FROM OUR PARTNERS

Best OTC Trading Apps of 2022

Ashley Jackson

Set yourself up for success by selecting an OTC trading app that understands your needs. We’ve considered the best OTC trading apps based on commissions, account minimums, ease of use, and overall quality.

Trade a wide range of financial assets

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Ally Invest offers competitive pricing on financial securities and robust research tools to help you make better-informed investment decisions.

What we like

  • Low cost commissions 
  • Wide selection of product offerings 
  • Up to $3,000 cash bonus
  • No minimum deposit required
  • Up to $75 for brokerage transfers

What we don't

  • Crypto not supported
  • Mutual fund fees

Get up to $625 when you open and fund an account

$0

Fee Per Trade

$0

Account Minimum

Overview

J.P. Morgan Self-Directed Investing offers beginners and seasoned investors free trades and a portfolio tool to help build out their asset allocation.

What we like

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Manage investments from a mobile app
  • Portfolio builder tool to help with asset allocation
  • Access to research and insights

What we don't

  • Limited accounts, such as no SEP-IRA
  • No fractional share trading

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Copy investments from successful traders

$0

Fee Per Trade

$0

Account Minimum

Overview

eToro is a multi-asset platform that offers both investing in stocks, cryptocurrencies, and trading in CDF assets. It provides an innovative approach to ‘Social Trading,’ also known as ‘Copy Trading.’ Social trading allows users to connect, share their trades, and copy successful traders’ trades for potential gains.

What we like

  • Commission-free real stock trading
  • Offers money and risk management tools
  • A lot of learning materials available
  • Offers a free demo account
  • Copy successful traders investments

What we don't

  • Higher spreads and rollover fees
  • High non-trading fees

Discover new ideas from an active investing community

$0

Fee Per Trade

$0

Account Minimum

Overview

Public provides access to a powerful suite of tools, daily insights from millions of investors, and curated content and news, so all members can have the tools and resources needed to invest with context.

What we like

  • All-in-one investing platform 
  • Wide selection of product offerings 
  • Commission-free
  • Insights from an investing community of millions
  • Invest in any fractional asset
  • Live in-app shows about the markets

What we don't

  • Limited account types
  • No in-person customer support

Margin trading available with premium account

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Axos Self-Directed Trading provides investors commission-free trades and an all-in-one solution for banking and investments.

What we like

  • Commission free trading on most assets 
  • Easy to use platform
  • Wide selection of product offerings 
  • No minimum deposit required
  • Extended market hours for premium accounts
  • Joint accounts available

What we don't

  • Crypto not supported
  • Premium account required for certain features
  • No in-person customer support

Offers fractional share trading

$0

Fee Per Trade

$0

Account Minimum

Overview

SoFi allows you to trade cryptocurrencies, stocks, and ETFs. It also uses the SIPC protection scheme and offers up to $500,000 in insurance coverage.

What we like

  • Free trading on ETFs and stocks
  • Offers fractional shares
  • A wide variety of cryptocurrencies
  • Free financial advice
  • No account minimum

What we don't

  • Does not offer mutual funds, bonds and options
  • Limited track record

What is OTC trading?

OTC trading is the buying and selling of securities between two parties, typically via a telephone call or an electronic network. This can be contrasted with exchange-traded securities, which are listed on an exchange and traded through a broker.

OTC markets exist in most major financial centers around the world. They are often referred to as “over-the-counter” because they are not traded on an exchange.

Why use OTC trading apps?

There are many reasons you should use an OTC broker rather than a traditional one. Let’s take a look at some of them:

  • To have access to leverage: Leverage is the use of borrowed money to make trades. However, it also increases the risk that you will lose money if your investment price moves against you. Leverage can increase the size of your trades, which allows you to make more money. If you have a small amount of capital and want to make larger trades than you otherwise could on your own, OTC brokers can provide you with leverage.
  • To trade in real-time: OTC trading apps allow you to trade directly with other investors instead of waiting for the market to open or close. This is especially helpful if you are trading stocks or currencies only available during certain hours of the day.
  • To buy or sell just about any asset: One of the biggest advantages of using an OTC broker is that they can help you buy or sell just about anything. If there’s an asset you want to trade, chances are you’ll be able to find an OTC broker who can help you do it.

