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Scotia iTrade OTC Stocks (Penny Stocks) Fees in 2022


Scotia iTrade penny stock fees: commission charged for buying pink sheets/OTC BB/stocks priced under $1. Can I buy OTC stocks on Scotia iTrade?


Can I Buy Penny Stocks on Scotia iTrade?


Scotia iTrade does offer investors the ability to trade OTC (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.


Scotia iTrade Penny Stocks


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. 


Competitor


Take a look at the Questrade Penny Stocks »


Scotia iTrade Review


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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.


About the Author
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com. He has been an avid investor for 23 years, and has background in both applied math and programming.