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TradeStation OTC & Penny Stock Trading: Fees and Rules
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Penny and OTC Stocks at TradeStation: Key Takeaways
• TradeStation provides access to both over-the-counter and penny stocks.
• Fees may be charged on some trades of penny and OTC equities.
• TradeStation’s desktop platform has a scanner that can search for both OTC and penny stocks.
If you want to trade penny or over-the-counter (OTC) stocks, TradeStation should definitely be on your list of possible 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, such as $3 or $1. A penny stock could, in theory, trade on one of the major U.S. exchanges. An OTC stock, by contrast, is any equity that trades in the OTC marketplace and not on one of the major national exchanges. Some of these trade at prices well above $20, so they are not always penny stocks.
Foreign Exchanges
TradeStation also has an international arrangement through TradeStation Global that can provide access to many foreign exchanges through an Interactive Brokers account. 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 TradeStation’s software together with an Interactive Brokers account for global trading.
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 equity orders executed below $1.00 per share. There is a $1 minimum commission and a $50 maximum on these trades, and both are subject to a cap of 5% of the notional value of the executed order.
Trades on foreign exchanges will be charged 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.
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.
TradeStation Review
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Webull as Alternative
As an alternative, you
can try Webull that provides access to 12,000 penny stocks, pink sheets, and OTC stocks with $0 commission
(learn more).
Open Webull Account
Visit Webull Website
Updated on 9/8/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
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