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Capital One Investing Penny Stocks

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

Does Capital One Investing Offer Penny Stocks?

Yes, there are more than 2,000 over-the counter stocks available to clients of Capital One Investing. If you’re interested in an OTC security that the broker doesn’t offer you can actually send an e-mail to and ask that the penny stock be added to the broker’s list of available products.

Capital One Investing Penny Stock Fees

In addition to the base commission ($6.95 per trade), Capital One Investing (Sharebuilder) will add a $0.007 surcharge per share on market and limit order trades when the average execution price per share is less than $1.00. The total commission (base commission + surcharge) is subject to a maximum of 15% of the principal amount of the trade, but no less than the base commission.

This means that an order with 5,000 shares of any Pink Sheets/OTCBB/penny stock will cost you $42. This is a very high rate. It's much less expensive to trade stocks priced under $1 with one of the Best Penny Stock Brokerages.


Not all brokers have screeners that can look for stocks on specific exchanges. Ally Invest’s, for example, isn’t able to search for OTC securities specifically, although they are in the results.

Placing an extra fee on penny stock trades is a little disappointing. Not all brokers charge extra. These firms include TradeStation and TD Ameritrade.

OTC Stocks at Capital One Investing

The Capital One stock screener has the ability to search by specific exchanges. Selecting the OTC market produces 2,607 stocks. Many criteria can be added to the screener to narrow down this list. Variables such as price performance, earnings history, sector, and more can all be added. The results can be sorted by any of these important issues.

An OTC security that appears in the screener’s results is CPXP. Coupon Express, Inc. trades at 0.05¢ (yes, that’s cents). The stock is currently down over 99% over a 10-year period. Its market cap is just $140,000 and it currently has no volume. The company is not followed by any major analyst, and its profile page at Capital One does not have any recent financial statements.

Another penny stock available for trading is Nephros, Inc. The ticker symbol is NEPH. Unlike the previous example, this stock has regular volume—about 36,000 shares daily. Its most recent trade price is $0.36, and the market cap is over $18 million. No stock analyst follows Nephros, but the company does provide recent financial data.

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Mind the Risks

If you’ve found a penny stock at Capital One Investing that you think is going to go through the roof any day now, keep in mind that there are several hazards in the OTC marketplace. Penny stocks tend to be much more volatile than securities that trade on major exchanges. Over-the-counter stocks also have less liquidity, which could make it hard to find a buyer.

Because there is less government oversight of this financial market, it has seen its share of criminal activity over the years. Less information makes it hard to do thorough research on a stock.

Buying a Penny Stock on Capital One Investing

To submit an order for an OTC stock, the same procedure for buying a regular security is used. The broker has a mobile app and website trade bar where orders for penny stocks can also be submitted.

The pricing schedule for over-the-counter stocks is slightly different. Any security that trades under $1 has a surcharge of 0.7¢ per share. This is on top of the broker’s standard commission of $6.95. Trades for OTC securities have a maximum commission of $500 or 15% of principal value, whichever is less.

Updated on 9/22/2017.

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