Over-the-counter (OTC) stocks are securities that are traded through a broker-dealer network and do not trade on a centralized exchange like the NYSE or Nasdaq. Being listed on a major exchange often requires certain financial or reporting standards that many companies do not or can not meet, so by listing OTC, these companies can access the capital markets with much fewer restrictions and oversight. While this can be good for both the companies and investors, it also comes with much greater risk since there are fewer investor protections in place - investors have to be very careful when considering whether to invest in OTC securities because they can come with many unique risks.
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Stocks and ETFs.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.
Commission-free trading of stocks and ETFs refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.
All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns.