Penny Stocks Under 10 Cents to Watch in 2025

Penny stocks under 10 cents are the wild west of the stock market. These low-priced stocks offer the potential for significant gains, making them attractive to speculative traders. However, the same volatility that creates opportunities can also lead to substantial losses. For those willing to navigate the risks, these stocks can be an intriguing part of a trading strategy.

Best Penny Stocks Under 10 Cents to Buy in 2025

The selection of these stocks involves several key criteria. Here’s what I looked at:

• Market Trends: Stocks that align with emerging trends and are part of hot sectors have higher growth potential.
• Financial Health: Companies with strong financials and sales metrics are better positioned for long-term success… or at least won’t fold overnight.
• Innovation in Technology: Hot technology products and services generate news, and news is good.
• Stock Catalysts: News, product launches, earnings reports, 52-week highs, and analyst insights.
• Volatility: Stocks with high volatility offer more trading opportunities, especially when their trading volume is decent.
• Market Potential: Evaluate the company’s potential to capture market share.

Upcoming market events, such as product launches or industry advancements, can significantly impact these stocks. Keeping an eye on these catalysts can help you capitalize on their growth potential.

If trading stocks under 10 cents is too sketchy, check out my list of stocks priced under $1. These stocks can provide a broad range of opportunities while maintaining affordability. Here’s my curated list of penny stocks under $1!

Best Stocks Under 10 Cents That Will Explode in 2025

To find the best stocks to buy under 10 cents in 2025 requires a top-level stock screener. I use the one in StocksToTrade — it has all the tools and customizations that traders like me look for to create hot penny stock watchlists.

Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!

To find watch-worthy penny stocks under 10 cents, I use the following query:

• Last Price ≤ $0.10
• Last Price ≥ $0.01
• Volume ≥ 30,000
• Number of Trades ≥ 100

When I run this screen and sort by today’s biggest gainers, it gives me the following top results:

You can see how the plan with micro-cap stocks is rarely buy-and-hold…

Trading these cheap stocks should be approached with a clear strategy and an understanding of the risks involved. I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model in this article. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Here’s what I’m watching now:

Advantage Solutions Inc. Warrant [NASDAQ: ADVWW]

Advantage Solutions is the leading provider of outsourced sales and marketing solutions to consumer goods companies and retailers.

We have a strong platform of technology-enabled, competitively advantaged services like headquarter sales, retail merchandising, in-store sampling, digital commerce and shopper marketing. For brands and retailers of all sizes, we help get the right products on the shelf (whether physical or digital) and into the hands of consumers (however they shop). As a trusted partner and problem solver, we help our clients sell more while spending less. Headquartered in Irvine, California, Advantage has offices throughout North America and strategic investments in select markets throughout Africa, Asia, Australia and Europe through which it services the global needs of multinational, regional and local manufacturers.

NewHydrogen Inc [OTCQB: NEWH]

Nightfood HIdgs Inc [OTCQB: NGTF]

NightFood Holdings Inc has its markets based on the food and snack industry. The company is in the business of manufacturing, marketing, and distributing snacks specifically for consumption in the evening. It provides ice cream products through distributors and non-traditional retailers.

Origin Materials Inc. Warrant [NASDAQ: ORGNW]

Origin Materials Inc is a carbon-negative materials company. The platform turns the carbon found in biomass into useful materials, while eliminating the need for fossil resources and capturing carbon in the process.

ARKO Corp. Warrant [NASDAQ: ARKOW]

ARKO Corp operates as a holding company. The company, through its subsidiaries, owns and operates convenience stores in the United States. Some of its regional store brands include Stop, Admiral, Apple Market, BreadBox, E-Z Mart, fas mart, Li’l Cricket, and Next Door Store. Its retail store offers hot food service, beverages, cigarettes & other tobacco products, candy, salty snacks, grocery, beer, and general merchandise. ARKO operates in three segments: Retail, Wholesale, and GPM Petroleum. The company derives the majority of its revenue from retail and wholesale distribution of fuel.

Able View Global Inc. Warrant [NASDAQ: ABLVW]

Able View Global Inc. operates as brand management partners of beauty and personal care brands in China. Its brand management services encompass various segments of the brand management value chain, including strategy, branding, digital and social marketing, omni-channel sales, customer service, overseas logistics, warehouse, and fulfilment. The company was founded in 2015 and is based in Shanghai, China.

Beneficient Warrant [NASDAQ: BENFW]

Beneficient is a technology-enabled financial services company. The Company provides liquidity solutions and trust products and services to participants in the alternative assets industry through its end-to-end online regulated platform, Ben AltAccess. The Company operates through three segments: Ben Liquidity, Ben Custody and Customer ExAlt Trusts. The Ben Liquidity segment offers Ben’s alternative asset liquidity and fiduciary financing products through Ben AltAccess. The Ben Custody segment addresses the administrative and regulatory burden of holding alternative assets by offering custody and trust administration support services to trustees of the Customer ExAlt Trusts, including BFF, and also offers document custodian services to customers. The Customer ExAlt Trusts segment holds interests in alternative assets. Its other business unit, Ben Markets, provides broker-dealer and transfer agency services in connection with offering certain of its liquidity products and services.

