Scottrade caveats... 1) They are paid for order flow. And for OTC, almost guaranteed the market maker will be NITE. Heres link to order flow statement... and be sure to click to "Material Aspects" link near bottom of the page. http://www.marketsystems.com/msi/reports/index.html?clientid=SSIC 2) OTC orders MUST be limit orders. period. 3) No Stops allowed. If this has changed, find out what is minimum increment. For listed they used to have a 15 cent increment. Not useful for pennys. 4) only 3 decimal pricing for orders. For instance, .012 ... Not long ago it was only 2 decimals which made it near useless for OTC. 5) If you trade size, (in your case maybe a sub-penny issue) the 1/2% of princicpal charge may kill you. I'd suggest MBTrading over Scottrade anyday. 8.95 OTC and pinks, any size. http://www.mbtrading.com/ratesStocks.asp Good luck
Can pink-sheets stocks be traded in a similar way to buying NYSE stocks through an online broker? Wondering if someone may be able to comment on the differences. I think I have read that the pink sheets is not a exchange just a collection of market maker quotes?
Do not trade these stocks through any discount online brokerage that sells order flow! You will get axed! Be prepared to make calls asking why your trade wasn't executed after you entered a limit order that's price was eclipsed 30 minutes ago.