Typically, penny stocks are highly erratic. Many of these small companies have very low liquidity, making them even more volatile. Prices can move drastically within a short period. However, high volume penny stocks experience more trading activity, so they can be more stable. Many investors prefer to trade penny stocks with high average volume to avoid running into liquidity problems.
To help you find some of the best picks in this category, we put together this list of the best high volume penny stocks on the market. Most of these companies are medium-to-large market cap, so they’re most established than micro-cap startups.
High Volume Stocks
Traders need to be able to buy and sell shares when the time is right. High volume stocks allow traders to quickly fill their orders and make rapid exits from their positions. High volume stocks offer several benefits over low-liquidity alternatives.
Fast Order Processing
When trading stocks, you would want to get in quickly without your order affecting the price of the asset. With high volume stocks, a lot of traders are buying and selling, so it’s easy to find a buyer at the right price. Conversely, traders can have problems getting the right price when they trade low-volume stocks.
Highly liquid assets are easy to exchange for other assets. Cash is a good example of a highly-liquid asset because you can exchange it for practically anything and get its fair value in return. On the other hand, real estate is a low-liquidity asset because it’s not always easy to find a buyer and convert it into cash.
This concept applies to stocks too. When a lot of traders are buying and selling a stock, it has a lot of liquidity because there is a lot of demand. Usually, this results in tight spreads and easy order-making. However, obscure stocks that don’t have a lot of trading activity can be hard to sell, so they’re considered to be low-liquidity assets. High volume penny stocks are usually more liquid than their lower-volume cohorts.
Penny Stocks With High Volume
Penny stocks typically have low liquidity and trading volume. However, some of these cheap stocks experience a lot of trading activity. Here are a few that you should be watching.
TOUGHBUILT INDU/SH (TBLT)
ToughBuilt Industries is the highest-volume penny stock currently trading in the United States. Over 35 million shares of the company trade on NASDAQ on an average day, and the firm has a market cap of over $4 million.
The company is known for its advanced product design, manufacturing, and distribution. It mainly focuses on innovative products such as tools and other accessories for the professional and do-it-yourself construction industries.
Ibio Inc. (IBIO)
There are over 19 million iBio shares trading on the New York Stock Exchange on an average day, and the company has a market cap of over $27 million.
iBio provides full-service biologics CDMO, helping companies with various stages of product development. They help with pre-clinical development, regulatory approval, and commercial product launch.
Ritter Pharmaceuticals Inc. (RTTR)
Ritter Pharmaceuticals currently trades around 9 million shares daily on the NASDAQ stock exchange. However, it has a small market cap of just $2 million.
Ritter is a pharmaceutical company that carries out research and develops therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases. Ritter majorly focuses on conditions like ulcerative colitis, lactose intolerance, Crohn’s disease, and irritable bowel syndrome.
High Volume Penny Stocks Robinhood
Many traders use Robinhood as their primary broker. It’s easy to use and offers zero-commission trading. However, you can only trade exchange-listed stocks on this app. Here are the high volume penny stocks you can find on Robinhood.
Whiting Petroleum Corp (WLL)
This is a Colorado-based company that is actively engaged in hydrocarbon exploration. Whiting is currently one of the largest independent exploration and production companies in the US. They control massive positions in areas such as the Bakken/Three Forks and the Williston Basin of North Dakota and Montana.
Whiting is one of the high volume penny stocks found on Robinhood. The company currently trades over 8 million shares daily and Robinhood is one of the most active platforms you can find it.
Genworth Financial Inc. (GNW)
Another high volume penny stock on Robinhood is Genworth Financial. The company has a daily average trading volume of over 8 million shares, and Robinhood accounts for a large portion of it. Despite the small price, Genworth Financial has a market cap of over $2 billion.
Genworth is an S&P 400 insurance company, with its headquarters in Richmond, Virginia. They help customers secure their financial life through long term care insurance, life insurance, annuity retirement solutions, and more.
More Penny Stocks: Closing Thoughts
High volume penny stocks are easier to buy and sell than those with less volume. Extra trading activity often indicates that a stock has momentum, so it’s worth watching these picks.
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