Top 5 Robinhood Penny Stocks to Watch in 2026

How can traders find Robinhood penny stocks to watch this year? 

I get that question a lot. Robinhood has taken over the newbie day trading community. It offers commission-free trading and gives a ‘free’ stock to anyone opening an account. But how does it stack up for day trading penny stocks?

So many newbie day traders choose a broker without doing any research. I think they pick the one that seems most convenient. You want to make sure you use the best broker for your trading style.

So in this post, I’ll get into all of it. I’ll cover the ins and outs of Robinhood penny stock trading. And have a few Robinhood penny stocks to watch in 2026 if it’s still your broker of choice…

But know that adding a stock screener to the mix is critical for finding stocks. I use StocksToTrade to scan for stocks every day. It has 40+ built-in scanners, killer charts, and SO much more. I helped design it to fit my trading strategies.

Can You Day Trade Penny Stocks on Robinhood?

The short answer is yes. But when you look closer, you’ll see there are lots of penny stocks you can’t trade on Robinhood.

Penny stocks are stocks that trade for under $5 per share. There are tons of them out there. Even after 20 years of trading, I’ve only seen a fraction.

Robinhood allows you to day trade penny stocks — as long as they’re listed on a major stock exchange, like the New York Stock Exchange or the Nasdaq. But as soon as you try to day trade stocks in the OTC markets, you’ll get stopped in your tracks. More on that in a bit…

First, let’s go over some Robinhood penny stocks you can watch.

List of 5 Robinhood Penny Stocks to Watch

Before I get to the list of Robinhood penny stocks to watch, I must remind you that these aren’t recommendations. These are potential trading ideas to help you learn the patterns and process. I want you to think for yourself, not follow my trades.

Want to be a smart trader? You have to put in the time to learn the patterns.

Do your due diligence to find stocks with the potential to be good trades for your setups.

Robinhood Penny Stocks to Watch Under $5

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• NASDAQ: JTAI — Jet.AI Inc — The AI Data Center Penny Stock With the Yo-Yo Price Action
• NASDAQ: MLGO — MicroAlgo Inc — The Short Squeeze AI Penny Stock
• NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing Sector Leader I’m Watching for the Next Run
• NYSE: QBTS — D-Wave Quantum Inc — The New Order Quantum Computing Stock
• NASDAQ: SOUN — SoundHound AI Inc — The AI Voice Stock That NVIDIA Sold Its Shares In

The following are some of the stocks that people on Robinhood have been trading more than most of the market…

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Here’s some background info on Robinhood penny stocks:

• What is the most promising Robinhood penny stock?

A stock with a lot of volatility like Jet.AI Inc (NASDAQ: JTAI) is a good bet for the most promising Robinhood penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Robinhood penny stocks to buy now?

My top 3 Robinhood penny stocks to buy now (as long as their price action is strong) are Jet.AI Inc (NASDAQ: JTAI), Rigetti Computing Inc (NASDAQ: RGTI), and MicroAlgo Inc (NASDAQ: MLGO).

• Which Robinhood penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Robinhood penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Let’s start with stocks priced between $1 and $5. These are the penny stocks you’ll most likely be trading on Robinhood … A stock that trades below $1 for too long gets delisted.

Jet.AI Inc (NASDAQ: JTAI) — The AI Data Center Penny Stock With the Yo-Yo Price Action

My first Robinhood penny stock pick is Jet.AI Inc (NASDAQ: JTAI).

On February 14, JTAI announced that it would be acquired by flyExclusive through an all-stock transaction.

The stock spiked 350%* after the news was announced. And the intraday stock charts show a lot of volatility.

As a result, I’ve been able to trade this stock four times since the news came out. Here’s an example from the first day of the spike:

The chart still shows us intraday volatility.

Partially because the float is only 572k shares …

A low supply of shares, anything below 10 million, will help prices spike higher when demand increases. It’s a basic law of supply and demand.

The price already bounced off of $5 on February 24. Keep an eye on those major support levels.

MicroAlgo Inc (NASDAQ: MLGO) — The Short Squeeze AI Penny Stock

My second Robinhood penny stock pick is MicroAlgo Inc (NASDAQ: MLGO).

On Friday, February 21, we watched MicroAlgo Inc. (NASDAQ: MLGO) spike 910%*! From less than $2 per share to over $11 per share.

It quickly fell back into the $2 range. That’s what penny stocks do.

Then — it happened again!

The price spiked 500%* on March 24 after the company announced a plan to issue new shares the day before.

It was initially a bearish catalyst that caused share prices to drop … 

But the bearish momentum quickly lured in short sellers and turned the move into a huge short squeeze.

