Enable Penny Stock Trading on Fidelity

Fidelity is a broker for the trading of stocks, ETFs, and mutual funds. With stock prices declining and volatility increasing, is there actually a sure thing? Nothing is absolutely certain, but the strategy of buying reverse splitting stocks can be fruitful. I use Fidelity to trade stocks the day before a reverse split occurs and any fractional shares will round up to a full share. Companies will typically perform a reverse split for different reasons, but it is usually to increase the stock price by consolidating shares. Some exchanges like NASDAQ require stocks to trade at a minimum price or risk getting delisted. These companies will round up multiple shares to 1 share. I frequently see 1:10 or 1:100 round-ups. When a share is $0.10 and they will perform a reverse split of 1:10 where they round up fractional shares, a stock that you bought for $0.10 turns into $1.00. You sell it after the reverse split and you just net $0.90

Fidelity is a broker that is friendly to OTC (over-the-counter) stocks where many reverse splits occur. Without enabling Penny Stock Trading, you limit yourself to the stocks you can buy and sell.

In order to enable Penny Stock Trading, you will be prompted with the following screens and each account has been enabled for Penny Stock Trading. This is a one-time process, but each account is enabled separately.

Penny Stock Trading – Understanding this feature
Penny stock trading – Select an account
Penny stock trading – Acknowledgement of risks
Penny stock trading – Success!
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