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IC Markets Penny Stocks checklist

Penny stocks are low-priced shares, often of small companies, that can move sharply and trade with thin liquidity. Before assuming any broker gives you access to them, you need to confirm what instruments are actually offered, in what form, and under which account. This page does not claim that IC Markets currently offers penny stocks or share trading in any specific form. It gives you a checklist for confirming the facts in the broker's own product lists and legal documents.

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Confirm what share instruments are actually offered

Brokers provide equity exposure in different ways: some offer direct share dealing on exchanges, while others offer share CFDs, which are derivatives that track a share price without ownership. Small-cap and low-priced stocks are often excluded from broker product lists even where large-cap shares are available. Check the current instrument list for the entity you would trade with, and confirm whether the shares you care about appear at all.

Check whether the broker's product list includes shares as direct holdings, as CFDs, or both.
Search the instrument list for the specific low-priced stocks you want to trade.
Confirm which exchanges and markets are covered for your account entity.
Note any restrictions on small-cap or low-liquidity instruments.

Understand pricing, leverage and product structure

If shares are offered as CFDs, you are trading a derivative with margin, financing charges and counterparty exposure rather than owning stock. Penny stocks add extra hazards: wide spreads, gaps, and the possibility that a position is hard to exit. Read the contract specifications and cost disclosures carefully, and understand what leverage and margin rules apply to any equity products the broker lists.

Verify spreads, commissions and overnight financing costs for equity instruments in the current fee schedule.
Check margin requirements and whether they increase for volatile or illiquid shares.
Confirm order types available, including whether stop orders can gap through your level.
Read the key information or risk disclosure documents for any CFD products.

Assess suitability and do broader due diligence

Penny stocks carry elevated risks regardless of broker: limited public information, price manipulation schemes such as pump-and-dump promotions, and sudden delistings. Confirm the broker's regulatory entity for your country, how client funds are held, and what dispute channels exist. Then decide whether the product structure on offer suits your goals. For fuller context, read the Ic Markets review at /reviews/ic-markets, compare it with other reviewed brokers at /tools/compare-brokers?brokers=ic-markets, or browse more research at /reviews.

Verify which regulatory entity would hold your account and what protections apply.
Confirm how client money is segregated and what happens in a dispute.
Research each stock independently; do not rely on promotional messages or tips.
Size positions with the assumption that a low-priced stock could become hard to sell.

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FAQ

Can I trade penny stocks at IC Markets?

InvestorTrip does not assert current instrument availability on this page. Share and CFD product lists change and differ by regulatory entity. Check the IC Markets instrument list for your region and confirm in the legal documents whether the specific stocks you want are offered, and in what form.

What is the difference between owning a penny stock and trading it as a CFD?

Owning a share gives you the underlying asset and any shareholder rights. A CFD is a derivative contract that tracks the price with margin and financing costs, and you never own the stock. CFDs add leverage and counterparty exposure on top of the stock's own volatility.

Why are penny stocks considered high risk?

They often have thin liquidity, wide spreads, limited public disclosure and can be targets of promotional manipulation. Prices can gap sharply, and exiting a position at your intended price is not guaranteed. Independent research and cautious position sizing are essential.