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Penny stocks trading at Stake

Your expert
Gyula L.
Fact checked by
Tamás D.
23h ago
Personally tested

Can you trade penny stocks at Stake as of June 2024?

Penny stocks are high-risk investments that offer a chance to reap great rewards if you pick the right stock, but also lose big if you bet on the wrong horse. So definitely make sure you know what you're getting into. Are you clear and open to the risk? Then let's take a look at whether you can place your bets at Stake.

No, you can't trade penny stocks at Stake. To find another broker where you can play Wheel of Fortune with this risky asset type, turn to our guide on the best brokers for penny stocks.

Penny stocks are pretty risky business (AI-generated image)
So how did we compile our toplist for the best brokers for penny stocks? Our expert team of analysts looked at hundreds of features and data points at 100+ online global brokers to see which ones let you trade penny stocks. Then we compared trading fees and the broker's overall services in order to bring you a list of the best options.

A lower-risk alternative: fractional shares

As an alternative, especially if you are looking for penny stocks only because you have a small budget, consider buying fractional shares instead. This is a much safer option, as you can invest in some proven, high-quality stocks, even if they have high share prices, by being able to purchase just a partial share, usually for as little as $1. Less risk, less volatitily, more trustworthy companies, fewer sleepless nights!

Lady Luck is with you on this one: you can invest in fractional shares at Stake. For more details, read our article on trading fractional shares at Stake.

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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. So definitely be aware of the risks before investing in penny stocks. I would recommend that you put just a fraction of your total portfolio in penny stocks - money that you are OK with losing.

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.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

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Further reading

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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Gyula Lencsés, CFA
Author of this article
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.
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