Is there an ETF for penny stocks

Shares under 1 euro: These are the trendy penny stocks in early 2021

The magic limit: In the euro area, stocks under 1 euro count as penny stocks. In the United States, the term is used to refer to stocks that cost less than $ 5.

Pennystocks are stocks with a low market value. These are highly speculative papers that are usually subject to strong price fluctuations. It is not uncommon for shares under 1 euro to be the target of speculators who use these strong price fluctuations to make profits. But the great opportunities come with great risks. Inexperienced investors can lose a lot of money here quickly.

These five penny stocks will be the focus of gamblers in early 2021

  • Oragenics is a biopharmaceutical company working on novel antibiotics and therapies for infectious diseases. Founded in 1996, the Florida-based company is also developing its own corona vaccine, Terra CoV-2. The share was most recently boosted by a letter from CEO Alan Joslyn to his shareholders, reporting on progress in vaccine development.
  • Relay Medical, on the other hand, is a Canadian medical technology company based in Toronto that is working on the development of new technologies in the areas of diagnostics and AI data analysis. Relay Medical had positive news in January about a COVID-19 therapy candidate, Extener, using technology from Glow LifeTech, a company in which Relay Medical has a significant stake.
  • Upco International also attracted attention at the beginning of January. Within a few days of trading, the share rose 180 percent. The Canadian company offers telecommunications and digital services in niche markets around the world, including services based on blockchain technology. With the Upco Pay app, the company wants to offer messaging and telephony as well as payments.
  • Many speculators are interested in cannabis stocks, such as that of the Canadian company Halo Labs, which grows high-quality cannabis flowers, extracts, produces and sells oils and concentrates. In December the company achieved record sales. After taking over and strengthening the sales force, the company now wants to further increase sales.
  • Also popular with speculators: hydrogen stocks such as AFC Energy's paper. The British company markets an alkaline fuel cell system that supplies clean electricity, for example for electric cars. In January, the British announced a strategic collaboration with an international engineering firm to explore the potential of their technology in shipping and rail transport.

What is attractive about penny stocks?

There is a certain fascination with trading penny stocks. The stockbroker Jordan Belfort, for example, whose story was filmed by the successful director Martin Scorsese with Leonardo di Caprio in the lead role in “Wolf of Wall Street” (for sale: Buy a film on Amazon), has risen through the sale of penny stocks. In comparison to trading with standard stocks, these stocks for less than 1 euro incur very high commissions - sometimes up to 50 percent. At the same time, many of these papers react to news and rumors with large price jumps. A lot of investors are therefore eager for the exclusive tip that will make them extremely rich in a short time. Belfort and the broker gang of his company Stratton Oakmont had finally tempted greed to invent statements to stimulate the sale of such papers (here the film clip on YouTube).

What are penny stocks?

But that does not mean that trading in penny stocks should be demonized in principle. As always in the stock market, it is important to understand what you are investing in. So what are penny stocks exactly? In the euro area, the term refers to companies with a share price of less than 1 euro, in the USA 5 US dollars are the limit to still count as a penny stock.
»Shares under 5 euros: 5 tips for investing

The low value enables investors to invest in large numbers, so that even slight price movements have a strong financial impact. However, the high volatility also means a high risk of loss, which the investor must be able to deal with. Penny stocks are therefore risky and should only make up a small part of a broadly diversified portfolio.

When does a company become a penny stock?

If a share costs less than 1 euro, there can be several reasons. Risky traders therefore divide penny stocks into four categories:
  1. Ailing companies that have lost value due to mismanagement or competition. After the collapse of the new market in 2001, around 40 of the 343 shares traded on the Neuer Markt had a value of just under one euro. A current example is the share of the now insolvent financial services provider Wirecard, which crashed within a few months after the fraud allegations. In 2020 it cost 145.50 euros at its peak, now it is listed at 50 cents.
  2. Micro caps as a preliminary stage to the more established small caps are mostly young or developing companies with a small market capitalization (50 million to 300 million US dollars). Below 50 million, financial experts speak of nano caps. The correspondingly small trading volume causes high volatility and makes the companies into highly speculative penny stocks.
  3. Companies with an immense denomination of the share capital. In Asia in particular, it is customary to issue more shares and make the prices so investor-friendly. The share of smartphone maker Xiaomi (NASDAQ: Xiaomi) is around three euros. But the Chinese have also issued around 24 billion shares for this purpose.
  4. Companies facing the turnaround that are currently still in a difficult situation and plagued by poor numbers and restructuring costs. However, if the measures take effect, investors can expect profits. One example is the game developer Zynga (NASDAQ: Zynga), which after financial difficulties in 2012 lost almost 90 percent of its market value and plunged to an interim low of 1.56 euros in 2016. After the readjustment of the business model, the share is in a long-term upward trend and is now trading at around nine euros.

