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martin959 11.10.2017 19:19

Penny stock + Interactive Brokers
 
Hello guys!

Just a quick one, it says on the page of IB:

US Penny Stock Due Diligence Fee
Please note that IB charges a $1,000 Penny Stock Due Diligence Fee to offset the firm's costs in reviewing and potentially accepting large transfers of U.S. small-cap stocks that the customer obtained anywhere other than on a public exchange.

So, does this means that if I buy 300 dols. in 0,40 dols stocks from a company, I will be charged 1000??? :confused:

Im a little bit confused, I tough the penny stocks would be considered just as a normal stock that is just cheap to buy...

Edit: Source - https://www.interactivebrokers.com/e...niversal-debit


Cheers!

Urs Max 12.10.2017 09:25

Re: Penny stock + Interactive Brokers
 
Quote:

Originally Posted by martin959 (Post 2859015)
...that the customer obtained anywhere other than on a public exchange.

Your purchase using IB platforms (or any of the big one's, most probably), though often OTC, will go through a public exchange so the condition won't apply.

martin959 12.10.2017 09:46

Re: Penny stock + Interactive Brokers
 
I guess this then is for those who buy the penny stocks on the pink market and they got papers stating the purchase of the stocks, for example


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