How to Buy OTC Stocks on ETrade Like A Pro?

how do i buy otc stocks

So you’ve finally decided to purchase Over Counter (OTC) stocks and now wondering which broker-dealer network would be best for your investing. Then don’t worry; we’ve got you all covered! Let’s see how to buy otc stocks on etrade?

Etrade is a well-known and trusted company with a wide variety of stocks available for purchase. With some simple steps and basic knowledge, you will be able to buy OTC stocks and trade them.

This article will cover the steps you need to take to open an ETrade account and explain what’s involved in the process. You can be up and running with your ETrade account in no time with a few simple steps! 

What Are OTC Stocks?

OTC stocks, also known as “over-the-counter” stocks, are those not listed on a major stock exchange such as the NYSE or Nasdaq. That’s why they are also known as unlisted stocks. These are typically smaller, more thinly traded companies and are riskier investments than their exchange listed stocks counterparts. OTC marketplace stocks lack larger companies’ liquidity and financial stability and may have higher volatility of price fluctuation

What Is eTrade?

ETrade is an online platform that allows investors to buy penny stocks and sell stocks, bonds, options, mutual funds, ETFs, Forex, and other securities. It offers a variety of tools for research and analysis, along with access to different account types, such as retirement accounts. 

Opening An ETrade Account

Opening an ETrade account is a simple, convenient process that can help you take charge of your financial future. The simple steps include the following:

  • To begin, you will need to provide personal information such as your name, address, Social Security number, and date of birth. 
  • You may also be asked to provide additional documents or financial statements for identity verification. 
  • After providing this information, you will be asked to choose a username and password for your ETrade account. Choosing something easy for you to remember but difficult for others to guess is essential. 
  • Once all the information has been submitted, ETrade will take up to three business days to review your application and confirm your identity
  • Once this is complete, you will receive an email notification that your account has been opened.
  • When your account is approved, you can start funding it. You’ll need to link a bank account or debit/credit card to your ETrade account and choose the investment you want. 

Minimum Funds Required

There is no minimum necessary to open an account. To keep the account open, funding must be made within 30 days. Once you’re ready to trade, ETrade requires a minimum mutual fund purchase of $500 or ETFs of at least $2,500. 

Types of ETrade Accounts

ETrade has various accounts and services to help customers reach their financial goals. Whether they want to invest in stocks, save for retirement or take advantage of marketplace lending products, ETrade has the correct account. These include:

Brokerage Account

A brokerage account is a type of account used for investing, with access to stocks, bonds, mutual funds, and other types of investments. With an ETrade Brokerage Account, customers can manage their investments online or with the help of a financial professional.

Core Portfolios

Core Portfolios are professionally managed portfolios that allow customers to diversify their investments while still having control over how they want to allocate their assets. Core Portfolios use modern portfolio theory to build low-cost and diversified portfolios without needing expert knowledge or advice from a financial advisor. 

Premium Savings Account

Premium Savings Accounts offer higher interest rates than traditional savings accounts and are FDIC-insured up to $500,000. They also provide access to marketplace lending products such as mortgages, auto loans, and more.

Traditional IRA

Traditional IRAs offer customers an easy way to save for retirement by allowing them to deduct their contributions from their taxes. With a Traditional IRA, customers can invest in stocks, bonds, mutual funds, and other types of investments

Roth IRA

Roth IRAs are similar to Traditional IRAs but offer tax-free growth on contributions and qualified withdrawals after age 59 1/2. ETrade offers Roth IRA accounts that allow customers to choose between self-directed investing or using financial advisors. 

Rollover IRA

Rollover IRAs are designed for those who want to move money from a 401(k) or 403(b) plan into an IRA without paying any penalties. They allow investors to roll over the money immediately or set up a direct rollover, so the money is transferred automatically.

Check Out How to Open an E*TRADE Account (Step by Step for Beginners):

ETrade Platform Option

The ETrade Platform Option is a powerful trading tool that allows you to manage your investments and monitor stock market trends easily. It includes:

Power E*Trade Platform

The Power E*Trade Platform is an advanced version of the primary platform. It includes additional features such as advanced charting tools, streaming news feeds, and analytics for complex options strategies. 

The interface is highly customizable, so users can tailor it to meet their needs. With more than 100 studies, 30 drawing tools, and various chart formats, advanced intraday and historical charting is available.

Etrade Web Platform

The E*Trade Platform is a feature-rich, easy-to-use platform that allows users to manage their trades and investments from their homes. E*TRADE provides customers access to stocks, funds, options, and ETFs. All the resources a trader or investor needs to do market research, keep tabs on the markets, execute transactions, and improve their abilities.

  • Research by unbiased analysts, quotations, news, and graphs
  • Screeners and investing tools to identify new prospects
  • Resources for retirement planning and education

Mobile Trading Platforms

The mobile platform offers E*TRADE mobile and Power E*TRADE, the trading apps of choice for any investor looking to take their portfolio to the next level. With advanced features and powerful tools, this app makes it easier to make smart investments.