Costs, options & Co .: The depot comparison

If you want to buy an ETF or shares, you need a securities account. A comparison of the most important providers can be found in the table below, further detailed information in the large depot comparison.

Portfolio comparison for stocks and ETFs: portfolio fees, costs for orders and more

Which trading venues are available?
Number of tradable stocks, ETFs, funds, savings plans, crypto assets
Stocks on weekends trade at Lang & Schwarz
What is the minimum order volume?
Web application / trading app
intuitive app (no desktop offer available)
Stocks, ETFs and derivatives are traded without order commissions; only third party costs of 1 euro
More than 4,000 stocks and ETFs can be saved permanently free of charge
LS Exchange; for ETFs: iShares
8,500 stocks and ETFs, more than 4,000 stock and ETF savings plans, 40,000 warrants, knock-out products and factor certificates
no web application available, just a trading platform for stocks
Mobile phone users who also want to invest little money
Design is reminiscent of social media platforms with social trading as a core feature
around 2,000 shares free of commission; Spread fees 0.09 percent; Conversion fees, as it is traded in US dollars; Withdrawal fee five US dollars
no custody fees; only those who do not log in for twelve months pay 10 US dollars per month
no savings plans available
There are 17 trading venues for stocks, such as the US stock exchanges Nasdaq (511 stocks) and NYSE (825), Frankfurt (119), London (367)
2,000 stocks, many ETFs, other stocks and many other products as derivatives, 16 crypto values
$ 50; Copy-Value $ 500
Social trading: investors exchange market and stock exchange information on request; 16 cryptocurrencies; Minimum deposit when opening an account 500 euros
learning from others is easy; Exercise function
somewhat confusing price structure, which is only available in detail in English; relatively few stocks; no savings plans
Trendsetters who want to try modern investment techniques
new on the market, therefore modern and fresh design
Free of charge for orders with a trading volume of at least 500 euros via Gettex and for derivatives in direct trading with four partners; 1 euro with the same conditions at Lang & Schwarz; Order volume below EUR 500 and at other German trading venues: EUR 4
Free custody account management, but negative interest (0.5 percent) on the clearing account if more than 15 percent of the investment is available as cash over the quarter
280 ETFs eligible for savings plan free of charge; 351 ETFs eligible for savings plan with 0.2 percent (at least 0.80 euros) per execution
all German regional exchanges, Xetra, Tradegate, Quotrix, Gettex, Lang & Schwarz; another 16 partners for over-the-counter trading; 23 foreign stock exchanges
all stocks, funds, ETFs, certificates, leverage products, bonds that are listed on German stock exchanges; additional shares abroad; more than 600 ETFs are also eligible for savings plans
Saturday 10 a.m. to 1 p.m., Sunday 5 p.m. to 7 p.m.
Comprehensive range of securities with low order fees, some even free of charge
Fees for clearing account (0.5 percent per year) as soon as the total exceeds 15 percent of the deposit value
Bargain hunters who can do without trading via mobile phone
tidy application despite a large selection of products
commission-free; no flat rate for third-party costs
free custody account management, but negative credit interest of 0.5 percent
no savings plans available
Tradegate, LS Exchange, Quotrix; 4 over-the-counter partners
more than 500,000 securities, including 7,300 stocks from 52 countries, approx. 1,000 ETFs and ETCs as well as certificates, warrants, leverage products; also crypto values: Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash
500 euro; 50 euros for cryptocurrencies
free stock trading, cheap crypto trading
Minimum order volume, only three trading venues, negative interest on clearing account, no savings plans
Price-conscious investors who don't want to put any change
The app and desktop version are understandable and seem like a single piece
in the first year 3.90 euros per order on all German stock exchanges; then 4.90 euros plus 0.25 percent on the order volume (min. 9.90, max. 59.90 euros); plus trading venue fee (min. 1.50 or 2.50 euros) and third-party fees
free deposit for three years; then linked to activities; otherwise 1.95 euros per month
For ETF, share and certificate savings plans, there is no issue surcharge, but a commission of 1.5 percent of the order volume per security and execution
all German trading venues; 16 partners for OTC trading; 12 foreign exchanges
14,500 stocks, 1,500 ETFs, 32,500 funds, 629,000 warrants, 1,085,000 certificates and 62,500 bonds
Saturday 10 a.m. to 1 p.m., Sunday 5 p.m. to 7 p.m.
free trading software (Pro-Trader); API interface for external software
many trading venues with a large product portfolio and extras
high order fees from the second year
Comfort-oriented investors who appreciate many options
simple and clear
no order fees in the first six months at Tradegate, L&S, Baader Bank, thereafter 5.90 euros per order plus trading venue fee (for the above 2 euros) and third-party fees; Minimum total costs on German stock exchanges between 7.90 and 11.32 euros per order
Custody fee of 0.1 percent on the market value of the securities in custody; negative credit interest of 0.5 percent
250 selected ETF savings plans free of charge; further savings plans per execution 1.50 euros
all German regional exchanges, Xetra, Tradegate, Gettex, L&S Exchange; another 16 partners for over-the-counter trading; 11 foreign trading venues
8,500 stocks and ETSs, more than 1,000 ETF savings plans, 5,000 funds (including ETFs); also derivatives and CFDs
Favorable conditions (0 to 3.90 euros per trade) for certificates and warrants from seven partners; many training videos
makes securities trading easy and understandable for beginners
Deposit fees, negative interest on clearing account
Fans of warrants and beginners who start trading cheaply
Easy to understand desktop application; App a little confusing because it is not a pure trading app
Stock orders EUR 3.95 in the first year when trading via Tradegate; otherwise at least 9.95 euros per trade, max. 69 euros; many funds and ETFs with no fees
