Best Penny Stocks Under 50 Cents to Buy Today

The best penny stocks under 50 cents to buy today depend on today’s chart. The fact is, 99.9% of these cheap stocks will eventually be worth less than they are right now. That’s why I tell my students to build a watchlist every day.

The best traders watch more stocks than they trade. That’s essential for getting to know the charts of these stocks — these charts will give you valuable info about their future moves. If you study the patterns these stocks follow, you can find opportunities for the kind of small gains that can grow a small account fast.

Today I’ll show you how to build a watchlist for stocks under 50 cents. Read on for the results!

Table of Contents

1 Best Penny Stocks Under 50 cents to Buy in August 2025
2 What Are the Best Penny Stocks to Buy Under 50 Cents in August 2025?
3 Which Is the Cheapest High-Potential Stock to Buy Right Now?
4 Understanding the Market for Penny Stocks Under 50 Cents
5 What Are the Penny Stocks Under 50 Cents with the Highest Potential?
6 Common Misconceptions About Penny Stocks Under 50 Cents
7 Penny Stocks Under 50 Cents FAQs

Best Penny Stocks Under 50 cents to Buy in August 2025

The best penny stocks under 50 cents in August 2025 are:

Graphjet Technology Ord [NASDAQ: GTI]
Talon Metals Corp [OTCPK: TLOFF]
Incannex Healthcare Inc. [NASDAQ: IXHL]
Zion Oil & Gas Inc [OTCQB: ZNOG]
Ryvyl Inc. [NASDAQ: RVYL]

This is a watchlist — not a “buy list.”

I’m sharing this so you can see my process. If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.

What Are the Best Penny Stocks to Buy Under 50 Cents in August 2025?

To find the best penny stocks to buy under 50 cents in August 2025 requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my 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 50 cents, I input the following criteria:

Last Price ≤ $0.50
Last Price ≥ $0.10
Volume ≥ 100,000
Number of Trades ≥ 100

When I run this screen in August 2025 and sort by percent change, it gives me the following top results:

Read on for the best penny stocks that I’m watching today!

Graphjet Technology Ord [NASDAQ: GTI]

Graphjet Technology Sdn. Bhd was founded in 2019 in Malaysia as an innovative graphene and graphite producer. Graphjet Technology has the world’s first patented technology to recycle palm kernel shells generated in the production of palm seed oil to produce single layer graphene and artificial graphite. Graphjet’s sustainable production methods utilizing palm kernel shells, a waste agricultural product that is common in Malaysia, will set a new shift in graphite and graphene supply chain of the world.

Talon Metals Corp [OTCPK: TLOFF]

Talon Metals Corp is a mineral exploration company. It is engaged in the exploration and development of the Tamarack nickel-copper-cobalt project in Minnesota, United States of America. The company operates in one business segment, namely, mineral exploration and geographically in the United States of America.

Incannex Healthcare Inc. [NASDAQ: IXHL]

Incannex Healthcare Ltd is developing medical cannabis products for the treatment of Obstructive Sleep Apnea (OSA), Traumatic Brain Injury (TBI)/Concussion, Rheumatoid Arthritis, Inflammatory Bowel Disease, and Inflammatory Lung Conditions.

The company has an Australian license to import, export, and distribute medicinal cannabis products and has launched a line of cannabinoid products.

Zion Oil & Gas Inc [OTCQB: ZNOG]

Zion Oil & Gas Inc is the United States-based oil and gas exploration and production company. Zion currently holds one active petroleum exploration license onshore Israel, the Megiddo-Jezreel License covering an area of approximately 99,000 acres.

Ryvyl Inc. [NASDAQ: RVYL]

Ryvyl Inc is a technology company that develops, markets, and sells blockchain-based payment solutions, which offers improvements to the payment solutions marketplace. It offers blockchain security and USD-pegged stablecoin technology with near-real-time attestation, RYVYL is reinventing financial transactions using its stablecoin platform as a transactional foundation.

Which Is the Cheapest High-Potential Stock to Buy Right Now?

To find the cheapest high-potential stocks, you have to study their charts.

Take a look at the 1-year chart for Clean Vision Corp. [OTCPK: CLNV]:

See how many spikes this stock had in the past year? Each one of these spikes was a trading opportunity — that’s the way I’ve made over $8,000 in total earnings trading this stock (click the link to see my individual trades).

