Can I Buy Penny Stocks on Firstrade?
If you’re interested in trading over-the-counter (OTC) stocks, Firstrade offers a wide range. This article will explain everything Firstrade provides for OTC traders.
First, let’s define the terms. A penny stock is any stock that trades for less than $5 on any exchange. For example, a stock listed on the New York Stock Exchange priced at $4.99 is considered a penny stock.
An OTCBB stock is a security that trades on the over-the-counter Bulletin Board, while a pink sheet stock trades exclusively on the pink sheets. An OTCBB or pink sheet stock can be a penny stock, but not all penny stocks are necessarily OTCBB or pink sheet stocks.
Firstrade OTC Fee
Firstrade charges no commission to trade penny stocks. The broker used to charge commissions on stock trades and surcharges on penny stock trades, but that’s no longer the case. Now, trading regular stocks, penny stocks, OTCBB stocks, and pink sheet stocks is free. However, for selling, Firstrade passes on regulatory/exchange fees, but these are minimal.
Firstrade no longer accepts buy orders for OTC Bulletin Board and pink sheet stocks priced at or below $0.10.
Firstrade Pink Sheet Stocks
Using Firstrade's stock screener, we found 10,306 securities currently trading on the pink sheets. Finding these stocks is simple: just select "Exchange" under "Market Segment" in the search criteria, then check the box next to "OTC Pink."
One example from the list of over 10,000 pink sheet stocks we found is 808 Renewable Energy Corp. Trading under the ticker symbol RNWR, it has no dividend and very low volume—under 9,000 shares per day. The market cap is less than $500,000, and the current price is only 20¢.
Firstrade OTCBB Stocks
When we searched for OTCBB stocks, Firstrade’s screener returned just one stock. The broker’s website didn’t recognize the ticker symbol, so this selection didn’t provide any viable investment opportunities. For OTC securities, it’s best to focus on pink sheets.
Firstrade Penny Stocks
Penny stocks are a different matter. We found 10,633 equities priced at $4.99 or less. This includes both OTC stocks and stocks listed on major exchanges.
You can specify a particular exchange and price. For example, selecting stocks priced at $4.99 or lower on Nasdaq returned 761 results. One example is Agenus, Inc. (ticker symbol AGEN). The stock has an average volume of about 1 million shares per day, which is fairly high. Despite the activity, the market cap is just $356 million.
Firstrade’s profile for Agenus shows a Morningstar rating of 3 stars, which is average. The analyst rates it as very high risk, which is a negative sign. The current price target for AGEN is $2.98, and it was trading at $2.65 when we checked.
Agenus has an active options market with thousands of contracts and multiple expiration dates. The implied volatility is high, meaning traders expect big price swings in the future.
Comparison
Compared to its competitors, Firstrade stands out. WellsTrade doesn’t offer a search tool for OTC securities.
Robinhood is another zero-commission broker, like Firstrade. However, unlike Firstrade, Robinhood doesn't have a stock screener for OTC markets. During our research, we found an OTC stock on Firstrade’s screener (FNRC) that was not available on Robinhood’s platform.
Robinhood does allow searching by sector and price, so you can look for penny stocks in specific industries (like transportation).
Like Robinhood and Firstrade, Webull also charges $0 for trades. Webull offers a decent screener, unlike Robinhood, but doesn’t provide OTC securities.
Risks of Trading OTC Assets
If you choose to trade OTC stocks, be aware that they come with higher risks. The OTC market usually has lower liquidity than major exchanges, making it harder to buy or sell securities.
OTC stocks are also more volatile, meaning their prices can change suddenly. Bid-ask spreads tend to be wider for OTC stocks, which increases the cost of trading.
Listing requirements for OTC equities are less strict, which increases the risk of securities fraud.
Firstrade Review
Read complete
Review of Firstrade.
Updated on 1/23/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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