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Can you trade penny stocks at IG?

Your expert
Gyula L.
Fact checked by
Tamás D.
Updated
Jan 2024
Personally tested Personally tested
Data-driven Data-driven
Independent Independent

Can you trade penny stocks at IG as of January 2024?

No, OTC penny stocks are not available at IG.

At BrokerChooser, we only publish objective analyses based on live testing. Every recommendation is unbiased and based on first-hand experience: we open a live account anonymously at each broker, deposit real money and test every important feature.

IG is a CFD and forex broker. It is listed on the London Stock Exchange and regulated by several authorities globally, including the top-tier FCA.

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What are penny stocks?

Penny stocks are defined as stocks that are priced below $5 and are issued by small companies. While some penny stocks are listed on formal securities exchanges, such as NASDAQ, the majority are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks are considered to be risky investments because of their poor liquidity and high price volatility. Only a small share of penny stocks have a real potential to bring high returns, while the vast majority tends to perform poorly. Investing in penny stocks may well result in you losing all your invested money. If you'd like to learn more, check out our guide to trading penny stocks. Below, you can view examples of a well-performing and a poorly performing penny stock in 2022.

Poorly performing penny stock in 2022


Well-performing penny stock in 2022

Looking for the best brokers for penny stocks?

If you're looking for the best brokers that offer penny stocks trading, check our list of the world's best brokers for penny stocks.

FAQ

Is it worth investing in penny stocks?

Penny stocks are highly volatile assets that require caution. Some penny stocks may lose all their value over a relatively short period, while others may produce above-average returns.

Why are penny stocks so risky?

Penny stocks are considered risky assets because of their high price volatility and lack of liquidity. Penny stocks are shares of small companies, only a few of which have the potential to perform well in the future. Because of poor liquidity, it is hard or sometimes outright impossible to sell the stocks you own.

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Further reading

Author of this article

Gyula Lencsés, CFA
Gyula Lencsés, CFA

Gyula is a former analyst expert and Head of Content at BrokerChooser. With over a decade in finance, he led content creation at BrokerChooser and personally evaluated some of our 100+ listed brokers. He opened real-money accounts, executed transactions, and engaged with customer services, offering firsthand assessments. Prior to BrokerChooser, he managed mutual funds in wealth management, trading stocks, ETFs, bonds, commodities, forex, and derivatives. His goal: simplify the hunt for top brokers in a dynamic investment landscape.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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