However, that’s not a recommendation to “buy” this stock. See how it drops after every spike?

It follows my 7-step pennystocking framework perfectly. This is the chart you have to commit to memory:

Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp

— Timothy Sykes (@timothysykes) February 28, 2021

Understanding the Market for Penny Stocks Under 50 Cents

Penny stocks priced under 50 cents represent a unique segment of the stock market. These inexpensive stocks often attract investors due to their potential for high returns despite their low share price. The market environment for these stocks is highly volatile, influenced by factors like low market capitalization, limited public information, and high speculative interest. It’s crucial for traders to understand the dynamics of this market to navigate its risks and opportunities effectively.

Key aspects of the market for sub-50 cent penny stocks include:

Low Entry Barrier: Accessible to traders with limited budgets.
High Volatility: Significant price swings can occur within short periods.
Liquidity Issues: Often thinly traded, making large transactions difficult.
Speculative Nature: Driven by hype, news, and market sentiment rather than fundamentals.

OTC markets are where you’ll find the cheapest penny stocks on the market, such as those under 10 cents. These ultra-low-priced stocks can be highly volatile and offer substantial upside potential for traders who can navigate the risks effectively. Monitoring these stocks requires a hell of a lot of discipline and a strong understanding of market trends and trading plan building. My 10 cent penny stock watchlist has the stocks that I’m watching the closest!

Market Segments

Penny stocks under 50 cents are members of various market segments, each with distinct characteristics. Common segments include technology, healthcare, and energy. Understanding these segments can help traders identify opportunities and risks associated with each type of stock.

These are some of the hottest sectors:

Technology: Often startups or companies with innovative but unproven products.
- High potential for growth, significant speculative interest, frequent news-driven price movements.
Healthcare: Small biotech firms or medical device companies in early stages of development.
- Heavy reliance on clinical trial results, potential for substantial gains on positive news, high volatility.
Energy: Junior mining companies or alternative energy startups.
- Highly dependent on commodity prices, significant exploration risks, speculative trading.

Trading Platforms

Several trading platforms are popular for buying and selling penny stocks under 50 cents. These platforms offer various features tailored to the needs of penny stock traders.

I use a few different brokers, depending on what I want from them — E-Trade and Interactive Brokers are usually prominent.
No broker is perfect — check out this article I wrote on the best brokers for penny stock trading.
Fees vary for penny stock trades, from close to free for penny stocks on major exchanges at the majority of US brokers, to $6.95 per OTC transaction. I don’t mind fees — any trade you make should consider the fees and still be profitable!

Useful features for trading low-priced stocks:

Low Commission Fees: Essential for trading on a budget.
Comprehensive Research Tools: Access to market data, news, and analysis.
Real-Time Quotes: Crucial for making timely trading decisions.
Customizable Alerts: To track price movements and trading volume.

Market Liquidity

Market liquidity refers to how easily a stock can be bought or sold without affecting its price. For penny stocks under 50 cents, liquidity is often a significant challenge due to their lower trading volumes.

Liquidity challenges specific to sub-50 cent stocks:

Wide Bid-Ask Spreads: Large differences between buying and selling prices.
Limited Trading Volume: Difficulty in executing large orders without significant price impact.
Price Manipulation Risks: Susceptibility to price swings due to limited market participation.

Price Volatility

Penny stocks under 50 cents are highly volatile, with prices subject to dramatic fluctuations due to various factors. Understanding these factors and managing the associated risks is critical for successful trading.

Factors contributing to high volatility:

Low Market Cap: Smaller companies with less stability.
Speculative Interest: Driven by news, hype, and investor sentiment.
Limited Information: Often less publicly available data on company performance.

Strategies for managing volatility risks:

Set Stop-Loss Orders: To limit potential losses.
Diversify Portfolio: Spread investments across different stocks and sectors.
Stay Informed: Regularly review news and analysis on the stocks you’re trading.
Use Technical Analysis: Identify patterns and trends to make informed trading decisions.

If trading stocks under 50 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!

Typical Market Cap

Market capitalization for penny stocks under 50 cents is usually very low, often falling into the micro-cap or nano-cap categories. This low market cap has significant implications for trading and investment decisions.

Typical market caps for sub-50 cent stocks:

Micro-Cap: $50 million to $300 million.
Nano-Cap: Below $50 million.

