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Ally Invest Penny and OTC Stocks


2019 Ally penny stock fees: commission charged to buy pink sheets/OTCBB/stocks priced under $1. Is Ally brokerage good for (offers) OTC and penny stocks trading?



Does Ally Offer Penny and OTC Stocks Trading?


Yes, Ally Invest (formerly known as TradeKing) allows its customers to buy and sell OTC stocks (penny stocks).

More than 51,000 stocks are available for purchase at Ally Invest. Unfortunately, the broker’s screener doesn’t have the ability to search specifically for securities that trade in the over-the-counter marketplace. But penny stocks are available; you’ll have to search through the results if you’re interested.



Ally Invest Penny Stock Fees


Ally Invest charges $4.95 + $0.01 per share on the entire order on Pink Sheets/OTCBB/stocks priced under $1. The maximum fee is 5% of trade value. Ally's penny stock definition: stocks priced $2.00 or less.

Ally Invest also imposes a $100 minimum trade amount for all OTC securities.

This means that an order with 5,000 shares of any Pink Sheets/OTCBB/penny stock will cost you $55 or 5% of trade value (whichever is lower). We love Ally Invest, but this rate is very expensive and we don't recommend Ally Invest for this purpose. Use one of the Top Penny Stock Brokerage Firms instead.



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OTC Stocks at Ally Invest


There are several thousand stocks with the broker that trade under a dollar. One example is Jaguar Mining, Inc. Its ticker symbol is JAGGF, and it currently trades at 45¢. The stock’s average daily volume is 34,000, which is pretty large for an OTC stock. Its market cap is slightly larger than $50 million. Although the Ally Invest website doesn’t show any news for the company, there is some commentary on it.

Another over-the-counter stock Ally Invest clients can buy is Zoned Properties, Inc. It has a recent trade price of $1.54 under the ticker ZDPY. It has an average volume of 21,000 shares traded daily. It does not pay a dividend, and there is incomplete financial information on Ally Invest’s website. There are no option contracts currently available for the stock.




Buying a Penny Stock on Ally Invest


When you find a stock that’s too difficult to resist, it’s time to place a trade. Buying a penny stock at Ally Invest is no different than purchasing a regular equity. Orders can be placed on the broker’s website, desktop platform, or mobile app.

Although placing a trade for an OTC security is just as easy as with a normal stock, paying for the trade is not. Ally Invest assesses a surcharge on any stock priced below $2. The fee is 1¢ per share, which is on top of the broker’s $4.95 commission. The maximum fee is 5% of trade value.



Comparison


Ally Invest’s failure to include the ability to search by exchange makes it more difficult to locate OTC stocks. Other brokers do offer this capability in their screeners. TD Ameritrade and Capital One Investing do, for example.







Ally Invest Overview


Investors looking for a low-cost broker should consider Ally Invest. With a $4.95 commission for stock and ETF trades, this is one of the cheapest firms in the industry. Throw in good trading tools, ample research and educational materials, a good selection of fixed-income products, and forex trading, this firm is definitely worth checking out.

Buying and selling stocks and ETF's at Ally Invest is $4.95 per transaction. This charge is good for any number of shares. Options cost just $0.65 per contract extra. Multi-leg trades are only charged for a single leg. Options exercises cost $9.95, while assignments are $4.95.


Ally OTC Stocks


In addition to equities and derivatives, Ally Invest clients also have access to a large selection of fixed-income products. There is a $1 commission per bond per trade. Each transaction has a $10 minimum and a $250 maximum commission. CD's are available and cost $25 per trade. There is no commission for U.S. Treasury bonds, although Ally Invest does add a markup to purchases and a markdown to sales. These adjustments are included in the price of the bond.

There are no inactivity, maintenance or annual fee at Ally Invest. As far as trade execution investors will also be pleased with both speed and quality.

Investors at Ally Invest (member of FINRA) can use margin. Currently, debits under $5,000 are charged at a somewhat steep 9.50%, while loans above $2,500,000 cost a much lower 4.75%.