Over-the-counter (OTC) securities are stocks and other assets like commodities and currencies that aren’t listed on a major exchange in the US. Instead, they’re traded through a broker-dealer network. You can read more about them here.
All the OTC stocks on Freetrade are American Depository Receipts (ADRs). They represent large, international companies whose underlying shares trade on major exchanges around the world, including Hong Kong, Tokyo, and Australia. So from today, you now have access to well-known stocks like:
$NTDOY - Nintendo ADR
$TCEHY - Tencent ADR
$PCRFY - Panasonic ADR
$NSANY - Nissan Motor ADR
All of the OTC stocks below are ISA-eligible.
Initially, OTC stocks will only be available as limit orders, meaning you’ll need to set your buy or sell price. They also won’t initially be available to buy as fractional shares. We’re working with our brokerage partner to offer market orders and fractional shares in the future.
Not a Standard or Plus member yet? Upgrade now to access our full range of stocks, with over 6,000 shares and ETFs.
Full list of 23 new OTC stocks on your app:
Ticker
OTC instrument
Subscription
AAGIY
AIA Group Ltd ADR
Standard and Plus
BACHY
Bank of China Ltd ADR
Standard and Plus
BYDDY
BYD Co Ltd ADR
Standard and Plus
CKHUY
CK Hutchison Holdings Ltd ADR
Standard and Plus
FANUY
Fanuc Corp ADR
Standard and Plus
FSUGY
Fortescue Metals-Spon Adr
Standard and Plus
KAOOY
Kao Corp ADR
Standard and Plus
KDDIY
KDDI Corp ADR
Standard and Plus
KMTUY
Komatsu Ltd ADR
Standard and Plus
NPSNY
Naspers Ltd ADR
Standard and Plus
NSANY
Nissan Motor Co Ltd ADR
Standard and Plus
NTDOY
Nintendo Co ADR
Standard and Plus
NTTYY
Nippon Telegraph and Telephone Corp ADR
Standard and Plus
PCRFY
Panasonic Corp ADR
Standard and Plus
PNGAY
Ping An Insurance Company of China ADR
Standard and Plus
RCRUY
Recruit Holdings Co Ltd ADR
Standard and Plus
SFTBY
Softbank Group Corp ADR
Standard and Plus
SHECY
Shin-Etsu Chemical Corp Ltd ADR
Standard and Plus
TCEHY
Tencent Holding Ltd ADR
Standard and Plus
FRCOY
Fast Retailing Co Ltd ADR
Standard and Plus
DSNKY
Daiichi Sankyo Co Ltd ADR
Standard and Plus
DKILY
Daikin Industries Ltd ADR
Standard and Plus
DNZOY
Denso Corp ADR
Standard and Plus
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*When you invest your capital is at risk, the value of your investments can go down as well as up and you may get back less than what you invest. Make sure you do your own research on what investments are right for you before investing or consider seeking expert advice.
I agree - great article and I now better understand what they are. On balance I think, like Crypto, they are too complex and risky for my investment plans, so I will probably steer clear.
Please can Freetrade do the leg work to see if OTC stocks are ISA eligible.
The reason I ask is that unless in specific circumstances ADR stocks are not usually ISA eligible.
From what I’ve come to understand with my limited knowledge of the subject all OTC stocks are ADRs.
The reason I ask is I’d hate to see someone have to force sell their assets in their ISA as the stocks in question do not fit the criteria for ISA elegibilty rules. That would be quite unfair, particularly if the stock was heavily in the red at the time.
My understanding is that if the underlying stock is traded on an exchange listed on the ISA elegibilty list then you can hold that ADR in an ISA.
There are bits of truth here. But on the whole the post is misleading and incorrect. Freetrade obviously and clearly checks for ISA eligibility. This is why in the app several stocks are not available to buy in ISA accounts. In these cases you see blurb which tells you to switch to GIA to buy that stock.
I do agree, there have been a few instances where the eligibility has had to be revised. And I fully sympathise with those people who experienced this.
Most OTC stocks are not ADRs and ADRs don’t necessarily trade as OTC. Please read the excellent overview of what an OTC stock is.
Finally, I encourage everyone to research their stock before they buy it. As the referenced article says, you need to understand the risks associated with the stock you buy.
Instant orders and fractional shares are now available on OTC stocks, including Nintendo, Tencent, Panasonic and Nissan ADRs.
As a quick refresher
Previously, OTC stocks were only available as limit orders on Freetrade.
This meant that you needed to set your buy or sell price. Now that instant orders are available, you’ll simply be able to place your order to execute at the market’s current best available price. You can, of course, also continue to use limit orders if you want.
Fractional shares means that you can now set the $ amount to invest into an OTC stock. They allow you to invest in a company without buying a whole share, making expensive stocks more affordable.
As a reminder, OTC stocks are currently only available to Standard or Plus members. Not a Standard or Plus member yet? Upgrade now to access our full range of stocks, with over 6,000 shares and ETFs.
When you invest your capital is at risk, the value of your investments can go down as well as up and you may get back less than what you invest. Make sure you do your own research on what investments are right for you before investing or consider seeking expert advice.
