Investing Simple Logo
Menu
Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
Earn 5.00% APY with M1 High-Yield Savings Account
M1 Plus members can earn 5.00% APY on their deposits with no minimum balance required.
Webull free stock promotion
Get Up To 5 Free Stocks From Webull
Open a new Webull brokerage account today and deposit any amount of money to receive 5 free stocks. Webull offers commission free stock, ETF, option and crypto trading.
Written by Sam Pennington on June 22, 2023
Category: 
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

Can You Buy OTC Stocks Using Robinhood?

Investing in stocks can be an exciting and potentially profitable endeavor. With this in mind, investors often seek platforms that offer a wide range of trading options. However, when it comes to over-the-counter (OTC) stocks, there are limitations to consider.

In this article, we will explore whether Robinhood allows users to buy OTC stocks and shed light on the platform's support for trading these types of stocks.

Robinhood is one of the most popular trading apps available. And it's easy to see why. They are known for their user-friendly interface and commission-free trades. They even offer a range of investment options to its users from stocks and options to cryptocurrency and alt coins. However, Robinhood does not support trading OTC stocks.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Best Free Stock Promotion

BrokeragePromotionLink
Robinhood LogoGet 1 Free Fractional Share Worth $5 To $200Download
Webull LogoGet Up To 12 Free Fractional SharesDownload
Moomoo LogoGet 5 Free Stocks When You Deposit $100+Download
Acorns LogoGet A $20 Bonus When You Invest $5+Download

What are OTC Stocks?

OTC stocks, also known as over-the-counter stocks or penny stocks, refer to stocks that are not listed on major exchanges such as the New York Stock Exchange (NYSE) or NASDAQ. These stocks are traded through decentralized marketplaces and often involve smaller companies with lower market capitalization.

While Robinhood aims to provide users with access to a diverse selection of investment options, it has made the decision not to support trading OTC stocks. The platform's focus is on providing a streamlined and user-friendly experience, primarily focusing on stocks, ETFs, options, and cryptocurrencies.

It's important to note that OTC stocks can be associated with higher risks. This is due to factors such as limited liquidity, lack of financial reporting requirements, and potentially higher price volatility. Regulatory agencies such as the U.S. Securities and Exchange Commission (SEC) caution investors about the risks associated with OTC stocks, including the potential for fraud and manipulation.

If individuals are interested in trading OTC stocks, there are alternative brokerage platforms available that specialize in these types of securities. These platforms may provide access to a broader range of OTC stocks and offer tools and features specifically tailored to trading these securities. It's crucial for investors to conduct thorough research and understand the risks involved before engaging in OTC stock trading.

Final Thoughts

In conclusion, Robinhood does not currently support trading OTC stocks. While the platform offers a variety of investment options, including stocks, ETFs, options, and cryptocurrencies, it has made the decision not to include OTC stocks in its offering.

Investors interested in trading OTC stocks should explore alternative brokerage platforms that specialize in these securities. It is essential to be aware of the risks associated with OTC stocks and exercise caution when engaging in such trading activities. Conducting thorough research and understanding the intricacies of the OTC market can help investors make informed decisions and mitigate potential risks.

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2023 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitive™
magnifiermenuchevron-downcross-circlechevron-down-circle

Get 1 Free Stock Worth Up To $200 From Robinhood!

Don't Miss This Opportunity!

Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.

For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.

18749
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram