While E*TRADE offers $0 commissions for online US-listed stock, ETF, and options trades, OTC transactions carry a different fee structure.
They are traded through a decentralized network of dealer networks, often via platforms like the OTC Markets Group. buying otc stocks on etrade
Market orders are highly discouraged—and sometimes blocked by the broker—for OTC stocks. Because these stocks have low trading volume, a market order can cause massive price slippage. A ensures you only buy or sell at your target price. 💰 Fees and Commissions While E*TRADE offers $0 commissions for online US-listed
If you execute more than 30 trades per quarter, the fee drops to $4.95 per trade. Because these stocks have low trading volume, a
Low liquidity means small trades can cause massive swings in a stock's price.
If the OTC stock is a foreign security (often ending in a five-letter ticker symbol ending in "F"), additional foreign settlement fees may apply. ⚠️ Risks of Trading OTC Stocks