Penny stocks, low-priced securities traded on public markets, offer high potential returns but carry substantial risks due to high volatility, lack of liquidity, and susceptibility to scams and manipulation. The only difference between them and regular stocks is price, market cap, trading volume, and volatility. If you have an appetite for high-risk, you can add some of the best penny stocks in Canada to your portfolio. That way, you will have the opportunity to invest in emerging companies at an early stage.
To help you get started with penny stocks, we have compiled a list of the best penny stocks in Canada, including Hive Blockchain, 5NPlus, American Lithium, Athabasca Oil, and more.
Canada offers many penny stocks across various industries, including technology, healthcare, energy, and finance. And with nearly 80% of stocks on the Toronto Stock Exchange (TSX) priced below $5.00 per share, it’s easy to see why they have gained popularity among value investors who seek opportunities for potential price growth.
However, not all stocks below $5 qualify as penny stocks, and not all of them are good investments. If you're interested in adding a touch of risk to your portfolio, our curated selection of the best Canadian penny stocks to buy provides an excellent starting point. Our list includes stocks with strong fundamentals, positive momentum, and the potential for significant growth.
What Are The Best Penny Stocks Canada Offers?
The following table summarizes the best penny stock in Canada in 2023:
|Hive Blockchain Technologies (TSX:HIVE)||Crypto mining company specializing in Bitcoin and Ethereum|
|5NPlus (TSX:VNP)||Specialty metals and chemical company|
|American Lithium Corp (CVE:LI)||Lithium exploration and development company|
|FOBI AI (TSXV:FOBI.V)||Provider of AI-based data solutions for the retail industry|
|Kodiak Copper Corp (TSXV: KDK)||Copper exploration and development company|
|OrganiGram Holdings (TSX:OGI)||Cannabis producer and distributor|
|Fortuna Silver Mines (TSX:FVI)||Precious metals mining company|
|Athabasca Oil Corporation (TSX:ATH)||Oil and gas exploration and production|
|Argonaut Gold (TSX:AR)||Gold mining and exploration company|
Let’s look at these stocks one at a time to see which are the most valuable and promising investments.
#1 Hive Blockchain Technologies (TSX:HIVE)
Hive Blockchain Technologies (TSX:HIVE) is a prominent player in the blockchain technology industry, recently gaining significant attention and popularity. As the first mining company to list publicly in Canada, Hive stands out as one of the top penny stocks in the country.
Headquartered in Vancouver, BC, Hive operates across North America and Scandinavian countries like Sweden and Iceland. The company benefits from Iceland's efficient green energy infrastructure and cooler temperatures, creating favorable conditions for crypto mining operations.
Hive focuses on mining major cryptocurrencies such as Bitcoin, Ethereum, and Ethereum Classic. With a substantial reserve of approximately $68 million worth of Bitcoin mined and stored as of November 2022, Hive's crypto assets continue to grow in value.
Additionally, Hive has made strategic investments in companies like DeFi Technologies and Network Media Group, the latter being a prominent brand in the non-fungible token (NFT) space. These investments expand Hive's potential revenue streams and diversify its portfolio.
One aspect to consider when investing in Hive is its correlation with the prices of Bitcoin and Ethereum. As the crypto market experiences fluctuations, Hive's stock price may also be affected. It's important to note that Hive's stock price may trade lower than usual in the current crypto market environment.
Features of TSX:HIVE
- Operates in the crypto mining industry: This strategic focus positions the company to benefit from these digital assets' increasing popularity and value. As the demand for cryptocurrencies grows, Hive stands to capitalize on its mining operations and potential price appreciation of Bitcoin and Ethereum.
- It mines major cryptocurrencies like Bitcoin and Ethereum: This offers access to a larger market, increased liquidity, stability, and the potential for long-term value appreciation compared to mining smaller or lesser-known cryptocurrencies.
