Top 5 penny stocks to watch in 2025
Penny stocks are highly volatile shares that can make or break an investment portfolio – if too much is invested in these low-value stocks. They’re easily accessible because they don’t cost a lot, but buyer beware: they bring great risk in addition to their potential for generous profits.
Important to know
This article is for informational purposes only and does not constitute investment advice. Please ensure you understand the risks and consider your individual circumstances before trading.
Key takeaways
- Penny stocks trade at US$5 or less, making them accessible to stock traders who want to buy a lot of one company’s shares
- Their potential for high returns is great, but stock traders can just as easily lose their initial investment
- Penny stocks to watch right now include CNMC Goldmine Holdings Limited, Avance Technologies Limited, Begbies Traynor Group, Bitfarms Limited and Cognition Therapeutics Inc
What are penny stocks?
Penny stocks refer to companies with a stock price lower than US$5 per share. They can be a steal in the market – if you know which ones to watch out for. But that also means they’re inherently risky: volatile, often with lower liquidity. Because they’re thought of as high-risk, the returns or losses can be substantial.
Why trade penny stocks?
Stock trading penny stocks can be a profitable investment, especially if you do your research well and pick shares of companies that have a favourable outlook. However, as we mentioned, no matter how much research you conduct, there will always be an element of risk involved in stock trading.
Advantages of penny stocks
The advantages of trading penny stocks are:
- Diversification: Because they’re high-risk, stock traders can allocate a small portion of their investment portfolio to penny stocks with the hopes of receiving high returns
- High potential for profit: Because they’re often undervalued, penny stocks have the ability to return extraordinary gains. However, they can just as easily lead to great losses. This is true of stock trading and CFD trading
- Small capital: Due to the low share price, you don’t need a massive outlay to start trading penny stocks
- Potential for growth: Penny stocks can grow into mid-sized stocks, effectively increasing their value
Risks of penny stocks
Just as there are pros to trading penny stocks, so are there disadvantages, too. Let’s look at them:
- Illiquid: Penny stocks are easily bought, but not so easily sold. This makes them risky if you want to sell before you lose money
- Potential for bankruptcy: Companies that have penny stocks are more likely to declare bankruptcy. If you trade stocks close to the time of a company going under, you’re more likely to lose your investment
- Prone to pump-and-dump schemes: Pump-and-dump schemes happen when a low-value stock is hyped up artificially, luring traders to buy shares. The stocks are then sold when they’re overpriced and the traders being scammed lose their investments
Top 5 penny stocks to watch in 2025
The penny stocks we’ve selected were chosen for their optimistic current and future outlooks, along with positive company and broad macroeconomic trends in their respective industries.
All figures are accurate as of 22 December 2025.
Overview of the penny stocks in this article
These stocks are all available to trade via CFDs and to buy outright with us, except for CNMC Goldmine and Avance Technologies.
Company |
Industry |
Market cap |
Stock price (22 December 2025) |
Stock price gains YTD |
Available for CFD trading with us |
Available for stock trading with us |
Non-energy minerals |
S$444.39 million |
S$1.07 |
336.73% |
X |
X |
|
Technology services |
₹2.75 billion |
₹1.45 |
66.67% |
X |
X |
|
Commercial services |
£183.46 million |
£1.12 |
15.87% |
✓ |
✓ |
|
Technology services |
C$1.97 billion |
C$3.49 |
56.50% |
✓ |
✓ |
|
Health Technology |
US$135.94 million |
US$1.54 |
115.57% |
✓ |
✓ |
1. CNMC Goldmine Holdings Limited (SGX: 5TP)
Industry: Non-energy minerals
Market cap: S$444.39 million1
Stock price: S$1.07
CNMC Goldmine is a Singapore‑listed mining company focused on gold production and exploration, mainly at its Sokor gold field in Malaysia. The company also engages in other mineral activities and aims to leverage efficient extraction methods to maximise output. Its operations emphasise both profitability and expanding capacity, positioning it among smaller producers with established production.
Its stock price has shown positive momentum as commodity markets remain supportive and gold prices have stayed strong this year. Analyst reports and market observers have noted improved production efficiency and capacity growth, which has underpinned stock trader interest.
Why traders might be interested
Gold equities often act as inflation hedges and volatility plays; when gold prices rally, smaller producers like CNMC can show amplified share price moves. Traders who watch commodity trends, macroeconomic signals and gold sector rotation may find this stock appealing for short‑ to medium‑term setups.
Risk context
Mining companies can experience operational disruptions or regulatory changes that affect production and costs. Commodity prices themselves are also cyclical, which can lead to swings in performance.
2. Avance Technologies Limited (BSE: AVANCE)
Industry: Technology services
Market cap: ₹2.75 billion2
Stock price: ₹1.45
Avance Technologies is an India‑listed tech company engaged in the distribution of IT products and solutions, including hardware and software components, paired with infrastructure support and services for clients. Its business serves a domestic base, with exposure to enterprise IT demand.
The stock has shown a positive price trend in 2025, climbing from earlier lows, a signal that some traders may be rotating back into small‑cap tech names on the back of India’s broader market growth. This makes it a candidate for watchlists focused on under-US$5 trends in emerging Asia.
