|
Vanguard OTC Stocks (Penny Stocks) in 2026
|
Penny and OTC Stocks at Vanguard: Key Points
• Vanguard no longer allows the purchase of most over-the-counter (OTC) stocks.
• Penny stocks can still be traded at Vanguard.
• Some American Depository Receipts (ADRs) are available for trading in a Vanguard brokerage account.
If you want to trade penny stocks, Vanguard allows that. However, they no longer support the purchase of over-the-counter (OTC) equities, although you can still hold or sell them. Here are the details:
OTC and Penny Stocks at Vanguard
Penny stocks, which are stocks priced below a specific threshold, are fully tradable at Vanguard. Typically, a penny stock is any stock priced below $5, $3, or $1, depending on the classification. These stocks can be listed on major U.S. exchanges and can be freely bought or sold in a Vanguard account. However, the OTC market is no longer accessible to Vanguard customers for new purchases.
There are exceptions, though. You can still sell any existing OTC stocks and hold them in your account. Some ADRs in the OTC market can also be traded. Vanguard is strict about which stocks are eligible, and for an ADR to be available for purchase, it must:
- Have a market cap of at least $300 million
- Be listed in one of the top three tiers of the OTC market (OTCQB, OTCQX, or Pink Current)
Finding Penny and OTC Stocks at Vanguard
Vanguard has an equity screener that makes it easy to find penny stocks on major U.S. exchanges. To access the screener, go to the Products & Services tab on the website and select the stocks option from the drop-down menu. On the next page, click the link for the search engine.
Once you launch the screener, you can filter by Closing Price and set a maximum price. When we set the price limit to $0.99, we found over 3,000 stocks.
While the screener does have filters for market cap and exchange, these options didn't work during our research.
Placing an Order for an OTC/Penny Stock
To place a trade for penny or OTC stocks on Vanguard, go to the stock’s profile on the website or mobile app and click or tap the trade button. This will automatically generate the order ticket. You can choose to buy or sell short, but for OTC stocks, only limit orders are accepted.
Penny Stocks/OTC Fees at Vanguard
Vanguard does not charge extra fees or surcharges on penny or OTC trades, and with no commission fees, these trades will cost you nothing (other than small regulatory or exchange fees on the sell side).
Moomoo as a Substitute
If you want to trade OTC stocks beyond the small number of ADRs available at Vanguard, Moomoo might be a good alternative. Moomoo offers
over 12,000 over-the-counter stocks, which can be easily found using the broker’s search tool.
Moomoo offers $0 commission for penny and OTC stock trades, making it a great choice for either asset class.
Learn more about Moomoo OTC stocks.
Moomoo Promotion
Visit Moomoo Website
Updated on 1/23/2026.
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.
|