- Extensive mining operations in North America and Scandinavian countries: Hive has established mining operations in key locations across North America and Scandinavian countries like Sweden and Iceland. These regions offer favorable conditions for crypto mining, including access to cost-effective and environmentally friendly energy sources.
- Strategic investments in companies within the blockchain and NFT sectors: Hive has significantly invested in companies operating within the blockchain and non-fungible token (NFT) sectors. This strategic approach allows Hive to expand its presence in the evolving blockchain ecosystem and capitalize on emerging opportunities.
Pros Of TSX:HIVE
- Pioneer in the Canadian crypto mining industry.
- Significant reserve of Bitcoin assets.
- Diversification through strategic investments.
- Potential for additional revenue streams.
Cons Of TSX:HIVE
- Stock price influenced by crypto market volatility.
- Dependency on the prices of Bitcoin and Ethereum.
- Current Share Price: $5.47 (as of June 26, 2023)
- Market Cap: $347.631M
- 52-week Trading Range: $1.85–9.70
TSX:HIVE is best suited for value investors interested in participating in the crypto mining industry and seeking exposure to major cryptocurrencies like Bitcoin and Ethereum.
#2 5NPlus (TSX:VNP)
5NPlus, founded in 2000 and headquartered in Montreal, is a leading producer of high-purity metals and chemicals in various industries, including pharmaceuticals, thin-film solar panels, LEDs, and semiconductors. The company operates globally with sales offices and manufacturing plants in Europe, America, and Asia.
One notable feature of 5NPlus is its specialization in engineering specialty metals and chemicals critical for industries such as semiconductors, solar cells in satellites, and medical imaging equipment. The company's emphasis on sustainability is evident through its utilization of recycled metals as raw materials, contributing to a more eco-friendly approach.
As a penny stock, 5NPlus has experienced fluctuations in its stock value, with a peak of $3.66 in April 2019, a dip to $1.12 in March 2020, and a current value of over $3 as of June 2023. Despite the impact of the COVID-19 pandemic on global revenue, 5NPlus has shown stability in recent months, making it an attractive option for investors interested in cheap Canadian stocks.
Features Of TSX:VNP
- Specializes in producing high-purity metals and chemicals for various industries.
- Global presence with sales offices and manufacturing plants in Europe, America, and Asia.
- Engineering specialty metals and chemicals critical for industries such as semiconductors, solar cells in satellites, and medical imaging equipment.
- Emphasis on sustainability by using recycled metals as raw materials.
Pros Of TSX:VNP
- Pioneer in producing high-purity metals and chemicals.
- Diversification through global operations and sales in Europe, America, and Asia.
- Emphasis on sustainability with the use of recycled metals as raw materials.
Cons Of TSX:VNP
- Market conditions and industry factors influence historical fluctuations in stock value.
- Vulnerability to economic downturns or disruptions in industries that rely on 5NPlus' specialty metals and chemicals.
- Current Share Price: $3.05 (as of June 26, 2023)
- Market Cap: $281.286M
- 52-week Trading Range: $1.26–3.90
TSX:VNP is ideal for investors seeking exposure to the specialty metals and chemicals sector, particularly those interested in the semiconductor, solar energy, and medical imaging industries.
#3 American Lithium Corp (CVE:LI)
American Lithium Corp (CVE:LI) is a Vancouver-based company that operates in the lithium industry. Lithium is crucial in rechargeable batteries for electric vehicles and electronic devices such as laptops and smartphones.
The global demand for lithium is rising, and American Lithium Corp is well-positioned to capitalize on this growing market. The company has a diverse geographical portfolio, including a recently acquired mine in Nevada.
It also has a history dating back to 1974 and projects like the Macusani uranium deposit in Peru. These factors make it an attractive investment opportunity in the lithium and uranium sectors.
Features Of CVE:LI
- It operates in the lithium industry, a crucial aspect of tech advancement, including military industrialization.
- Diverse geographical portfolio, including a recently acquired mine in Nevada.
- Long history in the industry, with operations dating back to 1974.