270 ETF savings plans for free; all other ETF savings plans: 1.5 percent per savings plan execution; for equity funds: 1.5 percent plus mostly issuing fee
all German regional exchanges, Xetra, Tradegate; more than 20 foreign exchanges, more than 20 partners for over-the-counter trading
20,000 stocks and 7,000 funds (including ETFs); in addition, numerous bonds, currencies and commodities
Saturday 10 a.m. to 1 p.m., Sunday 5 p.m. to 7 p.m.
free trading software (ActiveTrader); API interface for external software
many trading venues with a huge product portfolio and extras
high order fees from the second year
Comfort-oriented investors who appreciate many options
Understandable texts, airy design
4.90 euros plus 0.25 percent of the market value, a maximum of 69.90 euros
all ETF savings plans for 0 euros; many share and fund savings plans from 1 euro, otherwise usually 1.75 percent of the market value
all German regional exchanges, Xetra and Tradegate; Stocks can also be traded in the US and Canada; Certificates & Co. also over the counter with 12 partners
all stocks, funds, ETFs, certificates, leverage products, bonds that are listed on German stock exchanges; additional shares abroad (USA, Canada); Number of savings plans: 720 ETFs, 640 funds, 480 stocks, five commodity certificates
inexpensive savings plans, all ETF variants free of charge
Trading on stock exchanges outside of Germany is limited to a few trading venues
Savings plan lovers and shareholders without exotic country preferences
somewhat dusty design, the owner Commerzbank looks much fresher
5 euros for all securities on German trading venues plus 2 euros trading venue fee (plus costs for Xetra and regional exchanges); for US trading venues 10 euros plus 5 euros trading venue fee
negative credit interest of 0.5 percent for more than 250,000 euros on the clearing account
all available savings plans (around 200) for an execution fee of 1 euro; 50 to 500 euros savings rate
all German regional exchanges, Xetra, Tradegate, Quotrix, Lang & Schwarz; another 14 off-exchange partners US stock exchanges NYSE, Nasdaq, AMEX
all stocks, funds, ETFs, certificates, leverage products, bonds that are listed on German stock exchanges; additionally all securities of the three major US stock exchanges
simple price overview, comprehensive range of securities
no trading via app
Onvista fans who have cherished the website for a long time
is more aimed at professionals and offers many analysis tools
Usually 0.1 percent on the order volume with a minimum (examples: Tradegate 2 euros; Frankfurt: 5 plus at least 2.52 euros), shares on US stock exchanges cost 1 cent per share (at least 2 US dollars, maximum 1 percent of the trading volume )
only in the case of inactivity for more than a month and a deposit value below EUR 1,000: EUR 1 per month
Savings plans only through partner ebase (registration required)
Xetra, Frankfurt, Stuttgart, Tradegate and around 130 foreign stock exchanges; over-the-counter trading on the US stock market
More than 1.2 million tradable securities, stocks, ETFs, futures, options, warrants and many more exchange-traded securities and derivatives
expandable with external software; Minimum deposit when opening an account 2,000 euros; only one payment / month free of charge (otherwise 1 or 8 euros), no automated tax transfer
extensive security selection; various tools and order options for professionals
Real-time prices are chargeable, no separate savings plan offer, over-the-counter trading is very limited
Ambitious investors and professionals
also manageable for beginners
Gettex: EUR 0.99 per order or flat rate from EUR 2.99 per month with an unlimited number of securities purchases and sales as well as ETF savings plan executions; 3.99 euros per order for Xetra trading
if you opt for the flat rate fee of 2.99 euros per month, you will receive all savings plans free of charge; otherwise only one savings plan is free, each additional one costs 99 cents
4,000 stocks, 1,300 ETFs and ETF savings plans, 2,000 managed funds
Gettex only: 250 euros; Savings plans from 25 euros per month
low costs, attractive price model for active traders (only Gettex)
Minimum order volume at Gettex, only two trading venues, no derivatives
Cost-conscious high-volume traders who limit themselves to traditional investments
renounces design finesse, the focus is on the information
4.99 euros plus 0.25 percent of the order value (min. 8.99 euros to max. 54.99 euros); plus EUR 0.99 trading platform fee in Germany; Discount depending on the number of annual transactions from ten percent for 100 transactions to 80 percent for 5,000 transactions
Free custody account management for at least one transaction per quarter or assets of at least 10,000 euros, otherwise 11.97 euros per quarter
Many Deka ETF savings plans and 16 UBS ETF savings plans free of charge, all others and share savings plans: order fee of 2.5 percent per savings plan rate
all German regional exchanges, Xetra, Quotrix, Tradegate, Lang & Schwarz, L&S Exchange; another 17 over-the-counter partners; 29 foreign stock exchanges
9,000 stocks, 12,000 funds, 2,000 ETFs, 20,000 bonds, 1.3 million leverage products, plus stock savings plans, ETFs eligible for savings plans, funds and certificates
Saturday 10 a.m. to 1 p.m., Sunday 5 p.m. to 7 p.m.
Discount model for order fees
Trading on numerous stock exchanges
relatively high order fees, expensive savings plans
Sparkasse customers and users who appreciate many options
10 euros per domestic order up to 10,000 euros, above 25 euros; for foreign execution venues, the cost per order is EUR 20 or EUR 35; Third-party fees are added to orders that are not processed via the Tradegate trading center
1.50 euros per savings plan execution, less or free of charge for special offers for a certain period of time
all German regional exchanges, Xetra, Quotrix, Tradegate; another 12 partners for OTC trading; 31 foreign stock exchanges
more than 1.5 million tradable securities including 22,000 funds and 2,000 securities savings plans, including 115 ETF savings plans
Trading on numerous stock exchanges, simple fee structure
DKB customers and users who appreciate many options

