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Fidelity OTC & Penny Stock Trading: Fees and Rules
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Fidelity OTC Stocks
If you are looking for a good broker to trade penny stocks, Fidelity could be a great choice. The broker offers listed penny stocks and eligible OTC securities, including some Pink Market stocks.
Is Fidelity the best choice, though? Let’s find out.
Key Takeaways
• Fidelity offers many stocks priced between $0.10 and $5, and there are no commissions for online trades of U.S.-listed stocks and eligible OTC penny stocks, although some special fees may apply.
• Fidelity provides many useful tools for penny stock traders, including a stock screener, Fidelity Trader+™, advanced charting, and a mobile app for convenient trading.
• Webull, a viable alternative,
offers a much larger list of OTC Pink Market stocks than what is available at Fidelity. The broker also offers commission-free trading.
What is a Penny Stock?
Before we delve into Fidelity’s penny stock trading, let's define what a penny stock actually is.
The term 'penny stock' refers to a couple of different classifications of stocks. Penny stocks are generally stocks priced under $5 per share. They can include exchange-traded stocks and low-priced stocks trading on the OTC markets. Each type of penny stock has its own pros and cons.
Listed penny stocks trade on exchanges like the NYSE and Nasdaq. They may be stocks of companies with a small market capitalization. These companies must meet the listing requirements of the exchanges where they trade, although they can still be risky and volatile.
Penny stocks trading on the OTC markets, including Pink Market stocks and some other OTC securities, often have less available information than larger exchange-listed companies. Fidelity blocks buy orders and opening transactions in OTC securities classified as Expert Market, Grey Market, or Caveat Emptor. Low-priced OTC stocks are known for low liquidity, limited transparency, and volatile price action.
Fidelity’s Penny Stocks and OTC Stocks
At Fidelity, you can find many different types of penny stocks. Many securities trading on major exchanges for less than $5 are available. A selection of eligible OTC securities is also available, although not every OTC security can be bought at Fidelity.
An example from a recent stock scan shows that for companies valued at less than $8.3 billion (micro and small caps), there are 2,600 listed stocks traded between $0.10 and $5.
Using the same search criteria along with a filter for stocks trading on the OTC marketplace, the list is narrowed down to 820 stocks.
Fidelity’s Fees
One attractive aspect of Fidelity's penny stock trading is that online U.S. stock trades generally have no commission. The zero-commission policy extends to eligible OTC stocks, giving penny stock traders a significant advantage. Many other brokers charge traders around $5 to $7 per OTC trade. Keep in mind, however, that certain special fees may apply, such as a foreign settlement fee for foreign ordinary stocks that are not DTC eligible.
Webull as an Alternative
If you want to trade with a broker that offers a much more extensive list of penny stocks, Webull is a
good alternative.
Like Fidelity, Webull has been serving investors for years. The broker is well-established and
safe to use. It also caters to penny stock traders and provides a much more extensive list of OTC Pink
Market stocks. Another similarity to Fidelity is that Webull offers commission-free trading in both listed and
eligible OTC market stocks.
Webull’s Penny Stocks
As with Fidelity, Webull’s stock screener allows you to find a large number of penny stocks easily.
Using Webull’s screener, you will see as many as 12,000 OTC Pink Market and OTC penny stocks priced between $0.10 and $5. All of the screener’s results can be traded except for foreign stocks (with an ‘F’ in the ticker).
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Updated on 6/5/2026.
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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