Best Tech Penny Stocks at a Glance
This section will highlight the best EV-trading penny stocks available in the United States.
Tech Penny Stocks | Ticker | Price | Market Cap | Hedge Fund Manager | Trailing ratio | |
|---|---|---|---|---|---|---|
Near Intelligence | NASDAQ: NIR | $1.60 | $81.45M | 35 | -0.86 | Visit Fidelity to buy |
Sonim Technologies | NASDAQ: SONM | $1.14 | $46.73M | 14 | -11.4 | Visit Saxo to buy |
Powerbridge Technologies | NASDAQ: PBTS | $1.33 | $41.47M | 1 | -0.2 | Visit Webull to buy |
Velo3D Inc | NASDAQ: VLD | $1.96 | $378.27M | 142 | 9.3 | Visit Webull to buy |
Grab Holdings Inc | NASDAQ: GRAB | $3.26 | $12.69B | 416 | -8.8 | Visit Saxo to buy |
*Data as of 2nd of July.
Pros and Cons of Tech Penny Stocks
Although tech penny stocks offer great investment opportunities, they are not without their potential risk factors. In this section, we will discuss the pros and cons of tech penny stocks.
Pros
- The most attractive upside of penny stocks is their low price. You don’t need to invest a lot of money to grab shares of a tech company with potential.
- Tech penny stocks also offer the potential for high returns since most of these companies are still in their growth phases. Given the nature of the tech industry, the value of penny stocks can rise just as high as the high-priced stocks of large corporations under short periods.
Cons
- While there are upsides to trading penny stocks, it is essential to note that their prices may be very volatile, fluctuating from low to very high or vice versa at a rapid pace. This is one of the major problems associated with many penny stocks. It is also the reason they are sought out by investors looking to make quick gains.
- Liquidity is also a concern when buying penny stocks. One of the problems when a company doesn’t have much liquidity is finding a buyer for the stocks. While your penny stock may have appreciated by 1,000%, you have to be able to find someone willing to pay that price for it, which is often difficult.
The Leading Tech Penny Stocks Listed on Public Exchanges
Near Intelligence
Near was founded in 2012 with its headquarters in Pasadena, California. It operates as a cloud-based data intelligence platform across multiple countries, offering Allspark, a marketing intelligence product that enables segmentation and activation of data for marketing purposes. It also provides faster actionable insights with its intuitive platform, APIs, feeds and seamless integrations for GIS tools.
Near's technology enables operational leaders to analyse trade areas, consumer patterns and visitation analytics for any location. This makes Near a trusted partner in decision-making processes across various industries such as Retail, Restaurants, Real Estate, Travel and Tourism.
After losing over 74% of its value in the first quarter of 2023, the company was able to make significant returns, reporting total revenue of $15.5 million - a 10% increase from Q1 2022. This signals a bright future for Near, as it continues to identify new ways of leveraging its technology and helping customers access data intelligence.
Visit Fidelity to buy NIR stocks
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Fidelity Investment | 7.5 | Visitfidelity.com |
Sonim Technologies
Sonim Technologies was founded in August 1999 by Ram Chandran, Isaac Eteminan, Anush Gopalan, Jai Kumar, Sudu Srinivasan, and Joakim Wiklund, with headquarters in San Diego, CA. With the mission of meeting the needs of public safety workers, Sonim LTE handsets are designed to be ultra-rugged and boast long battery life, quick and secure access to Band 14 and real OneTouch PTT capabilities.
Furthermore, the company provides ultra-rugged handsets that support both public and private wireless networks, industrial-grade components and software applications, as well as cloud-based management and deployment tools.
The company announced a revenue of $25.8M in Q1 2023, a 7% increase from the same quarter in 2022. The stock price also gained over 100% in Q1 2023, further illustrating the financial success of the company after the strong decline seen in the previous year.
Visit Saxo to buy SONM stocks
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Saxo Markets | 8.8 | Visithome.saxo | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits on some products. |
Powerbridge Technologies
Powerbridge Technologies Co Ltd, listed on the Nasdaq (PBTS) and founded by Shiang Stewart Lor, is a provider of Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, Fintech and Software as a Service (SaaS) solutions for corporate and government customers.
On November 14th, 2020, the company announced it had acquired a 19% stake in DTI Group, a digital technology platform provider specialising in international digitalization. The stock of Power Technologies Co Ltd rose 3% after the announcement of the deal but saw a gradual decline throughout the year, as the company didn't experience any immediate revenue growth.
Recently, the company also secured a contract with OPPO, a global leader in smart device manufacturing, to implement the organisation's Customs Clearance System (G-CIS) for OPPO's export operations in Southeast Asia. This partnership between Powerbridge and OPPO is expected to revolutionise customs clearance processes and spur sustainable growth across different markets worldwide.
Visit Webull to buy PBTS stocks
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Webull | 8.3 | Visitwebull.com |
Velo3D Inc
Velo3D's suite of 3D printing solutions is designed to help engineers craft complex, vital parts without sacrificing quality. That was made evident in its fourth quarter of 2022, when revenue soared to $29.8 million—a three-fold increase from the prior year. This trend continued in Q1 2023, with reported revenue of $27 million, representing a 120% year-over-year increase.
It's no surprise that Fast Company has recently named Velo3D to its list of 2023's Most Innovative Companies. The company's technology is being used to develop cutting-edge products in industries like aerospace, semiconductor, and energy—all areas where advanced manufacturing is a key ingredient.
After a slow decline in the second half of 2022, the stock price has been steadily rising since Q1 2023, largely due to increased investor confidence in the company.
