7 Best OTC Stocks to Buy and Invest in 2025

Over-the-counter (OTC) stocks can offer big opportunities, but they come with risks. Many of these companies operate outside major exchanges, making them harder to track. Some have strong business models, while others are highly speculative. The key to trading these stocks successfully is understanding the volatility, liquidity, and the company’s fundamentals.

Below is a list of the top OTC stocks to watch in 2025. Each of these companies has shown notable growth, strong trading volume, or potential catalysts that could drive price movement. However, always remember—OTC penny stocks are best for trading, not investing.

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Top OTC Stocks to Buy Right Now

OTC stocks are full of opportunity, but they’re also full of risk. Most traders only see the big percent gains and ignore the dangers. That’s why 90% of traders lose. They don’t understand that just because a stock hasn’t been halted yet doesn’t mean it won’t be. The OTC market is unpredictable. It’s filled with sketchy companies, promoters, and stocks that can go up 500% in a week only to crash just as fast. But if you focus on patterns, data, and price action, you can find trades worth taking.

Right now, certain OTC stocks are moving based on strong momentum and high volume. That doesn’t mean they’re good companies. It just means they fit the patterns that have worked for years. I’ve seen traders take small accounts and grow them exponentially by sticking to repeatable setups. But I’ve also seen people get wiped out because they held too long or believed in the hype. The key is to take singles, lock in profits, and never get greedy.

The stocks on this list aren’t long-term investments. They are plays that have shown strong movement, liquidity, and tradable patterns. If you’re not prepared to cut losses quickly and trade with discipline, stay away. OTC stocks can be brutal, and if you’re not careful, they’ll teach you that lesson the hard way.

Not all OTC stocks are the same. Some are legitimate companies, while others are thinly traded or manipulated. The key is knowing what you’re dealing with before you trade. If you’re new to OTC stocks, start with the basics. This guide breaks down what OTC stocks are.

1. Butler National (OTCQB: BUKS)

Butler National Corporation operates in aerospace and gaming, making it an unusual but intriguing OTC stock. The company has seen an impressive 79.4% earnings growth in the past year, significantly outperforming its industry. It has a stable balance sheet, with a manageable net debt-to-equity ratio of 33.1%. The company also recently completed a large share buyback, reducing its outstanding shares by 15% since 2016.

While Butler National has stable revenue streams, including aircraft avionics and modifications, the stock remains thinly traded. Low liquidity can make it difficult to execute large trades without affecting the stock price. That’s a problem for traders looking to move in and out quickly.

Penny stock traders should watch for earnings reports and news events that drive volume. If momentum picks up, short-term price spikes can create trading opportunities. However, holding for the long run isn’t ideal—low float stocks can be highly manipulated, and liquidity risk makes it hard to exit at the right price.

2. NewLake Capital (OTCPK: NLCP)

NewLake Capital Partners is a cannabis REIT that leases properties to licensed marijuana operators. The stock offers an 11% dividend yield and trades below its tangible book value. That might make it look attractive to long-term investors, but the cannabis industry carries unique risks. Some of NLCP’s tenants have struggled with rent payments, and regulatory uncertainty still looms over the sector.

For traders, volatility in cannabis stocks creates short-term opportunities. Legislative news, earnings reports, and sector trends can trigger large price swings. If NLCP gains momentum, traders could ride the spike—but don’t get caught holding when the hype fades.

Dividend stocks aren’t my usual play because they slow down price movement. If you’re trading penny stocks, focus on liquidity and volatility, not passive income.

Long-term, cannabis stocks are highly speculative. Trade them with a strategy, and don’t fall in love with the hype.

Check out my list of the top cannabis stocks I’m watching!

3. Crawford United (OTCPK: CRAWA)

Crawford United is a small industrial company specializing in air handling and transportation products. It has delivered steady revenue growth, with a 9.2% increase year-over-year. The company has been expanding through acquisitions, recently buying Rahn Industries to add $18 million in annual revenue.

Despite solid fundamentals, CRAWA has low trading volume. That means price moves can be slow, and liquidity issues can make it tough to exit at a good price. For traders, that’s a problem. Penny stocks work best when there’s enough volume to create fast, profitable setups.

If CRAWA sees a sudden spike in interest—whether from news, earnings, or a broader market trend—it could become a short-term play. But right now, its illiquidity makes it less ideal for active traders. Keep it on the radar, but don’t force a trade if the volume isn’t there.