- Macusani project in Peru holds one of the largest undeveloped uranium deposits globally.
Pros Of CVE:LI
- Strategic positioning in the growing lithium and uranium sectors.
- Access to rich lithium resources in key mining jurisdictions.
- Potential for growth and value creation in response to increasing global demand for lithium and uranium.
- Diversification of the company's portfolio through involvement in multiple sectors.
Cons Of CVE:LI
- Commodity prices and regulatory changes influence volatility in the mining industry.
- Operational and logistical challenges inherent in lithium mining projects that may impact profitability.
- Current Share Price: $2.68(as of June 26, 2023)
- Market Cap: 574.954M
- 52-week Trading Range: $1.56–4.90
It's best for investors who seek exposure to the growing demand for lithium and uranium driven by electric vehicles and renewable energy.
#4 FOBI AI (TSXV:FOBI.V)
FOBI AI (TSXV:FOBI.V) is a data analytics company that utilizes real-time analytics, artificial intelligence, machine learning, and Internet of Things (IoT) integration to help businesses enhance efficiency, reduce costs, and improve margins.
With an impressive client list, including Shopify, Block, Lightspeed, and the AWS Partner Network, FOBI has established itself as a trusted provider in the industry. Clients can benefit from FOBI's API integration, enabling seamless integration into websites and software ecosystems and its digital wallet with NFC technology for payments and transactions.
Despite experiencing an initial surge following its IPO, FOBI's stock has seen a pullback from its previous highs. However, its resilience and innovative solutions make it an intriguing investment opportunity.
With its range of data intelligence services, automated marketing, contactless solutions, and contact tracking, FOBI AI has the potential to thrive in today's data-driven business landscape.
Features Of TSXV:FOBI.V
- Growth Potential: Investing in FOBI AI shares allows investors to benefit from the company's growth prospects in the data analytics sector. As FOBI AI continues to attract prominent clients and expand its market reach, there is potential for the stock price to increase over time.
- Technological Innovation: FOBI AI's integration of artificial intelligence, machine learning, and IoT technologies positions the company as an innovator in data analytics. Investing in FOBI AI shares offers exposure to these advanced technologies, which may drive future growth and market opportunities.
- Market Demand: The increasing need for real-time analytics and data-driven decision-making presents a favorable market environment for FOBI AI. Investing in their shares can benefit you from the rising demand for data analytics solutions, which may contribute to the company's success.
- Client Base and Partnerships: FOBI AI's impressive list of clients, including well-known brands, indicates the company's ability to attract and retain prominent customers. This strong client base and strategic partnerships can provide investors with potential stability and growth opportunities for investors in FOBI AI shares.
Pros Of TSXV:FOBI.V
- FOBI AI's focus on innovative technologies and its presence in the data analytics industry positions it for potential growth in the future.
- Investing in FOBI AI shares allows investors to gain exposure to advanced technologies like artificial intelligence and machine learning, which may drive future market opportunities.
- The increasing demand for data analytics solutions presents a favorable market environment for FOBI AI's growth potential.
Cons Of TSXV:FOBI.V
- Like many penny stocks, FOBI AI shares may experience price volatility influenced by market factors, investor sentiment, and industry trends.
- The data analytics industry is highly competitive, and FOBI AI faces competition from other players in the market.
- Current Share Price: $0.265 (as of June 26, 2023)
- Market Cap: $56.416M
- 52-week Trading Range: $0.195–0.670
Investors interested in the data analytics sector and seeking potential growth opportunities may find FOBI AI shares appealing.
#5 Kodiak Copper Corp (TSXV: KDK)
Kodiak Copper Corp is a Canadian mining company that explores and develops porphyry projects in Canada and the United States. Founded in 1987, the company has established itself as a leading player in the mining industry, focusing on copper and gold deposits.
Kodiak Copper Corp's flagship project is the MPD copper-gold porphyry project in the Quesnel Trough of southern British Columbia, Canada. This project covers an impressive area, extending approximately 950 meters in length, 350 meters in width, and 850 meters in depth. The MPD project has significant potential for the discovery of substantial mineral deposits.
