Best Penny Stocks Canada

The Best Penny Stocks in Canada for 2022

Several investors have a single trading strategy, while others have more than one. Some may focus on growth companies. Others focus on dividend-paying companies. There are a few investors who consider themselves to be penny stock traders as well.

In this Wealth Rocket article, we’ll explore the best penny stocks in Canada, with additional information covering everything new beginners need to know before they delve into trading penny stocks.

10 of the Best Penny Stocks in Canada to buy now

While there is no best stock to invest in, we’ve found some hot Canadian penny stocks to watch.

Remember, all investors should do their due diligence before making any form of investment, as the stocks below are highly speculative compared to large Canadian dividend-paying stocks.

Here’s what we consider to be the best penny stocks in Canada:

  1. 5NPlus (VNP)
  2. American Lithium Corp (LI)
  3. CloudMD Software & Services (DOC)
  4. Drone Delivery Canada (FLT)
  5. Exro Technologies (EXRO)
  6. Good Natured Products (GDNP)
  7. Hight Tide (HITI)
  8. Numinus Wellness (NUMI)
  9. Hive Blockchain (HIVE)
  10. Ventripoint Diagnostics (VENTRI)

Table of Contents

Best Trading Platforms for Canadians

QuestradeLogo
Start investing today with a complimentary $50 in free trades for any account activation of $1,000 or more.
WealthsimpleLogo

Get a $50 bonus when you open and fund your first Wealthsimple Invest account* (min. $500 initial deposit).

Let's take a closer look at the best Canadian penny stocks to buy right now:

1. 5N Plus

Symbol: VNP

Price:$2.21*

The first in our list of Canandian penny stocks is Montreal-based 5N Plus produces engineered materials and specialty chemicals for customers in the Americas, Europe, and Asia. The company’s products are essential components in creating smartphones, detectors for medical imaging, and solar cells for satellites. This is a stock that trades on the TSX. Its price ranged between $2.21 to $5.01 over the last 12 months.

2. American Lithium Corp

Symbol: LI

Price:$5.05*

Located in Vancouver, British Columbia, American Lithium engages in the purchase, exploration, and development of lithium resources in the Americas. The company is currently exploring and developing a project in Nevada and recently acquired some real estate there. Lithium is a key component for rechargeable batteries in electric cars. American Lithium is among the top Canadian penny stocks to buy in 2021 as its shares have traded between $1.06 and $6.25 over the last 12 months.

3. CloudMD Software & Services

Symbol: DOC

Price:$1.21*

Among the best penny stocks to buy now in Canada is Vancouver-based CloudMD. It offers health technology solutions to medical clinics in North America that allows patients to see a doctor through an app on their phone or computer. The company provides services to more than 500 clinics and 4,000 licensed practitioners. Over the last 12 months, CloudMD’s stock has traded between $1.18 and $3.25. A stand-out among Canadian penny stocks.

4. Drone Delivery Canada

Symbol: FLT

Price:$0.82*

If you're thinking of investing in a tech company's penny stock in Canada, consider Drone Delivery Canada. This Vaughan, Ontario-based company focuses on designing, developing, and implementing a logistics software platform for using drones. Its platform uses a Software as a Service (SaaS) model for governments and organizations worldwide. The stock price has ranged between $0.85 and $2.55 over the last 12 months.

5. Exro Technologies

Symbol: EXRO

Price:$3.18*

For those with an environment-friendly bent of mind, Exro is worth considering as one of the top Canadian penny stocks to buy in 2021. Exro is a clean technology company based in Vancouver, British Columbia that has developed control technology to expand the capabilities of batteries, electric motors, and generators. In other words, its technology enables applications to achieve more while also using less energy. In the last 12 months, the stock has traded between $2.56 and $7.55.

6. Good Natured Products

Symbol: GDNP

Price:$0.80*

Next on our list of best Canadian penny stocks is Good Natured Products. This company is based in Vancouver and creates products out of plant-based materials. Some of its products include food packaging, compostable takeout containers and cutlery, and recycling containers. The stock price has ranged between $0.63 and $1.98 over the past 12 months.

