Best Penny Stocks Canada

15 of 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 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)
  11. Hamilton Thorne (HTL)
  12. Xebec Adsorption (XBC)
  13. Quisitive Technologies (QUIS)
  14. FOBI AI (FOBI)
  15. RESAAS Services (RSS)

Table of Contents

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

1. 5N Plus

Symbol: VNP

Exchange: TSE

Price:$2.15*

52-wk high: $4.34

52-wk low: $1.97

Market Cap: $190.06M

The first in our list of Canadian 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 $4.34 and $1.97 over the last 12 months.

2. American Lithium Corp

Symbol: LI

Exchange: CVE

Price:$3.30*

52-wk high: $6.25

52-wk low: $1.50

Market Cap: $719.56M

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 $1.50 and $6.25 over the last 12 months.

3. CloudMD Software & Services

Symbol: DOC

Exchange: CVE

Price:$0.64*

52-wk high: $2.35

52-wk low: $0.61

Market Cap: $195.00M

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 $0.61 and $2.35. A stand-out among Canadian penny stocks.

4. Drone Delivery Canada

Symbol: FLT

Exchange: CVE

Price:0.82*

52-wk high: $1.52

52-wk low: $0.57

Market Cap: $130.00M

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 $0.57 and $1.52 over the last 12 months.

5. Exro Technologies

Symbol: EXRO

Exchange: CVE

Price:$1.41*

52-wk high: $4.90

52-wk low: $1.16

Market Cap: $198.29M

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 $1.16 and $4.90.

6. Good Natured Products

Symbol: GDNP

Exchange: CVE

Price:$0.4850*

52-wk high: $1.28

52-wk low: $0.48

Market Cap: $105.48M

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 $0.48 and $1.28 over the past 12 months.

7. High Tide

Symbol: HITI

Exchange: CVE

Price:$7.44*

52-wk high: $11.95

52-wk low: $4.65

Market Cap: $292.1M

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 $4.65 and $11.95. We hope your investments "fly high" with this one!

8. Numinus Wellness

Symbol: NUMI

Exchange: TSE

Price:$0.47*

52-wk high: $1.25

52-wk low: $0.44

Market Cap: $95.77M

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 $0.44 and $1.25 over the last 12 months.

9. Hive Blockchain Technologies

Symbol: HIVE

Exchange: CVE

Price:$2.06*

52-wk high: $6.57

52-wk low: $1.91

Market Cap: $886.54M

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.The stock prices has ranged between $1.91 and $6.57 over the last year.

10. Ventripoint Diagnostics

Symbol: VPT

Exchange: CVE

Price:$0.36*

52-wk high: $0.66

52-wk low: $0.22

Market Cap: $56.8M

Next, 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 $0.36 and $0.66 over the last twelve months. Consider putting this in your Canadian penny stock portfolio.

11. Hamilton Thorne

Symbol: HTL

Exchange: CVE

Price:$1.76*

52-wk high: $2.20

52-wk low: $1.60

Market Cap: $265.03M

Hamilton Thorne is another great tech related penny stock you can consider investing in. It is US based company that has grown into a leader within a niche market selling precision laser and medical diagnostic tools to customers world-wide. This stock has traded between $1.60 and $2.20 over the last twelve months.

12. Xebec Adsorption

Symbol: XBC

Exchange: TSX

Price:$1.76*

52-wk high: $5.38

52-wk low: $

Market Cap: $347.88M

Xebec Adsorption is a clean-tech solutions company delivering clean-tech systems and solutions including on-site hydrogen/nitrogen generation and gas purification It has a global reach and deals primarily with industrial clients. The company has been in operation since 1967 but the recent global interest in greener technologies could put this stock on a path to rapid growth. Xebec Adsorption has traded between $5.38 and $1.37 over the last twelve months.

13. Quisitive Technology Solutions

Symbol: QUIS

Exchange: CVE

Price:$0.86*

52-wk high: $1.87

52-wk low: $0.64

Market Cap: $350.83M

Quisitive provides cloud solutions and payments solutions as a premier, global Microsoft partner. With offices in Canada, the United States and India they serve customers in the financial, technology, retail and payments sectors. In the last year the company has traded between $0.64 and $1.87.

