Etrade Penny Stock Fees

Etrade penny stock fees: commission charged for buying pink sheets/OTCBB/stocks priced under $1 in 2017. Rules and policy. Is Etrade good for penny stocks trading?

Etrade Penny Stock Fees

Etrade stock and ETF commission is $9.99 per trade (drops to $7.99 per trade if making 150+ trades per quarter), options commission is $9.99 plus $0.75 per contract. Etrade and firms in the Best Penny Stock Brokers list do NOT have surcharges and additional fees on Pink Sheets/OTCBB/stocks priced under $1.

List of all Etrade charges is under this link.

Etrade Rules and Policy on OTCBB and Pink Sheets Orders

  • Short selling is not allowed.
  • Generally, stop on quote orders are not allowed for OTCBB/Pink Sheets trading.
  • Due to the potential volatility and differential in price, for your protection, market orders are not accepted on any stocks trading under $1 per share. Only limit orders are accepted for stocks trading below $1.

Note: When buying OTCBB stocks, a limit order must be placed on-line. You may contact customer service at 1-800-ETRADE-1 to review whether a market order can be placed by a broker during normal trading hours. The broker assist fee will not apply.

Non-equity, bulletin board, OTC, and Pink Sheets stocks are not eligible for the Market on Close price type.

OTCBB/Pink Sheets trades do not accept fractions less than 1/16ths. Although many Pink Sheets trade in decimals, the system does not accept the entry of a decimal on many securities. Therefore, it is often necessary to utilize a broker to place the trade at no additional fee.

Sub-Penny Trading: E*TRADE allows customers to enter orders on NASDAQ and Listed stocks at prices under $1.00/share with up to 4 decimal places ("sub-pennies"). Orders for Pink Sheet and OTC Bulletin Board stocks at prices under $1.00/share with up to 4 decimal places will be accepted.

Etrade Review

Read detailed Etrade Review

Etrade trading platform (Power Etrade Pro) is well-designed and easy to use. Executions are fast. Company offers lots of good analytics and research tools. Customers get access to Level 2 quotes and highly rated mobile trading application. Unfortunately, Power Etrade Pro platform is only available to customers executing 30 stock or options trades during a calendar quarter.

The firm has a total of only twenty five actual branches, spread out across the US. The chances are you will have to do your interactions through the telephone, ATM, or via the web. The online interface is very user friendly and easy to use. Online education is available for those needing assistance or brand new customers just getting started with an investment account.

The Etrade online education center is where you can go to watch informational videos and view web based seminars taught by investing pros. This is a great place to gain basic information about the available investment options and to get some help choosing the right account type to meet your specific needs. Surprisingly, Etrade also offers some live investor education seminars which provide more in depth information for those living in close proximity. For investors who are a bit more savvy there is plenty of online research, including tips and insights in addition to market analysis, commentary and various trading platforms.

Live online chat is available for customers, this is the method we personally prefer to use when we have a general question or when I am unsure of where to find something on the site. Aside from the online resources and support there is a 24 hour toll free customer service line if you prefer to pick up the phone and talk to someone in person. The downside to this option, in our experience, is that there are often long hold times.

Our conclusion: Etrade has no penny stock fees and it is overall a very good company. But the firm's commissions are expensive. The other member of the "Big 5 Brokers", Scottrade, offers much lower pricing: $7 for stocks and ETFs, and $17 for no-load mutual funds. Active traders as well as "buy and hold" investors might also prefer TD Ameritrade, which gives clients access to the best trading platform (ThinkOrSwim), virtual trading and an online user community and doesn't charge penny stocks fees.

Updated on 1/26/2017.

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