Penny stock investors often struggle with finding a good broker.
This is due to high fees and a lack of transparency.
Charles Schwab understands the demands many penny stock buyers have, which is why it’s a good broker for investing in Over-The-Counter (OTC) penny stocks.
You can also find their platform easy-to-use and friendly on mobile devices as well as trade from home or abroad by using their trading apps.
With a few simple steps, you’ll have complete access to the U.S. markets.
Does Charles Schwab Offer Over-The-Counter (OTC) Penny Stocks?
Yes, It is possible to purchase OTC stocks on Charles Schwab.
There is no minimum investment requirement, however, there is a charge of $6.95 per trade specifically for Over-The-Counter (OTC) stocks.
Stocks trading on major exchanges (NYSE, Nasdaq, Amex) charge $0 for online stock trades.
How To Buy Penny Stocks on Charles Schwab? (Quick Overview)
Before you can buy Over-The-Counter (OTC) penny stocks on Charles Schwab you will first need to open a new trading account.
After opening your new account you will also need to fund it before you can start trading.
You will be required to provide the following personal information upon your new account signup.
- Drivers License
- Social Security Number or Tax Identification Number
- Provide your Employer Name and Address (if applicable)
- List any assets or money from other banks or brokerages you wish to transfer to fund your new Charles Schwab trading account
Additional Steps Include,
- Giving your full name, address, email and phone number
- Select the brokerage account type you require such as Individual, Joint, Margin, or Cash account
- Deposit funds into your account to begin trading
Funding Your New Account
- Check/Cheque deposit via mail or in-person branch
- Wire Transfer
- Electronic Funds Transfer (EFT)
New account minimum funding requirements start at $0 as there are no account minimum requirements to begin investing.
Charles Schwab Commission Fees
Charles Schwab offers a vast array of options for those looking to buy Over-The-Counter (OTC) stocks on the OTC Markets.
The below chart includes an overview of fees charged per executed trade in the Over-The-Counter (OTC) Markets and Major US Exchanges (NYSE, Amex, Nasdaq) regarding stocks and options trades.
Each time you place a trade your brokerage company may charge a fee that includes the cost of executing, routing, and clearing your trade orders.
OTC, Stock, And Options Fees Chart (per Buy/Sell Transaction)
|Pricing||Online Commission per Executed Trade||Automated Phone||Broker-Assisted|
|Over-The-Counter (OTC) Penny Stocks||$6.95||Online Commission $6.95 + $5 Automated Phone||Online Commission $6.95 + Broker-Assisted $25|
|Stocks||$0||Online Commission $0 + $5 Automated Phone||Online Commission $0 + Broker-Assisted $25|
|Options||$0.65 per-contract fee||Automated Phone $5, plus $0.65 per-contract fee||$0.65 per-contract fee + Broker-Assisted $25,|
Charles Schwab Pricing Guide for Individual Investors (PDF Guide)
The Charles Schwab PDF Pricing Guide below has been updated as of October 2021 to help answer any additional questions you may have on selecting Charles Schwab as your broker of choice.Charles-Schawb-Pricing-Guide-10-2021
What Does It Cost To Open A Brokerage Account?
Charles Schwab has no hidden fees, and also no monthly service fees.
Charles Schwab offers different account types, individual and joint.
The individual account is for one person with a single Social Security Number.
If you’re married or in a civil union, then you can use the joint account type if you wish.
It’s important to note that both parties in the marriage or civil union must provide their social security number to open a joint account.
The cash account is great for people who are looking for investment funds to clear quickly before their next trade.
If you are an active trader and want to make a few speculative investments, you may be required to open a margin account.
This gives you the ability to borrow money to make any additional purchases. However, the account is only to purchase securities.
Choose An Account Type
- Individual or Joint Account
- Cash or Margin Account
Charles Schwab Trading Platforms and Software
Schwab Trading Software is a beloved trading platform among active traders for several reasons.
The website is easy to use and it offers customers the ability to trade from any device, anywhere in the world.
In addition, Schwab Trading Software boasts an impressive range of features.
These include powerful charting options, social media integration, and more.
All of these features make Schwab Trading Software a solid choice for both novice and experienced traders alike.
Charles Schwab Web Trading – Example 1
Trading Software (Active Traders)
Charles Schwab offers free trading software for active traders.
When you sign up for Schwab’s Active Trading service, you can trade stocks, options, ETFs, and more.
The software lets you customize your portfolio to meet your particular needs.
You can create watchlists of stocks to track, quickly see how your trades are doing, watch Level 2 quotes, and analyze historical data.
Active Trading Platform – Example 1
Active Trading Platform – Example 1
Mobile Trading Apps
Mobile trading apps have revolutionized the way that trades are conducted.
Traders can now trade on their phone, in addition to their computer, with just a few taps of the screen.
They are also more diverse and accessible to everyone, as well as the basic function of this type of app is very similar to trading and operating on your desktop.
Mobile Trading Platform – Example 1
Mobile Trading Platform – Example 2
Frequently Asked Questions (OTC Markets)
If you would like to learn more about How To Buy Over-The-Counter (OTC) Penny Stocks and the different OTC Market Tiers, continue reading more details from one of our other articles by clicking here.
Alternative Broker Reviews: How To Buy Over-The-Counter (OTC) Stocks
If you are still unsure of which broker-dealer to go with and are interested in reading additional reviews on alternative stockbrokers, be sure to check out some of our other interesting articles you may find helpful.
- How To Buy Over-The-Counter (OTC) stocks on E-Trade Financial
- How To Buy Over-The-Counter (OTC) stocks on Interactive Brokers
- How To Buy Over-The-Counter (OTC) stocks on Charles Schwab
Is Charles Schwab A Good Broker To Trade With?
Buying Over-The-Counter (OTC) penny stocks is simple and easy with Charles Schwab.
Remember to review the fundamentals of the company, read quotes for the day’s activity, check trading volume, and look for any news on the company before making your purchase.
Charles Schwab Investment Brokerage provides safety and security for those investing for the first time.
They offer a satisfaction guarantee on all your trades and over 300+ branch locations as well as 24/7 customer service.
With this in mind, it’s no surprise that they also include a Satisfaction Guarantee on all your trades and buying OTC stocks with Charles Schwab is quick, easy, and safe.
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