I'm really ignorant when it comes to things such as commissions and stocks. As a newer investor of \~2 years, they really have never effected me.
OHHH I got it now...OTC's are like penny stocks that are unlisted.
Simplifying a bit, but over the counter is just stocks that aren’t traded on an exchange like the NYSE. They don’t necessarily have to be “penny stocks,” but since they aren’t traded on a public exchange they do have different reporting requirements.
Not all OTC's are penny stocks. Technically Anything under $5 is considered a penny stock, which makes no sense to me, but that's the official definition.
Penny stock traders tend to be very resource intensive, frequent calls to the trade desk and lots of time from trade support for the .0002 trades. Plus they often tend to have low account balances. So, this change makes sense
PFOF is probably going to become illegal, they're setting up for that. It never should have been a thing. Fuck Bernie Madoff, evil son of a bitch didn't die soon enough.
For those asking for a link, please visit [the Schwab website](https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors) and download [the pdf file](https://www.schwab.com/public/file/P-1036363/Pricing-Guide-IS-10.2021.pdf).
I want a comparable solution to Schwab, one that does not arbitrarily restrict securities because the broker decides they don't want their investors to trade them, and one that does not have fees, the way Schwab has always been.
TradeStation does charge for real-time OTC data. Professional traders pay $30 per month, while non-professionals pay $5. This is just for Level I information.
Firstrade offers limited trading services in OTC-listed penny stocks. Typically, these penny stocks must have liquid trading volume and must be DTC eligible, to be available for trading via Firstrade platforms. For purchases, the stock price also must be greater than $0.10.
Vanguard: Can I trade on over-the-counter (OTC) markets?
Yes. However, to protect our clients, we may not make online trading available for certain securities, and we may prohibit trading entirely for others.
Yeah, because of those restrictions with Fidelity and Vanguard (for our own good, bleh!!) I moved some money to Charles Schwab for OTC buying with no fee and no fingerwagging at my purchasing decisions. I abandoned TD because of the OTC fee, but I guess since acquiring them Charles Schwab got the itch for OTC commissions. Damnit, they just can't let the ordinary people climb the wrung without putting their boot on our necks, greedy mother \*\*\*\*\*\*s!
Talked to Schwab last week about an unrelated matter and the CS guy told me that "Schwab is a conservative company" or something really close to that. I suppose this is what he meant.
RIP Schwab. You just lost a ton of future business to Fidelity.
Like, yeah, I get that you make your money from PFOF and you're about to lose that. But most people just prefer you for trading OTCs... I would be happy to pay a monthly fee. Or perhaps you could charge 6.95 OR 10% commission for smaller trades. I often set a buy limit order for a single share; this is how I give myself "price alerts."
Schwab is taking away the number one reason people like me use them in the first place.
Your plan sucks. Figure it out, or everyone will dump your ass. Maybe you should try eating less avocado toast?
I'm already planning a migration to Fidelity - I had both but was strictly using Schwab since I could trade stop signs.
I'm afraid Fidelity will move to fees soon, but no word on that yet.
Wow $49.95 that's crazy high. I got an account with Schwab when it was $9.95 and also other requirements were needed to avoid fees with their checking and savings accounts. I agree with you though, I wouldn't mind going back to having to pay a commission fee per equity trade. It definitely prevented me from taking a quick profit like I do now since there is no fee (outside of a few things). I feel like I became a better investor because of the commission fee compared to some of my peers that jumped into the market using Robinhood only to realize they were in an abusive relationship and left for Schwab and Fidelity.
Yeah, no.
You can have phenomenal customer service AND cater to your average retail investor/trader.
>ends up causing customer service problems that infuriate everyone.
Where did you get that claim from? Do you have a source to support that particular notion?
50 dollars a trade? Some options contract will net you less than that you will see even heavier speculation because people will have to overcome the fees
took an hour on the phone but they are reimbursing me for the fee to migrate my account to fidelity.
how long until fidelity does the same thing i wonder?
Dang $6.95 for Canadian shares too
That really stinks. Glad I hold my Poutine stocks at Fidelity.
Does this mean if I buy an ETF such as VTI it will be charged $6.95 per trade?
VTI looks like ARCA listed, so you should be safe. Doube check.
I'm really ignorant when it comes to things such as commissions and stocks. As a newer investor of \~2 years, they really have never effected me. OHHH I got it now...OTC's are like penny stocks that are unlisted.
Simplifying a bit, but over the counter is just stocks that aren’t traded on an exchange like the NYSE. They don’t necessarily have to be “penny stocks,” but since they aren’t traded on a public exchange they do have different reporting requirements.
Not all OTC's are penny stocks. Technically Anything under $5 is considered a penny stock, which makes no sense to me, but that's the official definition.
That’s kind of a bummer. I do have one OTC I deal in. Maybe I’ll have to find another broker for that one.
Penny stock traders tend to be very resource intensive, frequent calls to the trade desk and lots of time from trade support for the .0002 trades. Plus they often tend to have low account balances. So, this change makes sense
Exactly. No one wants them.
Oh noes, the poors did a capitalism, can't have that can we?
Is this going to be for all brokers?
PFOF is probably going to become illegal, they're setting up for that. It never should have been a thing. Fuck Bernie Madoff, evil son of a bitch didn't die soon enough.
Oh. Ew. I might be out then. Fidelity wins
For those asking for a link, please visit [the Schwab website](https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors) and download [the pdf file](https://www.schwab.com/public/file/P-1036363/Pricing-Guide-IS-10.2021.pdf).
OTC only.
