Can you trade penny stocks at Plus500?
No, OTC penny stocks are not available at Plus500.
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Plus500 is a global CFD broker, listed on the London Stock Exchange's Main Market and regulated by many authorities including the UK FCA and CySEC of Cyprus.
Plus500 penny stocks
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 illiquidity and high volatility. Only a small share of penny stocks have a real potential to high returns. The vast majority performs poorly. Investing in penny stocks means that you can lose all your invested money. If you would like to learn more about penny stocks check out our penny stocks trading article. Below you can find an example of a well performing and a poorly performing penny stock in 2022.
Poorly performing penny stock in 2022
Well performing penny stock in 2022
Plus500 penny stocks
Looking for the best brokers for penny stocks?
If you're looking for the best brokers that offer penny stocks trading, check our top list of the world's best brokers for penny stocks.
Plus500 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, while others have above-average returns.
Why are penny stocks so risky?
Penny stocks are considered risky assets, because of their high volatility and lack of liquidity. Penny stocks are shares of small companies from which usually only a few performs well in the future. Because of the illiquidity, it is harder or sometimes impossible to sell the stocks you own.
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