If you are just getting started investing in the stock market and want to buy Over-The-Counter (OTC) penny stocks, you will require a broker-dealer such as Etrade to act on your behalf to invest and purchase shares of the company you are interested in.
Investing can seem like a daunting task, but it doesn’t have to be.
Etrade’s website and platforms have everything that you need to get started right away and they offer competitive pricing for trades.
When you sign up, you will answer questions to determine your trading objectives.
Before you can buy OTC stocks, some brokerage firms may also ask you to complete an online agreement before activating your trading account.
This is because investing in OTC stocks can be highly risky.
Does ETrade Offer Penny Stocks (OTC Stocks) Trading?
Yes, Etrade does offer Over-The-Counter (OTC) penny stocks trading.
Your Etrade account will provide you access to the OTC Markets which include trading via dealer networks for companies that typically are smaller as compared to major corporations listed on the major U.S. listed exchanges (NYSE, AMEX, NASDAQ).
How To Buy OTC Penny Stocks On Etrade (7 Easy Steps)
For a beginner or individual starting, the steps to buy stocks with Etrade include the following:
1. Sign up for a new Etrade account
2. Deposit funds into your account
- Check/Cheque
- Wire Transfer
- Other Broker/Firm To Etrade Account Transfer
- Electronic Money Transfer
3. Research Stocks to Consider Buying
4. To Invest, Select Your Favorite Option
5. Use the Etrades Order Entry Platform to place your orders
6. Before completing your trade, review and double-check your order
7. Check the status of your account by login in or follow-up by phone at 1-800-ETRADE (1-800-387-2331)
How To Place A Stock Trade Using Etrade (To Buy Penny Stocks)
Steps
1. Enter the stock symbol in the order entry screen
2. Verify the stock price
3. Decide on your preferred order type
- Market Order: Buy or Sell shares immediately at any price that the stock is currently trading at when you execute your order
- Limit Order: Buy or Sell
- Stop Order:
4. Finalize and send your order to the market
5. Wait for confirmation that your order has been completed and shares purchased
Order Details Window
Example 1
Example 2
Etrade Fees
What Does Etrade’s Penny Stock Fees Cost Per Trade?
The below examples start with the fees for OTC Penny Stocks trading on Etrade, followed by Etrades fees for Stocks and Options Trading.
Over-The-Counter (OTC) Penny Stock Trading Fees (per Buy/Sell Transaction)
Etrade charges a $6.95 commission for orders executed online via their website and trading platforms.
This includes Over-The-Counter (OTC) stocks on OTC, OTCBB, and Gray Market for Over-The-Counter (OTC) securities.
The $6.95 per trade commission can be reduced to $4.95 per trade for customers that complete 30 or more transactions per quarter.
Broker-assisted trades cost $25 per trade.
OTC, Stock, And Options Fees (per Buy/Sell Transaction)
| Pricing | Trades Per Quarter(3 months) 0-29 | Trades Per Quarter(3 months) 30+ or more |
|---|---|---|
| Over-The-Counter (OTC) Penny Stocks | $6.95 | $4.95 |
| Stocks | $0 | $0 |
| Options | $0.65 per-contract | $0.50 per-contract |
Etrade Brokerage Account Types
Etrade account types include Cash, Margin, or Custodial for Trading Accounts.
- Individual Account
- Joint Account
- Custodial Account
What Is The Minimum For An Etrade Account?
Etrade has no minimum funding requirements on new accounts. You can start with as little as $1.00 or more.
Where Can I Open A New Etrade Account
Etrade offers a variety of investment options with low fees and high security.
To facilitate the purchase of over-the-counter stocks and other securities, you will need to create a brokerage account.
You will need to provide information about your personal information and once your account is approved, you can start investing in a variety of stocks.
Plus, opening an Etrade brokerage account also opens up access to their investment tools like retirement planning tools, market news, and more.
To open a new Etrade account click here.
How Fast Can I Start Trading
To start trading, you can fund your account and wait for the funds to clear.
Once your deposited funds have cleared you can start trading immediately.
Etrade Platform Options
Power E*TRADE Platform (For Active Traders)
Etrade Web Platform (Browser Version)
Two Mobile Platforms
Frequently Asked Questions (OTC Markets)
If you would like to learn more about OTC Markets and the following items below, read more details from one of our other articles by clicking here.
You will learn,
- How many OTC markets are there
- The 3 Tiers of OTC Markets
- Difference between OTCQX and OTCQB
- What Pink Status means
- What is the OTC Grey Market
- and more
How Do I Get Started With Etrade?
Stock market investing does not have to be difficult.
We’ll educate you through the basics of buying in a few easy steps so you can take control of your money.
How To Open A New Etrade Account (Step By Step Video Explanation)
Is Etrade A Good Broker To Trade With
In conclusion, trading with Etrade brokerage is simple and cost-effective.
The service has very low commissions, great customer service, and tools for beginners.
Trading stocks using Etrade can be done in a matter of minutes with either self-directed online or broker-assisted via a phone call.
So if you still think you want to trade stocks online but need some help setting up an account and understanding the basics, check out their website articles on trading with Etrade brokerage.
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