I wasn’t surprised. We see a massive short squeeze like this every month. Among smaller squeezes from week to week.

Look at my post below from the day of the squeeze:

Now $MLGO is up 790% on the day, congrats to allllll longs, I sold wayyyyyy too early, but it's also very scary to trade….sooooo many big wins from https://t.co/occ8wKmlgm students, its inspiring.

Study https://t.co/10xyf95a6V to learn alllll you can about BIG short squeezes! https://t.co/gZwIAYUo1w pic.twitter.com/ubRnO4lv3m

— Timothy Sykes (@timothysykes) February 21, 2025

It can be difficult for new traders to recognize a short squeeze …

Usually, there isn’t a visible catalyst. That’s what makes the squeeze so big.

When there isn’t a catalyst to push prices higher, short sellers become even more stubborn about their positions. They keep reentering at the highs and they keep getting blown up.

Look for stocks spiking more than 100% on the day without any news.

It also helps if the stock has a low float. The low supply of shares will exacerbate the short squeeze issue.

For example, these MLGO spikes didn’t have a catalyst. And StocksToTrade shows that the float was only 6.3 million shares before it diluted.

It was a perfect short squeeze stock.

Rigetti Computing Inc (NASDAQ: RGTI) — The Quantum Computing Sector Leader I’m Watching for the Next Run

My third Robinhood penny stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

This is a quantum stock that plunged in early January, alongside the rest of the sector.

The selloff on these quantum computing stocks happened in response to Jensen Huang’s comments about the sector on January 8.

The NVDA CEO mentioned that the market is still many years away from true quantum computers. And the sector took it as a massive gut punch.

IonQ’s earnings report on February 26 was another gut punch. IonQ beat revenue expectations, but the numbers also reminded traders that real profits are still way off in the future. RGTI dropped immediately in sympathy — falling from the low $10s to just above $8 — a level it hasn’t traded at since mid-January.

I’m still watching this sector because of its initial volatility. Past spikers can spike again.

Plus, on February 19, Microsoft announced an extremely bullish catalyst for the sector. Look at the heading below:

The chip expects to bring quantum computers to the market in “years, not decades”.

The sector bounced a bit after the announcement but it has yet to regain the momentum we saw in late 2024.

It could perk up at any time.

D-Wave Quantum Inc (NYSE: QBTS) — The New Order Quantum Computing Stock

My fourth Robinhood penny stock pick is D-Wave Quantum Inc (NYSE: QBTS).

On February 19, in tandem with the Microsoft microchip news, QBTS announced that it sold a quantum computer to the Julich Supercomputing Centre at Forschungszentrum Julich.

The price rallied 30% after the news.

Jensen Huang says that we’re decades away from true quantum computers in the market …

Then Microsoft announces its quantum computer microchip breakthrough …

And the same day, QBTS announced that it sold a quantum computer to a client …

This sector is ready to make a HUGE comeback in the market!

Try not to blink. You might miss it.

SoundHound AI Inc (NASDAQ: SOUN) — The AI Voice Stock That NVIDIA Sold Its Shares In

My fifth Robinhood penny stock pick is SoundHound AI Inc (NASDAQ: SOUN).

SOUN spiked 350%* after the market learned of NVIDIA’s stake in the penny stock on July 19, 2024.

And the stock made new all-time highs toward the end of 2024.

But on February 14 during premarket hours, we learned that NVIDIA was no longer holding shares of SOUN.

The stock dropped 30% that day.

It’s not the NVIDIA winner that it once was.

But this is still an inexpensive AI stock in a bullish AI sector that’s in full swing.

Past spikers can spike again.

Don’t count SOUN out. Look for bullish price action and wait for our trade patterns to develop.

*Past performance does not indicate future results

Can I Find OTC Penny Stocks on Robinhood?

Robinhood doesn’t have access to the majority of OTC penny stocks. So if you want to trade these stocks, that’s definitely something to consider before you hop on the Robinhood train.

I love trading sketchy OTCs. They’re part of how I’ve made over $7 million in trading profits.* But I go in with a plan and years of experience. It’s what I teach all my students. And it’s why I can’t fathom not having access to them as a day trader.

Take Jack Kellogg, for example. He started in my Trading Challenge in 2017. In the past year, he’s been crushing it. Jack broke the $1 million mark in November 2020 and is now over $6.4 million!* A lot of those profits came from trading OTCs.

He’s an exception — most traders lose — but Jack’s story shows you something about the opportunity in the OTC markets. If you use Robinhood, you’re eliminating OTC opportunities…

Is Robinhood Good for Penny Stocks?

