.
  • Profit Margins: Many penny stocks aren’t profitable, but it helps to understand their path toward profitability. A company that’s trimming its losses year over year is in a better position than one hemorrhaging money.
  • Cash on Hand: Companies that are low on cash may be forced to issue more shares (diluting existing shareholders) or take on debt, which could hurt their stock price further.

Learn more about how to do fundamental analysis of stocks in our blog.

Follow Up With Technical Analysis

While fundamental analysis helps you figure out if the stock has a good foundation, technical analysis helps you determine when the timing is right to buy and sell your shares. There are so many great stock indicators that can help you determine whether or not a stock is worth buying.

For example, 50-day and 200-day moving averages can help you determine the momentum behind a stock’s trend. You should also pay attention to spikes in trading volume, as this can signal growing interest in the stock.

Even identifying support (where the stock tends to bottom out and reverse) and resistance levels (where the stock struggles to break through to a higher price) can inform your decision-making. Buying near support levels can improve your odds of getting in at a good price.

Our blog has more insights on how to do technical analysis of stocks.

Identify a Clear Catalyst

Actually figuring out when to buy stocks for beginners and when to sell a stock for profit is where the money can be made or lost as an investor. Your best bet is to watch out for any sort of clear catalyst that could affect the stock’s price.

This could be an upcoming product launch, earnings report, clinical trials, partnerships, or even macroeconomic factors like Fed rate cuts or inflation updates. Timing your trades around these vents will help you maximize profits while shielding against potential losses.

You should also stay up to date on market sentiment, as this can influence price swings as well.

Executing Trades

When it comes time to actually buy stocks, remember to stick to your trading plan. You should have a target profit and a maximum loss for every trade you make, and follow it to a T.

It’s easy to get greedy with penny stocks, especially when prices start to rise. But without a solid exit plan, you could lose those gains just as fast as you made them. So, set take-profit orders and stop-losses to protect your profits.

We also recommend using limit orders as the bid-ask spread can be quite wide with penny stocks. This means the price at which people are willing to buy is often much lower than the price sellers are asking. Using a market order could lead to inadvertently overpaying for a stock.

A Word on 10 Cent Penny Stocks Volatility

It’s important to note that volatility is a whole different beast when it comes to penny stocks. It’s not uncommon for a stock to surge 50% in the morning and lose it all by the afternoon.

Rather than being afraid of this volatility or falling victim to it, learn how to leverage it so you can capitalize and squeeze out all the profits that are possible. Using the best stock analysis app can make a big difference in tuning out the noise and making sound trading decisions.

That being said, here’s why volatility is such a big factor when trading penny stocks.

Low Price, Big Swings

Let’s say you buy a stock at 10 cents and it jumps to 12 cents – that’s a 20% gain from a 2-cent move! But it works the other way too. A drop from 10 cents to 8 cents is a 20% loss.

The low price point means that even the smallest changes have an outsized impact on your position. This means you don’t have very much room for error in your trading strategy, and it’s why you need to set yourself up for success with an investment app for beginner or seasoned traders.

Thin Trading Volume

A lot of penny stocks under 10 cents have low volume, meaning there aren’t always a ton of buyers and sellers. When fewer shares are being bought or sold, a single large trade can cause the stock price to spike or tank.

For example, if someone buys a large block of shares in a low-volume stock, it can push the price up sharply in a short amount of time. Conversely, a big sell-off can drop the price just as fast. This is another reason you’ll see such crazy volatility with these stocks.

The Influence of News and Rumors

A press release about a new product, an earnings report, or even an analyst comment can send the stock price soaring. The same is true for bad news, though. A negative report or poor earnings can cause a sharp decline.

Because these companies are usually small and not as closely followed as bigger firms, the impact of any new information is magnified. You need to make sure you’re tracking news closely for any companies you’re invested in.

Risk Management is Key

Given all this volatility, you can’t overlook the role of risk management when trading penny stocks. This means keeping your position sizes relatively small and using stop-loss orders so that you can automatically cut losses on a stock if things don’t work out your way.

Make the most of free stock analysis websites that share updates so you can stay ahead of the trend – or better yet, leverage the VectorVest stock analysis software.

Whether you’re looking for 10-cent penny stocks or want to learn how to find stocks to day trade, how to find stocks to swing trade, or anything else for that matter, it’s the best stock picker app. In fact, it’s outperformed the S&P 500 index by 10x over the past 20 years!

It does this while simplifying your trading strategy, distilling complex fundamental and technical data into clear, actionable insights. You’re given a buy, sell, or hold recommendation for any given stock, eliminating stress and uncertainty from your decision-making.

It also offers a wide array of pre-curated stock screeners so you never have to search far for your next opportunity. See what it can do for you with a free stock analysis today!

Closing Thoughts on the Best Penny Stocks Under 10 Cents

Trading penny stocks under 10 cents offers both huge potential and considerable risk. These stocks can provide massive returns with small price movements, but the volatility and low liquidity mean you have little room for error.

This is why you need to do your due diligence and set yourself up for success with tried-and-true tools like VectorVest, helping you make calculated, emotionless investments.

Whether you need the best stock app for Android or the best stocks app for iPhone, VectorVest can help you uncover dividend vs growth stocks, aggressive stocks to buy now, or anything in between. It also helps you figure out when to buy and when to sell.

So, stop chasing hype and let VectorVest guide you to real opportunities in the penny stock market. Stay ahead of the trend and discover the best penny stocks under 10 cents today!