The post Best 5G Penny Stocks Right Now by John Burson appeared first on Benzinga. Visit Benzinga to get more great content like this.
The penny stock market is like the minor leagues in professional baseball. In this space, former high- and mid-priced stocks compete for the possibility of returning to a higher level. Also, it is where new stocks vie for a big break. That’s why it’s so important to know the best 5G penny stocks to invest in.
The emergence of 5G — 5th generation — communication technology has energized investor interest in 5G penny stocks. Any company with a connection to super-fast 5G communication technology has a chance of sharing in the growth. Are you interested? Here is a list of these penny stocks with great growth potential.
Quick Look at the Best 5G Penny Stocks:
- UTStarcom Holdings Corp
- Globalstar, Inc.
- Wireless Telecom Group, Inc.
- Borqs Technologies Inc
Contents
- Quick Look at the Best 5G Penny Stocks:
- Overview: 5G Penny Stocks
- Best Online Brokers for 5G Stock
- Features to Look For in 5G Stock
- Qualities of a 5G Penny Stocks Investor
- Frequently Asked Questions
Overview: 5G Penny Stocks
Investors once considered penny stocks to be any security trading under $1. The Securities Exchange Act of 1934 changed that. The Securities Exchange Commission used this law to establish the penny stock trading rules and set the penny stock price classification at $5 and under. You can trade these stocks over the counter (OTC) or through any of the major exchanges.
Penny stocks’ low prices allow easy acquisition. This helps investors control their risk while gaining exposure to possible exponential gains. In many cases, you can buy 5,000 shares of a penny stock for $200 — $0.04 per share. A $0.20 per share increase would give you a 500% profit or $1,200. If the company goes bankrupt, you only lose $200.
Installing 5G super-fast networks has the power to boost the fortunes of technology and telecom companies — big and small. Penny stocks provide investors a low-cost way to share in this growth.
Trading in the penny stock market, however, can be highly risky. Relying on luck and tips is a strategy for failure. 5G penny stock trading requires you to be as informed as you can.
Best Online Brokers for 5G Stock
Finding relevant information on certain penny stocks can be challenging. By providing extensive research material and historical data, online brokers can help you improve your due diligence. Here’s a list of some of the best online brokers.
Claim Exclusive Offers
get started
securely through Interactive Brokers’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
get started
securely through Plus500’s
website
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.
Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.
Best For
- Traders looking for a smooth mobile experience
- Great mobile app
- Low spreads and commissions
- Unlimited demo account
- Only derivatives are available
- Not open to U.S. residents
get started
securely through public.com’s
website
Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.
Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research.
Best For
- Stock and ETF investors
- Crypto investors
- Investors looking to diversify with alternative assets or bonds and options
- Commission-free stock and ETF trading
- Fractional share investing
- Advanced data, tools, and insights with Public Premium
- You can’t transfer crypto to another wallet
- No mutual funds or precious metals
- At this time, only offers individual brokerage accounts and not IRAs
get started
securely through Robinhood’s
website
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
Best For
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
get started
securely through TradeZero’s
website
TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
Best For
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
Features to Look For in 5G Stock
- Earnings per share: Many 5G penny stocks have poor earning-per-share numbers. However, this metric is a good way to access the strength of the 5G company. It earmarks the amount of money available to pay shareholders after discounting all expenses, taxes and deductions. The calculation for the earnings per share is the net income minus the preferred stock dividend divided by the outstanding stockholder shares.
- Transparency: When investigating a penny stock, get accurate information. Exchange-traded penny stock companies must meet minimum listing standards. However, over-the-counter (OTC) traded companies have no minimum requirements. Some of the companies haven’t built a track record yet. Others may have products in the development stages. Either way, your risk factor tends to be lower with transparent 5G penny stocks.
- Net revenue: Net income is a sound financial measure of success for a 5G stock. It is the amount of revenue remaining after you subtract all deductions, taxes and costs. Many times, it is the most solid metric you can find for many 5G stocks. Net income can give you a good indication of a penny stock’s past performance. But, it only hints at how a stock will do in the future. Use it with other factors.
Qualities of a 5G Penny Stocks Investor
The penny stock market can be treacherous for the unprepared and reckless. It takes an investor with a high-risk tolerance to trade these securities. Developing a good risk management strategy will serve you well. With the proper preparation, you can use 5G penny stocks to gain exposure to the growth potential of the 5G era.
Frequently Asked Questions
What is a 5G penny stock?
5G penny stocks are shares in companies that are associated with 5G and are very affordable.
Answer Link
Are 5G penny stocks a good investment?
5G communications continue to grow, so 5G penny stocks can be a great investment as long as you do your due diligence and research the stock before investing.
Answer Link
What are some good 5G penny stocks?
Benzinga offers a list of recommended 5G penny stocks above.
Answer Link
The post Best 5G Penny Stocks Right Now by John Burson appeared first on Benzinga. Visit Benzinga to get more great content like this.