While the company's stock price experienced fluctuations during the pandemic, analysts' forecasts for Kodiak Copper Corp are encouraging. With a positive market outlook, the future price predictions for KDK shares indicate potential growth of up to 147% from the current price.
Features Of TSXV: KDK
- Porphyry Project Portfolio: Kodiak Copper Corp primarily focuses on its projects, particularly the MPD copper-gold porphyry project. These projects have the potential for significant mineral deposits, making them attractive to investors seeking exposure to the mining industry.
- Growth Potential: Investing in KDK shares provides potential exposure to the growth prospects of Kodiak Copper Corp. As the company continues to explore and develop its porphyry projects, the stock price can increase as they obtain promising results.
- Favorable Market Forecasts: Analysts have provided encouraging forecasts for KDK shares, with a future price prediction indicating a potential increase of around 147% compared to the current price. These positive market forecasts may attract investors looking for potential gains.
Pros Of TSXV: KDK
- Kodiak Copper Corp's focus on porphyry projects presents the opportunity for significant mineral discoveries, which can positively impact the company's valuation and benefit investors.
- The demand for copper and gold remains strong, particularly in infrastructure, renewable energy, and electronics sectors. Investing in KDK shares allows investors to benefit from the rising demand for these metals.
- Kodiak Copper Corp's projects are strategically located in areas known for their mineral potential. Southern British Columbia, where the MPD project is, has a history of successful mining operations, which adds to the investment appeal.
Cons Of TSXV: KDK
- As with any mining company, there are inherent risks associated with exploration and development projects. Kodiak Copper Corp's success in discovering viable mineral deposits isn't guaranteed.
- KDK shares are subject to significant price volatility influenced by market conditions, commodity prices, and investor sentiment.
- Current Share Price: $0.80 (as of June 26, 2023)
- Market Cap: $45.945M
- 52-week Trading Range: $0.50–1.41
Investors interested in mining, specifically copper and gold exploration, may find Kodiak Copper Corp shares appealing.
#6 OrganiGram Holdings (TSX:OGI)
OrganiGram Holdings (TSX:OGI) is a licensed producer of cannabis and cannabis-related products. It initially focused on the medical cannabis industry and later expanded into the recreational market as federal legalization took place in Canada. The company offers a range of brands, including The Edison Cannabis Company, Indi, Bag O' Buds, SHRED, and Trailblazer.
While the stock experienced a significant decline from its all-time high of over $5/share in 2021, OrganiGram has maintained a healthy balance sheet with minimal debt. This positions the company as a potential candidate for acquiring other businesses in the cannabis sector as consolidation continues. The volatility of the Canadian cannabis sector presents both challenges and potential opportunities for investors.
OrganiGram's strategic position and potential short-term catalysts as the industry evolves make it a penny stock worth watching.
Features Of TSX:OGI
- Licensed Producer: OrganiGram Holdings is a licensed producer of cannabis and cannabis-related products in the medical and recreational sectors.
- Diverse Product Portfolio: The company offers a range of brands and products, including various strains of cannabis, pre-rolls, oils, edibles, and more, catering to different consumer preferences.
- Strong Balance Sheet: OrganiGram has a healthy balance sheet with minimal debt, providing financial stability and potential flexibility for future growth and strategic acquisitions.
- Established Sub-Brands: OrganiGram has launched sub-brands such as The Edison Cannabis Company, Indi, Bag O' Buds, SHRED, and Trailblazer, contributing to brand awareness and market presence.
Pros Of OrganiGram Holdings:
- Growth Potential: With the expanding cannabis market, OrganiGram can capitalize on increasing consumer demand in the medical and recreational sectors.
- Strategic Acquisitions: The company's strong balance sheet positions it favorably to consider strategic acquisitions and potentially consolidate within the cannabis industry.
