Best Penny Stocks Canada 2024
When you hear the words “penny stocks”, it’s likely that the image in your mind isn’t a pleasant one. However, penny stocks still draw the attention of many new investors.
In the age of apps like Robinhood, penny stocks make it easy for people to access the stock market game due to their low price. While the price for these stocks is actually more like several hundred pennies, it’s much lower than the cost of a share of Netflix or Apple.
Penny stocks are those that are usually $5 or less, are issued by companies with a low market capitalization, and are usually not traded on the major stock market exchanges due to the fact they may be newly formed companies, are part of emerging industries or have uncertain financials.
That being said, although extremely low cost, penny stocks come at the high price of extreme volatility. Sure, you could hit the jackpot if you get lucky with the right penny stock pick, but the chances of that happening are just as likely, if not less likely, than winning the lottery.
So, although the MDJ editorial team does not recommend penny stock picking as a wise investment strategy, for those looking for a thrill, here are the top 10 penny stocks to buy in Canada in 2024.
Our 2024 List of Top Canadian Penny Stocks
In no particular order, here are our Top 10 Penny Stocks in Canada (determined by some wild and wacky internet sleuthing, and a whole lot of guesswork).
Imagine Lithium Inc. (ILI:CA)
This penny stock tops our list because lithium, a highly reactive precious metal used in everything from rechargeable batteries to pacemakers, is in high demand. With the electric vehicle market booming, this demand is expected to grow 13.5% over the next 5 years.
Imagine lithium is a junior mining exploration company, which holds the Jackpot lithium property in Ontario. Imagine Lithium’s other project, is located in Red Lake District, also in Ontario.
ILI:CA is currently trading at $0.08.Its 52 week high/low swung between $0.05 and $0.15.
With big drill projects currently underway and more to come, this one could be a good bet.
K9 Gold Corp. (KNC:CA)
In times of high inflation like we’re experiencing at the moment, some investors consider it wise to shift more of their portfolio to gold. Considering gold prices are up 10% this year, it just might be the right time to do the same if you haven’t already.
In a recent article by the Globe and Mail, K9 Gold Corp. was named as one of the top 25 undervalued stocks listed on the TSX.
With two mining projects, one in Central Newfoundland and one is Utah, K9 Gold Corp. has access to thousands of mineral and metal-rich land.
KNC:CA is currently trading at $0.025. Its 52 week high/low swung between $0.025 and $0.145.
You can also read our guides for investing in gold and the best mining stocks in Canada before you make a decision.
ATW Tech Inc. (ATQ:CA)
If investing in technology is more your style, this tech penny stock might be for you. ATW Tech Inc., headquartered in Montreal, is a company that provides advanced technologies such as text analytics, digital voting and interactive telecommunication solutions.
ATW Tech’s companies include Semeon Analytics, VoxTel and Option.vote. Last year, ATW Tech announced plans to acquire companies developing AI, data analytics and public safety softwares.
ATQ:CA is currently trading at $0.025. Its 52 week high/low swung between $0.025 and $0.09. See how this stock compares to the best tech stocks in Canada.
FuelPositive Corp. (NHHH:CA)
FuelPositive Corp. is a company committed to creating green energy solutions, including an impressive onsite, containerized Green Ammonia system. This one of a kind, patented technology was developed in Canada. It will begin batch manufacturing its systems later this year.
Its portfolio also includes supercapacitor technology and other emission-free technologies.
NHHH:CA is currently trading at $0.095. Its 52 week high/low swung between $0.07 and $0.23.
Camino Minerals Corp. (COR:CA)
Camino Minerals Corp. specialises in mining copper and currently has three large-scale mining projects in Peru.
Copper has a wide range of uses in technology, including telecommunication and electric vehicles. Other renewable energies such as wind energy and solar energy rely on copper to produce power. Its uses don’t stop there. Copper can also be used in the medical and even textile industries due to its antimicrobial properties.
COR:CA is currently trading at $0.09. Its 52 week high/low swung between $0.03 and $0.12
Good Natured Products (GDNP:TSXV)
If green energy is appealing to you, then Good Natured Products will likely be right up your alley. This company specializes in creating bioplastics that have a wide range of applications.
The company produces more than 350 products and has been operating for the last 8 years, and is headquartered in Ontario.
Earlier this year, Good Natured Products announced a contract with a snack food retailer that distributes their products in stores across Texas. If this goes well, it could be great news for stockholders.
