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Vanguard: Buying OTC (Penny) Stocks
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Penny and OTC Stocks at Vanguard: Key Points
• Vanguard no longer offers most over-the-counter (OTC) stocks.
• Penny stocks listed on major U.S. exchanges can still be traded at Vanguard.
• Some American Depositary Receipts (ADRs) can be traded inside a Vanguard brokerage account.
Investors at Vanguard can trade penny stocks listed on major U.S. exchanges. They can hold and sell over-the-counter (OTC) equities, but they generally can’t buy them anymore. There are a few exceptions. Here are the details:
OTC and Penny Stocks at Vanguard
Penny stocks are generally equities priced below $5 per share. It’s certainly possible for a security to trade on one of the major national exchanges below this price level, and such stocks can be bought and sold inside a Vanguard account. However, most OTC securities are now off limits for new purchases at Vanguard, so most penny stocks trading over the counter won’t be tradable on the buy side.
There are some exceptions. Existing positions of OTC stocks can be sold off, and it’s possible to hold existing OTC positions as well. Some ADRs in the over-the-counter space can be traded as well. Vanguard is pretty strict with its rules, though. In order for an over-the-counter ADR to be eligible for purchase, it must:
- Have a five-letter ticker symbol that ends in “Y”
- Have a market cap of over $300 million
- Be in the top three tiers of the OTC marketplace, as defined by Vanguard: Pink Current, OTCQB, or OTCQX
Finding Penny and OTC Stocks at Vanguard
With Vanguard’s equity screener, it’s possible to find penny stocks on the major U.S. exchanges. To pull up the stock screener, click on the Products & Services tab in the top menu on the website and select the link in the drop-down window for stocks. On this page, there is a link for the search engine.
Once the search wizard has been launched, simply add Closing Price as a filter and specify the maximum price you want. When we specified $0.99, we received over 3,000 results.
Although the equity scanner does have market cap and exchange as potential filters, these search parameters did not work during our research.
Placing an Order for an OTC/Penny Stock
To place a trade for an eligible penny stock or OTC ADR at Vanguard, you’ll need to head to its profile on either the website or mobile app and click or tap on the trade button or link that appears on the profile. Doing so will automatically generate the order ticket. For an eligible OTC security, only a limit order is accepted.
Penny Stocks/OTC Fees at Vanguard
Vanguard imposes no surcharges on trades of eligible penny or OTC securities, and online stock trades have zero commissions. Small pass-through exchange and regulatory fees may apply on the sell side.
Webull as a Substitute
If you want to trade OTC securities other than the small list of ADRs Vanguard offers, Webull is
one broker worth checking out. Webull offers
many over-the-counter stocks, and these are searchable in the broker’s search engine.
Webull charges $0 commissions for eligible U.S. stock trades, including many penny stocks and OTC stocks, although regulatory and other fees may still apply, especially on sell orders.
Learn more about Webull OTC stocks.
Webull Promotion
Visit Webull Website
Updated on 6/5/2026.
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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