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E*TRADE OTC & Penny Stocks in 2026
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Trading OTC and Penny Stocks at E*TRADE
If you want to trade OTC stocks, E*TRADE may be a good broker. The firm offers access to many OTC
securities you can invest in. You can trade penny stocks with its mobile app, web platform, or the
advanced trading platforms, Power E*TRADE and Power E*TRADE Pro.
Penny Stock Availability at E*TRADE
At E*TRADE, you can access many OTC securities and penny stocks. Some are listed on major U.S. stock exchanges, while others trade on the OTC market. Depending on your strategy, one type might suit you better.
Penny stocks are generally low-priced securities, often trading below $5. Some are listed on major exchanges,
while others trade over the counter, including on the Pink Market.
Trading penny stocks listed on major exchanges at E*TRADE generally works the same as trading other listed stocks. There are
no additional commissions for online trades of U.S. exchange-listed stocks, although margin, short selling, and certain order types may depend on the security and account approval.
However, OTC stocks come with commissions. The available data on these companies is often limited. These
stocks usually represent smaller companies with very volatile price movements.
Searching for OTC Stocks on E*TRADE
Finding OTC and Pink Market stocks on E*TRADE can be a bit tricky. If you know the stock you want to trade, enter its ticker symbol in the search bar to pull it up. You can then trade eligible OTC securities through the order ticket, but there are some restrictions. For instance, opening transactions are not permitted in Caveat Emptor, No Information, Grey Market, and Expert Market securities.
E*TRADE offers a stock screener to help you find exchange-listed penny stocks, but it does not support scanning for OTC or Pink Market stocks. Using a third-party screener is the easiest way to find tradable OTC securities.
OTC Commissions at E*TRADE
E*TRADE charges a fee for online OTC stock trades. These trades cost $6.95, or $4.95 for customers who execute at least 30 stock, ETF, and options trades per quarter.
While this fee may not seem like much, the costs can add up quickly if you make frequent trades.
E*TRADE is a decent option for trading penny stocks, OTC securities, and Pink Market stocks. However,
limited screening ability and OTC commissions may
make other brokers more appealing.
Robinhood as an Alternative
Compared to E*TRADE, Robinhood offers $0 commissions on eligible penny stocks and select OTC securities,
while E*TRADE charges $4.95 to $6.95 per OTC trade. Robinhood also provides an easy-to-use trading app, fractional
shares on eligible stocks, and convenient mobile trading, making it an attractive alternative for cost-conscious
penny stock investors (learn more).
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Visit Robinhood Website
Updated on 10/9/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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