Can I trade OTC-listed penny stocks at Firstrade? If yes, any trading restrictions?

Beginning Tuesday, September 28, 2021, new rules will affect your ability to buy and sell “Pink No Information” securities, including at Firstrade. Learn more

Firstrade does not accept transferring in of OTC-listed penny stock positions regardless of the stock price.

Firstrade offers limited trading services in OTC-listed penny stocks. Typically, these penny stocks must have liquid trading volume and must be DTC eligible (DTC eligibility means that a public company's securities are able to be deposited through Depository Trust Company) to be available for trading via Firstrade platforms. For purchases, the stock price also must be greater than $0.10. Other trading restrictions include limit-orders only, and no extended hours trading.

The term “penny stock” generally refers to low‐priced (below $5), speculative securities of very small companies. While penny stocks generally are quoted over the counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign security exchanges. In addition, the definition of penny stock can include the securities of certain private companies with no active trading market.

Please note that OTC names with lower than 50,000 average daily volume cannot be purchased across Firstrade trading platforms.

Please also note that foreign issued securities cannot be traded across Firstrade trading platforms; if you already held the position, you may contact customer service to liquidate with a $75 pass-through trade clearance fee. Foreign issued securities (also known as F stocks: ABCDF) typically is denoted by a five-letter ticker symbol ending in “F,” and listed on the OTC market.

For more information, please refer to LOW-PRICED SECURITIES disclosure.

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