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Can I buy Penny Stock on E Trade?

post #1 of 9
Thread Starter 

Hi, I am new to investing..I just signed up for E Trade and when I try to buy Penny Stock It Says.. New: Minimum Price Increments for OTC Equity Securities


Effective 2/11/2011, orders for over-the-counter (OTC) securities can be placed at prices greater than or equal to $1/share with a maximum of 2 decimal places. Orders for OTC securities can be placed at prices under $1/share with a maximum of 4 decimal places. Please be aware that orders placed with invalid price increments may be rejected by E*TRADE or the marketplace. For more information, see FINRA Rule 6434.

 

Does this Mean I cannot buy Penny Stocks on E Trade?

Sorry If this is a stupid question..but Thank you

post #2 of 9

Yes

post #3 of 9

Yes you can, although they are implementing new rules for smaller accounts I think....

post #4 of 9
Thread Starter 

So, what do you think the minimum is?

 

When I try to buy stock, it says Non-equity, bulletin board, OTC, pink sheet and other specific securities are not eligible for the price type you have specified.

post #5 of 9

 

Quote:
I just signed up for E Trade and when I try to buy Penny Stock It Says.. New: Minimum Price Increments for OTC Equity Securities

 

Can you post the exact links where you saw this notice? We (StockBrokers.com staff) are not aware of any changes to penny stock pricing at E*TRADE. We are exploring to find out though so stay tuned.

post #6 of 9
Thread Starter 
post #7 of 9
Thread Starter 
post #8 of 9
Quote:
Originally Posted by skyscraper93 View Post

Hi, I am new to investing..I just signed up for E Trade and when I try to buy Penny Stock It Says.. New: Minimum Price Increments for OTC Equity Securities


Effective 2/11/2011, orders for over-the-counter (OTC) securities can be placed at prices greater than or equal to $1/share with a maximum of 2 decimal places. Orders for OTC securities can be placed at prices under $1/share with a maximum of 4 decimal places. Please be aware that orders placed with invalid price increments may be rejected by E*TRADE or the marketplace. For more information, see FINRA Rule 6434.

 

Does this Mean I cannot buy Penny Stocks on E Trade?

Sorry If this is a stupid question..but Thank you


All that message is saying is that if you buy/sell a stock with a price over $1, with a limit order, your order can only be 2 decimal places IOW dollars and cents. Say you want to buy/sell a stock for 1.25, it must be 1.25, you can't specify 1.2501

 

If you buy/sell a stock with a price under $1, you can go out 4 decimal places but not more.  You could put in a bid at .5432, but not .54321

 

post #9 of 9
Quote:
Originally Posted by skyscraper93 View Post

Hi, I am new to investing..I just signed up for E Trade and when I try to buy Penny Stock It Says.. New: Minimum Price Increments for OTC Equity Securities


Effective 2/11/2011, orders for over-the-counter (OTC) securities can be placed at prices greater than or equal to $1/share with a maximum of 2 decimal places. Orders for OTC securities can be placed at prices under $1/share with a maximum of 4 decimal places. Please be aware that orders placed with invalid price increments may be rejected by E*TRADE or the marketplace. For more information, see FINRA Rule 6434.

Does this Mean I cannot buy Penny Stocks on E Trade?
Sorry If this is a stupid question..but Thank you
I have the exact same problem I've been trying to buy a Penney stock for weeks now. The broker at etrade said keep trying and hopefully it will get filled. Not really what I wanted to hear. So to answer you're question.. I really don't know. It's ridiculous.
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