Brokerages to Buy Dark Stocks

 I wish I had a rosy picture to paint you but alas we have reality to deal with.  A year ago in Sept 2021 the new SEC rule went into place, resulting in the destruction of dark stock trading.  Every single online brokerage I know of in the US stopped allowing buys in any dark stocks.  

This post is a summary of the few brokerages that still allow you to buy non-filing dark stocks.  

If anyone has found a solution please comment or send me an email.  

Brokerages, the new SEC Rule, and a Podcast

Now that the SEC followed through with their rule 15c2-11 change blocking quotes from non-reporting companies, the brokerages are all backing away.  I don't know if the SEC realized this would happen but it seems like every online brokerage company's response is to just take their ball and go home.  

In recent weeks we've seen announcements from Schwab, TDAmeritrade, and others saying they will not allow clients to purchase non-reporting stocks after August 2021.  Unfortunately I don't know of a single online brokerage that will let you buy dark stocks after the rule change goes into effect in Sept 2021.  

I was a guest on The Investor's Roundtable the other day to discuss this topic.  You can hear the audio here and watch video here.  Give it a listen to hear my own opinion as well as some others I really respect.  I have to say it was a real trip to be on a panel with my hero Dave Waters of OTC Adventures / Alluvial Capital.  

My Brokerages: Fidelity, Schwab, ETrade

If you have been a reader for a while you know of all the brokerage drama I've had.  It's all due to the tiny dark stocks I like and the industry moving against them.  I'm sure it doesn't make the brokerages any money so I understand.  I'm happy to report I have brokerages that work great for me.

The latest news is Penntrade has shut down so I transferred those accounts to Schwab.  I love Schwab.  I now use Fidelity, Schwab, and ETrade.  I hope this is my last brokerage related blog post...

I've Moved to PennTrade

Hopefully this is my last post on brokerage drama.  I have moved as many accounts as possible out of T Rowe Price and Fidelity over to PennTrade.  When people now ask me which brokerage house they should transfer OTC stocks into, I will answer PennTrade.

A Conversation With OTC Markets

Recently I mailed a letter and copy of my blog post Brokerage Firms, OTC Markets, and Dark Companies to the CEO of OTC Markets (OTCM).  I explained the issues I have with OTCM's stop designation list and told him I'd like to talk about how we can come to a resolution.  Thankfully he took me up on the request and we had a phone call the other day. It was great to hear another point of view and I just wanted to do a follow up post to get out their side of the story.

Brokerage Firms, OTC Markets, and Dark Companies

Followers of this blog know I've had issues with brokerage companies due to the types of companies I own. I have contacted 40 brokerage companies in the past 6 months in an attempt to find one who'll give me the freedom I want. In this post I discuss findings.

OptionsHouse kicked me out

A few days ago OptionsHouse sent me the following in an email:

After a review of your account, OptionsHouse has determined we will be unable to service your account ending *** going forward.  Your account has been placed in liquidation only trading status, meaning existing positions can be closed out but no new positions can be established. Please make arrangements to transfer your account out of OptionsHouse within thirty (30) calendar days.

They went on to explain the ways I could withdraw cash or transfer my account.  My wife has an account and got the same email.  They give no explanation.  I have been a customer for years.  I am active.  Now I'm given 30 days, don't let the door hit you on the way out.  Why must I leave...we won't tell you.  

Fidelity blocks dark companies

Well chalk up today to a bad day.  I found out this morning that Fidelity has decided to block companies marked with a stop from otcmarkets.com.  This includes at least the companies on otcmarkets Caveat Emptor list.  Generally for me this means Fidelity is blocking companies that don't file with otcmarkets.