TradeStation penny stocks

TradeStation OTC Stocks and Penny Stocks in 2024


TradeStation penny stock commissions, fees charged for buying pink sheets/OTCBB bulletin board/gray market/stocks priced under $1. Can I trade OTC stocks on TradeStation?


Penny and OTC Stocks at TradeStation: Key Takeaways


• TradeStation provides access to both over-the-counter and penny stocks.

• Fees may be assessed on some trades of penny and OTC equities.

• TradeStation’s desktop platform has a scanner that can search for both OTC and penny stocks.

Do you want to trade penny or over-the-counter (OTC) stocks? If you answered in the affirmative, TradeStation should definitely be on your list of potential brokers.


Summary of OTC and Penny Stocks at TradeStation


TradeStation clients can buy and sell penny stocks and over-the-counter securities. A penny stock is any security that trades below a certain level, like $3 or $1. A penny stock could, in theory, trade on one of the major U.S. exchanges. An OTC stock, by comparison, is any equity that trades within the OTC marketplace and not one of the major national exchanges. Some of these trade at prices well above $20, so they’re not always penny stocks.


Foreign Exchanges


TradeStation has a partnership with Interactive Brokers that delivers access to many foreign exchanges. Some of the foreign ordinary shares and ADRs (American Depository Receipts) that trade in the OTC marketplace in the United States also trade directly on these foreign exchanges. For example, Nestlé S.A., which trades in the U.S. OTC marketplace with ticker symbol NSRGY also trades on the SIX Swiss Exchange with ticker symbol NESN. A TradeStation Global account can use both TradeStation’s software and IBKR’s software.


Cost of Trading Penny and OTC Stocks at TradeStation


TradeStation charges a commission of 0.5¢ on all trades of OTC stocks. The same commission applies to trades of penny stocks priced below $1.00 on any exchange. There is a $1 minimum commission and a $50 maximum on these trades.

Trades on foreign exchanges will be assessed commissions that vary by the specific exchange used.


Searching for Penny and OTC Stocks


TradeStation’s desktop platform can be used to find both penny stocks and over-the-counter instruments. To pull up the necessary scanner, log into the platform and click on the Scanner tile that appears in the list of apps on the dashboard.

With the search wizard pulled up, click on Create Scan. There are many criteria that can be specified, including exchange. Here, you can specify OTC stocks. It’s also possible to search the entire U.S. stock universe including the OTC marketplace. And price can be used as a filter, which will return all stocks below the price specified.


TradeStation OTC Stocks


Submitting an Order for an OTC/Penny Stock


Orders for penny stocks and OTC assets follow the same procedure as for any other equity. TradeStation’s mobile app, website, or desktop platform can be used.


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Firstrade as a Substitute


If TradeStation’s commission on OTC and penny stocks causes you to balk, Firstrade may be worth checking out. The brokerage firm charges nothing for trades of over-the-counter and penny securities, and it has a good search engine for these assets.

To find the scanner, simply log into Firstrade’s website and click on the Screeners link under the Research & Tools tab. With the screener launched, click on the Stock Screener tab and then select OTC PINK as the exchange. It’s also possible to search by share price. Firstrade offers over 10,000 of over-the-counter stocks.


tradestation otc


On the downside, Firstrade restricts its stock service to issues priced above ten cents. An OTC security must have average daily volume of 50k shares or more. And foreign ordinary shares (with ticker symbols ending with the letter F) cannot be traded (except for sales, which cost $75 each). Finally, Firstrade has no desktop platform.


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Updated on 2/17/2024.


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.