NSCC illiquid charges for buy or sell many otc stocks. Is a real risk ? Brokers really impose fees ?

Discussion in 'Retail Brokers' started by wic2021californiaxp, Oct 27, 2021.

  1. ``If you attempt to sell a number of shares greater than 10% of the stock's average volume over the last 20 days, you'll also be assessed a fee.``

    ``
    The interest charges will then be assessed on an illiquidity requirement imposed on the clearing firm, which could be many times the value of the trade``

    Has anyone here been charged for this type of fee ?

    How long before the charge appears ? instant, 1 day , more than 1 week ?
     
  2. Fain

    Fain

    Capital charges from the clearing house to the broker. Your broker could be under capitalized it sounds like if they want to charge this fee instead of just posting the collaterral
     
  3. maxinger

    maxinger

    It is a good experience trading illiquid stocks;
    there will be many many sleepless nights.
     
  4. Fain

    Fain

    Structural Idiocy on behalf of the US capital markets. OTC volumes suffering huge.
     
  5. which clearing firm/broker?
     
  6. otctrade

    otctrade

    I only got one charge like that back in 2012 with a small brokerage firm.

    I don't think this will be an issue going forward because most illiquid and non-reporting companies have been delisted to the "expert market" which isn't tradeable on 99% of broker platforms anyway.
     
  7. how long before you receive a illiquid firm from brokerage firm after trade stocks ?
     
  8. Fain

    Fain

    Can be like a Week. They issue the charge manually to the brokerage, then brokerage probably manually charges the client.
     
  9. Sig

    Sig

    And yet the real word suffering none. Perhaps not such idiocy after all. Perhaps penny OTC stocks provide no benefit to the real world and everyone but the pump and dumpers and the rubes who get exploited by them are better off without them. Actually maybe the rubes are better off too, they just won't ever realize it.
     
  10. Fain

    Fain

    Companies are staying private longer and more OTC companies coming to Canada to list. I'm okay with the structural change.
     
    #10     Nov 2, 2021