OTC Stocks market

Hello, is OTC regulated or not? I am asking because I am resident of slovakia and here we have an expemtion on taxes for ETFs and stocks that are bought and we hold them for at least a year. But the stocks or ETFs has to be bought on regulated market.

There are a few articles explaining very well how OTC works. You can have a look at the “OTC (Over-the-Counter) Markets and Securities” article on the Charles Schwab website.
Long story short, they are nothing like other exchanges (i.e., NASDAQ, NYSE, LSE) since they are not strictly regulated like those.


Best Market: OTCQX, this is the most selective of the three.
Venture Market: OTCQB, the middle tier, the OTCQB is often called the “venture market” and has a large concentration of developing companies.
Pink Sheets: Companies traded on the OTC Pink Sheets, have no reporting requirements and don’t have to register with the Securities and Exchange Commission (SEC).

Long story short, unless you really know what you are doing, steer away. However, if you really want to venture, I would stick to OTCQX because of its stricter requirements.

I hope it helps.

Hi, thanks for the answer. I dont want to buy stock on OTC markets. I wanted to ask about trading 212 OTC. If it is regulated or not.