7. High Tide

Symbol: HITI

Price:$7.44*

Here's another Canadian penny stock to buy in 2021. Calgary’s High Tide is a cannabis retailer with stores in Alberta, Manitoba, Ontario, and Saskatchewan. The company’s stores feature the Canna Cabana, KushBar, Meta Cannabis Co, NewLeaf Cannabis, and Meta Cannabis Supply Co. banners. Over the last 12 months, the stock has traded between $2.47 and $16.95. We hope your investments "fly high" with this one!

8. Numinus Wellness

Symbol: NUMI

Price:$0.59*

Most of us have been focusing on our mental health & wellness since the Covid-19 pandemic. So it is no surprise that this wellness company is in our list of best penny stocks in Canada. This Vancouver-based company focuses on using psychedelics for treating mental illness, substance abuse, and trauma. The company expects that safe, legal access will become available to treat those conditions in the future. The stock price has ranged between $0.58 and $2.45 over the last 12 months.

9. Hive Blockchain Technologies

Symbol: HIVE

Price:$4.59*

If you’ve ever delved into the world of cryptocurrency, then you know what cyrpto mining is. Hive Blockchain Technologies is the first publicly traded crypto mining company. They are big of sustainability and claim that they use 100% green power (solar, wind, hydroelectric energy or a combination of the three). Before investing in this Canadian crypto company, be careful to make sure that you are investing in genuine HIVE stocks, and not scammers pretending to be a financial services company of the same name.

10. Ventripoint Diagnostics

Symbol: VPT

Price:$0.34*

Last but not least, we have Toronto-based Ventripoint which produces a heart analysis system that combines artificial intelligence with echocardiography (an ultrasound of the heart). The device provides accurate heart measurements that are equivalent to an MRI without having to use one. The stock has traded between $0.065 and $0.67 over the last 12 months. Consider putting this in your Canadian penny stock portfolio.

*As of closing time on December 1, 2021

Keep in mind that not all penny stocks have revenue or produce positive cash flow. When evaluating penny stocks to buy, it’s different than evaluating large cap stocks because they’ll have a longer track record and can be easier to compare with one another.

What are Penny Stocks?

Penny stocks are stocks typically traded at less than $1 each, although many investors consider stocks that trade for less than $5 apiece to be penny stocks.

Most companies whose shares trade at less than $5 each aren’t usually well known. They’re often small companies in terms of market capitalization and don’t have a lot of trade volume. However, there are some exceptions to the rule.

In Canada, penny stocks trade on the Toronto Stock Exchange (TSX), TSX Venture Exchange, Canadian Securities Exchange, and NEO Exchange.

In the U.S., they trade on the New York Stock Exchange (NYSE), Nasdaq, the Over-The-Counter Bulletin Board (OTCBB), and Pink Sheets.

While penny stocks do trade on larger exchanges like the TSX and NYSE, they’re usually associated with smaller and lesser-known exchanges.

When a Canadian publicly-traded company grows large enough, it typically graduates by moving to the TSX from the TSX Venture Exchange.

A company will move to the TSX to increase liquidity, to improve the chances of receiving analyst coverage, and to raise its profile among small and large investors.

How Are Penny Stocks Different from Regular Stocks?

Penny stocks usually trade below $5 each, while regular stocks trade for $5 or more. Regular stocks also tend to trade on larger exchanges such as the TSX, NYSE, and Nasdaq. They rarely trade on small exchanges.

Penny stocks may have higher volume than regular stocks. For instance, it’s common to see penny stocks among the top 10 most active stocks on the TSX on any given day.

However, some of the less popular penny stocks don’t have a large trading volume or may have no volume for many days in a row.

Depending on what exchange a stock trades, the listing requirements vary. For instance, the disclosure requirements and corporate governance requirements for TSX-listed companies are stricter than those listed on the TSX Venture Exchange.

Companies listed on the NYSE and Nasdaq also face a lot more regulation than they would if they traded on other exchanges. Even firms that trade on the OTCBB have to file financial statements with the Securities and Exchange Commission (SEC ). However, companies listed on the Pink Sheets don’t have to make SEC filings.

Like other traders, those that trade penny stocks may be in it for the short-term or long-term investors. Because penny stocks can be a lot more volatile, there’s the opportunity to make large sums of money in a shorter period of time. There’s also the potential to lose a lot of money very quickly, too.