4. Elite Pharmaceuticals (OTCPK: ELTP)

Elite Pharmaceuticals develops and manufactures generic and controlled-release drugs. The biggest news in recent months was FDA approval for a generic version of Vyvanse, an ADHD drug.

This news sent ELTP up by over 250%*.

The pharmaceutical sector is known for big price swings driven by FDA approvals, earnings, and news events. ELTP has seen strong periods of momentum in the past, and traders should watch for catalysts that could trigger another run.

This goes double for biotech stocks—don’t hold onto penny stocks long-term just because they have momentum. Small pharma companies often struggle with regulatory hurdles and funding issues. Play the breakouts when volume spikes, but take profits quickly—stocks like this can crash just as fast as they run.

Check out my full biotech penny stock watchlist here!

5. POSaBIT Systems (OTCPK: POSAF)

POSaBIT is a fintech company focused on payment processing for the cannabis industry. It also trades on the TSX Venture Exchange (TSXV).

POSAF recently raised capital to repay debt, and dilution is always a risk with penny stocks.

If POSAF starts gaining momentum, traders should look for high-volume breakouts. Just be cautious about holding too long—dilution and market conditions can quickly erase gains.

6. Exro Technologies (OTCPK: EXROF)

Exro Technologies develops electric vehicle motor and battery control technology. The company is in its commercialization phase and has secured deals with multiple OEMs, including Stellantis.

Despite this seeming legitimacy, look at its chart. This penny stock seems to be on a one-way trip to nowheresville.

The EV sector has been volatile, and traders should take advantage of hype-driven moves. Stocks like EXROF can see big swings around earnings or partnership news, but they also come with risk.

As always, don’t hold these plays long-term just because they seem promising. A good story doesn’t always mean a good investment. Ride the momentum, but take profits before the hype fades.

7. MariMed (OTCPK: MRMD)

MariMed is a multi-state cannabis operator that has been expanding through acquisitions. The company reported a 4.6% year-over-year revenue increase in its latest earnings call. However, profitability has slipped, and the company faces the same sector risks as other cannabis stocks.

MRMD has the potential for short-term spikes, especially if federal legalization rumors gain traction. But traders need to be careful—cannabis stocks are notorious for running up on hype and then crashing.

If MRMD gets a surge in volume, it could be a solid trading opportunity. Just don’t get caught holding the bag. The cannabis sector is full of broken promises and slow-moving legislation, making long-term investments risky.

* Past performance does not indicate future results.

What Are Over-The-Counter (OTC) Stocks?

OTC stocks trade outside of major exchanges like the NYSE and Nasdaq. They’re listed on decentralized markets such as the OTC Bulletin Board (OTCBB) or the OTC Markets Group. Most of these companies have low market caps, limited financial reporting, and higher risk. That’s why they’re attractive to traders—they move fast, and the volatility creates opportunities.

The problem with OTC stocks is that most of them are garbage. They’re full of sketchy press releases, promotions, and misleading company profiles. This isn’t me just being negative—it’s reality. I’ve been trading these stocks for over two decades, and I’ve seen it all. Some of these companies don’t even have real businesses. They exist just to sell stock. That’s why I never invest in them—I only trade them.

If you want to succeed in the OTC market, you have to expect the worst from every company. Assume they’re being manipulated. Assume the hype is fake. Assume that at any moment, they could get halted by the SEC. But also recognize that while these stocks are dangerous, they offer massive potential if you trade them with the right mindset. You have to treat them like what they are—trading vehicles, not investments.

It’s important to recognize that not every OTC stock is a penny stock. Some solid companies use OTC markets to bypass strict listing requirements. Still, lower regulation means higher risk, and not every broker offers access. Before jumping in, know where you can trade them. Here’s a guide on where to buy OTC stocks.

Why Invest in Over-the-Counter Stocks?

I don’t invest in OTC stocks, I trade them. There’s a big difference. These stocks are attractive to traders because they can spike fast and offer massive percentage gains in a short period. But the same volatility that makes them appealing also makes them dangerous. If you don’t know what you’re doing, you can get crushed.

The best traders I know treat OTC stocks like a game of probability. They don’t buy into the hype. They don’t believe in the companies. They trade the patterns, react to the price action, and always manage risk. I’ve seen students grow their accounts by sticking to simple strategies like buying morning panics and first green days. But I’ve also seen traders blow up because they held too long, believing a stock was “different” this time. It never is.

