IBKR Penny Stocks and OTC Stocks in 2026

Penny and OTC Stocks at Interactive Brokers: Highlights

• Interactive Brokers allows you to trade both penny and OTC stocks.

• Over-the-counter trades at IBKR come with a commission.

• Traders looking to avoid commissions on OTC trades might want to check out , which charges no commissions on these trades.

If you're looking for a broker that offers both OTC and penny stock trading, Interactive Brokers is a strong choice, though there are costs in some cases.

Synopsis of Penny/OTC Stocks at Interactive Brokers

Interactive Brokers allows trading in penny and over-the-counter stocks. Some securities may be restricted to closing-only orders, meaning you can only sell them, not buy them. This can happen for various reasons, such as market conditions or specific security issues, or due to the account's risk tolerance.

To adjust your financial profile or trading permissions, go to the Settings menu under the profile icon in the top-right corner of the website.

Direct Foreign Trading

Many U.S. OTC stocks are foreign ordinary shares with ticker symbols ending in ‘F.’ These stocks often trade on major exchanges in other countries. Some of these foreign exchanges are available for direct trading at Interactive Brokers. If your account has the necessary permissions, you can trade directly on the foreign exchange, avoiding the need to trade an OTC stock. For instance, a foreign ordinary share that is marked as closing-only at IBKR might still be available for purchase on the home exchange.

Interactive Brokers OTC Fees

For IBKR Lite customers, there are no commissions on penny stocks. However, OTC trades follow the IBKR Pro-Fixed fee schedule. This means an . Commissions for trades on foreign exchanges vary depending on the exchange.

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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 ().

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Updated on 1/23/2026.

About the Author

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.