14. Fobi AI Inc.

Symbol: FOBI

Exchange: CVE

Price:$0.76*

52-wk high: $3.93

52-wk low: $0.56

Market Cap: $115.43M

FOBI AI is a data intelligence company that leverages IoT, insights, coupons and wallet passes and integrates them into their customer’s existing infrastructure. They work with global clients in the retail, CPG, sports and entertainment and hospitality and tourism sectors. Over the last twelve months, FOBI AI stock has gone from a low of $0.56 to a high of $3.93.

15. RESAAS Services Inc.

Symbol: RSS

Exchange: CVE

Price:$0.56*

52-wk high: $170

52-wk low: $0.30

Market Cap: $45.50M

Based in Vancouver, RESAAS Services provides a technology platform that delivers real-time communications, transactions, and data to the real estate industry. The company sells to brokerages, franchises and MSLs across the globe. It has gone from a low of $0.30 to a high of $1.70 over the last twelve months.

*As of closing time on April 2022

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 ExchangeCanadian 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. The TSX Venture Exchange was previously known as the Canadian Venture Exchange (CVE) and the exchange will be listed by it’s short form CVE in stock searches.

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.

Penny Stocks Vs. Regular Stocks

Like other traders, those that trade penny stocks may be in it as a short-term or long-term investment. Because penny stocks can be much more volatile than regular stocks, there is the opportunity to make large sums of money in a shorter period of time. There is also the potential to lose a lot of money very quickly, too. Which investment is right for you – penny or regular stocks – depends on several factors including pricing, volatility, risk and research.

It is easier to get into investing with penny stocks as they are often far less expensive than regular stocks. You can get started with just a few hundred dollars. However, penny stocks are usually priced low for a reason. The company selling them may be facing financial, legal or repuatational issues. But it could also be a new company looking to finance growth potential or an established company that has had some troubles and has a potential to rebound. The trick is to find out which applies to the company you want to invest in.

 

Because of their volatility penny stocks are considered a far riskier investment than regular stocks. Because most penny stocks are highly speculative, even a minor piece of news can quickly impact the stock price. This usually doesn’t happen with regular stocks. Before you decide whether to invest in penny stocks or regular stocks, know your appetite for volatility and your ability to absorb a loss.

As with any stock purchase you will want to do your due diligence with a penny stock and find out what you can about the company before you buy a piece of it. However, penny stocks can be more challenging to research than regular stocks. These are of stocks usually associated with smaller companies so there may not be a website and if they are new – and many are – there may not be historical data you can use. If penny stocks are traded on the main stock exchanges such as the TSE, they do have to follow exchange rules and will provide minimal information.

Penny Stocks vs. Nano or Micro-Cap Stocks

Nano or micro-cap stocks are forms of penny stocks that are differentiated by the size of their market capitalization, often referred to as market cap. Market cap is the total worth of a company and is calculated by multiplying the outstanding shares by the current price of those shares. It generally corresponds to where a company is in terms of growth. Larger cap stocks are generally less risky but may also offer less return.

Nano-cap stocks usually have a market cap of less than $50 million but that number can vary slightly depending on the analyst discussing it. Micro-cap stocks have a slightly larger and generally have a market cap of between $50 million and $300 million.

How to find penny stocks before they explode

Finding good investments of any kind takes time and effort. However, finding good penny stocks can be even more difficult. Be wary of salespeople or stock promoters who try to sell you the next greatest penny stock. They often exaggerate or overstate the company’s potential and may also attempt to push you into buying quickly before you have enough time to assess the purchase. Similarly, you should avoid buying a stock because your friend, co-worker or relative heard that it would be an amazing buy.

That said, there are a few methods you can use to find penny stocks. Penny stocks are promoted via various investor and market sites as well as on sites such as Reddit and news sites. Even financial magazines often make it a point to do periodic articles listing available penny stocks they consider to be good investments.

Start by researching penny stock lists and the companies on those lists. The more information you can gather, the higher the probability that you will make a good investment. And remember that wherever you choose to start, be sure the site is legitimate and confirm the information you get with another equally reputable source. Finally, you can also find penny stocks by searching through the TSE lists for stocks trading at less than $5 per share.

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

$50

Fees

0.4% - 0.5%

Avg MER

0.2%

Min. Investment

$0

On Wealthsimple Website

Wealthsimple Logo
4.3/5

Sign-up Bonus

$50

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.