TD Ameritrade 300

TradeStation Penny and OTC Stocks Trading (2021)


TradeStation penny stock commissions, fees charged for buying pink sheets/OTCBB/stocks priced under $1. Is TradeStation good broker for penny stocks trading?



Does TradeStation Offer Penny Stocks Trading?


Investors at TradeStation who are interested in penny and over-the-counter stocks have access to these securities. The broker does not offer much information on its website about this service, although this article will give you all the details you need to get started.


TradeStation Penny Stock Fees


Penny stocks and over the counter securities are commission-free at TradeStation. “Commission-free” for equities trades applies only to the first 10,000 shares per trade — for each order of more than 10,000 shares, a $0.005 per share charge will be assessed on the number of shares in excess of 10,000. Direct-routed equity orders will be charged an additional $0.005 per share.

TradeStation does charge for real-time OTC data. Professional traders pay $30 per month, while non-professionals pay $5. This is just for Level I information. Level II data is $15 for non-professionals, while professional traders must pay $75 per month. Delayed data is always free.

To compare, 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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OTC Equities Available at TradeStation


The broker-dealer offers an advanced equity screener aptly titled Screener. It is available on its desktop platform, which is free of charge. It can look for regular stocks, penny equities, and OTC securities. It can be found by clicking on ‘TradingApps’ on the left-hand side of the trading platform.

After opening the app, you want to click on ‘Insert...’ at the bottom of the window. This will create a custom search for any type of stock you’re interested in. The first step is to name the search. You can give it any name you wish. Then click on ‘Next>’ at the bottom of the window. Here you will be able to specify which exchange you want to search on. Nasdaq, OTC, and OTC Bulletin Board are available choices.

You can also look for stocks priced under a certain amount, such as $5, the normal cutoff for penny stocks. If you want, you can search for equities priced under $1.

Running a scan for equities on the OTC, OTC BB, and Nasdaq exchanges produces 2,391 results. Limiting the price to $4.99 narrows the search results down to just 346 stocks. One of them is VTL, Vital Therapies, a company that has failed to report earnings recently, a pretty bad sign.


How To Buy Penny Stocks on TradeStation


Submitting an order for a penny stock or over-the-counter equity is done in the same manner as a regular stock. The order can be submitted using the broker’s desktop platform, where the Scanner app is located; or you can use the TradeStation mobile app or simple browser-based platform.


TradeStation OTC Stocks


There is no surcharge for penny or OTC trades. The broker’s standard commission schedule applies, which is $0 per transaction in a per-trade account.


Comparison


Some of TradeStation’s rivals also provide access to the over-the-counter markets. E*Trade does, but its stock screener cannot search on specific exchanges. This is an obvious disadvantage compared to TradeStation.

WellsTrade customers can buy and sell penny and OTC stocks. However, the broker has a $34.95 minimum commission for over-the-counter equities, and there is a maximum of 3.5% of trade value.


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