If you’re going to trade OTC stocks, you need to be prepared. That means tracking data, analyzing past runners, and developing a strategy that focuses on quick profits. If you’re looking for safe, long-term investments, you’re in the wrong place. But if you’re looking for volatility and the chance to capitalize on short-term moves, OTC stocks can be a goldmine—if you trade them the right way.

How to Find the Best OTC Penny Stocks

Finding the best OTC penny stocks isn’t about listening to promoters or chasing the latest “hot pick.” It’s about using real market data and proven methods to identify stocks with strong momentum and high liquidity. The best OTC stocks to trade are the ones that fit specific, repeatable patterns. That’s why I focus on things like multi-day breakouts, first green days, and morning panics.

One of the biggest mistakes beginners make is relying on stock alerts, newsletters, or social media hype to pick stocks. That’s how you end up bag-holding worthless shares. Instead, you need to use reliable resources and screen for stocks that have the right setups. I use StocksToTrade’s breaking news tool to track catalysts and scan for stocks that are moving with volume. If a stock is running on a real news event and not just a paid promotion, it has a much better chance of holding its gains.

Another important factor is risk management. I don’t care how good a stock looks—if it doesn’t have enough volume or if it’s too illiquid, I stay away. Liquidity is key in OTC trading. You need to be able to get in and out without getting stuck. And you always need to have a plan. Before I enter a trade, I know exactly where I’ll cut losses and where I’ll take profits. That’s how you survive in this market. If you go in without a strategy, the market will teach you a painful lesson.

Business development companies (BDCs) can also offer exposure to smaller businesses without putting all of your eggs in one high-risk basket. Check out this list of top BDC stocks.

Understanding OTC Markets

The OTC market is a completely different game compared to major exchanges like the NYSE or Nasdaq. There’s less regulation, fewer reporting requirements, and a lot more sketchy companies. That’s what makes it so dangerous—but also why it offers so much opportunity. If you know how to navigate it, you can take advantage of the volatility and find trades with huge upside.

But most traders don’t understand the risks they’re taking. Just because a stock is up 200% in a week doesn’t mean it’s a good company. Just because you made money on a trade doesn’t mean you did everything right. I see traders ignoring obvious red flags, believing in press releases, and holding onto positions way too long. That’s how accounts get blown up. You need to focus on price action, liquidity, and patterns—not stories or hype.

If you’re going to trade OTC stocks, you need to have a plan. You need to manage risk. And you need to stay disciplined. The best traders don’t just chase random ideas—they look for predictable setups that repeat over time. Whether it’s dip-buying morning panics or trading first green days, success in this market comes from sticking to proven strategies, not blindly following advice from promoters or chat rooms.

What is the OTCBB?

The OTC Bulletin Board (OTCBB) used to be one of the main marketplaces for over-the-counter stocks, but it was shut down in 2021. It was supposed to be a more regulated space for OTC stocks, with companies required to file financial reports with the SEC. But even then, plenty of stocks were still shady. That’s why I never focused on whether a stock was OTCBB or not—I only cared about the price action and the pattern.

Now, most OTC stocks trade on the OTC Markets Group, which is split into different tiers. Some traders think this makes things safer, but it doesn’t. Just because a stock has a little more oversight doesn’t mean it won’t crash 50% in a day. It doesn’t mean it won’t get halted. If you trade based on the assumption that these companies are legitimate, you’re making a huge mistake. I don’t care where a stock is listed—I care about how it moves, the volume, and whether I can take a position that fits my risk-reward strategy.

What is the OTC Pink Current List?

The OTC Pink Current tier is where you’ll find some of the most volatile stocks in the market. It includes companies that provide up-to-date financial disclosures, but that doesn’t mean they’re good investments. Some traders think “Pink Current” means the stock is more legitimate, but I’ve been trading these for decades—trust me, most of them are still junk.

These stock’s prices move fast. They can spike 100% in a day, but they can also drop just as fast. If you don’t have a plan, you’ll get wrecked. I see traders getting stuck in bad positions because they believe the hype, thinking a company is different this time. It’s not. The only thing that matters is the price action. You need to trade based on what the stock is actually doing, not what some promoter or newsletter says.

The key to trading these stocks is discipline. Never trust the company. Never hold too long. Always have an exit plan. I’ve made millions by trading these stocks, but only because I approach them with the right mindset. If you go in thinking you’re investing in the next Amazon, you’re going to learn a painful lesson. Trade the pattern, respect the risk, and don’t let greed take over.

