How to Trade OTC Stocks
- 1). Set up a brokerage account. It is simple to set up an online account at any major brokerages such as Fidelity, Charles Schwab or TDAmeritrade. Most require a minimum deposit of $250 to 500 to fund your account.
- 2). Research the OTC stocks you are interested in buying. Researching OTC stocks is a little more difficult than researching large-cap companies, because larger companies are required to release more information about themselves, and fewer stock analysts cover OTC stocks. But there are lots of good online sources of information on smaller stocks. The research section of your broker's website is a good place to start.
- 3). Start trading the OTC stocks that you have decided to buy based on your research. Make sure you consider when to sell the stock you are buying. You can even preset a stop or limit order, which will automatically sell the stock when it reaches a certain price.
Trading OTC Stocks
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