I’m not much of a big spender when it comes to investing (not yet anyway) and am currently choosing to purchase just 1 or 2 shares for a few companies for less than £50 total so I can find my feet, get a feel for what happens and learn as much as I can.
Even though I usually only stand to make a couple of pennies, I still find it pretty rewarding and fun.
I thought it could be useful to have a thread dedicated to shares worth <£1, so that if any other beginners like me want to find their feet, they can do with a minimal budget with a low loss should it all fall apart.
The only ‘penny stock’ I’ve found so far is Debenhams which as most of us know, is basically unavailable from now onwards.
Company name: Ticker: Share price (at time of writing): Company background:
Disclaimer: Often penny stocks come with a big risk of failure. Freetrade would not recommend investing in those companies because of this
Company name: Sirius Minerals Ticker: SXX.l Share price (at time of writing): 24p Company background: currenlty undertaking europes largest mining work in the north of England for a type of fertiliser. They are currently trying to secure stage 2 funding to continue the project. Yesterday the share price was 20p and it shot up to 27p today at its peak. Could be one to watch as it has huge potential but risky at the same time.
Very well put! I was careful to choose ‘Price’ instead of cost, as depending on the amount invested, the cost could vary. Completely agree that just b ecause they are cheap doesnt mean its a bargain and you should buy as many as possible.
The idea behind this was purely to allow someone like myself who only wants a couple of shares in a few companies to learn the ropes to do so without spending/loosing lots of money in the process
Funny enough, Lloyds is my old bank before moving to Monzo. I never thought much of them but I had a spare £2 in my portfolio to spend so bought a couple of shares. I’ve ended up making 10% on my initial investment so even though I still have to work for a living, I’m happy to get something at least!
Not exactly penny stocks, but have you considered ETF’s £7.30 ish per share for the £ISF FTSE100 then you’ll have a little bit of 100 stocks. ETF’s seem to do well over the long term.
That’s an excellent point! Although I did read (can’t find it now but I’ll add it if I do later) that only US shares will be available to buy fractionally and that you will only be able to buy whole UK shares?
Yeah actually it’s firstly for US shares, which tend to have far higher prices (google, amazon, Apple etc) and the US regulations are further ahead in allowing that
For the lower entry amount it’ll be tough to see anything meaningful after you deal with any tax. It’s a fun time if you just want the excitement of seeing the money change and dealing with those emotions however this just encourages a shorter term view because of the buzz.
I’d strongly recommend going for a solid ETF and putting in a meaningful amount to you in each month, this could be £20-50 each month into this ETF and let that grow.
If you are deadset on experiencing some emotions you can look through the AIM or oil/gas stocks. Generally cheap per share and highly volatile with terrible liquidity. The poor liquidity means simply buying the share will trigger a jump up in price (so it’ll be even tougher to make any money on it as you generally sell for sell than the listed price too.)
Personally I brought into a firm called MetalTiger years ago off the back of some good news, me purchasing the stock increased the price by 8% and then to sell it would be a 22% decrease, simply because there was no liquidity in the market because it was a cheap penny stock.
If you want cheap just for the wild ride: Company name: Sareum Ticker: London Stock Exchange: SAR Share price (at time of writing): 0.75p (fractions of a penny) Company background: They have seen an increase this morning, and they are part of the Medicine and Biotech Research sector (wild place, crazy speculation on drugs that work and are super early stage.) With a market cap of less than £22m I’d stay away, this is a potential pump and dump stock. But if it’s risk you want and you are not worried about winning or losing (most likely losing with this stock) you’ll have fun with it
I know we are missing out on some great SPAC’s and Penny stocks, does anyone here recommend another platform for buying these? Are we able to get an account with Ameritrade for example or would that not be worthwhile?
I use T212 for penny stocks. They’ve got most of the fairly popular ones added, and if there’s ever a stock that they haven’t got they’re super responsive if you request it on their forum.
No worries! I’ve just checked for you and neither of those two are on there unfortunately. As I say though, they do seem to be incredibly responsive to community demands for adding stocks; I’ve often seen them added same day if you raise it over on their forum. If you do wish to sign up for an account, I can PM you a referral link if you want for a free share worth up to 100GBP/USD/EUR (disclaimer: I also receive a free share)
I was greatful for the input. You put what I was trying to say into words which I was struggling to do!
