Fidelity (TC9052) Not Permitted to Opening Transactions

While Fidelity allows you to trade on the OTC market, not all OTC stocks are tradable on Fidelity. If you are an active penny stock trader, you must have seen this error message at least once.

(TC9052) Opening transactions for this security are not currently permitted due to limited company information and/or the risk associated with the security.

(TC9052) Opening transactions for Pink Sheets (without information) are not permitted because of the risks associated with these securities and all Microcap securities.

There is no workaround to this other than using another brokerage to buy the OTC stock that Fidelity didn’t permit you to trade. Some penny stocks on the OTC market might be available on TD Ameritrade, but they will charge a service fee per Pink OTC transaction.

Other Comments

Marie G:

I am not understanding what to do here, I opened up Fidelity account to trade stocks around or under a penny, I have been trying to buy a few different stocks. HCMC, ASTI and I keep receiving this error message. How am I able to buy these stocks, I don’t get it. So frustrating.(TC9052) Opening transactions for this security are not currently permitted due to limited company information and/or the risk associated with the security.

Timothy K:

I get that they’re trying to look out for their investors and in hindsight it was probably good of them to do that. I just wish they would be more forthright when I was opening an account and let me know this ahead of time.

Danny R:

That happened to me with CDRBQ (code rebel). It was like $.0000001 or something. I tried putting $1000 on it and they wouldn’t let me. A day or two later it shot up 69,000%. I was pissed for awhile. That’s one thing I don’t like about fidelity or a lot of these companies. We understand the risks. Now let us make our own choices and take our own risks. You don’t see people trying to prevent us from buying $1-$2 lottery tickets.

Aaron G:

A lot of stocks that are like this have heavily manipulated Bid/Ask and don’t file their SEC filings properly. It’s a flagged company according to OTC market.

Alexander G:

I had a similar issue with OBTC a little while back. I called Fidelity and the guy didn’t really seem to know why it was blocked other than it had only been listed for a few days and wasn’t much information on it. About a week later I was able to trade OBTC but it had me answer a few multiple choice questions first about how comfortable I am with risk and how experienced an investor I am before I could continue with the purchase. My take was with all the gamestop/robinhood drama Fidelity is understandably trying to protect itself from getting thrown into the headlines.

Peter T:

I had that issue with Sundial stock and I needed to go to their site and enable trading penny stocks. You can’t enable it from the mobile app. Once I enabled it from their site I was able to buy some of Sundial.

Savy V:

If it shows up when you put in the ticker symbol, put in a limit order (not market order). Put in a limit order for a little more than the current price (ie the stock you want is $.0015, put a limit order for it at $.00155 or $.0016 & the order should get filled. This worked for me when I bought a stock that was $.0014/ share.

Willcue A:

You have to set your purchase to limit purchase not market purchase when buying pennies stocks on fidelity or you will see that warning.

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Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

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