|
E*Trade Penny Stocks and OTC Stocks in 2026
|
Trading OTC and Penny Stocks at E*Trade
If you're interested in trading OTCBB stocks, E*Trade could be a good choice. They offer various Pink Sheet
stocks for you to invest in. You can trade penny stocks using their mobile app, web platform, or the
pro-level trading platforms, Power E*TRADE and E*TRADE Pro.
Penny Stock Availability at E*TRADE
At E*TRADE, you can access a variety of OTC securities and penny stocks. Some are listed on major U.S. stock exchanges, while others are on the OTC BB. Depending on your strategy, one type might be a better fit for you.
Penny stocks are typically defined as stocks priced under $5 or traded on alternative exchanges like the Pink Sheets.
Trading penny stocks listed on major exchanges at E*TRADE is similar to trading any other stock. There are no extra commissions, and you can short sell, use margin trading, and more.
However, Pink Sheet stocks come with additional commissions. Data on these companies is usually limited. These stocks often represent smaller companies with highly volatile price movements.
Searching for OTC Stocks on E*TRADE
Finding OTC BB and Pink Sheet stocks on E*TRADE can be a bit tricky. If you already know the stock you want to trade, you can simply enter its ticker symbol in the search bar to locate it. Once found, you can trade it like any other stock, though there are some restrictions. For example, you can only use limit orders or stop-limit orders to open positions with OTC stocks.
E*TRADE provides a stock scanner to help you find exchange-listed penny stocks, but it doesn’t support scanning for OTC or Pink Sheet stocks. Using a third-party scanner is the easiest way to find tradable OTC securities.
OTC Commissions at E*TRADE
E*TRADE charges a fee for trades routed to the OTC marketplace. Each trade, regardless of the number of shares, costs $4.95.
While $5 per trade might not seem like a lot, the costs can add up quickly if you trade frequently.
E*TRADE is a solid choice for trading penny stocks, OTC BB securities, and Pink Sheets. However, its limited screening options and higher commissions
make other brokers more appealing.
Moomoo as Alternative
As an alternative, you
can try Moomoo that provides access to 12,000 penny stocks, pink sheets, and OTC BB stocks with $0 commission
(learn more).
Moomoo Promotion
Visit Moomoo Website
Updated on 1/23/2026.
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.
|