Implications of low market cap sizes:

Higher Volatility: Smaller companies are more susceptible to market fluctuations.
Greater Risk: Potential for significant losses due to instability.
Limited Information: Often less regulatory scrutiny and public information.

Risk Factors

Investing in penny stocks under 50 cents comes with several risks that traders need to be aware of. These risks are inherent due to the nature of these stocks and their market environment.

Primary risks associated with sub-50 cent penny stocks:

High Volatility: Significant price fluctuations.
Liquidity Issues: Difficulty in buying or selling shares quickly.
Market Manipulation: Vulnerability to pump-and-dump schemes.
Limited Information: Less available data on company performance.

Tips to mitigate these risks:

Conduct Thorough Research: Analyze financial statements, news, and market trends.
Use Stop-Loss Orders: To automatically sell stocks at a predetermined price to limit losses.
Diversify Investments: Spread risk across multiple stocks and sectors.
Stay Disciplined: Stick to a trading plan and avoid impulsive decisions.

Characteristics of Sub-50 Cent Penny Stocks

Penny stocks trading below 50 cents share several common characteristics that influence their market behavior and appeal to investors. Recognizing these traits can help traders make more informed decisions.

General traits of sub-50 cent penny stocks:

Low Market Capitalization: Typically small companies with limited resources.
High Volatility: Prone to significant price swings.
Potential for High Returns: Possibility of substantial gains if the company succeeds.

Importance of understanding these characteristics:

Risk Management: Identifying potential risks associated with these stocks.
Investment Decisions: Making informed choices based on market behavior.
Strategic Planning: Developing trading strategies tailored to the unique nature of sub-50 cent stocks.

Low Market Capitalization

Many penny stocks have low market capitalizations, which means they represent smaller, often less stable companies. Understanding what this means for investors is crucial in navigating the penny stock market.

Why penny stocks have low market capitalizations:

Startup Phase: Often new companies with limited business history.
Limited Resources: Smaller scale operations and financial constraints.
High Speculation: Driven by potential rather than proven success.

Advantages and disadvantages of low market caps:

Advantages:
- High Growth Potential: Small companies can experience rapid growth.
- Low Share Price: Accessible to budget-conscious traders.
Disadvantages:
- High Risk: Greater chance of failure.
- Volatility: Prone to dramatic price changes.

High Volatility

High volatility is a hallmark of penny stocks under 50 cents, driven by several factors that can cause significant price swings.

Reasons behind high volatility:

Speculative Trading: Driven by news, hype, and market sentiment.
Thin Trading Volume: Low liquidity amplifies price movements.
Company Fundamentals: Often unstable financials and business models.

Here’s HOLO starting on its second historic tear, which would boost its stock price by 4,300% in 10 days….

Yup $HOLO is now a quadruple from my premarket video https://t.co/rekohSAbFg which EVERYONE should watch…thank you again short sellers for your extreme narrow-mindedness, please NEVER change! 🙏🙏🙏🙏🙏 pic.twitter.com/TtnjNbPHv1

— Timothy Sykes (@timothysykes) February 7, 2024

That’s before it crashed back to earth, losing 97.9% of its value as of this writing.

Never hold these sketchy stocks!

Potential for High Returns

While highly risky, penny stocks can offer the potential for high returns under certain conditions. Understanding these scenarios can help traders identify lucrative opportunities.

Scenarios for high returns:

Breakthrough Products: Companies with innovative products that gain market traction.
Positive News: Announcements of partnerships, acquisitions, or regulatory approvals.
Market Trends: Sectors experiencing overall growth, such as renewable energy or biotech.

Conditions and risks associated with high returns:

Market Sentiment: Rapid changes in investor sentiment can impact stock prices.
Regulatory Risks: Potential for negative regulatory actions affecting stock value.
Operational Challenges: Small companies often face significant business hurdles.

Thin Trading Volume

Thin trading volume is common among penny stocks under 50 cents, leading to several challenges for traders. Recognizing these issues can help in making better trading decisions.

Here’s what thin trading volume looks like:

Low Number of Shares Traded: Limited daily trading activity.
Impact on Price Movements: Small trades can significantly affect share price.

Here is how it will sabotage your trades!

