Ameritrade OTC stocks

TD Ameritrade OTC Stocks Fees in 2023


Can I Buy OTC on TD Ameritrade?


Yes, customers have an excellent selection of OTC stocks on TD Ameritrade. QX, QB, and Pink Sheet stocks are available at TD Ameritrade.


TD Ameritrade OTC Fees


TD Ameritrade listed penny stock fee $0
TD Ameritrade penny stock surcharge $0
TD Ameritrade large order surcharge $0
TD Ameritrade ECN surcharge $0
TD Ameritrade OTC stocks fee $6.95

TD Ameritrade does NOT have additional fees on stocks priced under $1. To penny stock orders applies a flat-rate commission rate of $0 per trade if stock is listed in on a U.S. exchange, regardless of a stock price or how many shares.

For stocks not listed on a U.S. exchange, also known as OTC stocks, TD Ameritrade applies $6.95 commission. If you want $0-fee OTC stock trades, then we recommend using Firstrade.


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What Stocks Can You Buy With TD Ameritrade


When choosing a broker to invest with, the selection of investments available to you is one of the most important things to look for. While most brokers offer commonly traded stocks from well-known companies such as Netflix, certain start-ups like Robinhood have very limited trading capabilities. This may lead you to wonder, what stocks can I buy with TD Ameritrade?

TD Ameritrade is one of the largest brokerages in the country and offers a wide array of stocks available for trading. From stocks trading on the major exchanges to small companies trading over-the-counter, you will be able to trade nearly any stock you would like. Although there are some limitations, such as certain stocks listed on foreign exchanges, TD Ameritrade is a great choice when looking for a broker with a large selection of investments.


What Stocks Can I Buy With TD Ameritrade


Major Stock Exchanges


For the majority of investors in the United States, the major stock exchanges will contain all of the stocks they are looking to trade. With TD Ameritrade, investors can trade stocks listed on the New York Stock Exchange (NYSE) and the NASDAQ. With the NYSE and NASDAQ being the 2 largest exchanges in the world by market cap, investors are sure to have plenty of choices for their investing needs.

New York Stock Exchange (NYSE) - The NYSE is the largest exchange in the world by market cap. As of September 21, 2023, TD Ameritrade has 2,681 stocks available to trade on the NYSE. These include some of the largest American companies such as Visa, Johnson & Johnson, and Walmart. The majority of major banks in the US also trade on the NYSE. These include Bank of America, JP Morgan Chase, and Wells Fargo.

NASDAQ - The second-largest exchange in the world by market cap, the NASDAQ currently has 3,388 stocks available to trade on TD Ameritrade. The stocks available to trade on the NASDAQ tend to lean more towards the tech sector and have been increasingly popular in the past few years. These include well-known companies such as Apple, Microsoft, Amazon, and Facebook. Although top-heavy with tech stocks, the NASDAQ also contains other large companies such as Pepsi Co, Costco, and AstraZeneca.

Although not a major exchange, TD Ameritrade also allows investors to trade on the NYSE American. Until 2008, this exchange was known as the American Stock Exchange (AMEX). This exchange currently only has 67 stocks available for trading on TD Ameritrade. An example of a company available to trade on this exchange is Enservco Corp.


Over-the-Counter Stocks on TD Ameritrade


TD Ameritrade also allows the trading of OTC or over-the-counter stocks. These stocks are usually smaller companies and are not listed on any of the major exchanges. These stocks were previously known as Pink Sheets, and are currently marketed by OTC Markets Group.

Stocks being traded over-the-counter do not actually trade on an exchange. Instead, the securities are traded directly between broker-dealers. Many stocks listed OTC are commonly known as penny stocks due to the very low price per share that is common. Currently, TD Ameritrade has 3,903 stocks marketed by OTC Markets Group that are available to trade.

On TD Ameritrade, stocks traded on an exchange have $0 commissions. However, when buying any stock not listed on an exchange such as OTC, a $6.95 commission will be applied per trade.


Is TD Ameritrade Legit?


Foreign Stocks


When it comes to foreign stocks, TD Ameritrade is fairly limited. TD is one of many brokers that does not provide access to foreign exchanges directly. These include large exchanges such as the Shanghai Stock Exchange and EURONEXT.

If you are an investor that requires access to foreign markets, the best broker for you would likely be Interactive Brokers. This broker offers access to over 135 exchanges around the world. Other US brokers that offer international access include Charles Schwab and Fidelity, however, they offer a more limited selection of exchanges.

However, just because TD Ameritrade does not offer direct access to foreign exchanges, it is still possible for investors to invest in a large number of foreign companies. This can be done through ADRs, which are covered in the next section.


ADRs


ADR stands for American Depository Receipt. An ADR represents shares of a foreign company and allows a US investor to invest. ADRs are traded on US exchanges and are usually issued by US-based banks. This allows the trading of foreign companies without the companies having to list on US exchanges.

Although TD Ameritrade allows the trading of ADRs, the selection of companies is much lower than if there was full access to foreign exchanges. Currently, TD has 405 ADRs listed that are available to trade on their platform. Some examples of well-known companies that have ADRs available include Barclays PLC, Honda Motor Co, and Ryanair Holdings.

Although the selection is more limited, ADRs make it somewhat simple for investors. All shares are listed in US dollars and are available to trade online using the same system as US-listed securities.


what stocks can you buy on Ameritrade


ETFs


Although not an individual security, TD Ameritrade has a large number of ETFs available for trading as well. An ETF is a great way for an investor to diversify their portfolio without having to buy many different individual stocks. For example, the SPDR S&P500 ETF (SPY) contains 500 of the largest US securities. If an investor were to buy just one share of SPY, they would technically hold portions 500 companies in that one share.

Currently, TD Ameritrade has 2,682 ETFs available to trade on their platform. The ETFs available cover many different investing strategies. ETFs for index investing such as SPY are available, or you can buy an ETF for a certain sector such as ITB which only invests in US-based homebuilders. If you are interested in investing in precious metals, this is where you would find plenty of options as well. As with common stocks, ETFs are traded on US exchanges and have a $0 commission when being traded on TD.


Final Thoughts


As covered above, there are plenty of options when it comes to investments with TD Ameritrade. The only limiting factor would be if you are planning on investing heavily in individual foreign stocks. If so, another broker would be a better option for you. Otherwise, the low fees and huge amount of investments makes TD a great choice for both novice and experienced investors.


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