Low Priced Securities
What is a low priced security?
A low priced security, also referred to as a penny stock, are generally securities that trade below $5 per share. Most securities in this price range trade over-the-counter (OTC). However, some trade on an exchange such as NYSE or NASDAQ.
If a low priced security trades on an exchange and has sufficient volume, you may be able to trade the security on Revolut.
You can check out our available investment products in the 'Invest' section of the app, even without creating an investment account. If you don’t see the stock you’d like to trade, let us know and we’ll do our best to make the stock available.
What are the risks of low priced securities?
Investing in low-priced securities, including penny stocks and micro-cap stocks, involves a high degree of risk. These securities are often subject to extreme price volatility, limited liquidity, and lack of transparency, making them highly speculative and potentially unsuitable for many investors.
Due to the risks of fraud and manipulation, as well as financial stability and regulatory risks, investors should consult their financial advisor on the strategy best for them. Past performance is no guarantee of future results.
Low priced securities are also typically less liquid than other stocks, causing the bid-ask spread to be wider. This can impact the execution price of your orders.
Are there fees associated with low priced securities?
There are no direct fees for trading low priced securities that trade on an exchange. However, the spreads in low priced securities can often be wider than other securities trading on an exchange, which impacts the execution price for your orders.
What else can I trade?
For additional information on available assets to trade, check out this FAQ.