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Scotia iTrade and Questrade Penny Stocks Fees


2018 Questrade and Scotia iTrade penny stock fees: commission charged for buying pink sheets/OTC BB/stocks priced under $1. Is Canada Questrade and Scotia iTrade good for (offers) penny stocks trading?



Questrade Penny Stock Fees


The Canadian company gives customers an opportunity to choose from two commission plans. First plan pricing is 1¢ per share, with 95¢ minimum and $6.95 maximum. Second plan has a $4.95 flat stock commissions. If you decide to change your pricing plan during the month, you can do so in your account, and it will take effect the 1st of the following month. Questrade does NOT have additional surcharges and fees for Pink Sheets/OTC BB stocks/stocks priced under $1.

Obviously, if you plan to trade penny stocks then it makes sense to use flat-rate plan because otherwise large-size trades will usually cost you $6.95.


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Questrade Commissions


InvestmentsCommissions
Stocks (Democratic Plan) $0.01 per share, $4.95 minimum, $9.95 maximum per trade
Stocks (Advantage Variable Plan) $0.01 per share, $0.01 minimum, $6.95 maximum per trade
Stocks (Advantage Fixed Plan) $4.95 per trade
ETFs All Canadian and U.S. ETFs are free to buy; standard commission to sell
Options $9.95 + $1 per contract ($6.95 + $0.75 per contract in Advantage Variable; $4.95 + $0.75 per contract in Advantage Fixed)
Options assignments$24.95
Mutual funds $9.95
Gold or Silver $19.95 per trade
Bonds $0 per trade
Forex spreads as low as 1-2 pips on the major currency pairs

Investments stocks, options, mutual funds, international stocks, gold, CNSX securities, bonds, term deposits, GICs, ETFs
Questrade minimum deposit to open account $1,000 ($250 minimum to keep an account open)



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Does Scotia iTrade Offer Penny Stocks?


Scotia iTrade does offer investors the ability to trade over-the-counter stocks. The equities screener tool found in the ‘Quotes and Research’ section of the website can be used to filter for penny stocks that trade on OTC exchanges. One extra step is required as the pre-defined price per share price can only be set to filter for all stocks under $10 which returns 3,957 results. Clearly, these will include non-penny stocks. Investors need to take an extra step and filter this list by price to view all stocks under $1.


Scotia iTrade Penny Stock Fees


ITrade charges the same amount to trade penny stocks as any other equity in their database – it is either a flat fee of $4.99 per trade, $6.99 per trade, $9.99 per trade or $24.99 per trade, depending upon the pricing tier for which you have qualified. Qualification depends on total number of trades per quarter and total assets deposited across all Scotia accounts.

The only other fees investors should consider are the account fees. Since iTrade operates under Scotia Bank, chartered Canadian bank, there are numerous transaction and misc. fees associated such as $150 for an account transfer, $100 for a certificate deposit, $25 per quarter for low account activity, and $50 per fund per quarter for any mutual fund purchases not distributed by iTrade.  There are also different fees for different types of accounts such as registered vs. non-registered.


OTC Stocks Available at Scotia iTrade


While the Securities and Exchange Commission (SEC) classifies a penny stock as any equity trading under $5, most traders put the limit at $1. This is an irrelevant classification using iTrade as there is no direct way to filter stocks under a fixed price. The best method would be to perform the necessary research into which specific stocks are desired and create a watchlist to track their performance. This is a valuable tool especially for penny stocks as returns can fluctuate between large deviations.


The Treacherous World of OTC Securities


If you have found a penny stock at iTrade that you’re interested in, you need to understand the risks associated with the OTC marketplace before placing a trade. There is less government supervision of the over-the-counter markets, which means there is a greater risk of illegal operations. 

There is frequently little information on penny stocks, and they often trade with small volumes. Because there is less liquidity in OTC markets, finding a buyer could be a challenge. 


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Buying a Penny Stock on Scotia iTrade


Placing an order on Scotia iTrade follows the exact same process as purchasing any other equity. It can be done using Trade Desk or Flight Desk on the broker's website or mobile app. 

From the broker’s dashboard homepage, click the Trading Desk button to launch the platform. A separate window will pop up where it is possible to select from any number of penny stocks available. First select your account to which the penny stock will apply. Gold Standard Ventures Corp. (GSV) is a pick that shows unusual market strength in penny stocks.

It is then necessary to select the “buy” option from the drop down menu and specify order type quantity. Orders on iTrade can be placed using market, limit, stop limit, trailing stop $, or trailing stop %. It is then necessary to select a day, good-though, or max term.

Investors can preview principle value, estimated commission charged, F/X rate, and see the estimate transaction value. It is important to note that some OTC stocks are not allowed with registered accounts such as RSPs but for investors with unregistered accounts, this will not be a problem.


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