List of Available Penny Stocks

Many penny stocks are available online, allowing small investors to be a part of the modern world and earn higher amounts with little investments. The active penny stocks include:

Company NameSymbolPrice% ChangeChange(+)Average Volume (3 months)Market Cap. 
Icon Media Holdings, Inc.ICNM0.0012+0.00+50.00%32.81M133.15k
Cann American Corp.CNNA0.0146+0.01+114.71%6.05M421.00
Touchpoint Group Holdings, Inc.TGHI0.0002+0.00+33.33%132.91M688.50k
CBD of Denver Inc.CBDD0.0015+0.00+7.14%16.17M209.13k
B2Digital, IncorporatedBTDG0.0003+0.00+50.00%70.07M693.18k
Metrospaces, Inc.MSPC0.0001+0.00+9900.00%56.72M389.22k
IJJ CorporationIJJP0.0006+0.00+20.00%22.02M1.16M
Sysorex, Inc.SYSX0.0009+0.00+80.00%76.10M2.24M
SmartMetric, Inc.SMME0.001287+0.00+28.70%30.30M1.17M
ICOA, Inc.ICOA0.0017+0.00+88.89%4.21M3.61M
Nano Mobile Healthcare, Inc.VNTH0.0016+0.00+23.08%66.11M1.29M
Beyond Commerce, Inc.BYOC0.0003+0.00+50.00%111.06M4.92M
Hemp, IncHEMP0.0005+0.00+25.00%98.99M8.83M
Marijuana Company of America, Inc.MCOA0.0003+0.00+50.00%107.30M5.10M
Alkame Holdings, Inc.ALKM0.00035+0.00+16.67%14.68M9.35M
Eline Entertainment Group, Inc.EEGI0.00075+0.00+7.14%39.40M6.20M
COMSovereign Holding Corp.COMS0.113+0.00+3.20%49.53M18.22M
Helbiz, Inc.HLBZ0.233+0.02+7.87%12.05M21.74M
Amani Gold LimitedBRYYF0.0008+0.00+23.08%27.24M18.95M
Cosmos Holdings Inc.COSM0.535+0.14+34.49%46.32M95.68M
Philux Global Group Inc.PHIL0.001+0.00+11.11%113.67M30.27M
American Green, Inc.ERBB0.0015+0.00+15.38%8.61M44.61M
SunHydrogen, Inc.HYSR0.0412+0.01+15.08%8.31M181.02M
Tilray Brands, Inc.TLRY4.58+0.410.4122.30M2.80B
Credit Suisse Group AGCS3.38+0.29+9.39%20.38M10.38B
Canopy Growth CorporationCGC4.29+0.36+9.16%14.40M2.08B
RLX Technology Inc.RLX2.61+0.33+14.47%13.16M4.04B

Buying OTC Stocks on ETrade

As long as you have an Etrade trading penny stocks account, buying OTC stocks is a straightforward process. 

Placing a Stock Trade Order

To purchase an OTC stock on Etrade, there are simple steps:

Step 1

The first step is to search for it using the company’s ticker symbol. This symbol is a unique code that identifies the company on the market. For example, if you wanted to buy shares in Apple Inc., its ticker symbol would be AAPL.

Step 2

Once you have entered the ticker symbol into Etrade’s search bar, a list of available stocks will appear. Look for the OTC stock price that match your desired company and select it from the list. 

Step 3

Now, select the order format you like:

  • Market orders allow you to buy or sell shares right away at any price the stock trades at when your order is executed.
  • Buy or sell limit order.
  • Stop order

Then, choose your favorite option before investing.

Step 4

Next, enter how many shares of the stock you wish to purchase and click “buy.” Select the order format you like. Place your orders using the Etrades Order Entry Platform. Also, review and confirm your order before concluding your deal.

Step 5

Once your order has been placed, Etrade will process it according to their standard procedures. After your order is complete, you’ll become an official owner of OTC stock.

ETrade Fees

Let’s look at additional fees charged for OTC trading, stocks, and options trading:

OTC Trading Fees

When trading Over-the-Counter (OTC) securities, ETrade charges a trading fee of $6.95 for OTC equities, including OTC, OTCBB, gray market, and OTC-traded overseas securities. If the investor conducts at least 30 stock, ETF, and options trades each quarter, the fee drops to $4.95.

Stocks Fees

ETrade Fees make investing in stocks easy and affordable. You don’t have to worry about payments or commissions when buying or selling stocks, making it a great way to build up your portfolio. ETrade charges 0$ for stock OTC trading.

Options Fees

Etrade is a great broker for traders of all levels, offering competitive fees and features for option trades. If you make fewer than 30 options trades per quarter (3 months), it will cost you $0.65per contract.

But if you make more than 30 trades in the quarter, it will be discounted to $0.50 per contract. It is excellent, allowing you to make more trades without paying extra fees. So if you’re an active trader of options, Etrade is the perfect broker.

FAQs

What is the Hottest Penny Stocks Right Now?

The hottest OTC penny stocks right now in OTC markets are:

Company NameTickerPriceMarket Capitalization ($M)Ratio of 12-month trailing P/E
Altice USA Inc.(ATUS)4.422,0103.1
Safe Bulkers Inc.(SB)2.90344.71.8
Ring Energy Inc.(REI)2.89504.12.7

Can I Get Rich Off Penny Stocks?

It is possible to get rich off penny stocks, but it is not a guaranteed path to wealth. To become successful in penny stock trading, investors need to develop a strategy, research, diversify their investments and manage the risk of each trade. However, they also come with a high degree of risk. Before investing in penny stocks, it is crucial to understand their risks and rewards. 

Does Etrade Charge Monthly Fee?

Etrade does not charge any monthly fees for its brokerage or IRA accounts. You can invest in stocks and other securities and exchange commission without worrying about extra charges.

What Happens if Etrade Goes Out of Business?

The Securities Investor Protection Corporation (SIPC) protects customers if Etrade goes out of business. In the event of financial failure, SIPC will cover up to $500,000 per customer, including a maximum of $250,000 for cash. This coverage applies to any securities and cash held in an account at the time of the brokerage firm’s failure.

Conclusion

Purchasing OTC stocks with the help of the etrade online platform is a relatively simple process. You must choose which account you want to open and which type of stocks you want to buy. In most cases, you’ll simply need to enter the ticker symbol for the stock you’re interested in and specify the number of shares you’d like to purchase.