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OTC Securities
Trading
$0 Commission
Trading in OTC equity securities carries a high degree of risk and may not be appropriate for all investors. OTC equity securities may be “thinly traded” or more illiquid than exchange-traded securities, which tends to increase price volatility and impair your ability to buy or sell within a reasonable period of time without adversely impacting execution price(s).
Over-the-counter (OTC) refers to trading securities outside official stock exchanges like Nasdaq or NYSE. A wide range of securities can be traded over-the-counter, including common stocks, American Depository Receipts (ADRs), and even derivatives.
Many companies choose to trade their shares over-the-counter because they cannot meet the listing requirements of official security exchanges or they are not willing to (or cannot) afford the listing fees of exchanges. The OTC market offers a place for large groups of unlisted companies to trade.
What is the Over-The-Counter Market?
Tiers of OTC Markets
OTC markets are mainly divided into three markets—the OTCQX, OTCQB, and OTC Pink. The OTC QX ranks the first in high listing requirements, OTCQB the second.
OTC Market Tiers
OTCQX International
OTCQX U.S.
OTCQB
OTC Pink
Companies already listed on an international exchange (Not penny stocks, shell company, or in bankruptcy).
Qualified smaller and growth companies (Not penny stocks, shell company, or in bankruptcy).
Entrepreneurial and development stage U.S. and
international companies (Not in bankruptcy).
Companies of all development stages, including penny stocks, shell companies, and companies in bankruptcy.
Types of companies
Asset requirements; Current regulatory disclosures.
Asset requirements; Current regulatory disclosures; Bid test.
Current regulatory disclosures; Bid test.
Low disclosure requirements.
Listing requirements
Trade OTCs with $0.00 commission*, no account minimums.
OTC Markets: Real-time best bid & offer pricing for OTCQX, OTCQB, and Pink securities.
Trade stocks, ETFs, options, index options and more, with one Webull account.
Buy and sell large-cap ADRs, and small or micro-cap growth companies.
Get instant market access and customize your trading with our free trading tools.
Level up your market knowledge and learn about investing with free online courses on Trading.
Webull currently supports trading in about 500 OTC securities. More OTCs are coming.
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