- Focus on Quality: OrganiGram's emphasis on product quality and innovation can help differentiate it in the market and attract discerning consumers.
- Diverse Product Portfolio: The company's diverse range of products allows it to cater to different consumer preferences and target various segments of the cannabis market.
Cons of OrganiGram Holdings
- Volatile Industry: The cannabis industry can be highly volatile due to regulatory changes, market uncertainties, and competition, which can impact OrganiGram's stock performance.
- Regulatory Risks: Changes in cannabis regulations at the federal or provincial level can pose challenges and affect the company's operations.
- Market Competition: The cannabis sector is crowded and competitive, with numerous players vying for market share, which may impact OrganiGram's profitability and growth potential.
- Current Share Price: $0.515 (as of June 26, 2023)
- Market Cap: $172.707M
- 52-week Trading Range: $0.50–1.71
OrganiGram Holdings (TSX:OGI) may be best suited for investors interested in the cannabis sector and willing to take on the associated risks.
#7 Fortuna Silver Mines (TSX:FVI)
Fortuna Silver Mines (TSX:FVI) is a Vancouver-based mining company that extracts and produces silver and gold products. It has established itself as a prominent player in the precious metals industry with a portfolio of projects spanning South America and Mexico.
Since its founding in 1990, the company has built a reputation for its expertise in mining operations and its commitment to delivering value to its shareholders. Despite being classified as a penny stock, it has shown resilience and potential for growth, making it an intriguing option for investors interested in the silver and gold sectors.
Features Of TSX:FVI
- Focus on Silver and Gold: Fortuna Silver Mines specializes in extracting and producing silver and gold products, leveraging its projects in South America and Mexico.
- Established Mining Company: Founded in 1990, Fortuna Silver Mines has a long-standing presence in the mining industry, indicating its experience and expertise.
Pros Of TSX:FVI
- Despite being categorized as a penny stock, Fortuna Silver Mines has demonstrated outperformance compared to the broader market, with a modest positive return in 2022 and significant gains over the past year.
- Investing in Fortuna Silver Mines provides exposure to the silver and gold markets, which can be attractive during economic uncertainty and as a hedge against inflation.
Cons Of TSX:FVI
- As a penny stock, Fortuna Silver Mines' share price can exhibit volatility, subject to market conditions and fluctuations in the precious metals industry.
- The financial performance of Fortuna Silver Mines is influenced by the prices of silver and gold, which can be subject to considerable market volatility.
- Current Share Price: $4.05 (as of June 26, 2023)
- Market Cap: $1.388B
- 52-week Trading Range: $0.82–5.61
Fortuna Silver Mines (TSX:FVI) may be best suited for investors interested in gaining exposure to the silver and gold markets and are comfortable with the potential volatility of penny stocks.
#8 Athabasca Oil Corporation (TSX:ATH)
Athabasca Oil Corporation (TSX:ATH) is an energy company specializing in producing Light Oil and Thermal Oil. Yes, even energy stocks can be penny stocks.
The company has shown strong performance, with significant year-to-date gains and impressive returns over the past 52 weeks. However, it does not pay dividends to its shareholders.
Features Of TSX:ATH
Focus on Light Oil and Thermal Oil: Athabasca specializes in the production of light oil and thermal oil, offering exposure to different segments of the energy sector.
Top-tier Projects: The company operates several high-quality projects across Canada, contributing to its production and growth potential.
Trailing 12-Month Free Cash Flow: Athabasca reported a significant trailing 12-month free cash flow figure of $327 million, indicating a positive financial position.
Pros Of TSX:ATH
- Strong Performance: The stock has shown impressive performance, with an 83% increase in 2022 and a 102% return over the past 52 weeks.
- Growth Potential: Athabasca's focus on top-tier projects and positive cash flow position provides opportunities for further growth in the energy sector.
Cons Of TSX:ATH
- No Dividend Payouts: Athabasca Oil Corporation does not distribute dividends to its shareholders, unlike many other energy companies.