Tips for Investing in OTC Stocks

1. Never trust the hype – Many OTC stocks are promoted through misleading press releases, social media hype, and email newsletters. Always verify company information before trading.
2. Trade, don’t invest – Most OTC stocks fail in the long run. Even if a company has a great story, it doesn’t mean it will succeed. Take profits while you can.
3. Watch for dilution – Many OTC companies raise money by issuing more shares, which lowers the stock price over time. Always check SEC filings for signs of dilution.
4. Stick to high-volume plays – Liquidity is key. If you can’t exit a position quickly, you risk getting stuck in a bad trade.
5. Use stop losses – OTC stocks can move fast in either direction. Set stop losses to protect your gains and limit losses.

How to Use an OTC Stock Screener

Finding the best OTC stocks requires a strategy. An OTC stock screener helps traders filter out low-quality companies and focus on stocks with strong trading volume and volatility. Look for stocks with a history of price movement, upcoming catalysts, and a market cap that isn’t too low—ultra-low market cap stocks are often illiquid and prone to manipulation.

Most brokers offer basic screeners, but third-party tools provide more advanced filters. Key metrics to watch include:

• Volume – Avoid stocks with low daily volume; you need liquidity to enter and exit trades.
• Price action – Look for stocks that have shown recent momentum; past movement often signals future opportunities.
• Market cap – Stay away from companies with ultra-low market caps; they are more likely to be scams or pump-and-dump schemes.
• News catalysts – Stocks with upcoming earnings reports or business developments can see strong price action.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Key Takeaways

• OTC stocks can be highly volatile and risky, making them better for short-term trading rather than long-term investing.
• Liquidity matters – If a stock doesn’t have enough volume, getting in and out of a trade will be difficult.
• Research is essential – Many OTC companies lack financial transparency. Always verify the information before making a trade.
• Risk management is key – Use stop losses and avoid overcommitting to any single trade.

This is a market tailor-made for traders who are prepared. OTC penny stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

Are OTC Stocks a Good Investment for Beginners?

OTC stocks are not beginner-friendly. They are highly speculative, often manipulated, and come with little financial transparency. If you’re new to trading, it’s better to start with more liquid stocks on major exchanges before moving into OTC trading. If you do trade OTC stocks, start small, focus on liquidity, and don’t fall for hype.

How Do OTC Stocks Differ from Regular Exchange-Listed Stocks?

OTC stocks trade outside major exchanges like the NYSE and Nasdaq. Unlike listed stocks, OTC stocks have fewer reporting requirements, lower liquidity, and higher risk. Many OTC stocks are penny stocks, meaning they trade for less than $5 per share. This makes them appealing to traders looking for quick gains but also increases the risk of manipulation and dilution.

Can OTC Penny Stocks Become Profitable Long-Term Investments?

Most OTC penny stocks do not succeed long-term. Many of these companies have weak financials, dilution problems, or business models that simply don’t work. That’s why I trade penny stocks instead of investing in them—I take advantage of short-term price movements without holding onto them for months or years.

There are rare cases where an OTC stock moves to a major exchange and grows into a successful company, but this is the exception, not the rule. If you’re trading OTC stocks, focus on short-term momentum and take profits while you can. Holding too long usually leads to losses.

Are OTC Stocks a Safe Addition to My Portfolio?

OTC stocks come with high risk due to low liquidity, limited financial transparency, and the potential for manipulation, making them unsuitable for long-term investing but potentially useful for short-term trading. Traders should always verify data from reliable sources rather than blindly following recommendations found on Google or social media. Since many OTC stocks lack analyst coverage, conducting your own analysis using available company profiles and financial resources is essential. A proper disclaimer is always needed when discussing these stocks due to their speculative nature. If you’re looking for safer investments, traditional securities like bonds may be a better option, but for disciplined traders, OTC stocks can present opportunities with the right strategy.

How Do ESG Factors Impact OTC Stocks?

Unlike exchange-listed companies, many OTC stocks do not follow ESG reporting standards, making it difficult for investors to evaluate sustainability practices or corporate governance. Some OTC stocks may benefit from ESG trends if they align with environmental initiatives, while others could struggle with regulatory changes that impact their operations. Since reliable ESG data on OTC stocks is scarce, traders relying on Google searches or ESG rating sites may find little useful information. ESG factors are rarely a priority for short-term traders, who should focus more on price movement, trading volume, and market trends rather than long-term sustainability metrics.