Author Topic: Best Broker for OTC stocks - I need a recomendation  (Read 5299 times)

Spekulatius

  • Hero Member
  • *****
  • Posts: 2235
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #10 on: July 31, 2018, 06:24:13 AM »
Fidelity will not allow orders ( except selling existing positions) for OTC stocks which do not post financials with the SEC, even if those companies post financials on their website. Similar with Wells Trade.

I used to have Etrade account which could buy anything a few years ago, but I donít know if thatís still the case. IB lets you buy almost anything OTC but there are a few stocks which for one reason or another, donít show up in their ď productĒ using search etc list and hence canít be traded.

The $300M market cap minimum strikes me as arbitrary and if I would deal with microcaps a lot , I would just move to another broker.
« Last Edit: July 31, 2018, 09:25:02 AM by Spekulatius »
To be a realist, one has to believe in miracles.


NoCalledStrikes

  • Full Member
  • ***
  • Posts: 132
    • No Called Strikes
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #11 on: July 31, 2018, 07:34:01 AM »
Merrill edge just cancelled my outstanding buy orders for CNTWW, WEDXF,  SPCO.

Nothing says we don’t want you as a customer like cancelling your open orders.
« Last Edit: July 31, 2018, 09:30:45 AM by NoCalledStrikes »

Jurgis

  • Hero Member
  • *****
  • Posts: 4262
    • Porfolio
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #12 on: August 01, 2018, 10:34:31 AM »
https://www.sec.gov/fast-answers/answerspennyhtm.html

Looking at this, it might be that most (all?) brokers will join the club of not allowing the purchases of "penny" stocks:

Quote
Because of the speculative nature of penny stocks, Congress prohibited broker-dealers from effecting transactions in penny stocks unless they comply with the requirements of Section 15(h) of the Securities Exchange Act of 1934 ("Exchange Act") and the rules thereunder. These SEC rules provide, among other things, that a broker-dealer must (1) approve the customer for the specific penny stock transaction and receive from the customer a written agreement to the transaction; (2) furnish the customer a disclosure document describing the risks of investing in penny stocks; (3) disclose to the customer the current market quotation, if any, for the penny stock; and (4) disclose to the customer the amount of compensation the firm and its broker will receive for the trade. In addition, after executing the sale, a broker-dealer must send to its customer monthly account statements showing the market value of each penny stock held in the customer's account.

I'm pretty sure no brokers want to go through the hassle of (1) for each transaction. They may not want to do the other points either.

Of course, YMMV, some brokers may continue to offer the purchases without enforcing (1), etc.
"Before you can be rich, you must be poor." - Nef Anyo
--------------------------------------------------------------------
"American History X", "Milk", "The Insider", "Dirty Money", "LBJ"

winjitsu

  • Full Member
  • ***
  • Posts: 147
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #13 on: August 01, 2018, 10:43:35 AM »
Merrill edge just cancelled my outstanding buy orders for CNTWW, WEDXF,  SPCO.

Nothing says we donít want you as a customer like cancelling your open orders.

CNTWW was the stock that prompted some broker soul-searching for me too.

On fidelity, you can buy CNTWW but not CNTE. They won't let you buy microcaps with no financials, though their warrants are totally fair game.
On IBKR, you can buy CNTE but not CNTWW. CNTWW trades on some grey sheets that IBKR does not have access to.

I think my only solution is to have several brokerages accounts open (I have Schwab and Etrade as well) and to shuffle around money to whichever broker will allow me to execute.


oddballstocks

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2222
    • Oddball Stocks Blog
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #14 on: August 01, 2018, 12:19:22 PM »
Talked to IB today.  Anything considered "grey market" is forbidden.  I tried to place a few test trades, no dice.  But other otc stocks (CCRK) without financials they're ok with.

I believe grey market, and eventually otc stocks are a dead market.  The SEC is working fast to kill it.
The ultimate edge for bank investors: http://www.completebankdata.com

JanSvenda

  • Newbie
  • *
  • Posts: 39
    • OTC Newsletter
« Last Edit: August 01, 2018, 01:35:27 PM by JanSvenda »
Focused on Building Walker's Manual 2.0 - https://jansvenda.com/otc/ Feel free to email me at overthecounter@protonmail.ch

My favorite investment? Buying a house for the price of the bricks.

Schwab711

  • Hero Member
  • *****
  • Posts: 1433
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #16 on: August 01, 2018, 01:48:04 PM »
Talked to IB today.  Anything considered "grey market" is forbidden.  I tried to place a few test trades, no dice.  But other otc stocks (CCRK) without financials they're ok with.

I believe grey market, and eventually otc stocks are a dead market.  The SEC is working fast to kill it.

I think OTCQB/OTCQX will eventually be the OTC market. Current pink sheets will be around for some time though. I agree the grey market is as good as dead. It's the fault of any company that isn't labeled "Pink Current Information". Instead of posting their financials on their website (or mailing annual reports to investors), they could submit them to OTCM and you'd be fine to trade their security. OTCM accepts hand-written financials if you are a real penny-pincher. There's no excuse to be "No Information" or the like unless you are planning or actively trying to screw your shareholders.

Spekulatius

  • Hero Member
  • *****
  • Posts: 2235
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #17 on: August 01, 2018, 06:54:30 PM »
Talked to IB today.  Anything considered "grey market" is forbidden.  I tried to place a few test trades, no dice.  But other otc stocks (CCRK) without financials they're ok with.

I believe grey market, and eventually otc stocks are a dead market.  The SEC is working fast to kill it.

I think OTCQB/OTCQX will eventually be the OTC market. Current pink sheets will be around for some time though. I agree the grey market is as good as dead. It's the fault of any company that isn't labeled "Pink Current Information". Instead of posting their financials on their website (or mailing annual reports to investors), they could submit them to OTCM and you'd be fine to trade their security. OTCM accepts hand-written financials if you are a real penny-pincher. There's no excuse to be "No Information" or the like unless you are planning or actively trying to screw your shareholders.

You got that right. You either donít want other shareholders, or you want to screw them.
To be a realist, one has to believe in miracles.

bianji108

  • Newbie
  • *
  • Posts: 25
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #18 on: August 01, 2018, 08:40:46 PM »
does anyone has experience buying non-dtc stocks without incurring large fees? scottrade used to allow basically everything I wanted. but since they are acquired by TD, a few stocks I wanted to buy are not allowed there...and apparently IB doesn't allow them (close only or not showing up)

maybe4less

  • Full Member
  • ***
  • Posts: 181
Re: Best Broker for OTC stocks - I need a recomendation
« Reply #19 on: August 01, 2018, 10:37:55 PM »
Merrill edge just cancelled my outstanding buy orders for CNTWW, WEDXF,  SPCO.

Nothing says we donít want you as a customer like cancelling your open orders.

CNTWW was the stock that prompted some broker soul-searching for me too.

On fidelity, you can buy CNTWW but not CNTE. They won't let you buy microcaps with no financials, though their warrants are totally fair game.
On IBKR, you can buy CNTE but not CNTWW. CNTWW trades on some grey sheets that IBKR does not have access to.

I think my only solution is to have several brokerages accounts open (I have Schwab and Etrade as well) and to shuffle around money to whichever broker will allow me to execute.

FWIW, I have US accounts and was able to buy CNTWW at IB and CNTE at Fidelity.