Can i Buy OTC Stocks using Hoodless Brennan

caravanner_2

I am totally new to shares and stocks

I have opened up an online trading account with HB

I was thinking of buying some shares in a stock that trades on the Over the Counter Bulletin Board (OTCBB) but when i go into Dealing in the online Hoodless Brennan gui it only allows me to search for Company Name or EPIC code. I tried company name and it doesnt show up and I don't have an EPIC Code.

Is it possible to buy any OTC shares using HB ? If not how do I ?

cheerfulcat

No it isn't possible - I have to ask, though, why would you want to? ( SEC warning )

caravanner_2

lol the same reason anyone wants to buy stocks, i think in the future this one will increase in value

So how does one go about buying shares in a OTC stock then if not through a normal broker like HB ?

cheerfulcat

caravanner, OTCBB companies tend to be on the dodgy side and even when they are not, the shares are highly illiquid ( because of being unlisted ) with prices wide open to manipulation. I doubt that there is a reputable UK broker who will allow you to buy them ( or, for that matter, is set up to do so ).

EDIT: why not look at UK smaller companies instead?

tradetime

Caravanner, I would say pretty much all the warnings cheerfulcat mentions are worth considering carefully, he does not exaggerate imho. However if you absolutely do have to play with otcbb stocks E-Trade, if it is the same outfit as the US one may allow you access to them, otherwise it would likely have to be a much larger outfit such as Interactive Brokers, but they will prove expensive if you are not an active trader.
Personally I would, like cheerfulcat advise to steer clear, if you want smaller less established companies try the AIM I suspect it would be slightly safer (maybe)

caravanner_2

thats for the advice guys, what about the fact that the company I am interested in is also listed on the Frankfurt Stock Exchange, does this make it more of a viable proposition ?

cheerfulcat

Is it the main stock exchange or the " regulated unofficial market "? If the latter then no, it does not make it any more attractive, as it operates on a similar basis to the OTCBB.

Why not give us the name of the company?

Sorry, forgot this bit in your OP

I am totally new to shares and stocks

Best to stay away from microcaps, even legitimate ones, in that case.

TRUSt_NO_1_2

caravanner wrote: »

thats for the advice guys, what about the fact that the company I am interested in is also listed on the Frankfurt Stock Exchange, does this make it more of a viable proposition ?

as I have a company on my 'hot tip' list who are on OCBB and Frankfurt...(I do not own any)

namely GORO....Gold Resources ...

Who ever it is ..don't buy more than 10% of your portfolio/available funds...

As for small caps being dodgy...well look at the financials (the BIG BOYS)....much more pain to come !

cheerfulcat

TRUSt_NO_1 wrote: »

As for small caps being dodgy...well look at the financials (the BIG BOYS)....much more pain to come !

No-one said that small caps per se are dodgy - one problem with the OTCBB stocks is that they are frequently touted by boiler rooms and other scamsters. Another, in common with all micro caps ( and many small caps and even some of the bigger AIM listed companies ) is illiquidity.

johnleask

i was with hoodless useless, i went with them as moneysavingexpert said they were one of the cheapest share traders.
hoodless told me to buy 4 different shares the first shares went bust, second went down to almost nil, third more than halved, number four is now up £2.70.
then i found out that they bought the shares for half what they were selling to me.
i lost about £3,000 so be warned dont trust them.

martinwinlow

Caravanner, Did you ever find someone to trade on the otc bulletin board with? MW