Does Fidelity offer penny stock trading?

Fidelity provides its customers with commission-free penny stock trading on all its trading platforms. Investors can trade pink sheets and other OTC securities at Fidelity just as they would any other security.

How much does Fidelity Investments charge?

Fidelity Investments charges $0 per stock or ETF trade. Along with firms in the Best Penny Stock Brokers list, Fidelity does NOT have additional fees and surcharges on Pink Sheets/OTCBB/stocks priced under $1. There is an assessment of between $0.01 and $0.03 per $1,000 of principal in addition to your commission that is added to sell orders.

What are penny stocks?

Here is what you need to know. Penny stocks are typically issued by small companies and cost less than $5 per share. They can garner interest from some investors who want to get in close to a "ground floor" price. Penny stocks carry greater than normal risks, including lack of transparency, greater probability of loss, and low liquidity.

Is fidelity a good alternative to Firstrade?

Another thing to consider is that Fidelity offers fewer pink sheet stocks than some of its competitors – Firstrade comes to mind (continue reading to learn more about why Firstrade is an excellent alternative for penny stock trading). Here’s what it looks like to trade a penny stock on Fidelity’s website.