Merrill Edge Penny Stock Fees. Merrill Edge OTC Stocks Trading (2021)

Merrill Edge / Merrill Lynch penny stock fees: commission charged for buying pink sheets/OTCBB/stocks priced under $1. Is Merrill Edge good for (offers) penny stocks and OTC stocks trading?

Does Merrill Edge Offer Penny Stocks?

Over-the-counter (OTC) stocks are available at Merrill Edge, and they can be found using the broker’s advanced equity screener. It returns 3,700 penny stocks that are available for purchase. The screener’s results can be sorted by many different criteria, including some that will be of interest to OTC traders—market cap and volume, f or example.

Be aware that Merrill Edge requires a $25,000 account minimum to trade OTC securities. Furthermore, only 20% of an account can be invested in these products.

Merrill Edge Penny Stock Fees

Merrill Edge penny stock commission $0
Merrill Edge penny stock surcharge $0
Merrill Edge large order surcharge $0

Merrill Edge charges $0 per stock or ETF trade. Merrill Lynch and the firms in the Best Pink Sheets Brokers list do NOT have surcharges and fees on Pink Sheets/OTCBB/stocks priced under $1.

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The account requirements that Merrill Edge imposes on OTC traders seem rather excessive. Most other brokers don’t have any account minimums. Schwab, Fidelity, and TD Ameritrade (penny stocks review) customers, for example, don’t have to maintain any minimum account balance.

Despite the broker’s account requirements, Merrill does not impose any surcharges for penny stock trades. Other firms do charge extra to trade off of America’s major exchanges. WellsTrade, Ally Invest, and Capital One Investing are some examples.

Merrill’s selection of 3,700 OTC stocks is larger than Fidelity’s, which is just 940. TD Ameritrade’s has 10,000 OTC stocks, while Schwab clients have access to 6,165. E*Trade offers penny stocks, but its screener can’t search exclusively for OTC securities.

Firstrade has $0 commission on penny stocks but only stocks priced above 10 cents are allowed to trade. There are over 15,000 OTC stocks available at Firstrade.

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Get 2 FREE stocks and $0 commission in ALL trades!

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Merrill Edge OTC Stock Examples

Browsing through the search results, you will see a wide variety of securities. One of them is All American Gold Corp. The stock’s ticker symbol is AAGC. It recently had a daily volume of over 30,000,000 shares. Despite this enormous activity, the stock’s most recent trade price is only 0.02¢. Yes, that cents, not dollars.

An OTC equity that trades at a higher price is CSTW. Central Steel & Wire Company had a recent trade price of $450, very high for an over-the-counter stock. It pays a dividend and has a market cap above $100 million. It does not have any analyst reports on the Merrill Edge website, which is typical for these types of securities.

Buying a Penny Stock on Merrill Edge

If you have found a penny stock that you’re bullish on and you understand the risks, then it’s time to place an order. Doing so on the Merrill Edge site follows the same procedure as submitting an order for a regular stock. Just click on the ‘Trade’ button on the firm’s website to access the trade ticket. Orders for OTC stocks can also be submitted using the broker’s handy trade bar at the bottom of the browser.

Merrill Edge Penny Stocks

Merrill Edge’s regular commission schedule applies to penny stock trades. That’s $0 per transaction.

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Merrill Edge Positives & Pitfalls

While there are many ways to keep transaction fees to a minimum, most involve maintaining $50,000 or more in Bank of America accounts or Merrill Edge cash accounts. That’s a good chunk of change. Outside of the Merrill Edge free trades offer you can expect to pay a base of $0 per self-directed transaction or a base of $29.95 for a representative-directed trade.

Merrill Edge has eight different order types and 2 different durations available for both self-directed and representative-directed ETF trades.

The website itself is well designed with drop down tabs that easily connect an investor with anything they could possibly need. Orders are previewed prior to confirming and order status is an invaluable tool that displays all current transactions and has a link to previous account activity. The ability to click a link and be automatically redirected to a page with a real time synopsis of what’s happening in the markets is major positive. The tax center is home base for resources such as FAQ’s, filing deadlines, IRS Forms, and downloads for year-end tax information. If all this is too overwhelming, help is available through a boldly displayed toll free phone number.

For the client who prefers their investing account be kept separate from daily banking accounts, Merrill Edge may not be the best choice. The clients’ current Bank of America accounts are seen when logged into their Merrill Edge. This leaves very little privacy. For the client who wants a complete overview of their assets and liabilities, this is a huge advantage as they can clearly see this portion of their net worth. It also allows for a more complete overview for any future investing such as retirement plans and education funds all of which can be either self-directed or representative-directed.

A client that is new to investing will have some issues. Merrill Edge provides their clients with a very professional platform to conduct investing that is not present with many investment institutions. This means there is a wealth of information on the website and it is assumed that the client has a working knowledge of basic investing. A new investor will need to be patient and be willing to spend some time learning new terms and reading fine print. The experienced investor will love the feel and ease of use found on the website. A good rule of thumb is to contact customer service with any questions.