Price Volatility: Increased price fluctuations due to limited trading.
Difficulty Executing Trades: Harder to buy or sell large quantities without impacting the price.
Potential for Manipulation: Easier for manipulators to influence stock prices.

Susceptibility to Market Manipulation

Penny stocks, especially those under 50 cents, are often targets for market manipulation schemes. Awareness of these risks is crucial for protecting investments.

Why penny stocks are targets for manipulation:

Low Liquidity: Easier for manipulators to control price movements.
High Volatility: Prone to significant price swings that can be exploited.
Limited Regulation: Often less oversight compared to larger stocks.

Guidance on spotting and avoiding manipulated stocks:

Research Company Background: Look for credible information and financials.
Monitor Trading Volume: Sudden spikes in volume can indicate manipulation.
Be Wary of Promotions: Avoid stocks being heavily promoted without substantial news.
Use Trusted Sources: Rely on reputable analysis and recommendations.

Sometimes cheap is not a good thing! If trading stocks under 50 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 curated list of penny stocks under $2!

What Are the Penny Stocks Under 50 Cents with the Highest Potential?

Look up at the charts of the stocks above. Do you see any spikes in their long-term chart? That’s a good sign.

History doesn’t repeat, it rhymes. And that’s a good thing for former runners…

https://t.co/gIIuF22exF Former runners can run again, never forget!

— Timothy Sykes (@timothysykes) December 7, 2020

Common Misconceptions About Penny Stocks Under 50 Cents

Many beginners are drawn to penny stocks under 50 cents, expecting quick profits and low risks due to their low prices. However, these stocks are surrounded by numerous misconceptions that can lead to misguided decisions. My years of trading and teaching have shown that understanding the realities behind these myths is crucial for informed decision-making and avoiding costly mistakes.

Belief in Guaranteed Quick Profits: Unrealistic expectations can lead to significant losses.
Perception of Low Risk Due to Low Price: Low share price does not equate to low investment risk.
Assumption That All Penny Stocks are Scams: There are legitimate opportunities, but due diligence is essential.
Misunderstanding the Need for Thorough Research: Proper analysis is vital, regardless of stock price.
Underestimation of Growth Potential: Some penny stocks have considerable growth opportunities.
Overgeneralization of High Volatility: Not all penny stocks are equally volatile.
Ease of Predicting Price Movements: Market dynamics make price predictions challenging.

Guaranteed Quick Profits

The misconception that penny stocks guarantee quick profits is one of the most misleading. In reality, while these stocks can offer substantial gains, they are equally capable of significant losses. My experience has shown that many traders chase after the promise of quick riches without understanding the underlying risks.

Here’s a real-world example of unpredictability:

If you know the https://t.co/46W8tDB2QL pattern well enough, it's very tough to lose in this market if you focus on big % gainers, I sold $AGBA way too early & got faked out by $GMM but still green between the two of them given the upside…CONGRATS TO EVERYONE LEARNING/BANKING!

— Timothy Sykes (@timothysykes) April 30, 2024

Low Risk Due to Low Price

A common fallacy is that a low price tag means a low-risk investment. However, penny stocks under 50 cents are often fraught with high volatility and uncertainty, which can lead to substantial losses. My trading journey has consistently reinforced the importance of not underestimating the risk associated with these “discounted” stocks.

Risk profile typical of sub-50 cent penny stocks:

High Volatility: Significant price swings can result in quick losses.
Liquidity Issues: Difficulty in buying and selling without affecting the market.
Market Manipulation: Susceptible to pump-and-dump schemes.
Financial Instability: Often lack the financial health of larger companies.

All Penny Stocks are Scams

Not all penny stocks are scams, but the market is rife with fraudulent activities. Understanding how to differentiate between scams and legitimate opportunities is essential for any trader. Over my years of teaching, I’ve emphasized the importance of thorough research and skepticism when evaluating these stocks.

Tips for identifying legitimate opportunities:

Research Company Background: Verify the history and reputation of the company and its management.
Check Regulatory Filings: Look for consistent and transparent filings with regulatory authorities.
Analyze Financial Statements: Evaluate the financial health and stability of the company.
Monitor Market Sentiment: Pay attention to analysts’ ratings and recommendations.

No Need for Thorough Research

Some traders believe that because penny stocks are inexpensive, they require less research. This misconception can be financially damaging. In my trading and teaching, I’ve always stressed the critical need for comprehensive research and due diligence, regardless of the stock’s price.