Investing in penny stocks under 10 cents requires a strategic approach. Here’s a step-by-step guide to get you started:

1. Find a Broker: Set up your trading account, ensuring you understand the broker’s tools and fees. Make sure that your broker lets you trade ALL penny stocks — Robinhood, Webull, and many other brokers limit OTC stock market participation. OTC stock exchanges are where you’ll find some of the cheapest penny stocks on the market — like the ones on this list!
2. Fund Your Account: Deposit funds into your account, keeping in mind the amount you’re willing to risk.
3. Choose a Trading Platform: Select a reliable platform for trading penny stocks — my choice is StocksToTrade.
4. Screen for Stocks: Use stock screeners to filter stocks under $1 based on your criteria.
5. Research Stocks: Analyze the stock’s financial health, market trends, and news.
6. Place a Trade: Execute your trade, setting stop-loss orders to manage risk.

Performing due diligence will give you a chance at successful penny stock trading. Here’s the kind of analysis you need to do:

• Review Financial Statements: Look at the company’s earnings, revenue, and cash flow, if it’s published — not always the case with these sketchy, super small-cap stocks.
• Stay Updated with News: Monitor news, press releases, and analysts ratings that could impact the stock price — even if they’re likely to be pumps at the shallow end of the market cap pool.
• Analyze Market Trends: Understand the broader market trends affecting the sector and prominent brands and securities — as penny stocks mostly run on hype, this is where their crude oil comes from.

Top Risks You Should Consider Buying Penny Stocks

Investing in penny stocks under 10 cents comes with significant risks. High volatility can lead to rapid price fluctuations, both positive and negative. These stocks are often from companies with unstable financials and limited market presence, increasing the risk of substantial losses.

Here are practical tips to mitigate these risks:

• Set a Budget: Only invest money you can afford to lose.
• Use Stop-Loss Orders: Protect your trades by setting limits on potential losses.
• Stay Informed: Regularly monitor news and updates related to your stocks.

Sometimes cheap is not a good thing! If trading stocks under 10 cents tests your trading discipline, you should look at my list of stocks priced under $2. These stocks still have the incredible upside of cheaper stocks, but have a bit more market participation in their trading. Here’s my watchlist of penny stocks under $2!

High Volatility and Market Risks

Penny stocks are notorious for their high volatility. Prices can swing dramatically within short periods due to market trends, company news, and investor sentiment. This volatility can create opportunities for significant gains but also poses substantial risks.

Strategies to manage volatility include:

• Set Stop-Loss Orders: Automatically sell a stock when it reaches a certain price to limit losses.
• Monitor Trading Volume: High trading volume indicates better liquidity and less price manipulation.
• Stay Updated with News: Keep track of news and market trends affecting your stocks.

Potential for Fraud and Scams

Penny stocks are often targets for fraud and scams, such as pump-and-dump schemes. These schemes involve artificially inflating a stock’s price to attract investors, only for the perpetrators to sell their shares at the peak, leaving other investors with significant losses.

To avoid scams, follow these guidelines:

• Research the Company: Ensure the company has legitimate business operations and products.
• Verify News Sources: Only trust information from reputable sources.
• Beware of Hype: Be cautious of overly optimistic promotions and unsolicited stock tips.
• Check Regulatory Filings: Look for filings with the SEC to ensure transparency and compliance.

Liquidity Issues

Liquidity refers to how easily you can buy or sell a stock without affecting its price. Penny stocks often have low liquidity, making it challenging to enter or exit positions quickly. Low liquidity can lead to significant price changes with relatively small trades.

Assessing liquidity before investing:

• Check Trading Volume: Higher trading volume indicates better liquidity.
• Use Stock Screeners: Filter stocks based on average trading volume.
• Monitor Bid-Ask Spread: A narrow spread indicates better liquidity and less price manipulation.

Regulatory Risks and Compliance

The regulatory landscape for penny stocks can be complex. The SEC imposes specific rules to protect investors, but enforcement can be inconsistent. Recent changes in regulations can impact the trading and profitability of penny stocks.

Key points on regulatory risks:

• Understand SEC Rules: Familiarize yourself with SEC regulations on penny stocks.
• Stay Updated on Changes: Keep abreast of new rules and changes affecting penny stocks.
• Ensure Compliance: Invest in companies that comply with regulatory requirements.

Frequently Asked Questions

Are Penny Stocks Under 10 Cents Safe Investments?

Penny stocks under 10 cents are NEVER safe or investments. They’re not included in ETFs or stock market indexes. They always belong to companies with uncertain financial health and high volatility. These stocks can offer significant returns but also come with the risk of substantial losses. It’s important to trade these stocks with a clear strategy and thorough research.

Can You Make Money with Sub-10-Cent Penny Stocks?

Yes, it’s possible to make money with sub-10-cent penny stocks, but it requires careful planning and risk management. High returns are possible due to the significant price movements of these stocks. However, success stories are less common, and many traders experience losses. Just like options or currencies trading, penny stock trading needs its own customized strategy.

Should Beginners Invest in Penny Stocks Under 10 Cents?

Wall Street doesn’t invest in these stocks — why would you ever think beginners should put them in a portfolio? Never invest, only trade these stocks under the guidance of a good trading plan!