Wellstrade penny stocks

Wells Fargo OTC Stocks (Penny Stocks) in 2024

Wells Fargo Advisors (Wellstrade) penny stock fees: commission charged for buying pink sheets/OTCBB bulletin board/gray market/stocks priced under $1. Can I trade OTC stocks on Wells Fargo?

Can I Buy Penny Stocks on Wells Fargo?

WellsTrade customers who want to trade over-the-counter (OTC) stocks can use the broker's screener to search for equities priced under $5. Doing so will exclude all securities on the New York Stock Exchange because the Big Board only allows stocks above this level to trade.

While exchange can be selected as a search variable on WellsTrade's screener, the OTC market is not one of the options, unfortunately.

Wells Fargo Brokerage Penny Stock Fees

For online trading, WellsTrade charges $0. No OTC (Over The Counter) buys priced under $1 allowed. As an alternative, you can use Firstrade that provides access to 15,000+ OTC stocks with $0 commission (learn more).

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Charles Schwab and E*Trade do not have any penny stock surcharges. Trades are $0 each for U.S. exchanges listed securities and $6.95 for OTC stocks.

Not being able to search specifically for the over-counter-marketplace is disappointing. All the stocks we looked at from WellsTrade's screener results traded on the American Stock Exchange or the Nasdaq. So it's certainly possible that the broker does not offer any equities trading on over-the-counter exchanges.

Other brokers have screeners that can search explicitly for OTC exchanges. Merrill Edge, and TD Ameritrade, for example, both have this capability.

Wells Fargo brokerage account

OTC Equities Available at WellsTrade

Searching for stocks priced below $5 results in 783 equities being displayed. These securities have a very wide diversity, with some having a market cap in the billions, while others have a value of just one million. The results can be sorted by many different criteria. For some reason, the tool will not display stocks priced under 9¢. This will exclude many OTC stocks.

An example of a penny stock that is available to WellsTrade clients is Tengasco, Inc. This stock trades at just 37¢. It is listed on the American Stock Exchange, although you wouldn't know that by looking at the stock's profile page on the WellsTrade site. The broker for some reason doesn't display an equity's exchange. Tengasco's ticker symbol is TGC. Its average daily volume is 14,000, and its market cap is just over $4 million. Financial statements are available for this company, and they look pretty bad.

A second penny stock at WellsTrade is BAA. Banro Corporation has a market cap of just over $38 million, and a share price of 13¢. Its average volume is much higher than the last example, with over half a million shares traded daily. Its 52-week high is only 48¢. The stock shows a negative EPS, a bad sign. There are a few option contracts currently trading on BAA, which is rare for penny stocks.

How To Buy Penny Stocks on Wells Fargo

Placing a trade for an OTC security at WellsTrade follows the same procedure for regular stocks. Buy and sell requests can be submitted through the website or the broker's handy mobile app. There is no trade bar on the broker's site, nor does WellsTrade have a desktop platform. While shorting penny stocks is possible at WellsTrade, the profitability of the strategy is questionable given how low the price already is.

About the Author
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.