GDNP:TSXV is currently trading at $0.14. Its 52 week high/low swung between $0.12 and $0.46.
Exro Technologies (EXRO:TSX)
Another clean technology company on our top penny stocks list is Exro Technologies. This company develops technology that helps optimise energy use for electric motors and batteries.
The company, based in Vancouver, is on a mission to make machines more energy efficient. One of its most impressive products, the Coil Driver, has the potential to replace three components which are currently needed to power electric vehicles.
EXRO:TSX is currently trading at $2.07. Its 52 week high/low swung between $0.73 and $3.055.
Hive Blockchain Technologies (HIVE:TSX)
Blockchain technology is used to conduct a range of business and tasks, such as to help banks to save money on transfers, help investors buy and sell cryptocurrency, and even help create smart contracts.
Its applications are constantly evolving and it’s likely blockchain will continue to be integrated into our everyday lives.
Hive Blockchain Technologies is one of the best penny stocks to buy in Canada due to the fact that it has more than doubled in price since the start of 2023. When compared to other blockchain companies, it might be more likely to weather out market storms because of its impressive financials.
It might also be appealing for some that Hive operates using green energy-powered data centers.
HIVE:TSX is currently trading at $4.42. Its 52 week high/low swung between $0.12 and $9.70.
Neo Battery Materials Ltd. (NMB:CA)
This Vancouver based company manufactures silicon materials for lithium-ion batteries in electric vehicles. When used in electric vehicles, Neo’s silicon materials can help the batteries run longer, and with more power, improving overall efficiency.
The company is in the final stages of building its production plant in South Korea, which will no doubt improve their output capabilities significantly.
NMB:CA is currently trading at $0.42. Its 52 week high/low swung between $0.12 and $0.50.
American Lithium Corp. (LI:CA)
Like Imagine Lithium Inc., American Lithium Corp. is a mining company focusing on the extraction of lithium.
It has three major mining projects. One is a near surface project located in Nevada, and the other two are located in Peru. Its Macusani project in Peru is reported to be one of the world’s largest and lowest cost uranium projects.
The global market size for lithium was valued at 7.49 billion in 2022 and is expected to grow more than 10% over the next 7 years.
NMB:CA is currently trading at $2.75. Its 52 week high/low swung between $1.555 and $4.90.
What is a Penny Stock?
There isn’t a dictionary definition of a penny stock but typically, a stock is considered a penny stock if:
1) Its price is below $5
2) Has a market capitalization below $300 Million
3) Traded on venture exchanges or over-the-counter on bulletin boards rather than on major stock exchanges.
Penny stocks are very risky investments. They are usually issued by small companies that are in volatile and highly speculative industries. It can even be difficult to classify investing in penny stocks as investing. It is probably more akin to gambling or playing the lottery.
But, the allure of striking it rich with a penny stock that “goes 20x” in price is strong. So many folks want to know where and how to find the next great penny stocks in Canada.
Trading Penny Stocks in Canada
The simplest way to access penny stocks in Canada is through the TSX Venture Exchange. The top discount brokers and trading apps like Qtrade, Questrade, and Wealthsimple Trade all offer access to the TSX Venture Exchange. This makes buying and selling penny stocks online very easy.
Broker | MDJ Score | ETF Comissions | Trading Fees | Description | Promotion | Learn More |
 Qtrade |
| FREE buying and selling of 100+ ETFs | $8.75 ($6.95 elite accounts) | Canada’s Best Overall Broker - Buy & Sell ETFs for Free, Best Online Platform, Low Cost, Superb Service | Up to $2,000 Cash Back | |
 Questrade |
| Free BUY of ETFs (full trading prices apply to ETF sales) | $4.95-$9.95 | Runner Up Best Broker - Best Options Trading, Advanced Data Streams, Customer Service Lacking | $50 in Free Trades | |
 BMO Investorline |
| FREE buying and selling of 80+ ETFs | $9.95 ($7.95 elite accounts) | Best Big Bank Brokerage - 80+ Free ETF Trades, Big Bank Convenience, Medium Cost | Up to $2,000 cash back (use promo code MDJCASH) | |
 RBC Direct |
| $9.95 per ETF trade | $9.95 ($6.95 elite accounts) | Canada’s Biggest Bank, Good Mobile Platform, High Fees | None | |
 TD Direct Investing |
| $9.95 per ETF trade | $9.99 ($7 for Active Traders) | Serviceable Platform, Good Convenience, High Fees | None | |
 Scotia iTrade |
| $9.95 per ETF trade | $9.95 | Medium Cost, High ETF Fees, Good Convenience, Integrated Savings Account | None | |
 Wealthsimple Trade |
| Free to buy and sell | $0 Trades | $0 Trades, Poor and Buggy Platform / App, Terrible Account Options, Depends on high-fee crypto trading to make money | $50 Free Signup Bonus |
4.9 / 5
3.8 / 5
3.4 / 5How to Choose Penny Stocks?
