Investing in OTC Securities


What are OTC Securities? 

Over-the-counter (OTC) securities are securities that trade through a broker-dealer because they are not listed on a major exchange, such as NYSE or Nasdaq, in the United States. This may happen when companies do not meet the requirements to be listed on a formal exchange. Keep in mind, there may be additional steps and fees when trading OTC securities. 

OTC securities include large-cap American Depositary Receipts (ADRs), foreign ordinaries, and small and micro-cap growth companies.  An ADR is a security that represents shares of non-U.S. companies that are held by a U.S. depositary bank outside the United States 


What OTC Securities does M1 offer? 

M1 offers a select number of OTC securities that are highly liquid securities, actively monitored for volume and market capitalization. 


OTC Securities available at M1: 

  • Adidas (ADDYY) 
  • Adyen N.V. (ADYEY) 
  • BHP Group Limited (BHPLF) 
  • Carlsberg A/S (CABGY) 
  • Grayscale Ethereum Classic Trust (ETCG) 
  • Grayscale Ethereum Trust (ETHE) 
  • Grayscale Bitcoin Trust (GBTC) 
  • Grayscale Digital Large Cap Fund LLC (GDLC) 
  • London Stock Exchange Group plc (LNSTY) 
  • Grayscale Litecoin Trust (LTCN) 
  • LVMH Moët Hennessy - Louis Vuitton, Société Européenne (LVMUY) 
  • Nestlé S.A. (NSRGY) 
  • Nintendo Co., Ltd. (NTDOY) 
  • Prosus N.V. (PROSY) 
  • Roche Holding AG (RHHBY) 
  • SoftBank Group Corp. (SFTBY) 
  • Tencent Holdings Limited (TCEHY) 
  • Tesco PLC (TSCDY) 
  • Volkswagen AG (VWAGY) 

How do I invest in OTC Securities? 

To place a buy order, you must have available cash in your account. M1 will not withdraw money from your bank account to complete a trade.   

Available cash includes:  

  • Cash  
  • Sell orders  
  • Incoming deposits  

If the available cash for a user is less than their buy orders, M1 will prorate the requested buys.  

Example: Jenny places a $100 buy order for Stock A. Jenny (if she has the funds available) will purchase $100 of OTC Stock A during the next trade window. 


M1 disclosures here.

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