Why traders might be interested
Momentum can drive interest in smaller tech‑oriented stocks in rapidly growing markets like India. For traders watching breakout patterns or low‑priced Asian equities, Avance may be worth monitoring for setups backed by fundamental stability.
Risk context
Smaller companies in the IT distribution space can be more sensitive to shifts in corporate IT budgets and supply chain conditions, and liquidity in the Indian small‑cap segment can be low.
3. Begbies Traynor Group (LSE: BEG)
Industry: Commercial services
Market cap: £183.46 million3
Stock price: £1.12
Begbies Traynor is a UK professional services and advisory company specialising in business restructuring, insolvency and financial consulting services. Its offerings include turnaround consulting, property advisory and corporate finance support to companies across industries.
In 2025, the stock has shown a positive year-to-date share price movement, setting it apart from many small‑cap European names. The uptick reflects both stock trader interest in UK domestic consulting plays and a broader pickup in small‑cap market sentiment. Recent UK filings and price charts show this upward trend continuing.
Why traders might be interested
The company’s share price momentum, combined with its role in cyclical business services, may attract stock traders looking at economic recovery themes. In environments where corporate restructuring activity increases, advisory firms can see higher engagement and revenue potential.
Risk context
Performance can be sensitive to macroeconomic shifts, particularly slowdowns that affect corporate restructuring or credit conditions.
4. Bitfarms Limited (TSX: BITF)
Industry: Technology services
Market cap: C$1.97 billion4
Stock price: C$3.49
Bitfarms is a Bitcoin mining and data centre operator with facilities across North and South America, focusing on validating blockchain transactions and earning mining rewards. The company is also transitioning parts of its infrastructure toward high‑performance computing (HPC) and AI workloads, seeking diversified revenue streams beyond pure crypto mining.
The stock has experienced notable gains this year, lifting it well above prior lows and into higher price territory. It has outperformed many traditional technology and mining peers, drawing interest from both retail and institutional watchers.
Why traders might be interested
Cryptocurrency‑linked stocks get attention when other digital assets rally, as mining profitability can increase alongside crypto price strength. The added narrative of branching into HPC/AI adds another thematic story for traders.
Risk context
Profitability remains a challenge and crypto‑linked stocks are inherently volatile, often moving sharply with changes in Bitcoin price or regulatory news.
5. Cognition Therapeutics Inc (Nasdaq: CGTX)
Industry: Health Technology
Market cap: US$135.94 million5
Stock price: US$1.54
Cognition Therapeutics is a clinical‑stage biopharmaceutical company focused on developing small‑molecule therapies for age‑related neurodegenerative diseases, such as Alzheimer’s and dementia‑related disorders. Its lead candidate – CT1812 – is designed to penetrate the blood‑brain barrier and modulate neurological pathways, with ongoing trials exploring its efficacy.
The stock has shown positive momentum from its 52‑week lows, likely reflecting renewed stock trader interest as clinical programmes progress and analysts maintain upbeat views on future prospects.
Why traders might be interested
Biotech stocks often draw traders due to the binary nature of clinical trial catalysts – positive trial data or regulatory advances can sharply lift sentiment. Cognition’s focus on neurodegenerative disease targets a large unmet medical need, making it a compelling story for speculative traders.
Risk context
Clinical‑stage biotech companies can be volatile since their valuations hinge on trial outcomes and regulatory pathways, which carry high uncertainty.
How to trade penny stocks with IG UAE
CFDs
- Open a CFD trading account with IG UAE
- Search for penny stocks on the IG platform
- Decide whether to go long (buy) or short (sell)
- Choose your position size
- Set stop-loss and limit orders
- Place your trade and monitor it
Stock trading
- Open a stock trading account with IG UAE
- Search for penny stocks
- Choose the stock you want to buy
- Determine how many stocks you want to purchase
- Place your order
- Monitor your investment
FAQs about penny stocks
What are undervalued stocks?
Undervalued stocks are those that trade below their perceived or calculated intrinsic value. In other words, the stock is worth more than what stock traders pay for it.
Penny stocks are sometimes, but not always, undervalued.
What are multibagger stocks?
Multibagger stocks are those that provide significant returns on a stock trader’s investment. For example, an 8-bagger stock provides eight times the return.
They’re often associated with penny stocks, which have the ability to soar in value.
How do I trade penny stocks online?
To trade penny stocks online, find a reputable broker, like us, that offers penny stocks on its platform. With IG, you can open an account, check out our stock screener and hit the buy button when you’ve found the penny stock you want in your portfolio.
Alternatively, if you want to trade CFDs, you can pick a direction in which you think the stock will move and press the ‘buy’ or ‘sell’ button depending on your outlook.
Footnotes
- TradingView, December 2025
- TradingView, December 2025
- TradingView, December 2025
- TradingView, December 2025
- TradingView, December 2025
Important to know
This information has been prepared by IG Limited (DFSA reference No. F001780). It is intended for general information purposes only and does not take into account your personal objectives, financial situation or needs. It should not be regarded as investment advice or a recommendation. Trading CFDs carries a high level of risk and professional clients can lose more then they deposit. Please ensure you fully understand the risks involved and seek independent advice if necessary. All information is accurate at the time of publication and may be subject to change.
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