Where to buy the best penny stocks in Canada

There are multiple exchanges to choose from, but these are our favourites:

Questrade

Sign-up Bonus

$50

Fees

1¢ / share

Avg MER

0.1% - 0.13%

Min. Investment

$1,000

On Questrade Website

Wealthsimple

Sign-up Bonus

$100

Fees

0.4% - 0.5%

Avg MER

0.2%

Min. Investment

$0

On Wealthsimple Website

Wealthsimple Logo
4.3/5

Sign-up Bonus

$100

Avg MER

0.2%

Fees

0.4% - 0.5%

Min. Investment

None

Is it safe to invest in penny stocks?

Yes and No. Penny stocks are often considered high risk, meaning that there is a chance you may lose your investments. First, they’re often quite volatile and can rise or fall in value by a large percentage in a single day. A $1 decrease for a $100 stock is a 1% loss, while a $1 decrease for a $2 stock is a 50% loss.

Second, some companies may be dependent on a few customers or one product. That can leave them susceptible to a drop in business if one of those customers leaves or a competitor releases a better product.

Third, penny stocks are easy to manipulate by other investors or employees.

Some may be promoting stocks in newsletters and on social media, passing it off as investment advice and hoping others will buy.

As the stock rises, the promoters get out before the stock drops. In other cases, fraud isn’t off the table, and investors may hold on until it’s too late. That’s what happened to Bre-X investors in 1997.

Tips on safely investing in Canadian penny stocks

To safely invest in penny stocks in Canada, you will first have to figure out your investment goals. Are you in it for the short run or the long run?

For long-term investors, it is best to look for penny stocks that offer consistent growth over many years and are less volatile. You could also create a balanced portfolio of penny stocks from several different industries rather than sticking to one or two. The best penny stocks in Canada are those that perform well over longer periods of 3-5 years. So be sure to check their historical performance before making an investment.

For short-term investors, it is best to look for which industries or sectors are trending at the moment and invest accordingly. Keep in mind that short-term investments are riskier and therefore using disposable capital (not your hard earned savings) is recommended.

It is always wise to speak to your trusted financial advisor or service before making any decisions.

Penny Stocks Pros & Cons

Pros: The Good Stuff

Logo Potential for quick growth

Logo Low offer price

Cons: The Not So Good Stuff

Logo Highly volatile

Logo High risk

Logo Open to stock manipulation and fraud

Our Final Thoughts

Penny stocks aren’t for the faint of heart. They can be both risky and volatile. Before buying any stock, you have to do some in-depth research. If you’re a new investor, penny stocks probably aren’t for you.

As a Canadian, there are many other instruments you can invest in including mutual funds, commodities, ETFs, GICs, and more whichmay be more suited to your needs. 

Frequently Asked Questions

Penny stocks aren’t ideal for those who are new to investing in the stock market. They may have low trading volume, which means they can be difficult to sell. Penny stocks can also be quite volatile, as an increase or decrease of 10% or more in a day isn’t unlikely.

If you want to invest in penny stocks, they should make up a small portion of your portfolio. It’s best only to invest an amount you can afford to lose.

You shouldn’t be investing a large chunk of your retirement savings in penny stocks.

By nature, penny stocks are from companies that are small or unproven. The prospect of long-term success is questionable, and therefore, their stocks are riskier and cheaper than more robust companies. Their cheap price is the reason why many scamsters use it as a way to lure unsuspecting investors. So it is important to be careful and invest in only those stocks which are listed on well-known exchanges and have a good reputation.

You can buy penny stocks on a number of different exchanges, such as the Toronto Stock Exchange (TSX), TSX Venture Exchange, or the Canadian Securities Exchange.

To trade penny stocks, you need to have an online brokerage account. You’ll likely want to use a broker that charges a low commission or no commission at all since fees will eat into your overall returns.

You’ll also want a brokerage that offers real-time quotes as the price of penny stocks can fluctuate wildly throughout the trading day.

That depends entirely on the penny stocks you invest in, when you invest and when you exit. Therefore, it is important to do your research on the best penny stocks in Canada, checking their performance over 3-5 years before investing. If market conditions are in your favour, you may be able to double your investment capital within a year. But as with all investments, penny stocks too are prone to risks, and so there is no guarantee that penny stocks will give you the returns you are looking for.