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
: Use the Fidelity Stock Screener to filter for stocks with a price below $5 or by specific market cap and volume thresholds.
Use Fidelity's research tools to verify the ticker and market venue.
: Log in to Fidelity.com , navigate to Accounts & Trade , then select Account Features . Click Manage next to Penny Stock Trading to agree to the terms.
: Go to Account Settings or Trading Settings , search for "penny" or "OTC," and electronically acknowledge the disclosure.
: 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
Before you can place an order, you must read and accept the .
: Activation is often immediate after acceptance, though manual reviews can take 24–72 hours. 2. Research and Find a Stock