Trading UK penny stocks can be appealing to many investors and traders. Say you have an investment capital of £500, you can acquire a significantly larger ownership percentage in a smaller company whose shares trade for just a few pence, compared to purchasing blue-chip shares that may come at a much higher cost for a minuscule ownership stake.

Define penny stocks

Penny stocks or penny shares are common stocks which trade for a low price: below £1 on UK stock exchanges and below $5 on US stock exchanges.

Because of low share prices, penny stocks are more likely to be highly speculative thus are considered higher-risk investments, offering the potential for significant growth.

UK penny shares to consider buying

Below are some examples of UK penny stocks that currently trade for around £1 or less with a day change greater than 3% on the London Stock Exchange.

* This information is accurate as of June 26, 2024.

Company name	Last price	% change	Volume	Market cap
TeraWulf Inc.	4.8	+13.74%	32.18M	1.60B
Bitfarms Ltd.	2.78	+3.73%	19.86M	1.15B
Tellurian Inc.	0.7974	+10.75%	43.06M	666.81M
Bit Digital, Inc.	3.395	+39.71%	39.24M	410.81M
Qurate Retail Group, Inc.	0.6371	+3.59%	5.76M	280.84M

 

Where to trade or invest in penny stocks

With CFD trading, you can speculate on the prices of penny stocks in the UK as well as from international markets like the US.

To get started, find a trusted broker first. They will offer you an online trading account that grants access to penny stock CFDs.

A demo account is recommended for both beginners and experienced traders. It can be useful if you want to test your trading strategies with virtual money in a risk-free environment.

Final words

It can be challenging to differentiate between companies with potential growth prospects and those lacking such prospects when trading penny stocks and shares in the UK. So, it is advisable to conduct extensive research on the companies you intend to trade before considering trading any stock.