As a big supporter of DRIP investing because of limited capital to invest I am always looking for ways to accumulate more shares. I like to acquire shares that are either undervalued or reasonably valued. This in return provides me with a ever increasing amount of dividends and more shares in mostly well known companies that have proven to stand long periods of time and thrive in different economic times. Last year I became interested when Scottrade came out with the FRIP plan. Up until now I have not really been able to participate or open another account. Recently I have been starting to get frustrated with E*Trade’s $9.99 commission because it is higher than just about every competitor. I have been an E*Trade customer for a long time and am comfortable with the tools and platform though. I have not had too many major problems with them when contacting customer service.
I also am interested in all these newer brokerage firms and innovative ideas, but not sure if they are worth the risk. The one I am leaning most towards is Scottrade with $2.99 less commission and the ability to FRIP the percentages I want towards any stock I want to without paying commissions and keep excess cash if I want to as well. This would be a significant cost savings over time for someone who can only afford small purchases. I would have to make 1500 at E*Trade trades a quarter just to get about that same rate that is already offered. This is probably a lot easier to keep track of for records and tax treatment as well since you can only acquire full whole number amount of shares. Once I clear out some of my current expenses I might look into opening a Scottrade account because have to start with $500 I believe. I am a couple months away from finishing my car payments and owning it. The unknown is how I am going to go about paying for school. I am making the transfer to a higher cost school, but am 15 classes away from getting my Bachelor’s of Business Administration in Finance.
Anyone out there have any issues with Scottrade? Do you participate and/or like or dislike the FRIP program?