Penny stocks are volatile and often illiquid, making specific order types crucial for risk management. Trading penny stocks - Fidelity Investments
Buying penny stocks—typically defined by the SEC as shares trading under $5—on Fidelity Investments requires an active brokerage account and an explicit one-time risk acknowledgment. Once enabled, you can trade both exchange-listed low-priced stocks and a limited selection of Over-the-Counter (OTC) securities. 1. Enable Penny Stock Trading how to buy penny stocks on fidelity
Use Fidelity's research tools to verify the ticker and market venue. Penny stocks are volatile and often illiquid, making
: Review the company’s SEC filings and financial disclosures. Note that many OTC issuers have limited information available compared to exchange-listed companies. 3. Place the Trade Note that many OTC issuers have limited information
: Use the Fidelity Stock Screener to filter for stocks with a price below $5 or by specific market cap and volume thresholds.
: Enter the ticker in the search bar. Check if the security is listed on a major exchange (NYSE/NASDAQ) or is an OTC security.
: Go to Account Settings or Trading Settings , search for "penny" or "OTC," and electronically acknowledge the disclosure.