So far, we covered where and how to buy penny stocks in Canada, and listed the best penny stocks to buy now.
But the real question is, how did we narrow down the list to these stocks?
Just like other investment strategies, you need to do your homework on these companies and see if what they offer aligns with your personal goals and values. Say, for example, you like the idea of conservation over drilling for precious metals, then you might prefer going with something like Good Natured Products over Imagine Lithium.
In your research, you’ll also want to dig into the company financials to see if they have what it takes to grow in the long run.
Before taking the leap, it’s also a good idea to establish some guidelines for yourself, asking questions such as: What do I want to get out of buying penny stocks? What is my investment horizon? How much am I willing to lose? The answers to these questions can help you stay focused and not lose your cool in the excitement of buying and selling these risky investments.
Even if you keep all of this in mind, the reality is, no one really knows what the best penny stocks today are.
Anyone, any article, any website that claims to know which penny stocks are “about to go to the moon” are speculating.
And that’s okay, it’s fine to play the speculative game. It’s just like going to the casino. Gambling with eyes wide open and only taking on risk within one’s own tolerance can be a lot of fun.
Penny Stock Risks
There are a number of risks associated with penny stock investing. Penny stocks are not subject to rigorous financial reporting requirements of larger, major exchanges. Therefore, it is very difficult to assess the soundness of the company underlying a penny stock.
Typically, the only information to go on is the company’s own news releases and marketing material. It’s safe to say the company is only going to post good news.
Some penny stocks represent deteriorated businesses that failed to maintain their listing privileges on major exchanges. That hints at big potential problems in the business itself.
And as already mentioned, penny stocks are usually issued by companies in highly speculative and volatile industries and markets. Some current examples of volatile industries are resource exploration, cannabis operations, and cryptocurrency.
These kinds of volatile markets are rife with uncertainty and are difficult to analyze. Therefore, it is hard to assess the potential fortune of companies (and their stocks) in these volatile markets.
There are a lot of risks associated with penny stocks, the only upside is their low price tag. Read our article on low risk investing in Canada to see the alternatives.
Penny Stocks vs. Regular Stocks
There are many differences between penny stocks and regular stocks.
When compared to regular stocks, penny stocks are of course much cheaper, so it’s much easier to buy in that way; the barrier to entry is lower. Regular stocks, which generally refer to blue chip stocks, can run hundreds or even thousands of dollars per share.
Penny stocks are much more speculative than regular stocks, which is in part what makes them a more risky investment. In addition, the value of penny stocks can be extremely exaggerated, so that’s why doing your homework is extremely important.
If you do buy penny stocks and find that you’d rather cash out and invest that money elsewhere, it could be difficult to do because of their lower liquidity. With regular stocks on the other hand, you likely will not face this difficulty.
All things considered, regular stocks are always going to be a better bet than penny stocks. In the long run, an investor is much more likely to lose than win when it comes to penny stocks. With regular stocks, it’s just the opposite.
If, however, you like to live dangerously, and simply must play the penny stock game, do it with a small fraction of your portfolio. A fraction you are prepared to lose.
Investing in Penny Stocks in Canada – FAQ
Should You Invest in Penny Stocks?
The short answer is probably not.
The long answer is that if you are an experienced investor with a bit of money you don’t mind losing if things go wrong, then you might possibly give it a try, if you must. But we really wouldn’t recommend it.
Penny stocks are cheap for a reason. They are issued by companies that often have little track record, questionable financials, and have the potential to be outright scams.
If you want to make money on your investments, you are much more likely to do so by investing in something for the long term, such as a selection of the 45 Best ETFs in Canada or one of the top Canadian REIT ETFs.
If you like the prospect of making money on your investments in the short-term, then maybe one of The Best Canadian Dividend Stocks will satisfy your urge for a bit of excitement.
Penny stocks are highly volatile and unlikely to make you any money in the long run. When there are so many other viable investment options, why take the risk?
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