Here’s what to spend your research time on…

Analyze Financial Health: Review balance sheets, income statements, and cash flow.
Understand Market Position: Know the company’s competitors and market share.
Evaluate Management: Assess the experience and track record of the management team.
Monitor News and Events: Stay updated on any news or events that could impact the stock.

Lack of Potential for Growth

Contrary to the belief that penny stocks lack growth potential, some of these stocks have shown significant gains. Identifying these opportunities requires careful analysis and understanding of market trends. My trading experience highlights that even small-cap stocks can become big gainers under the right conditions.

Factors leading to growth in sub-50 cent penny stocks:

Innovative Products or Services: Companies introducing groundbreaking products.
Positive Market Trends: Sectors experiencing rapid growth, such as technology or healthcare.
Strategic Partnerships: Collaborations that enhance commercialization and market reach.
Strong Financial Performance: Consistent revenue growth and profitability.

All Penny Stocks are Highly Volatile

While volatility is common, it is not universal among penny stocks. Some stocks exhibit more stability due to various factors, including sector stability and company fundamentals. Over the years, I’ve taught that understanding these nuances is vital for managing investments in the penny stock market.

Strategies for managing volatility:

Diversify Portfolio: Spread your trades across multiple stocks and sectors.
Set Stop-Loss Orders: Limit potential losses by automating sell decisions.
Regularly Review Holdings: Stay updated on stock performance and market conditions.
Use Technical Analysis: Identify trends and patterns that can help mitigate risk.

Easy to Predict Price Movements

Predicting price movements in penny stocks is challenging due to their inherent volatility and susceptibility to market manipulation. My trading strategy involves careful analysis and staying updated with market news, rather than relying on predictable patterns.

Complexities affecting price predictions:

Market Sentiment: Influences from news, events, and investor behavior.
Liquidity Issues: Thin trading volumes can cause unpredictable price swings.
External Factors: Regulatory changes, economic conditions, and industry developments.
Company Performance: Earnings reports and financial health directly impact stock price.

Penny Stocks Under 50 Cents FAQs

Just because a stock trades for under 50 cents doesn’t make it cheap. Read on for some more questions you might be asking…

Where can one find the list of companies’ penny stocks under 50 cents?

Get a powerful stock screener like the one in StocksToTrade, and start building parameters. When I’m looking for tradable penny stocks under 50 cents, I want their volume to be great enough for the stock to be liquid. This way I can enter and exit a position more easily.

What are high-volume penny stocks under 50 cents?

A penny stock under 50 cents needs high volume for me to trade it. When I’m building my stock scan, I’ll typically look for stocks that have traded over 1 million shares so far that day.

The scanner I’m using in this article is set to look for penny stocks that have traded more than 100,000 shares. This will help you identify watch-worthy stocks — even if you’re looking in pre-market.

What are some great penny stocks under 50 cents for selling calls and puts?

Options are only offered on certain stocks. Many stocks under 50 cents won’t qualify.

What is Tim Sykes’ favorite stock under 50 cents?

I don’t have a “favorite” stock under 50 cents — I think penny stocks are bad investments, and I don’t trust them at all. Trading scared has helped me make some profitable trades. One ticker that is ALWAYS on watch is Ozop Energy Solutions Inc. (OTCPK: OZSC) — I’ve made $45k over the years trading this utilities penny stock (click the link for my individual trades).

What are the best stocks to buy under 50 cents that pay dividends?

Stocks that trade under 50 cents don’t usually pay dividends. Stocks that cost this little generally don’t have much going for them.

How do different market conditions affect penny stocks under 50 cents?

Market conditions significantly influence penny stocks under 50 cents, often making them highly volatile. In small-cap and Canadian markets, these stocks can experience rapid price changes due to speculative trading and lower liquidity. Traders must stay updated with market trends, news, and events to navigate these conditions effectively.

What factors should traders consider when looking for bargain penny stocks under 50 cents?

When seeking bargain penny stocks, traders should consider the company’s financial health, market position, and industry prospects. It’s crucial to look at factors such as maintenance of financial statements, the presence of strategic partnerships, and the utility of the company’s services or products. Additionally, monitoring highs and analyst ratings can provide insights into potential growth and stability.