- Current Share Price: $2.64 (as of June 26, 2023)
- Market Cap: $1.725B
- 52-week Trading Range: $0.85–3.53
Athabasca Oil Corporation is best for investors seeking exposure to the energy sector and potential capital appreciation and doesn’t mind not receiving dividends from their investment.
#9 Argonaut Gold (TSX:AR)
Gold and other natural resources have long played a vital role in the Canadian stock market, thanks to the country's mineral-rich landscape that fosters a thriving mining sector.
Argonaut Gold is a Canadian mining company primarily operating internationally, focusing on mining gold in Mexico and Nevada. As a mid-tier gold miner, the company aims to process a substantial amount of gold annually, ranging from 300,000 to 500,000 ounces.
Features Gold (TSX:AR)
- Gold Mining Operations: Argonaut Gold specializes in gold mining and has a strong presence in gold-rich regions.
- International Operations: The company's mining activities extend beyond Canada, with operations in Mexico and Nevada, providing geographical diversification.
- Mid-Tier Status: Argonaut Gold is classified as a mid-tier gold miner, indicating its position between junior exploration companies and large-scale mining corporations.
Pros of Argonaut Gold (TSX:AR)
- Production Potential: The company's focus on processing significant gold annually(300,000 to 500,000 ounces) demonstrates its production and revenue generation potential.
- International Presence: Argonaut Gold taps into geographically diverse mining opportunities by operating in countries like Mexico and Nevada.
- Strong Resource Base: With its access to mineral-rich regions, the company has a robust resource base to support its operations and growth.
Cons Of Argonaut Gold (TSX:AR)
- No Dividend Payouts: Unlike some other mining companies, Argonaut Gold does not pay dividends to its shareholders, which may impact investor preference for cash flow-oriented investments.
- Current Share Price: $0.53 (as of June 26, 2023)
- Market Cap: $518.461M
- 52-week Trading Range: $0.33–1.11
Argonaut Gold (TSX:AR) is best suited for investors looking to capitalize on the potential of the gold mining sector. However, investors interested in dividend income may find other options more suitable due to the lack of dividend payouts by Argonaut Gold.
What Are Penny Stocks?
Penny stocks, also known as microcaps or pink sheets, are stocks that trade on the public markets with a low market capitalization and a share price typically below $5. While “penny stocks” may have originated from stocks trading for less than $1 in the past, the current definition encompasses stocks traded for less than $5 per share.
These stocks are often considered cheap and inexpensive but have a higher risk than established stocks. Penny stocks mainly trade on the Over-The-Counter (OTC) markets rather than major exchanges like the NASDAQ or the New York Stock Exchange in the US.
In Canada, where there is no official OTC market, Canadian penny stocks still trade on the Toronto Stock Exchange or other Canadian exchanges. The market capitalization of penny stocks typically falls within the range of $50 million to $300 million, classifying them as microcap companies. They are often young, small businesses, including startups, with limited evidence of a successful business model. These companies may lack substantial cash reserves and rely heavily on debt financing or unproven technologies to drive their growth.
Pros And Cons Of Investing In Penny Stocks
Investing in penny stocks has benefits and risks. Here are some of the pros and cons you should be aware of.
- Low Cost: Penny stocks trade below $5 per share. This makes them accessible to investors with limited capital.
- Potential for Higher Returns: Due to their low prices, stock prices can increase significantly, potentially resulting in higher returns.
- Multi-bagger Potential: Some penny stocks have the potential to become multi-baggers, meaning they can yield returns that are multiples of the initial investment. These stocks can significantly enhance the return prospects of an investment portfolio. Conducting thorough research is crucial to identify penny stocks with multi-bagger potential.
- Unpredictable Pricing: Penny stocks can experience unexpected pricing fluctuations. This can lead to lower or non-existent profit margins and significant profits if the stock price surpasses the initial investment cost.
- Lack of Prior Knowledge: Many penny stock companies have limited historical data, making it difficult to assess their past performance and level of risk.