In my opinion, Robinhood isn’t the best broker for penny stocks. Their commission-free trading and free stocks appeal to new traders — but there are some caveats.

If a brokerage doesn’t charge commissions, it has to be getting money somewhere else.

And even though you’re not paying a commission fee, you might lose money from poor executions.

Robinhood isn’t lying about giving away a free stock to new users, but it’s not like they’re handing you a share of Amazon. There’s a good chance you’ll get a stock priced between $2.50 and $10.

And there’s a $75 account transfer fee if you want to move a securities account to another firm. So you can lose money there, too.

Make sure you’re aware of all the potential fees with Robinhood … The same goes for any brokerage. You have to do your research and find the brokerage that works best for you.

Maybe you insist Robinhood is right for you. Let’s go over some potential good points…

Pros

Newbies love Robinhood’s commission-free trading, user-friendly app, and the ability to buy fractional shares.

Commission-free trading can be great for beginners with small accounts. If your average gain is only $20 and you have to pay $7 in commissions, you might have a harder time growing your account. I actually see commission fees as something that can make you more selective about trades.

Anyway … Many traders say they love the Robinhood app because it’s easy to navigate. But to others, it seems like Robinhood has gamified trading. Either way, it’s brought millions of people to the stock market. Customers also get benefits for referrals, which keeps the Robinhood community growing.

They’ve even introduced fractional shares for traders who don’t have enough cash to buy a full share. For example, you could pay $500 for a piece of an Amazon share.

Cons

I’ve already mentioned some reasons I wouldn’t trade Robinhood … Let’s go over them in more detail.

Most of the penny stocks I trade are volatile. If you don’t have quick executions, you might miss the meat of the move and even end up losing your hard-earned cash. I’ve heard horror stories about bad executions, and I don’t want you to experience that.

(If you want to learn how to take advantage of volatile markets, get a copy of my no-cost “Volatility Survival Guide” here.)

On top of that, you can’t trade OTC stocks on Robinhood … To me, that’s the biggest downside there is.

The top traders from my Challenge and I learned how to profit from OTC runners.* We approach them with thorough plans and risk management. I think OTCs are great because they tend to trade less choppy than listed stocks. I’ve watched the same patterns play out for over 20 years.

Here’s why I love the OTC and penny stock niche … I’m not the smartest guy in the world, but I found a niche where my hard work pays off for me.*

In penny stock land, it mostly comes down to you vs you. How well do you manage your emotions? How much time have you spent studying the patterns? Will you cut losses quickly and follow the other rules?

If you think you’ve got the dedication, apply for my Trading Challenge. I can teach you the fundamental habits that have helped so many traders. The Challenge can help you win the you-versus-you battle.

Robinhood Penny Stocks to Watch: The Bottom Line

A ton of new day traders jumped on the Robinhood train this past year. Sadly, they did so before doing any research on what Robinhood offers as a brokerage.

Yeah, there’s commission-free trading and a free share of stock, but there’s also purported slower execution and no access to the OTC markets. I’ve made most of my money in the OTC markets, so missing out on that seems to me like a huge disadvantage.*

Robinhood gives its customers access to penny stocks listed on major exchanges. Those are the Robinhood penny stocks to watch. Using a stock scanner like StocksToTrade can make it much easier to find the hottest stocks.

Make sure the broker you choose fits your trading style. Don’t just pick the first one that seems convenient … Pick a broker that suits you best.

How do you feel about Robinhood? Which do you think are the top Robinhood penny stocks to watch? Let me know in the comments!

Frequently Asked Questions About Robinhood Penny Stocks to Watch

Is Robinhood Good for Penny Stock Trading?

In my opinion, it’s not the best. OTC stocks make up a huge part of the penny stock market, and Robinhood doesn’t have access for trading them. In my experience, the execution speed complained about online can also be costly for traders.

Can I Get Rich Trading Penny Stocks?

Yes! I’m living proof. Check out my $7.6 million in career earnings.

There’s so much opportunity in penny stocks. But it takes time and hard work to learn your process and strategies. Focus on your education first. If you expect to make millions right away, you’ll be disappointed.

Can You Day Trade Penny Stocks on Robinhood?

The short answer is yes. Any penny stocks that list on major exchanges are tradeable on Robinhood. But you can’t trade OTC stocks, so if you go with Robinhood, you’ll miss out on a lot of penny stock opportunities.

Does Robinhood Really Give You Free Stock?

Robinhood gives you one free share of stock when you open an account. The catch? The stock you get will most likely be worth less than $10.