TradeStation OTC & Penny Stock Trading: Fees and Rules

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 so, 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 generally a low-priced security that trades below $5 per share. 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 on the OTC market and not on 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 an international offering through TradeStation Global that delivers access to many foreign exchanges through Interactive Brokers. Some of the foreign ordinary shares and ADRs (American Depositary 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 is separate from a standard U.S. TradeStation brokerage account and provides access to both TradeStation’s technology and Interactive Brokers’ global market reach.

Cost of Trading Penny and OTC Stocks at TradeStation

TradeStation charges a commission of 0.5¢ per share on all trades of OTC stocks. The same commission applies to exchange-traded equities executed below $1.00 per share. There is a $1 minimum commission and a $50 maximum on these trades, subject to a cap of 5% of the notional value of the executed order. Direct-routed equity orders can also incur an additional commission of 0.5¢ per share.

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 securities follow the same basic procedure as orders for other equities. TradeStation’s mobile app, website, or desktop platform can be used.

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moomoo as Alternative

As an alternative, you can try moomoo that provides access to 12,000 penny stocks, pink sheets, and OTC stocks with $0 commission ().

Open moomoo Account

Visit moomoo Website

Updated on 6/5/2026.

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.