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Charles Schwab Penny Stock Fees. Charles Schwab OTC Stocks Trading.


2019 Charles Schwab penny stock fees: commission charged for buying pink sheets/OTCBB/stocks priced under $1. Rules and policy. Is Charles Schwab good for OTC and penny stocks trading?



Does Charles Schwab Offer Penny Stocks?


Investors at Schwab have good resources for trading equities. In particular, the broker has a large selection of stocks that trade on the OTC market. The stock screener on Schwab’s website displays 6,165 over-the-counter stocks. The tool’s results can be sorted by a variety of criteria, including revenue growth, price history, market cap, and more.



Charles Schwab Penny Stock Fees


Charles Schwab penny stock commission $0
Charles Schwab penny stock surcharge $0
Charles Schwab large order surcharge $0
Charles Schwab active trader discount none

Charles Schwab as well as TD Ameritrade (TD Ameritrade penny stocks review) do not have fees and surcharges on Pink Sheets/OTCBB/stocks priced under $1.

At Charles Schwab to penny stock trades applies the regular commission rate of $0 per trade.




OTC Equities Available at Charles Schwab


Once you perform a screen, you can browse through the results by whatever criteria you’re interested in. Clicking on a stock’s ticker symbol produce’s the security’s profile page. Since these are penny stocks, available information may be limited or even shocking compared to the data that large stocks on major exchanges can produce.

An example of an OTC stock that can be found in Schwab’s search results is 1st Prestige Wealth Management. The stock’s profile page has no equity reports because no analyst follows the stock. The ticker symbol is FPWM. Its most recent trade price is 24¢, and its most recent daily volume is even more surprising: zero.

Another equity at Schwab that trades over-the-counter is Acolog, Inc. The ticker symbol is ACOL. The stock has much more interest than the previous one; it has a volume of over 8,000,000. However, its trade price is even lower—just 2¢.



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Buying a Penny Stock on Charles Schwab


Submitting an order for a penny stock with Schwab follows the same protocol as regular stocks require. On the fund’s profile page, just click on the ‘Trade’ button and fill out the order ticket. Besides the website, OTC stocks can also be traded on the broker’s mobile app and desktop platform.

Over-the-counter securities at Schwab have the same commission schedule as regular stocks. Each order is a very low $0, which now includes a satisfaction guarantee. The broker also does not impose any special account requirements to trade OTC securities.


Charles Schwab Penny Stocks



Comparison


Schwab has an advanced screener with a lot of criteria. The ability to search by exchange is helpful to OTC traders. E*Trade’s screener, by comparison, doesn’t have the ability to search specifically for over-the-counter securities.

The number of OTC stocks at Schwab is very high. By comparison TD Ameritrade has 4,622 over-the-counter securities, while Fidelity customers have access to only 940.

Not charging any extra fees for trading penny stocks is a generous policy. Other brokers do assess OTC surcharges. For example, WellsTrade clients must pay the greater of $34.95 or 3½% of the trade’s principal value. Scottrade also has a penny stock surcharge.







Customer Service


The broker's website has an on-line chat feature where traders can quickly and easily contact a live rep. Phone numbers are also available for a wide variety of clients. There are numbers for foreign language speakers and specific financial topics, such as retirement. Beginning investors who need some personal assistance can find it at one of Schwab's 325 branch locations.


The Cost of Trading


A brokerage account at Schwab carries no special fees. There is no annual fee, no low-balance fee, and no inactivity fee. There is a $1,000 minimum opening deposit. This can be replaced with a $100 monthly direct deposit.

Despite the amenities Schwab (member of FINRA) offers in research and customer support, ETF and stock trades cost just $0. This is a very low charge. Option contracts are only 65¢ extra.


Trading Technology


Schwab's website is user-friendly thanks to handy menus at the top of the browser. A useful trade ticket appears at the bottom. The broker's desktop software StreetSmart Edge is easier to use than other platforms, although it does require a $1,000 account balance. There are mobile apps for phones, tablets, and smartwatches.


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Funds


Mutual and exchange-traded funds are a good place for noobies to start, and Schwab has many of them. The broker's mutual fund screener returns 5,541 products that are available for trading. Of these, 3,462 have neither load nor transaction fee. More than 200 ETF's can also be traded at no cost.


Managed Accounts


New investors who decide that learning the ropes is too difficult can simply turn over their assets to Schwab and let the firm make all trading decisions. There is a robo-advisory service available to Schwab clients. There is no charge for the service. Human advisors can also be a hired for a percentage of assets under management.