Can I Buy Penny Stocks on Firstrade?
If you're interested in over-the-counter stocks, Firstrade has a large selection. This article will give you the lowdown on everything the broker provides for OTC traders.
First, we need to define our terms. A penny stock is generally any stock that trades below $5 per share. So a stock on the New York Stock Exchange priced at $4.99 is a penny stock.
An OTC stock is an equity that trades over the counter rather than on a major exchange. OTC securities can trade on markets such as OTCQX, OTCQB, OTCID, Pink Limited, Expert Market, or Grey Market. An OTC or Pink Market stock could be a penny stock, but a penny stock is not necessarily a Pink Market or OTC stock.
Firstrade OTC Fee
Firstrade charges $0 (yes, zero) commission to trade penny stocks. The broker used to charge commissions for stock trades and surcharges for penny stock trades. But not anymore. It is now commission-free to buy regular stocks, penny stocks, eligible OTC stocks, and Pink Market stocks online. On the sell side, the broker passes on regulatory/exchange fees; although these are very small.
However, Firstrade has restrictions on OTC-listed penny-stock purchases. OTC-listed penny stocks generally must have liquid trading volume and be DTC eligible. For purchases, the stock price must be greater than $0.10, and any stock priced at $1 or below requires a minimum order size of 100 shares.
Firstrade Pink Market Stocks
Using Firstrade's stock screener, we were able to discover many securities currently trading on the Pink Market. It's easy to conduct this type of search. You just need to select 'Exchange' under 'Market Segment' in the search criteria. Then place a check mark in the box next to 'OTC Pink.'
One example in the list of Pink Market stocks we found is 808 Renewable Energy Corp. Trading under the ticker symbol RNWR, it pays no dividend and has very low volume. The market cap is very small, which is common among many OTC securities.
Firstrade OTC Stocks
Firstrade's screener can be used to search for OTC securities by market segment. Because the OTC Bulletin Board is no longer active, investors should focus on current OTC categories, such as OTCQX, OTCQB, OTCID, Pink Limited, Expert Market, and Grey Market.
Firstrade Penny Stocks
Penny stocks are a very different issue. Specifying a share price of $4.99 or under returned thousands of equities. This figure includes not just the OTC marketplace, but the major exchanges as well.
It's possible to specify a specific exchange and a price. For example, setting the price at $4.99 or less and choosing Nasdaq returned hundreds of stocks. One of these is Agenus, Inc. Trading under the ticker symbol AGEN, the stock has active trading volume and a small-cap profile.
Firstrade's stock profile for Agenus provides useful research data, including ratings and analyst information when available. These data points can change over time, so investors should always check the current quote page before making a trade.
Some listed penny stocks may also have options available. When options are available, traders can review expiration dates, contract volume, and implied volatility to better understand market expectations.
Comparison
Compared to its rivals, Firstrade's performance is impressive. WellsTrade doesn't offer the ability to search for OTC securities.
Robinhood is a zero-commission broker like Firstrade. But unlike Firstrade, Robinhood doesn't have a stock screener that is able to scan the OTC markets. During our research, an OTC stock that appeared on the Firstrade screener (FNRC) was unavailable on Robinhood's platform.
Robinhood does provide the ability to search by sector and price; so it is possible to look for penny stocks within an economic segment (such as transportation).
Like Robinhood and Firstrade, Webull charges $0 trade fees. Like Firstrade and unlike Robinhood, it does provide a decent screener. Webull also supports trading in 500+ OTC securities, although its OTC selection is more limited than Firstrade's.
Risks of Trading OTC Assets
If you do decide to trade over-the-counter stocks, keep in mind that these equities come with increased risks. The OTC marketplace tends to have lower liquidity than the major exchanges, which means it may be difficult to find a buyer or seller for any investment.
Furthermore, volatility tends to be quite a bit higher in the over-the-counter space. This can cause prices to jump and drop without warning. Bid-ask spreads are usually wider for OTC stocks, which makes trading them more expensive.
Listing requirements for OTC equities are also less stringent. Because of this, securities fraud is more likely.
Firstrade Review
Read complete
Review of Firstrade.
Updated on 6/5/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
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