Visit Webull to buy VLD stocks
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Webull | 8.3 | Visitwebull.com |
Grab Holdings Inc
Grab Holdings Inc. is a tech giant based in Singapore that has rapidly expanded throughout Southeast Asia. Founded in 2012 as MyTeksi by Anthony Tan and Tan Hooi Ling, it was rebranded as Grab in 2016 and by 2021 it was listed on the NASDAQ as a decacorn, the biggest tech startup in the region.
In 2022, Grab recorded a staggering 112% year-over-year increase in revenue, reaching an annual total of around $1.4 billion. This surge was mainly fueled by the Mobility and Deliveries segments.
The company's incredible success story continued into 2023 with a jaw-dropping 151.82% YOY increase in revenue, bringing the total to $1.730B.
Visit Saxo to buy GRAB stocks
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Saxo Markets | 8.8 | Visithome.saxo | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits on some products. |
Best Platforms to Invest in Tech Penny Stocks
Below listed are the leading platforms to trade tech penny stocks with.
Merrill Edge - Best Tech Penny Stock Trading Platform for Beginners
Account Minimum Deposit | $0 |
|---|---|
Fees | $0 |
Investment types | Stocks, ETFs, and Options |
Merrill Edge is provided by BofA Securities, part of Bank of America's retail banking division, making it one of the safest brokerage platforms available to traders. The platform appeals to beginners and intermediate DIY investors looking to invest for a long period.
Related to BoA, you can expect a seamless banking/investing experience, a wide variety of educational offerings, and strong in-person support from Merrill Edge. If you want financial guidance while investing and trading, Merrill Edge could be your best option.
However, this also means the investment products you get are limited compared to other platforms. But, you can find all the tech penny stocks on Merrill Edge along with many more.
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Merrill Edge | 6.5 | Visitmerrilledge.com |
Fidelity Investment - Best Technology Penny Stock Platform for OTC Trading
Account Minimum Deposit | $0 |
|---|---|
Fees | $0 |
Investment types | Stocks, Bonds, Mutual Funds, Bonds, ETFs, and Cryptocurrencies |
Operating since 1930, Fidelity Investment is one of the most established financial institutions in the country and rated as one of the best brokerage platforms for tech penny stocks as it offers a dedicated Over-the-Counter Bulletin Board (OTCBB) section.
Fidelity's platform is secure and encrypted, ensuring the safety of users' data and it does not charge any fee to start trading. It also offers excellent resources and tools for both investors and traders.
The platform also features portfolio analysis tools, reports, calculators, and excellent screeners for identifying individual securities in an asset class. However, you may want to look to another platform if your needs fall under futures, options on futures, commodities, or crypto.
| Name | Score | Visit | Disclaimer | |||||
|---|---|---|---|---|---|---|---|---|
Fidelity Investment | 7.5 | Visitfidelity.com |
What Are Penny Stocks and How Do They Work?
Penny stocks typically refer to the stock of small public companies that trade at a very low price and often have a low market cap. Penny stocks belong to companies that are either very small or newly listed.
In the past, people considered penny stocks to be any that traded for less than $1 per share. However, the U.S. Securities and Exchange Commission (SEC) has modified the definition of penny stocks to include all shares of companies that trade under $5. Note that in other countries, the highest share value of penny stocks may be lower, like in the United Kingdom, where they are capped at £1. In the U.S. they have a market cap of $300 million, compared to the £100 million in the U.K.
Many investors are attracted to penny stocks because they believe there is room for appreciation. The general sentiment is that the small company will grow over time, increasing its investments and returns. Thus, they are considered a great way to make quick returns by investing small amounts of capital.
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The second reason is common among inexperienced investors. Many of them believe that blue chip stocks like Walmart (WMT), Microsoft (MSFT), and Apple (AAPL) started as penny stocks. While you may find penny stocks that grew to become large companies, many large companies did not start as penny stocks.
What are brokerage accounts? And do you need it to get started?
A brokerage account or a security account holds financial assets such as securities on behalf of an investor. With tech stocks being assets, you need a brokerage account to get started.
Should you use the same platforms for small trades and large trades?
If a platform meets your needs for both small and large trades, then you can use them for both. However, some platforms may be better suited for small trades, while others may be better for large trades. When this is the case, it would benefit you to use a different platform to suit the size of the trade.
How Much Money Do You Need to Get Started with Tech Penny Stocks?
One of the major barriers that have prevented people from investing in the stock markets is insufficient funds, given the high cost of blue chip stocks. Many with pockets not deep enough for blue chip stocks often consider tech penny stocks a sure-fire way to break into stock trading.
With tech penny stocks selling for under $5, you do not need much to start investing. However, brokerage platforms have a minimum amount users must have in their account, ranging from $500 to $2500.
Are tech penny stocks platforms safe?
In themselves, tech penny stocks trading platforms use a very high level of security. However, your safety is only assured by registered, reliable, and legitimate.
Trading with such platforms increases the safety of your funds when compared to over-the-counter trading platforms. Always do your due diligence before choosing a trading platform. While trading on registered platforms reduces the risks associated with trading penny stocks, they are not entirely risk-free. This is primarily because trading financial markets carry inherent risks, such as market volatility, regulatory changes, and the possibility of fraud.
Is the money I use to trade on investment platforms insured?
Funds used for trading on investment platforms are not federally insured, unlike deposits at FDIC-insured banks and NCUA-insured credit unions.
In addition, the SIPC (Securities Investor Protection Corporation) does not provide coverage for any losses incurred from trading the financial markets, fraud, or bankruptcy.
FAQs
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