Penny stocks can be attractive trading options due to their endless volatility. Penny stock traders whose time moves perfectly can wind up doubling or tripling their money in a matter of minutes.
Most penny stocks are considered poor long-term investments. While there are always some hidden gems, most stocks trading under $5 — particularly those trading under $1 — are cheap for a reason.
No matter if you’re day trading penny stocks or you’re looking for stocks under $10 to add to your long-term portfolio, you need to open a brokerage account before you can begin trading.