What are your experiences buying stocks on Pinx?

Pinx is essentially stock trading over-the-counter (OTC) on the pink sheets system.

Put simply, they are penny stocks that are not listed on major stock exchanges because they do not meet the listing requirements, the stock fell below $1, and financial information was not provided to the major exchanges.

For the most part, you should refrain from buying these types of securities. You are throwing your money away as the penny stocks are prone to pumps and dumps and are essentially garbage companies.

You are better off buying fractional shares in real businesses listed on the Dow Jones, TSX, or Nasdaq.

That said, if you are intent on buying stocks on Pinx, you should look at companies with strong balance sheets or stocks that are active each day.

For example, these are some of the most active penny companies around:

• SmileDirect Club (SDC): 9.5 million average volume
• Trans Global Group (TGGI): 117.45 million average volume
• Life Clips (LCLP): 25.42 million average volume
• NextPlay Technologies (NXTP): 5.75 million average volume
• Santo Mining: 95.41 million average volume

But if you check their share price, these companies are hardly going anywhere.