Penny Stocks 101 Starter Guide

Penny stocks are characteristically different from regular stocks. They are a risky, often unpredictable investment but with opportunity for significantly higher returns.


 
PENNY STOCK STARTER GUIDES

What Are Penny Stocks And How Do They Work?

Penny stocks may sound enticing but do you know what penny stock are and how they work? Find out if these riskier investments are right for your portfolio.

Penny Stock Market?

The penny stock market is significantly different from that of regular stocks. Before investing in them, find out more about how the market works.

How To Find Penny Stocks?

There is no shortage of places that offer a shopping cart full of penny stocks. Finding them is easy, picking the right ones is the tough part.

How To Buy Penny Stocks?

The process of buying penny stocks is different from that of normal stocks. Find out details on how to carry out these transactions.

How To Trade And Invest In Penny Stocks?

Learn how to trade in the penny stock market and arm yourself with these essential tips to increase your chances of success.

Penny Stock Brokers?

Understanding the penny stock broker and their main features is what allows you to choose the best broker to suit your needs.

The Best Stock Newsletters as of May 31, 2025

Ranking of Top Stock Newsletters Based on Last 3 Years of Stock Picks

We are paid subscribers to dozens of stock and option newsletters. We actively track every recommendation from all of these services, calculate performance, and share our results of the top performing stock newsletters whose subscriptions fees are under $500. The main metric to look for is "Excess Return" which is their return above that of the S&P500. So, based on last 3 years ending May 31, 2025:

RankStock NewsletterStock
Picks
S&P500
Return
Excess
Return
Percent
Profitable
Max %
Return
1.Seeking Alpha logo
Alpha Picks
6470.4%47.0%73%969%
Summary: 2 picks/month based on Seeking Alpha's Quant Rating; Retail Price is $499/yr. See details in our Alpha Picks Review.June, 2025 Promotion:
Save $50
2.Moby logo tiny
Moby.co
30843.3%12.3%74%1764%
Summary: 60-150 stock picks per year, segmented by industry; Retail Price is $199/yr. Read our Moby Review.June, 2025 Promotion:Next pick free!
3.Motley Fool logo
Stock Advisor
7241.2%6.9%78%258%
Summary: 2 picks/month and 2 Best Buy Stocks lists focusing on high growth potential stocks over 5 years; Retail Price is $199/yr.
Read our Motley Fool Review.
June, 2025 Promotion: Get $100 Off
4.Zacks logo
Value Investor
3917.5%6.1%38%410%
Summary: 10-25 stock picks per year based on Zacks' Quant Rating; Retail Price is $495/yr. Read our Zacks Review.June, 2025 PROMOTION:$1, then $495/yr
5.Motley Fool logo
Rule Breakers
6640.0%4.7%61%311%
Summary: 2 picks/month focusing on disruptive technology and business models; Lifetime average return of 355% vs S&P500's 149% since 2005; Now part of Motley Fool Epic. Read our Motley Fool Epic Review.Current Promotion: Save $200
6.TipRanks logo
TipRanks SmartInvestor
12110.6%3.7%55%340%
Summary: About 1 pick/week focusing on short term trades; Lifetime average return of 355% vs S&P500's 149% since 2015. Retail Price is $379/yr. Read our TipRanks Review.Current Promotion: Save $180
7.TheStreet logo
Action Alerts Plus
39420.0%3.4%57%220%
Summary: 100-150 trades per year, lots of buying and selling and short term trades. Read our Jim Cramer Review.Current Promotion: None
8.Motley Fool logo
Stock Advisor Canada
3632.3%0.5%69%378%
Summary: 1 pick/month from the Toronto stock exchange; Retail Price is CD$199/yr. Read our Motley Fool Canada Stock Advisor Review.June, 2025 Promotion: Save $100
Top Ranking Stock Newsletters based on their last 3 years of stock picks' performance through May 31, 2025 as compared to S&P500. S&P500's return is based on average return of S&P500 from date each stock pick is released. NOTE: To get these results you must buy equal dollar amounts of each pick on the date the stock pick is released. Investor Business Daily Top 50 based on performance of FFTY ETF.

Build your wealth faster with best stock picks: See our new May 31, 2025 ranking of the BEST STOCK NEWSLETTERS.

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