- Lack of Openness and Minimum Standards: Penny stocks are not required to file reports with regulatory authorities, and professional stock analysts may not cover them. This lack of information can make it challenging for investors to gather sufficient materials for making informed investment decisions. Furthermore, penny stocks may not have to meet specific minimum standards for listing on major exchanges.
Penny Stock Vs. Regular Stock
One of the primary distinctions between penny and regular stocks lies in their price range. Penny stocks trade at significantly lower prices compared to regular stocks.
In addition, penny stocks often have smaller market capitalizations and lower trading volumes, resulting in lower liquidity. This lower liquidity contributes to heightened price volatility and increased fluctuations in penny stocks compared to large-cap stocks.
Investing in penny stocks can be rewarding for adventurous investors with a high-risk appetite. These stocks offer the potential for significant returns but also have an increased vulnerability to manipulative practices and scams.
Therefore, you must exercise caution, conduct thorough research, and diversify your portfolios to mitigate risks. While penny stocks can be a part of an investment strategy, we recommend you rely on something other than them and allocate investments across a range of safer and more stable assets. You can navigate this volatile market with greater confidence and potential for long-term success by approaching penny stocks with a balanced perspective and a diversified portfolio.
Penny Stocks FAQs
How do I buy penny stocks in Canada?
To buy penny stocks in Canada, you would follow a similar process as buying regular stocks. You can open an account with a brokerage firm that offers access to the Canadian stock market, such as a discount brokerage or an online trading platform. Wealthsimple and Questrade are, so far, the best.
Once your account is set up, you can search for penny stocks using their ticker symbols or company names and place buy orders for the desired shares.
How do I find penny stocks in Canada?
You can use various stock screeners available in the market to find Canadian penny stocks. These screeners allow you to filter stocks based on specific criteria, including price range, market capitalization, and sector.
Also, as we mentioned earlier, the Toronto Stock Exchange is home to many penny stocks, with approximately 80% of stocks trading below $5.00 per share. This provides ample opportunities to identify Canadian penny stocks for your investment portfolio.
To begin your search, you can open an account with a reputable brokerage platform like Wealthsimple, Questrade, or Qtrade, which offer access to Canadian penny stocks.
Once you have access, research the companies you are considering before buying their stock.
Can I buy penny stocks on the TSX?
Yes, you can buy penny stocks on the TSX. While most penny stocks are traded on other exchanges like the Canadian Venture Exchange, cheaply priced stocks are still available on the TSX.
However, penny stocks listed on the TSX are generally more regulated than those on venture exchanges, offering a degree of safety. Many of the top penny stocks mentioned in this article are listed on the TSX.
Can I get rich off penny stocks?
While getting rich off any investment is possible, the odds of achieving substantial wealth through penny stocks may be lower. You should approach penny stocks cautiously and treat them like lottery tickets.
While anyone can potentially strike it big, the reality is that most investors won't with penny stocks because they carry significant risks.
How long should I hold penny stocks?
When it comes to penny stocks, the holding period can vary significantly from traditional long-term investing strategies.
Typically, common advice suggests holding a penny stock for up to six months. Sometimes, investors may even recommend holding them for as little as seconds. The rationale behind such quick selling is to capture a small gain, even if it's just a few pennies. As soon as the stock reaches a desired price point, investors often choose to sell, regardless of the timeframe involved, whether minutes, hours, or days.
Are penny stocks good for beginners?
NO! We do not recommend penny stocks for beginners. Engaging in penny stock trading is considered an advanced method that requires a certain level of knowledge about market dynamics.
If you are beginning your investing journey, we advise you to start by buying large-cap stocks or ETFs (Exchange-Traded Funds) before delving into penny stocks. This approach allows you to familiarize yourself with the basics of investing and gain exposure to more established and stable companies. That way, you can build a solid foundation of investing knowledge and experience before considering penny stocks' higher risk and volatility.