Best penny stocks for the United Kingdom

Penny stocks or penny shares is the name used to define the trade or stocks which have a price below $5 in the United States and below £1 in the United Kingdoms. Moreover, these firms related to these stocks have a market capitalisation below $300 million in the United States and below £100 million in the United Kingdoms. Trading penny stocks can be highly risky as they are low-valued companies and are relatively small. However, they can provide better returns to traders.

In the United Kingdoms, these stocks are listed on the index FTSE AIM. Also, many analysts consider them highly risky compared to larger companies as they are prepared for development and growth, which several others yet to make capital or develop a feasible service or product.

Top penny stocks for UK traders

1) Galantas Gold Corp

It is an Irish company mainly dealing in mining. Galanta Gold Corp is listed on the FTSE AIM index in the United Kingdom and TSX Venture Exchange of Toronto. This dual listed company operates and owns a generating open-pit mine situated at Omagh in Northern Ireland. This mine not only produces gold but also generates lead and silver as the by-product.

The major part of the drilling program was completed by the company in 2020, with a notable surge in resources discovered. The com is looking forward to continuing this same program in 2021 also. Thus, the stocks of the company are expected to surge further in 2021. It can prove to be a rewarding investment this year.

2) Maestrano Group

Maestrano Group is a firm linked with data analytics. It has secured cloud-based platforms used by primary sectors such as banking institutions. Its items range from data visualisation to business intelligence. It has extended its business into the infrastructure industry, targeting the areas like energy network, rail, road since purchasing surveyor AirSight in the year 2019. The company made many deals last year, and it is expanding its reach by making relations with new distributors.

3) Conroy gold and natural resources

Conroy Gold and Natural Resources stocks suddenly surged in July 2020, when the firm announced that it had signed an important deal with the popular Anglo Asian Mining. This deal involves the construction of the Clontibret gold mine in the county of Ireland.

Anglo Asian Mining is a big company that is generating silver, copper and gold in Azerbaijan. This company agreed to invest €2 million in construction in return for about 17.5% sticks. Moreover, spending about €2 million to surge the interest up to 25%. The company will further have the chance to acquire a major stake by 55% by covering the expenses to get the plan to ready status.

Conroy Gold has mine as their major assets, and the investment means that the company will maintain a vital stake in this proposed project without worrying about the payment for the construction work. The entire condition seems to be fruitful, and the company's stock price is expected to take a new turn this year.

4) Red Rock Resources

Red Rock Resources deal in different types of commodities such as gold projects in Australia and Kenya and cobalt and copper items in the Congo. The firm attained a great price height till the end of 2021, with the major pushing factor being news that Jupiter Mines, ASX listed firm, is planning to spin-off its iron ore into a novice listed entity to make gains on higher iron ore value.

Red Rock holds a major stake in this popular Jupiter Mines and owns a royalty in one iron ore deposit of Jupiter mines. It directly reflects that the company will surely benefit from the spin-off. Red Rock itself is thinking to spin off some or all of its Red Rock Australasia (a separate joint venture) gold ore assets. The stake which Red Rock Resources holds in Red Rock Australasia is about 50.1%. It is considering introducing an IPO or initial public offering on an NSE (North American Stock Exchange).

How to trade penny stocks?

To trade penny stocks, you need to open an account with the broker. The steps involved in trading these stocks are:

1) Visit the broker's website and register

2) Provide the mandatory documents, including address proof, identify proof, financial statements and bank statements.

3) Choose the stock and account you wish to start with.

4) Deposit money

4) Start trading

The Bottom line

Many traders usually ignore penny stocks as they are low valued or low budget companies. However, they are risky to trade but have immense potential to generate larger returns. You are required to make each step carefully. One wrong movement can wipe out your entire account and land you in several problems.

Thus, it is better to go with demo trading offered by the broker. It is absolutely free and enables you to practice trade before entering the real trading world. If you find that your trading strategy is inefficient and cannot provide you with better output, change it beforehand. Global TradeATF is an authentic firm providing demo accounts for free.

Frequently asked questions

1) What are penny stocks?

Penny stocks or penny shares is the name used to define the trade or stocks which have a price below $5 in the United States and below £1 in the United Kingdoms. Moreover, these firms related to these stocks have a market capitalisation below $300 million in the United States and below £100 million in the United Kingdoms.

2) Which is the best penny stock to trade in 2021?

Galantas Gold Corp is an Irish company mainly dealing in mining. Galanta Gold Corp is listed on the FTSE AIM index in the United Kingdom and TSX Venture Exchange of Toronto. The company is looking forward to continuing this same program as 2020 in 2021 also. Thus, it can prove to be a profitable investment this year.