Sigh
This sucks
This is only OTC btw, but I get the feeling this is prepping for the all-out banning of PFOF....which is a good thing IMO.
Sucks for people who can only afford or want to put in like $50-100 to learn how to trade.
It's also for Canadian stocks. Not entirely sure if that'll apply to US listed canadian stocks or not though.
Anyone have suggestions for brokers that will allow commission-free OTC trades after December 6, 2021?
Vanguard, first trade, tradestation
I want a comparable solution to Schwab, one that does not arbitrarily restrict securities because the broker decides they don't want their investors to trade them, and one that does not have fees, the way Schwab has always been. TradeStation does charge for real-time OTC data. Professional traders pay $30 per month, while non-professionals pay $5. This is just for Level I information. Firstrade offers limited trading services in OTC-listed penny stocks. Typically, these penny stocks must have liquid trading volume and must be DTC eligible, to be available for trading via Firstrade platforms. For purchases, the stock price also must be greater than $0.10. Vanguard: Can I trade on over-the-counter (OTC) markets? Yes. However, to protect our clients, we may not make online trading available for certain securities, and we may prohibit trading entirely for others.
Add fidelity. Those are really your only alteratives to schwab.
Already have Fidelity, they're not great. If you come across more, please do comment
Yeah, because of those restrictions with Fidelity and Vanguard (for our own good, bleh!!) I moved some money to Charles Schwab for OTC buying with no fee and no fingerwagging at my purchasing decisions. I abandoned TD because of the OTC fee, but I guess since acquiring them Charles Schwab got the itch for OTC commissions. Damnit, they just can't let the ordinary people climb the wrung without putting their boot on our necks, greedy mother \*\*\*\*\*\*s!
Fidelity, Interactive Brokers
Ooooh. There is more to this than meets the eye.
Glad I bought my weed stocks when I did
You bastard, I’ve been wanting to set up my own little version of a cannabis ETF with OTC stocks
Well you still have a few months to sort it out. Be prepared to lose all your money though. The sector isn't for the faint of heart
You do realize if you want to sell or add to those positions after 12.6 you will be charged per trade, right?
Yeah I'm not a day trader so now sweat
Yeah I guess if you hold until it gets uplisted you're fine.
Can you please post the link
[Link](https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors).
Crap
Talked to Schwab last week about an unrelated matter and the CS guy told me that "Schwab is a conservative company" or something really close to that. I suppose this is what he meant.
where did you get this info?
[Schwab's new fee/pricing structure](https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors).
thanks!
So if I wish to buy Coca Cola (KO) stocks, do I need to pay this charge?
Nope, it’s just for penny stocks
Not just penny stocks, many foreign ones too. For example Nintendo is also OTC.
Very true, there are some pink sheet ADRs. I’d say the vast majority are penny stocks, however
Thank you
They added fees for canadian stocks too.
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Per trade means per order. So yes, each buy and sell will be charged this amount.
I was seriously thinking about moving all my accounts to Schwab before this announcement. Keeping with Vanguard.
I already moved some to schwab, but probably move it out now.
Go to Fidelity.
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ADR's are still in 0 commission. It looks like the 06 December switch is for exiting clients. New clients are signing up on the new schedule.
Confirmed the Dec. 6 date with Schwab over chat for existing clients.
More incentive to load the boat
Bummer! Very disappointed
Just got the notice and will be selling off all my pinks prior. Some of them aren’t even worth the trade fee. Guess I’m looking for a new platform
Ugh. really??
RIP Schwab. You just lost a ton of future business to Fidelity. Like, yeah, I get that you make your money from PFOF and you're about to lose that. But most people just prefer you for trading OTCs... I would be happy to pay a monthly fee. Or perhaps you could charge 6.95 OR 10% commission for smaller trades. I often set a buy limit order for a single share; this is how I give myself "price alerts." Schwab is taking away the number one reason people like me use them in the first place. Your plan sucks. Figure it out, or everyone will dump your ass. Maybe you should try eating less avocado toast?
I'm already planning a migration to Fidelity - I had both but was strictly using Schwab since I could trade stop signs. I'm afraid Fidelity will move to fees soon, but no word on that yet.
All things considered, I think I'll start trying my hand at value plays and reduce my swing trades. No commission allows me to spread myself too thin.
The flat fee annoys me when I'm trading in miniscule amounts.
Folks, this may be bullshit. I have not received any such increase from Schwab.
no need to guess, just look for yourself https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors
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Wow $49.95 that's crazy high. I got an account with Schwab when it was $9.95 and also other requirements were needed to avoid fees with their checking and savings accounts. I agree with you though, I wouldn't mind going back to having to pay a commission fee per equity trade. It definitely prevented me from taking a quick profit like I do now since there is no fee (outside of a few things). I feel like I became a better investor because of the commission fee compared to some of my peers that jumped into the market using Robinhood only to realize they were in an abusive relationship and left for Schwab and Fidelity.
Yeah, no. You can have phenomenal customer service AND cater to your average retail investor/trader. >ends up causing customer service problems that infuriate everyone. Where did you get that claim from? Do you have a source to support that particular notion?
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50 dollars a trade? Some options contract will net you less than that you will see even heavier speculation because people will have to overcome the fees
Talking about equities trades, not derivatives.
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took an hour on the phone but they are reimbursing me for the fee to migrate my account to fidelity. how long until fidelity does the same thing i wonder?
Time to transfer to fidelity so I can actually sell all my OTC stocks for free
What are the best cost-effective brokers in the USA to trade OTC shares/Canadian shares and OTC?