Penny Stocks

[Guest williambedwell]

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

[trade247]

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.

[trade247]

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.

[Caseynotes]

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

 

[trade247]

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.

[Guest joe98113]

also, IG charge 2 cent per  US share... so if the share price is very low, it will be a lot of fees I presume

[Arun2020]

Hi All,

Please aware of the penny stock fee in IG .

I brought 5000 share per share @ 0.48507   the total amount was 2425.35 . This will cost commission of  100 $ for BUY and for your sell  fee is same ie 100 $. Like other platform IG does not cap the commission fee to 1%.  It could have been nice if  IG charge same as other platform.

I will never buy less 5 $ penney stock from IG .