Penny Stocks and OTC on Webull
If you are looking for an intuitive trading platform that lets you trade penny stocks and OTC-listed securities, Webull might be a good choice. However, there are a few limitations to consider before using the popular broker for penny stock trading.
Keep reading to learn more.
Key Takeaways
• Webull offers commission-free trading for penny stocks and OTC securities, although regulatory and other fees may apply.
• Webull applies minimum share requirements to some OTC stocks priced under $1 and does not accept opening buys below $0.01.
• Webull's platforms are very well-suited to trading volatile stocks.
Does Webull Offer Penny Stocks?
Webull does offer penny stocks and penny stock trading, but not always in the same way many investors think about when the term penny stocks comes up.
To many traders, penny stocks refer to highly volatile, low-cost securities issued by companies that cannot qualify for listing on larger exchanges. Instead, these companies trade on the open market with much lighter oversight. While traditional penny stocks are risky, they also can offer significant upside.
Webull offers a small number of sub-$5 securities listed on the OTC marketplace, and stocks priced below $1 come with minimum order-size requirements. Most of the OTC stocks on the platform are from larger companies. The majority of Webull's penny stocks are sub-$5 securities trading on major exchanges like the NYSE, NASDAQ, and AMEX.
Webull's OTC Stocks
Since Webull's OTC focus is primarily on larger companies, it is good to note what kinds of investing you can do if you plan on taking advantage of what the broker has to offer.
Webull's OTC stocks include many foreign companies with very large market capitalization. Names like Nestle (NSRGY), Nintendo (NTDOY), Rolls Royce Holdings (RYCEY), Volkswagon (VWAGY), Burberry (BURBY), and Tencent Holdings (TCEHY) are just a few examples from the list of over 500 OTC stocks that are available.
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Webull's Penny Stocks Offerings
Apart from the small (but growing) list of sub-$5 stocks on the OTC markets, you'll find a huge selection trading on major exchanges.
To find them, investors can either type the name of the stock they want to trade directly into the search field or use the screener to fine-tune their search.
Locating Penny Stocks
Using a stock screener can significantly streamline your search for viable penny stocks. Stock screeners help filter out stocks based on specific criteria, ensuring you only see what fits your investment strategy.
The mobile app does have a screener. You can also use the desktop platform's screener to create a watchlist of your top picks, and watchlists are fully supported on the mobile app.
Trading Costs at Webull
Whether you are trading listed stocks or securities on the OTC marketplace, Webull's fees are very
attractive.
Other than some small fees for regulatory requirements (listed stocks), possible OTC transaction fees, and custody (ADRs), Webull does not generally charge commissions for stock trading activity. That means there are no commissions on stock trades, although other fees may still apply depending on what you trade.
There are also no account minimums, inactivity fees, or first deposit limits for new accounts.
Is Webull a Good Broker for Penny Stocks?
Webull is an attractive option for penny stock trading for several reasons. As long as you aren't looking for sub-$1 Pink Sheets, there is a lot to like about Webull.
Here are some of our favorite features.
User-Friendly Interface: The platform is thoughtfully designed to ensure that trading is efficient and straightforward, catering especially to beginners who may not have extensive experience in the market. With intuitive navigation and clear instructions, users can quickly familiarize themselves with the tools and features available.
Real-Time Data: Users have access to real-time data for many stocks, while OTC Level 1 market data is available through a paid subscription. This helps traders make more informed decisions based on current market movements.
Large Library of Learning Content: The platform boasts a comprehensive library of educational resources, including articles, videos, and tutorials. This rich content helps users enhance their trading knowledge, develop strategies, and stay updated on market trends.
Customizable Trading Interface: The desktop trading platform offers a customizable interface that allows users to tailor their trading experience to suit their personal preferences. This flexibility ensures that traders can arrange their workspace in a way that maximizes efficiency and comfort.
Full-Featured Trading App: The mobile trading app is fully equipped with all the features needed for effective trading on the go. Users can execute trades, use advanced charting tools, monitor their portfolios, and receive real-time alerts from anywhere, ensuring they never miss an opportunity.
Risks and Considerations
Trading penny stocks and OTC securities comes with high risks due to their volatility and lower liquidity. It's crucial to conduct thorough due diligence and research before making any investment decisions.
Penny stocks carry a high level of risk due to their volatility, which can result in substantial losses for investors. It is crucial to conduct thorough due diligence by researching the financial health and business model of the companies you are considering for investment.
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Updated on 9/8/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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