OTC and Penny Stocks at Webull
Traders at Webull can buy and sell over-the-counter (OTC) and penny stocks with some pretty good software. For the full scoop, keep reading.
Definitions and Availability
Penny stocks are equities with prices below a certain level. This amount can be defined in various ways. Typically, it is $5. In any case, the definition is about the stock’s price, not the exchange it trades on. A penny stock could trade on a major exchange, like the Nasdaq or the New York Stock Exchange.
An over-the-counter stock trades off of one of these major exchanges. It could also be a penny stock, although it doesn’t have to be. It could trade well above $5 in price, and some do.
Webull doesn’t offer all OTC stocks, but it does have several hundred of them.
We counted 500 on its current list. Most of these are American Depository Receipts (ADRs) with symbols that end with the letter ‘Y’. None of them are foreign shares (stocks ending in the letter ‘F’).
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Finding Penny and OTC Stocks on Webull
Webull has a stock screener that appears on all three of its platforms (website, mobile app, and desktop program). It has the ability to search by price and exchange. However, the OTC marketplace is not a choice in the exchange field, so the search engine can’t search for OTC stocks.
To pull up the search wizard on the desktop platform, click on the icon in the main menu (the left-hand column) for screeners. Under the Filters link, “Last Price” should be selected.
On the mobile app, head to the Menu icon (in the bottom-right corner) and select the More icon on the next page. This will produce yet another page, where the screener will be found. Using price as a search variable, we found 1,195 stocks on the major U.S. exchanges that trade at $5 or less.
The mobile app also presents groups of stocks arranged by various categories. This section can be found under the Markets tab. On the Markets page, select United States in the top menu and scroll down. Near the bottom, there is a section for OTC equities. These can be filtered by OTCQX and Pink Sheet status.
Webull’s screeners can look for penny stocks trading on the Chinese mainland exchanges, namely the Shenzhen and Shanghai markets. They cannot be traded, however.
On any platform, it’s easy to add a penny or OTC stock to a watchlist. Just click or tap on an entry on the screener to go to the asset’s profile. From there, a security can easily be added to a watchlist.
Adding OTC Trading on Webull
Before any account is able to place a trade for an over-the-counter security, Webull requires consent to an OTC trading disclosure. This e-document can be accessed by entering an OTC symbol on any platform and attempting to trade it. A pop-up window will appear with the necessary digital form.
Webull Penny Stocks Fees
Webull charges nothing extra for trading most penny or OTC stocks. Thus, they come with $0 commissions.
Webull has a surcharge on trades of penny stocks in excess of 100,000 shares. Here, a penny stock is defined as anything under $1. For this type of transaction, the fee is 0.02¢ per share with a maximum of 5% of trade value.
There is also an illiquidity charge, which is determined by the National Securities Clearing Corporation (NSCC). It is typically assessed against stocks that have very low volume. The fee is $250 with a minimum overnight interest charge of 15% annualized.
Market Data
Webull offers Level I quotes on over-the-counter securities, courtesy of OTC Markets Group. A subscription is required. It costs $2.99 per month. The package includes real-time best offer and bid pricing for OTCQX, OTCQB and Pink Sheet stocks. Also included is tick-by-tick pricing.
Trading Penny and OTC Stocks on Webull
Trades of OTC and penny stocks at Webull generally follow the same guidelines as other securities. However, there are some exceptions:
- OTC stocks cannot be shorted
- Whole shares only can be traded (no fractional-share trading)
- Only limit orders can be used
- No extended-hours trading
- OTC securities are non-marginable (no leverage)
- The total trade value must be at least $10 (multiple shares may be required)
When a trade ticket on any of Webull’s platforms is populated with an OTC asset, the ticket will automatically adjust with the above rules.
Webull’s very powerful charting program can be used for over-the-counter equities. For thinly-traded securities, some price points may be missing at various times for the sheer fact that many of these OTC assets simply have no activity at some times during the trading day.
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OTC Education
Webull has an educational section that appears on its mobile app and website. This library is a moderately-sized collection of videos and articles on a variety of trading topics. During our investigation, we found these resources:
- How to Trade OTC Stocks
- The Over-the-counter (OTC) Market
- Over-the-counter (OTC)
Updated on 4/10/2025.
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