Robinhood Penny Stocks and OTC Stocks Trades

2019 Robinhood penny stock fees: commission charged for buying pink sheets/OTCBB/stocks priced under $1. Is Robinhood good for (offers) penny stocks trading?

Does Robinhood Offer Penny Stocks?

Robinhood does NOT offer trading OTC (over the counter) securities, pink sheets stocks.

Robinhood, however, does offer trading penny stocks defined as securities with share price under $5.00, provided they are listed on either NYSE or NASDAQ.

Keep in mind that Robinhood will execute your penny stock trade at the end of the day. This means day trading on Robinhood is impossible.

If you are interested in trading OTC (over the counter) securities, pink sheets stocks not offered by Robinhood then check out firms in the Best Penny Stock Brokers list that do not have surcharges and additional fees on Pink Sheets/OTCBB/stocks priced under $1 and Robinhood penny stocks limitations.

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Robinhood Penny Stock Fees

Robinhood currently does not charge any fees for trading stocks with share price under $5, also called penny stocks. List of all the broker fees is here: Robinhood fees »

Hazards of the OTC Marketplace

Trading in the over-the-counter market has always been fraught with all sorts of problems that are less common on America’s major exchanges. For example, penny stocks tend to have higher bid-ask spreads, which increases the cost of round-trip trades.

OTC equities also have more volatility and less liquidity. This situation can cause profits to fluctuate wildly, and buyers can be difficult to find.

The government doesn’t regulate this trading environment as strictly as it does the major exchanges. As a result, criminal activity is more likely. The Pink Sheets market especially has seen its share of securities fraud over the years.

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Can I Buy OTC Stocks On Robinhood?

Unfortunately Robinhood does not offer OTC stocks trading right now.

Penny Stocks on Robinhood Disclaimer

Robin Hood penny stock fees and information can change at any time. Check broker's website for the most recent data before taking any action.