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How do I Choose the Best Penny Stock Screener?

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  • Written By: A. Leverkuhn
  • Edited By: Andrew Jones
  • Last Modified Date: 18 September 2016
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In order to choose the best penny stock screener, investors can look at the overall setup of this financial tool, as well as the details involved in the screener interface. A penny stock screener is basically a computer program that filters smaller stocks to present them as trading opportunities. Investors use these to pick the best “penny stocks,” or “small-cap stocks,” for a portfolio.

One good tip for select the best penny stock screener is to find one with a diversity of stocks to choose from. Some of the biggest and best penny stock screeners are attached to very credible and popular names of telecom giants and other institutions, By contrast, some of the smaller penny stock filter tools might not have the full range of listed stocks, which can make a search tougher.

Another key piece of advice is to look for penny stock screeners with a lot of technical analysis available up front. Traders or investors will be looking for penny stocks that fit a specific criteria, whether it’s for short-term speculation or a longer-term buy and hold strategy. Either way, having information on “the books” of penny stocks will help the reader to make informed choices. It’s a good idea to research whether or not the penny stock screener has information on any smaller stocks that may be traded “off-exchange” or more informally, where some specific risks apply in regard to the reduced regulation of these companies.

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The best penny stock screeners offer a global range of stocks, and some might even be able to point traders in the direction of specific regional picks like emerging markets penny stocks. This can help users pursue a specific trading strategy that involves the likelihood of regional economic expansion within a global market. Alternately, the penny stock screener can help the user select stocks by sector or industry.

In addition to the above, penny stock traders should be easy to use. The interface, though formal, should be clear and uncluttered. Buttons should be clearly labeled, and the trader or investor should be able to find what they are looking for quickly, without a lot of unnecessary pointing and clicking. Some penny stock screeners also have fewer “bugs” than others, where, for example, a list box might cause problems with easy filter selections. Consider the operation of a penny stock screener in order to get the best trading opportunities with small-money stock purchases.

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