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Can you trade penny stocks at RBC Direct Investing?

Your expert
Oskar G.
Fact checked by
Gyula L.
Updated
Jan 2024
Personally tested Personally tested
Data-driven Data-driven
Independent Independent

Can you trade penny stocks at RBC Direct Investing as of January 2024?

Yes, you can trade OTC penny stocks at RBC Direct Investing.

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RBC Direct Investing penny stock fees, withdrawal fee and more

RBC Direct Investing main highlights
💰 RBC Direct Investing stock trading fees class Average
💰 RBC Direct Investing OTC stock fees CAD 9.95 per trade; CAD 6.95 if you make more than 150 trades per quarter
📃 RBC Direct Investing available stock markets 5
💰 RBC Direct Investing withdrawal fee $0
💰 RBC Direct Investing minimum deposit $0
💰 RBC Direct Investing inactivity fee No
📃 RBC Direct Investing deposit methods Bank transfer
🗺️ Country of regulation Canada
🎮 RBC Direct Investing demo account provided Yes

Data updated on January 4, 2024

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What are penny stocks?

Penny stocks are defined as stocks that are priced below $5 and are issued by small companies. While some penny stocks are listed on formal securities exchanges, such as NASDAQ, the majority are traded over-the-counter (OTC) through a broker-dealer network.

Penny stocks are considered to be risky investments because of their poor liquidity and high price volatility. Only a small share of penny stocks have a real potential to bring high returns, while the vast majority tends to perform poorly. Investing in penny stocks may well result in you losing all your invested money. If you'd like to learn more, check out our guide to trading penny stocks. Below, you can view examples of a well-performing and a poorly performing penny stock in 2022.

Poorly performing penny stock in 2022


Well-performing penny stock in 2022

Looking for the best brokers for penny stocks?

If you're looking for the best brokers that offer penny stocks trading, check our list of the world's best brokers for penny stocks.

FAQ

Is it worth investing in penny stocks?

Penny stocks are highly volatile assets that require caution. Some penny stocks may lose all their value over a relatively short period, while others may produce above-average returns.

Why are penny stocks so risky?

Penny stocks are considered risky assets because of their high price volatility and lack of liquidity. Penny stocks are shares of small companies, only a few of which have the potential to perform well in the future. Because of poor liquidity, it is hard or sometimes outright impossible to sell the stocks you own.

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Further reading

Author of this article

Oskar Golebiowski
Oskar Golebiowski

Oskar is a former Canadian broker expert for BrokerChooser. Oskar's goal is to bring transparency to investors in the Canadian stock brokerage market. With a bachelor’s degree in finance and over 3 years of business experience, Oskar has tested many different investing platforms in the past. His aim is to provide unbiased and honest reviews of the best tools available to Canadian investors.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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