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TD Ameritrade Penny Stocks (OTC and Pink Sheets) in 2023
TD Ameritrade OTC fees, penny stock commissions charged for buying pink sheets/OTC BB bulletin board/gray market/stocks
priced under $1. Rules and policy. Can I trade OTC stocks on TD Ameritrade?
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Can I Buy Penny Stocks on TD Ameritrade?
Penny stocks and over-the-counter stocks can be traded with a TD Ameritrade account. We’ll show you everything you need to know to get started. We’ll also suggest one alternative for the budget traders out there.
Searching for Penny and OTC Equities on TD Ameritrade’s Website
TD Ameritrade has a very thorough stock screener on its website, and even better, it’s quite easy to use. Just hover over Research & Ideas and select Stocks under the Screeners heading. This will get you the broker’s equity screener.
There are several search criteria on this machine, and they are grouped into categories. Under the Basic category, there is exchange; and under the Price & Volume category, there is Current Price. These are the two search variables we are most interested in.
The current market price can be set to anything below $5 (one definition of penny stock) or a specific range (like $0.02 to $1.00). It’s possible to look on any exchange for equities trading at specific prices, including the major exchanges like the NYSE.
TD Ameritrade’s screener has two exchanges listed for the over-the-counter market: OTC BB and OTC. The former is the old Bulletin Board, which has been shut down. TD’s screener does not return any stocks for this search option. The second returns 3,852 securities, certainly not the entire OTC marketplace, but they will do.
It’s possible to use both search variables (price and OTC) if you wish. For example, it’s possible to search for over-the-counter stocks that are trading below $9. It’s also possible to add more search criteria, such as market capitalization and price-to-book ratio.
Open TD Ameritrade Account
Open TD Ameritrade Account
Searching for Penny and OTC Equities on thinkorswim and the Mobile Apps
TD Ameritrade’s advanced desktop platform thinkorswim has a stock screener. It can look for assets by price and exchange. To scan solely in the OTC space, click on Scan in the top menu and then select Stock Hacker. With this option selected, there’s another sub-menu. Look in it and find the field labeled Scan in. Click on this and select All OTC Stocks. There you have it.
If you want to search by price, look further down where there are drop-down menus with graphical interfaces next to them. These can be used to add a wide variety of search variables. Some of these are price criteria, such as bid and ask prices.
Although TD Ameritrade has two mobile apps, neither one of them has a stock screener. However, penny stocks and OTC stocks can be traded on the apps if you know the ticker symbols or company names.
Example of an OTC Stock at TD Ameritrade
An over-the-counter stock we found at TD Ameritrade is Ultra Electronics Holdings Plc. Trading on the Grey Market with ticker symbol UEHPF, this stock does not come with any updated price information. That’s why it trades on the Grey Market. Although TD Ameritrade’s profile does show a last trade price, it is probably months old. There is no bid-ask spread displayed.
Ultra Electronics develops technologies for the aerospace, defense, transport, and security industries. It is based in the United Kingdom (the F in its ticker symbol means a foreign company), and has a market cap of over $2 billion. Despite the lack of price information, TD Ameritrade’s profile shows a positive earnings quarter, a P/E ratio of 21, and a quarterly dividend of $0.2191.
Example of a Penny Stock at TD Ameritrade
Using the Current Price search variable on TD Ameritrade’s stock screener, we found MVIS. This is Microvision, Inc. The company manufactures lidar sensors for autonomous vehicles.
MVIS is currently trading below $5 ($3.63 at the time of publication) on the Nasdaq. The stock has a beta of 3.52, which signifies a lot of volatility. No wonder, the average volume of MVIS is over 5 million shares daily.
Microvision pays no dividend and its most recent earnings release was negative. TD Ameritrade’s profile for the company shows mostly sell ratings from analysts. The broker’s profile does include bid and ask numbers for this stock. During our investigation, the spread was just one penny.
Open TD Ameritrade Account
Open TD Ameritrade Account
OTC Stock Fees at TD Ameritrade
If you’re like most traders, you’ve probably grown accustomed to zero-dollar pricing on stock trades. Well, in the case of over-the-counter stocks at TD Ameritrade, fuggedaboutit! The brokerage house charges a $6.95 commission on every OTC equity trade.
Updated on 9/12/2023.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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