All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
How to trade pink sheet stocks
Find out how pink sheets work and how you can invest in some.
Pink sheet stocks are a type of over the market stocks. They’re not listed on major stock exchanges. Find out more about what pink sheet stocks are, some examples of pink sheet stocks and how to trade them.
What are pink sheets?
Pink sheet listings are ones which aren’t listed on major stock exchanges such as Nasdaq, New York Stock Exchange (NYSE), or the London Stock Exchange (LSE). These are stocks sold over the counter (OTC) and are often penny stocks, which, as their name suggests, cost pennies to buy.
There are lots of companies which choose to trade over the counter but aren’t considered to be penny stocks, usually to keep the costs down.
Pink OTC
Pink OTC or OTC Pink is one of the three tiers operated by the OTC Markets Group. The three tiers refer to how much financial reporting the companies offer up, with pink being the lowest tier.
Companies don’t have to jump through as many hoops to trade in the OTC Markets group – they don’t need to file with the Securities and Exchange Commission (SEC) or disclose company financials, as you generally see with traditionally floated companies.
Examples of pink sheet stocks
There are more than 10,000 stocks on the OTC markets. Some are on it to avoid filing with the SEC, while others may have been delisted from other exchanges. Some companies on the OTC market include:
- Nestle
- Adidas
- Nissan
- Repsol
- Samsung
- Volkswagen
How to buy pink sheet stocks
- Find yourself a broker. Not all brokers let you buy pink sheet stocks, so you need to check with your chosen broker. From the ones we’ve reviewed on our site, Trading 212 and Saxo trader let you trade pink stocks.
- Fund your account. Your broker can walk you through this. Make sure you have enough to cover the position you want to open.
- Research, research, research. You need to make sure you do plenty of research into the stocks you want to invest in.
- Find the stock on your chosen platform. Just type in its ticker symbol or company name and you should find it.
- Buy your pink sheet stock. You’re good to go!
Where can I buy pink sheet stocks?
Here are some UK brokers that let you trade pink sheets. Double check that the provider you choose has the pink sheet stock you’d like to invest in on its platform.
| Provider | Does it trade pink sheets? | ||
|---|---|---|---|
 | Saxo Markets | Go to siteCapital at risk | |
 | eToro | Go to siteCapital at risk | |
 | IG | Capital at risk | |
 | Hargreaves Lansdown | Go to siteCapital at risk | |
 | Trading212 | Capital at risk | |
 | Revolut | Read reviewCapital at risk | |
 | Freetrade | Read reviewCapital at risk | |
 | Stake | Capital at risk | |
 | interactive investor | Go to siteCapital at risk | |
 | Aj Bell | Go to siteCapital at risk | |
 | Halifax | Read reviewCapital at risk |
Pink sheets vs penny stocks
These terms are sometimes used interchangeably but there’s a key difference. “Pink sheets” refers to the listing service, while penny stocks refer to the price of the stocks.
Penny stocks are stocks that trade for less than $5USD. Some penny stocks trade on well known stock exchanges such as Nasdaq or London Stock Exchange (LSE).
Pink sheet stocks tend to be cheaper but don’t necessarily count as penny stocks.
The risks of trading pink sheet stocks
Pink sheet stocks and penny stocks are more risky than traditional stocks. There aren’t as many regulations or requirements and it can be difficult to fully research as the companies don’t need to release as much financial information as they do if they list on large stock exchanges. You can mitigate this risk by doing as much research as you can into the stocks you’re interested in.
As these stocks aren’t traded as often, considered to be “thinly traded stocks”, it can be difficult to make trades with profitability.
Why are they called pink sheets?
When trades and quotes were done physically, the paper was, you guessed it, pink! That’s it – the name stuck.
Pros and cons of pink sheet stocks
Pros
- Adds some diversification to your portfolio
- Potential for lower priced stocks
- Give investors access to companies unable to float on traditional exchanges
Cons
- Less regulation for companies listed
- Not quite as liquid as traditional shares
Bottom line: Are pink sheet stocks a good investment?
Pink sheet stocks and over-the-counter stocks can be a great opportunity for investors, but also a risky one. These companies aren’t held to the same standards as traditionally floated stocks which can make them hard to value and research. Double check that your chosen provider lets you trade the specific stocks you want, and make sure you know the fees.
More guides on Finder
-
How to buy iShares Core MSCI Japan IMI UCITS ETF USD Acc
Ever wondered how to invest in SJPA ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy SPDR FTSE UK All Share UCITS ETF Acc
Ever wondered how to invest in FTAL ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy Franklin FTSE United Kingdom ETF
Ever wondered how to invest in FLGB ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy HSBC FTSE 100 UCITS ETF
Ever wondered how to invest in HUKX ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy Flutter Entertainment shares
Thinking about buying shares in Flutter Entertainment? We explain how to do it and compare a range of providers who will give you access to global markets.
-
How to buy Dettol shares | 4423p
Sales of Reckitt Bencksier products like Dettol have risen due to coronavirus. Here’s how you can invest in Dettol, by buying Reckitt Benckiser shares.
-
How to buy AT&T shares
Ever wondered how to buy shares in AT&T? We explain how and compare a range of providers that can give you access to many brands, including AT&T.
-
How to buy Wincanton shares
Ever wondered how to buy shares in Wincanton? We explain how and compare a range of providers that can give you access to many brands, including Wincanton.
-
How to buy United Utilities Group shares
Ever wondered how to buy shares in United Utilities? We explain how and compare a range of providers that can give you access to many brands, including United Utilities.
-
How to buy Relx shares
Find out how to buy shares in RELX, see its share prices over the last three months and check out our must-do checklist if you’re looking to invest.