Ameritrade penny stocks

TD Ameritrade Penny Stocks (OTC and Pink Sheets) in 2023


TD Ameritrade OTC fees, penny stock commissions charged for buying pink sheets/OTCBB bulletin board/gray market/stocks priced under $1. Rules and policy. Can I buy OTC stocks on TD Ameritrade?


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.


Can I buy OTC Stocks at TD Ameritrade


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.


OTC Stocks at TD Ameritrade


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 Commission Schedule 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.


Firstrade as an Alternative


If you would rather pay $0.00 for over-the-counter trades, you could open an account at Firstrade. That’s what Firstrade charges for OTC and regular exchange trades. The brokerage firm has IRAs and an OTC stock screener, although it doesn’t have a desktop platform.


Searching for OTC Securities at Firstrade


So where should you go to search for OTC stocks at Firstrade? Its website. Here, we found a stock scanner with lots of search criteria. The search tool will be found at Research & Tools > Screeners.


Can I buy OTC Stocks at Firstrade


There are 6 search criteria under the Market Segment section. One of them is exchange. Choose exchange and you’ll be able to specify the OTC marketplace.

Price is another search variable. This option is under Price Performance. Obviously, this can be used to search for penny stocks on any exchange.

A specific search at Firstrade can be saved (the save button is underneath Search Criteria Details). A saved search can be found under the Saved Screeners tab.


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Trading an OTC Security at Firstrade


Using Firstrade’s equity screener with OTC PINK selected, we found 3DX Industries, Inc. This company manufactures metal parts using 3D printing. Its ticker symbol is DDDX.

According to Firstrade’s profile, 3DX Industries has a market cap of just $4 million, so this is an extremely small company. The current share price is just $0.10, another very small figure. The stock has been trading for more than 10 years, so it does have quite a history. Morningstar has a rating of 3 stars on the stock.

Placing a trade for an OTC security at Firstrade is quite easy. Just follow the same steps you would normally follow for a regular stock. On the website, tap on buy or sell at the top, and the trade bar at the bottom will be automatically populated.

On the mobile app, there is no screener, so you’ll need to have the ticker symbol or company name to start with. Enter that information in the search field, and tap on the correct entry in the drop-down list.

You’ll get the stock’s profile on the app, and here there will be a blue Trade Stock button at the bottom. Tap on this and you’ll be able to submit an order.

Firstrade’s mobile profile for 3DX shows a P/E ratio of 0.94, which means it has positive earnings in its past. We also found several news articles for 3DX from a variety of sources.


Screening for Over-The-Counter Stocks at OTC Markets


If you don’t care for Firstrade’s or TD Ameritrade’s search tools for over-the-counter stocks, you could try OTC Markets Group’s screener. It may be advantageous to do this in some situations. For example, TD Ameritrade’s profile for UEHPF lists the stock as a Pink Sheet stock. But according to OTC Markets Group, it is in the Grey Market. Our research confirms it is in fact a Grey Market Stock.

OTC Markets Group’s screener can search within specific realms of the over-the-counter market. There are five sectors currently:

  • OTC QX
  • OTC QB
  • Pink Sheets
  • Grey Market
  • Expert Market

Searches can be sorted by a variety of criteria. It’s also possible to download results as a spreadsheet.


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Get up to $4,000 cash bonus + $200 in ACAT rebate!

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Updated on 2/22/2022.


About the Author
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.