Are OTC trading apps safe?

Reputable OTC trading apps are safe and secure places to trade on. The good news is that there are many brokers the government regulates, and they have to follow a strict set of rules. They need to maintain high levels of transparency, which is why you should be able to see all your transactions in real-time.

OTC trading apps can be a great way for investors to get more information about their investments and trade on the go. However, there are fake OTC trading apps. That means you have to be careful when using them. OTC financial securities can be risky and subject to fraud. You’ll have to do your due diligence.

You must use an OTC trading app from a reputable company, and it meets all your needs and has a good reputation in the industry.

You should also ensure that any OTC trading app you’re thinking about is safe and secure before downloading it onto your mobile device.

What are the fees for OTC trading apps? 

Several different factors can affect the cost of trading. For example, the app’s commission and fees structure and the type of market participant you are, i.e., retail investor vs professional trader.

The fees for these apps vary based on their offerings and pricing structures. Some offer free trades, while others charge as much as $5 per trade.

What can you invest in with OTC trading apps?

OTC trading apps are available for Android and iOS devices. The most common types of financial instruments that you can trade through these apps include:

  • ETFs: An exchange-traded fund (ETF) is an investment fund that tracks an index or other benchmark rate. You can buy and sell ETFs through an OTC trading app.
  • Funds: You can buy and sell mutual funds, ETFs, and closed-end funds (CEFs).
  • Stocks: You can purchase stocks through mobile apps. The app will provide you with a list of stocks that are available for purchase and you can buy them with a few clicks. You can also sell your stocks in the same way.
  • Bonds: The bond market is huge and it continues to grow as more investors want to invest in this segment of the market. Bonds can be bought and sold easily through mobile apps as well. You can use these apps to find out the latest news about bonds, their value, and much more.

Benefits of OTC trading apps

The benefits of OTC trading apps are discussed below:

  • Convenience: This is one of the main benefits of OTC trading apps. They provide complete convenience to traders, and you do not have to wait in queues or spend hours in front of a computer screen. Instead, all you need to do is open your mobile device and start trading right away.
  • Flexibility: These apps give you complete flexibility when it comes to trading. You can use them at any time if you have an internet connection and a suitable device to access them. Whether you are traveling or working late into the night, there is no need for you to miss out on any opportunities because they will always be available online.
  • Speed: OTC trading apps offer great speed compared to online trading platforms such as broker websites or stock exchanges. These apps do not require manual intervention before an order can be executed by an automated system that matches buyers and sellers according to their requirements.
  • Better liquidity: The market for OTC stocks is much deeper than before. It used to be that investors had to wait days or weeks for their orders to be executed. With the help of technology, you can get your order filled right away. Orders placed on dark pools or alternative trading systems (ATS) are the same.

How to choose the best OTC trading apps

  • Check the commissions: Commissions determine how much money you’ll have to pay when you buy or sell a security. Some platforms charge a flat fee per transaction, while others charge a percentage of the total amount. You can also find some apps that don’t charge any fees at all.
  • Deposits and accepted payment methods: If you’re planning on using your bank account or credit card to pay for your investment activities, the app must allow you to do so. Some platforms only accept cryptocurrency, which isn’t ideal for most people who want to invest in stocks. Others don’t accept deposits from certain states, so check how you can deposit or withdraw money from the account.
  • Mobile device support: The next thing to look at is mobile device support. You’ll want to see if your preferred platform has an app for iPhone, Android, etc.
  • Trading tools: You should consider what trading tools are available on each platform. Some platforms have more advanced features and may have additional tools to help you better manage your portfolio. For example, some platforms offer charting tools that allow users to view historical data and compare it with current market conditions. Some platforms also provide tools that will enable users to analyze the stocks in their portfolios and get recommendations based on these analyses.
  • Security: You should check out the security level offered by a platform before committing any money. Look for a secure connection when entering information such as passwords and financial information into the system. Also, ensure that the site uses encryption technology, so all your data going through is protected from hackers or other security threats.