Brokers that allow Caveat Emptor OTC stocks

[creede]

Spoke to someone at OTCM yesterday.

I was told they believe the Discount Brokers have made this list of restricted securities because of some of the wording in the new rule.

Most specifically, the new rule says that when a broker puts in an order for a stock that is delinquent in their filings they must ensure that the person is not an insider nor an affiliate.

The idea is to prevent someone from buying a huge number of shares at a discount and then dumping them into the market.

I was told that Discount Brokers do not have the man power to vet each order at the time it was received to make sure that individual is not an affiliate.

The only solution (for us) is to create a relationship with a full service broker. They will then make you sign documents to ensure we are not affiliates nor insiders. Problem solved.

As it turns out, many of the brokers on the directory at OTCM have a retail side if you call and decide you want to go through their vetting process.

https://www.otcmarkets.com/otc-link/broker-dealer-directory

Of course, it's going to be more like an old-school, call-them-up type of relationship like you see in the movie WallStreet or something.

This type of relationship could give in-roads to buying any-and-every stock in the market (including CE tickers).

But it will undoubtedly come a premium per trade.

I'm pondering if I want to give this a try or not.