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ActivTrades Penny Stocks checklist

Penny stocks are low-priced shares, often of smaller companies, and they carry distinct risks including thin liquidity, wide spreads and sharp price swings. This page does not confirm which small-cap or low-priced shares ActivTrades currently offers, or in what form. Instead, it gives you a checklist for verifying market access, product structure and costs directly with the broker before trading.

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Confirm what is actually tradeable and in what form

Brokers differ widely in how they provide share exposure. Some offer direct share dealing, others offer CFDs on shares, and instrument coverage of small-cap or low-priced stocks varies by broker and by account entity. Check the broker's current instrument list to see whether the specific stocks or markets you want are available, and confirm whether you would be buying the underlying share or trading a derivative such as a CFD, since the risks and ownership rights differ substantially.

Check the current instrument list for the specific markets and tickers you want.
Confirm whether access is via direct share ownership or a CFD on the share.
Verify availability for your region and the entity that would hold your account.

Understand the specific risks of low-priced shares

Penny stocks often trade with limited liquidity, which can mean wide bid-ask spreads, difficulty exiting positions and prices that move sharply on modest volume. Some smaller companies disclose less information than larger listed firms, and manipulation schemes disproportionately target low-priced shares. If exposure is through CFDs, leverage magnifies both gains and losses, and margin requirements on volatile shares may be higher or subject to change.

Expect wider spreads and possible difficulty exiting positions in thin markets.
Be alert to promotional campaigns and unsolicited tips around low-priced shares.
If trading CFDs, understand how leverage and margin calls affect volatile positions.
Check whether the broker applies higher margin or restrictions on volatile shares.

Verify costs, order handling and account terms

Costs matter more when share prices are low, because spreads, commissions and minimum charges take a larger percentage bite from each trade. Read the fee schedule for share dealing or share CFD commissions, minimum ticket charges, overnight financing on leveraged positions and any market data fees. Also check which order types are supported, whether stop orders can gap through your level in fast markets, and how partial fills are handled. Use the internal links below to read the full ActivTrades review and compare alternatives.

Review commissions, minimum charges and spreads against typical trade sizes.
Check overnight financing costs if positions are leveraged and held past close.
Confirm supported order types and understand that stops are not guaranteed prices.

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FAQ

Can I trade penny stocks with ActivTrades?

InvestorTrip does not confirm current instrument availability on this page. Coverage of small-cap and low-priced shares varies by broker, region and account entity, so check the ActivTrades instrument list directly or ask support in writing before planning trades.

What is the difference between buying a penny stock and trading a CFD on it?

Buying the share gives you ownership of the underlying stock. A CFD is a leveraged derivative that tracks the price without ownership, adds financing costs for held positions and can produce losses larger than expected in volatile, thinly traded shares. Confirm which structure a broker actually offers.

Why are penny stocks considered higher risk?

Low-priced shares often have thin liquidity, wide spreads, limited public information and heightened vulnerability to manipulation. Prices can move sharply on small volume, and exiting a position at your intended price is not guaranteed, especially in fast or one-sided markets.