OTC Stocks: Risks, Liquidity, and Safer Alternatives
Educational content only — not financial advice. Canada-first. Independent of any brokerage.
Why OTC is risky
Thin liquidity, wide spreads, and limited financial disclosure create a high probability of permanent loss.
If you still experiment
Cap it at a small ‘play money’ bucket, use limit orders only, and avoid averaging down. Expect total loss as a possibility.
Safer alternatives
If you’re chasing growth, consider small‑cap index ETFs or factor funds with position limits and monthly rebalancing.