Where can investors trade shares for less than 1 euro?

Tighter rules for investor protection have meant that stocks under 1 euro can no longer be found in the DAX, MDAX or other important indices. Pennystocks are therefore listed in Germany in the Open Market, the stock exchange segment at the lower end of the range of requirements. There are lower transparency requirements for participants in the Open Market than in the regulated market. For example, they do not have to publish a listing prospectus as in the regulated market. This makes the Open Market attractive for young, growth-oriented but also for medium-sized companies, because a listing is associated with less costs and effort. The downside: What small companies do best increases the risk for investors.
»IPOs in 2020: New stocks that cause a stir

In addition to buying and selling on the open market, over-the-counter direct trading, known as OTC (Over the Counter), is also possible. In the USA, penny stocks, i.e. values ​​below 5 US dollars, are generally traded over the counter via the OTC Market Group platform. Sometimes a skull symbol is displayed next to the stock value as a warning to investors. This investment warning is required if the marked company suspects criminal activity or market manipulation.

Important rules for penny stock investors

Before investors invest money in penny stocks, a stock valuation based on company figures and trading volume is recommended. In addition, the assets invested should not exceed personal risk tolerance. It is best to use "play money" that you do not necessarily have to rely on. Investors should beware of stock recommendations in Google ads or emails (stock spam). Behind it are often little "Wolfs of Wall Street" who stock up on a penny stick when prices are low, apply the papers in a cocky manner, and then exit again when prices rise. The other investors then lose out.
* Our independent experts regularly deal with products and service providers. We will provide you with the resulting articles free of charge. COMPUTER BILD receives a small commission if you click on a link or conclude a contract with a linked provider. Note: The content on is not a specific investment recommendation and only contains general information. Authors, editors and the cited sources are not liable for any losses that may arise through the purchase or sale of the securities or financial products mentioned in the articles. Complex financial products such as CFDs in particular harbor a high risk: According to the company, 67% of retail investor accounts with eToro lose money when they trade CFDs from this provider.

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