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Penny Stocks

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Hi there,

I live in the UK and would like to start trading Penny Stocks.

Does the IG platform cater for that kind of trades?

 

Thank you

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@williambedwell,

Yes you will find some (more likely the AIM 100) rather than the thousand or so (junk) which are listed on the AIM market. 

Some of these will be micro caps and the majority are likely to be 'Nano Caps'. 

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Depends on how 'penny' stock you mean. You can spread bet and CFD trade on small market cap stocks, which in theory have stock in the value of pennies. You need to be mindful of the market cap though. That's the main thing.

IG requires Mcap of I think about £10million.

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@cryptotrader,

Oh ok. I did not realise that IG required market cap of £10m. A lot of nano caps have markets caps of less than £3m so it would def. rule them out. 

That is interesting.

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there are some interesting small market cap stocks out there though which trade for pennies and have more than 10 mil mcap. I guess reason for this is holding a significant percentage of the company in a spread betting account and liquidity and everything. Imagine at 5% margin deposit you'd only need £150,000 to own 5% of the company at £3m which wouldn't take long to accumulate on the platform.

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11 hours ago, Caseynotes said:

there is differing criteria for IG listings for leveraged and non-leveraged stocks, see link below posted just a couple of days ago on AIM stocks, and don't forget the IG DMA platform for leveraged or non-leveraged share dealing direct on the LSE.

https://www.ig.com/uk/news-and-trade-ideas/shares-news/top-100-aim-shares-190408

Interesting. So the Penny stocks / AIM markets which they say to have a look at are

  1. Burford Capital: world's largest provider of arbitration and litigation finance
  2. Fevertree Drinks: the upmarket mixer maker
  3. Hutchinson China MediTech: the biopharma and pharma stock
  4. ASOS: fast fashion for millennials
  5. Abcam: a profitable biopharma business

Interestingly ASOS are down over 50% over the last 12 months and they've made the list. I know there are also one of AIMs largest success stories up quadruple digit % since their initial float. Remember when they were called As Seen On Screen? And they used to highlight things which people on Big Brother used to wear etc.... ahhh the good old days.

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