WeBull penny stocks

WeBull OTC Stocks (Penny Stocks) Fees in 2022


WeBull penny stock fees: commission charged for buying pink sheets/OTCBB bulletin board/gray market/stocks priced under $1. Rules and policy. Can I buy OTC stocks on WeBull?


Can I Buy Penny Stocks on WeBull?


If you are looking for a broker to trade securities on the OTC market, you may want to consider Webull as an option. Webull did not offer OTC trading for a long time, but that has now changed. Webull offers commission-free trading in some OTC securities, and the list is likely to grow over time.

Please continue reading for more information about Webull’s approach to OTC trading.


OTC Trading at Webull


There are currently 100 OTC securities available at Webull. You can invest in them - commission free - just as you would any other stock or ETF listed on Webull’s platform. While there are some differences in available order types, the experience is essentially the same.

Regarding Webull’s OTC offerings, it is important to note the type of available securities. Stocks trading on the OTC markets are commonly thought to be Pink Sheets - highly volatile penny or international stocks.

At Webull, the available OTC stocks are from large, international companies.


Which OTC Securities Does Webull Offer


The current listing of OTC securities includes 100 tickers from companies worth approximately $5 billion each. The stocks have the highest trading volume in the OTC marketplace, and the price action reflects their popularity.

You see companies like Adidas (ADDYY), Panasonic (PCRFY), Volvo (VLVLY), and L’Oréal S.A. (LRLCY) in the lineup, as well as many other globally recognized names.

Webull’s approach to OTC trading provides investors with some important benefits. One is the ability to diversify a portfolio with stock from some of the world’s most influential companies. Another is the ability to take advantage of the impact of global events on foreign companies.

It is not uncommon to see situations where specific countries are affected more than others by geopolitical events. It is helpful to have access to stock in companies in those areas.

Here is the current lineup:


WeBull OTC Stocks


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Trading OTC Securities


When you want to trade OTC securities at Webull, you’ll want to keep a few things in mind.


Margin


Traders can not use margin for OTC securities at Webull, even if they have access to margin for other types of investments.

That means you cannot increase your buying power with borrowed money. It also means that you cannot sell Webull’s OTC stocks short.


Trade Types


For order types, all OTC stock orders must be limit orders, and DAY must be selected for the Time in Force.

OTC securities trade during the regular cash session, so there is no need for a GTC order. If the order is not filled by the end of the trading session, it will be canceled.


WeBull OTC Order


Order Minimums


As far as order minimums go, you can buy single shares of OTC stocks. However, if the stock price dips below $10, you must purchase enough shares to meet the $10 OTC trade minimum.


Webull OTC Fees and Commissions


Webull does not charge fees or commissions for OTC trading on its platform. This is a huge benefit to an already attractive offer. Many other brokers charge a fee for OTC trading, including those calling themselves ‘no-commission brokers.’


Webull Penny Stocks


If you want to trade penny stocks at Webull, you can. Pink Sheets aren’t available, but you can still find many securities trading for under $5.

To find pink sheet alternatives, use the Webull stock screener on the browser-based trading platform or the downloadable PC platform. You can search for listed stocks under $5 and adjust parameters such as volume, market cap, and exchange.

Remember that while you can find ‘penny stocks’ at Webull, they are generally not characteristically similar to Pink Sheets. Webull’s penny stocks are safer and less volatile than OTC penny stocks. They also do not usually provide the same type of explosive price movement.


WeBull Penny Stocks Screener


OTC Trading Risks


All trading carries risk, but investors should be acutely aware of the risks associated with OTC securities. For now, most of the common OTC-related risks are not present at Webull. The broker has hand-picked a list of stable OTC securities to give investors a familiar trading experience.

Some of the risks that Webull protects its investors from are liquidity risks and the risk of company bankruptcy. There are different liquidity risks, but the most noticeable is the existence of substantial price swings. It is also possible to get stuck ‘holding the bag’ in low-liquidity environments.

Webull lists stocks from companies that are not in danger of going out of business and have enough volume to throttle outsized directional moves in price.


Is Webull a Good Broker for OTC Securities Investing?


So, is Webull a good broker to invest in OTC stock? The answer will depend on the type of investment experience you are looking for.

The answer is yes if you are looking for top-tier stocks from major international companies. The OTC stocks offered by Webull are comparable to many of the U.S.’s largest companies, and the price action reflects that.

If you are looking for stocks trading on the OTC Pink market or any other low liquidity OTC security, the answer, for now, is no. You will need to consider other brokers to take part in high volatility events that the OTC market is often associated with.


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12 FREE stocks valued $34-$30,600 give-away at Webull.

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Updated on 6/13/2022.


Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.