Canadian penny stocks are considered to be an awesome investment by experienced penny stocks traders due to booming economy in Canada. Canadian penny stocks rose to popularity while they generated funds for the thousands of Canadian mining exploration companies. Originally, penny stocks were listed almost exclusively on the Vancouver Stock Exchange, until it merged with the Toronto Stock Exchange, to become the Toronto Venture Exchange, or TSX-V. Thousands of penny stocks still trade there, while the larger companies gravitate to the main Toronto Stock Exchange (TSX).
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penny stocks canada The listing requirements and reporting regulations on the TSX and TSX-V are demanding. That is one of the reasons why penny stocks on the Toronto Stock Exchange can produce remarkable profits. Penny stock investors can find many high-quality companies trading on these markets.
Penny stocks in Canada continuously show great promises and could become great investments that can grow exponentially in the future. If you are contemplating building up the aggressive portion of your portfolio, you may turn to the higher-risk strategy of buying speculative Canadian penny stocks. But you should make them a small portion of your portfolio and buy them with money you can afford to lose.
The main point is to invest mainly in well-established companies, spread your money across several economic sectors, like Manufacturing & Industry, Resources & Commodities, the Consumer sector, Finance and Utilities, Metals & Minerals, Oil & Gas, Coal & Uranium, Technology, and Biotechnology. These are the best industries for Canadian penny stocks. And – as always – avoid stocks that are hyped by the media.
canadian penny stocks
If you are a US investor, you need to find penny stock brokers that have access to Canadian penny stocks. E*TRADE may be your best alternative. This online broker is able to buy directly on the Canadian exchanges and the commission is around $20. Another good alternative for experienced investors may be Interactive Brokers.
Sometimes high-quality Canadian penny stocks traded on the Toronto Exchange, also list on the Pink Sheets. This process is called interlisting. By interlisting their stocks on an American exchange, these Canadian companies eliminate any currency exchange difficulties and make themselves much more attractive to American investors. These companies are more likely to be legitimate stocks worthy of your consideration. But be wary of poor liquidity and extreme volatility when choosing Canadian penny stocks to buy through the OTC or Pink Sheets in the United States.
Investing in penny stocks can be successful only if you try to stick to stable companies with increasing sales, good management and innovative product ideas. Choosing highly volatile penny stock companies is almost always a bad choice, especially if you are an inexperienced penny stock trader.
Canadian Penny Stocks
As an example, here are a few high-quality Canadian Penny Stock companies worth your attention:
Hinterland Metals, Inc. (HMI) – Precious metal mining in Quebec, Ontario and Yukon areas.
Energy Fuels Inc. (EFR) – Supplying US nuclear power industry through a number of uranium mines located in Utah and Colorado.
Rockridge Capital Corp. (RRC) – Gold mining in the gold richest areas around the world.
Mineral Hill Industries, Inc. (MHI) – Gold mining projects using unique lithium carbonate exploration techniques.
Bellhaven Copper & Gold, Inc. (BHV) – Gold and copper exploration in Columbia and Panama.
Resin Systems Inc. (RSG) – Composite materials for utility and infrastructure industries.
Nuinsco Resources Ltd. (NWI) – Multi-commodity mineral exploration company with projects across Canada and Turkey.