[Explained] ⚠️ Fidelity Error 146046: What “Does not accept market orders less than $1 per share” mean?

Someone asks:

Why do i get this error message every time i try to buy something under a dollar?

(146046) Fidelity does not accept market orders for securities priced less than $1 per share. Please change your order type to a limit order.

The error message itself is self-explanatory. Fidelity does not allow its customers to place a market order on stocks worth less than $1.

There are two primary risks involved in placing a market order for penny stocks.

  1. Penny stocks are extremely volatile
  2. Penny stocks have a wider spread (some can even go up to 50% between the bid and ask prices).

How to Fix Fidelity Error 146046

Does that mean I can’t trade penny stocks? You can still trade penny stocks on your Fidelity account. However, before placing the order, you need to change the order type from “Market Order” to “Limit Order.” This assures that you’re purchasing the stock at the desired price.

Other Comments

Micky M:

Click on more trade selections then order type Limit order

Chris D:

That’s to prevent you from going broke and homeless ASAP! Penny stocks are extremely volatile and can make you lose lots of money. Do limit orders.

William N:

Because Fidelity is trying to keep you from making a mistake by purchasing penny stocks. you should say thank you to fidelity! lol

1 post – 1 participant

 

Unprompted