How do I go about finding information & trading stocks on pink sheets? What brokers can handle this at a reasonable cost? PS: Have there really been no new messages/posts in over a year?
compqhs,Most online brokers can handle trading pink sheet companies, and generally at the same price as they do other trades. Some handle these trades better than others. TD Ameritrade, T. Rowe Price, E*Trade, and Fidelity seem to handle pink sheet trades best, but each has proven to have exceptions now and then (ie. certain specific stocks they don't trade). That said, each of the above should get you access to 95% of what is out there and any of the bigger pink sheet ADR listings like Walmex or SABMiller are handled by just about every broker.Best,Nathan
On 12/28/09 I attempted to purchase LTOUF (pink sheets)using Fidelity's online system for my IRA. I received a notice that the system didn't recognize the stock. I called and was told by a rep that I needed special authorization to trade pink sheet stocks. He talked to a senior trader who agreed to give me authorization. Then he transferred me to a rep in the international department. That rep said I needed to have $100 million to be able to trade Indian stocks. I intend to check further but I wonder if others are trading pink sheet stocks through Fidelity.
I too had a similar problem locating the stock through Schwab and ended up using Google. It seems that Motley should offer us some suggestions on purchase if they are recommending a stock.
It seems that Motley should offer us some suggestions on purchase if they are recommending a stock.We're sorry for the difficulty some have had accessing L&T shares. That said, we do generally check to make sure anything we recommend is able to be bought. Unfortunately, we tend to check at our own brokers (I use Ameritrade, for example) and the level of service does differ from broker to broker. Also, when picking things for special reports and for the wild card page in the monthly issue, we feel we have a little more latitude in terms of buy-ability since they are extra picks. Our formal recommendations are always either major exchange-listed or verifiably liquid over-the-counter/pink sheets listings.Tim
Thankyou that is very helpful. I talked with my discount broker today and he said it was not tradable for them because India prohibited the trade to a USA company. I thought that that was strange since you were recommending it. Maybe I will need to get a new discount broker account.
I got basically the same response from Fidelity, that they can't do trades in India, unless it's listed as an ADR on one of the American exchanges. Since my funds that I am trading are in a Fidelity IRA, that kind of leaves me out on LTOUF.
I agree, I had trouble with LTOUF with Scottrade. They did not allow purchase.RK
The good news in this regard is that barriers preventing this type of thing are more and more coming down. The recent Nasdaq partnership with Bovespa should, hopefully, make more and more Brazilian stocks available to us...which I am excited for.So, again, sorry for the difficulties here, but you may also consider a different broker. Like barebones airlines, discount brokers sprouted up to compete on price in non-boutique niches. They will not offer the best service when it comes to executing more complicated trades or accessing harder-to-get-at markets.Tim
I submit orders to TradeKing who advised me that LTOUF trades very lightly ( I could only purchase perhaps 50 shares available that day ) and that they require an additional trading fee of $75 to their standard $4.95 transaction fee. Having managed my executions proficiently for several years, TK switched its backroom operations to Penson. TK has worked through this transition somewhat awkwardly, but has resumed its previous efficiency.As I am not fond of paying too much more for a stock than my average for that stock, I've not purchased more LTOUF from TK/Penson and do not know of their current requirements.I principally buy and hold stocks. Options amount to perhaps 5% of my portfolio's value. However, their returns have generally been surpassed by my equity appreciation. Nonetheless, I look forward to dabbling in options more productively.
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