Trading OTC Stocks at Robinhood

If you would like to trade penny stocks on Robinhood, there are several things that you should be aware of. First, when we talk about trading penny stocks on Robinhood, we are not referring to the same penny stocks that trade over the counter (OTC), also known as pink sheets.

There are hundreds of ‘penny stocks’ on Robinhood, each priced under $5.00. However, these are stocks that have undergone a series of regulatory checks and trade on one of the major exchanges.

So, while it is certainly possible to find a plentiful supply of penny stocks on Robinhood they do not have the same ‘personality’ that pink sheet pennies have. It is uncommon to see the same level of volatility due to the nature of the companies involved and their involvement with regulated exchanges.

For a day trader looking for ways to take advantage of the significant pops and drops common to OTC stocks, Robinhood is not the most ideal choice of brokers.

What is the Best Alternative to Robinhood for OTC Stock Trading?

Since Robinhood is not the best choice for traders looking for pink sheets, a good alternative is needed. Of course, anyone coming from Robinhood will want to entertain possible brokers that do not take commissions, provide simple stock purchase options, and have both a web-based trading platform and an app.

One of the best alternatives to Robinhood for OTC stock trading is Firstrade. The broker provides a huge library of OTC stocks and there are no commissions or fees for any OTC trades. Firstrade also offers a wide range of industry leading financial products.

Open Firstrade Account

2 free stocks & $0 fees on all mutual fund, stock, ETF, & option trades.

Open Firstrade Account

OTC Stocks on Firstrade

Firstrade has one of the best offerings for pink sheet stocks available. With an actively updated list of over 12,000 OTC stocks to choose from, there are plenty of opportunities available. Penny stock traders will particularly enjoy the screener. There are plenty of options available for narrowing a search for viable trade.


Firstrade Penny Stocks screener


Benefits of Trading Pink Sheets on Firstrade

Apart from the screener and large listing of OTC stocks on offer at Firstrade, there are some other benefits to trading pink sheets on the platform.

One notable feature is the amount of data on each ticker. Traders can gain many insights into whatever pick sheet stock they are interested in by looking at the research and tools tab of their chosen OTC stock.

Traders have access to insider company data, professional analysis, historical price data, and more. Added to that, traders also have access to several news feeds from companies like Zacks and Benzinga.


Firstrade Penny Stocks Research


Another useful tool is the charting software available on the web and mobile apps. When trading pink sheets it is essential to be able to see how price action is unfolding and Firstrade doesn’t disappoint in the charting department.

Traders will find useful charting options no matter what their style. Options for intraday and long term time setups, a plentiful supply of popular indicators, and fundamental markers help give traders a necessary edge in the volatile environment that is OTC stock trading.


Firstrade Penny Stocks Charts


Robinhood OTC Stocks Final Thoughts

For traders serious about getting involved with pink sheets, finding a good broker who can facilitate that is crucial. Due to the inherent risk that comes with trading penny stocks, many brokers tend to shy away from pink sheet trading. Firstrade, however, is all in when it comes to providing traders ample opportunities for trading stocks not yet on the major exchanges.

Open Firstrade Account

2 free stocks & $0 fees on all mutual fund, stock, ETF, & option trades.

Open Firstrade Account

Open Robinhood Account


Open Robinhood Account