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TD Ameritrade Penny and OTC Stocks Trading


2020 TD Ameritrade penny stock commissions, fees charged for buying pink sheets/OTCBB/stocks priced under $1. Rules and policy. Is TD Ameritrade good for penny and OTC stocks trading?



Does TD Ameritrade Offer Penny and OTC Stocks Trading?


Yes, traders have an excellent selection of penny stocks on TD Ameritrade. QX, QB, and Pink Sheet stocks are available at TD Ameritrade. The broker also has a selection of Grey Market securities. These are stocks that are neither listed on a major exchange nor trade on the OTC market.


TD Ameritrade Penny Stock Fees


TD Ameritrade penny stock commission $0
TD Ameritrade penny stock surcharge $0
TD Ameritrade large order surcharge $0
TD Ameritrade ECN surcharge $0
TD Ameritrade OTC stocks charge $6.95

TD Ameritrade and its subsidiary - Thinkorswim - do NOT have additional fees and surcharges on stocks priced under $1. At both brokerage houses to penny stock orders applies flat-rate commission rate of $0 per trade if stock is listed in on a U.S. exchange regardless of a stock price or a number of shares. For stocks not listed on a U.S. exchange, also known as OTC stocks, $6.95 commission applies.


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OTCBB Securities Trading Rules


OTCBB securities can be bought or sold during regular market hours. No orders for these securities will be accepted for the extended-hours trading sessions.

Only limit orders to buy, and limit or market orders to sell will be accepted. Limit orders may be specified as All-or-None, Day, or Good-Till-Canceled orders. No other types of orders for these securities will be accepted.

These orders may be placed over the secure TD Ameritrade website, the IVR telephone system, or with a licensed broker.

Over 10,000 OTCBB securities are available to be traded, and investors should be aware that frequent symbol changes, additions, and delistings occur in the OTCBB market. If you place an order on a stock that has had a reverse split, forward split, symbol change, etc., your positions may not be updated immediately. It is your responsibility to be aware of the date on which such action is effective, to identify the type of split or name change on the stock and provide correct instructions, including accurate symbol and quantity information, when placing an order.

Quote information for OTCBB securities is available on our website and through the IVR telephone system. TD Ameritrade does not guarantee the accuracy or timeliness of this information. Please verify market information with a TD Ameritrade representative.

All stocks falling into this category are nonmarginable. They cannot be purchased on margin, or be used as collateral against margin loans.



OTC Stocks Available at TD Ameritrade


One example of an OTCQB stock that TD Ameritrade clients can trade is GreeneStone Healthcare Corp. The company is based in Canada and its ticker symbol is GRST. Its most recent trade price is $0.0353. Yes, it’s trading at just over 3¢. While TD Ameritrade does provide some information on the company, there is far less data compared to IBM or Wal-Mart.

Another OTC stock is Sturgis Bancorp (ticker symbol STBI). It trades on the QX market around $15 per share. It’s not a penny stock, but it’s still an OTC security. The company provides a balance sheet, cash flow statement, and income information.

TD Ameritrade’s stock screener is able to look for equities that trade exclusively in the over-the-counter marketplace. The tool returns 10,000+ OTC stocks. The results can be sorted by performance history, fundamental data, and other criteria. A few of them do have ratings.



How To Buy Penny Stocks on TD Ameritrade


Buy and selling OTC securities at TD Ameritrade is just as simple and easy as trading major stocks. You can click on the Buy or Sell button on the stock’s profile page to enter a trade. The broker’s handy trade bar SnapTicket can also submit OTC orders.

TD Ameritrade has a very sophisticated desktop platform called thinkorswim. Trades for OTC securities can be traded on it, and price histories can be analyzed with the software’s advanced tools. Orders for over-the-counter securities can also be entered on any of the broker’s three mobile apps.

If you have margin privileges with the broker, you can also short penny stocks. Keep in mind, however, that the prices can be so low that the downside potential is obviously very limited.







TD Ameritrade Fees and Commissions


TD Ameritrade penny stock fee is $0, unlimited shares. The firm requires no minimum balance to open an account while many others require $500-$2,500 minimum.

Many readers ask us if TD Ameritrade is good for penny stocks trades? Well, the news is great: TD Ameritrade penny stocks commissions and trading policy are the same as for regular stocks. Many of the broker's competitors, such as have a half penny surcharge for OTC stocks and penny stocks trading.

On a side note, TD offers a $50 bonus to a customer if he or she refers a client to TD and that person deposits $3,000 in the account within 90 days of referral. Clients may refer up to 50 people per month.


TDAmeritrade.com Website

TD Ameritrade penny stocks


The TDAmeritrade.com website is well-designed with intuitive menus, and users can easily find all the resources they need. One particularly useful feature is the ability to enter trades (including penny and OTC stocks) anywhere on the website through the order-entering box located at the bottom of every page.


Risks of Trading OTC Stocks on TD Ameritrade


The big exchanges in the U.S. have strict requirements that a company must meet in order to get listed. The OTC market, by contrast, has few requirements and little government regulation. Because there is less oversight, there is a greater possibility for criminal activity and other fiascoes.