Which broker is best for trading OTC and penny stocks?

Are you with TD Ameritrade? Alternative stock market brokers for trading Penny Stocks are Fidelity and Charles Schwab which charge $0 per trade. TradeStation charges $0 per trade (up to 10,000 shares) and Interactive Brokers charge $0.05 per share.

Fidelity doesn't offer all OTCs but Charles Schwab is the best for OTCs.

There are lots of alternative brokers with small trading fees. However, I would recommend you either use Charles Schwab or Fidelity because they charge $0 per trade. Interactive traders are only charged $0.005 per share. You can also use TradeStation if you’re not buying up to 10,000 shares. The only time they charge is when you reach more than 10,000 shares.

If you’re in a dilemma about the right broker for you between Charles Schwab and Fidelity, I recommend you choose Charles Schwab. Why? They offer all OTCs, unlike Fidelity.

I would advise looking for a broker with as small trading fees as possible. There are some companies that even charge nothing per trade, such as Schwab or fidelity. Schwab also offer maximum OTC's and are a bit more versatile than Fidelity. Tradestation is also an option for anything under 10'000 shares as they only charge once you have over that amount.

If you are focusing primarily on the pink sheets system instead of stocks that happen to trade below $5 a share, one of your best options might be E*Trade.

It does not charge commission or trading fees for users who invest in over-the-counter (OTC) stocks.

What's more, its easy-to-use online and mobile trading tools allow you to comb through its vast selection of penny stocks and determine which security is right for your overall trading strategy.

It should be noted that the E*Trade platform is not for the faint of heart, meaning that this is for savvy investors who can navigate the immense number of tools.

Also, be careful about the high margin rates.

If price is your biggest concern, Fidelity and Charles Schwab are other reliable alternatives to what you are using right now. The companies maintain zero-commission fees for penny stock trades. And, like many other trading outlets, they have the necessary stock screener tools to help you locate the best available penny stocks.

Robinhood and Wealthsimple maintain bare-bones trading opportunities for securities that happen to trade for $0.45 or $0.99 a share.

Overall, it is best not to locate brokers that specialize in investments that are situated in the Over the Counter Bulletin Board (OTCBB) and Pink Sheet securities systems. You want to trade on something like Fidelity, Charles Schwab, or E*Trade that allow you to buy and sell penny stocks with a standard account.