Direct Stock Purchases (Company DRIP Programs)

[DRILLINDK]

I think I've decided to just wait for Robinhood to open up to Android users or develop a web based platform. Worst case scenario, they they initiate trade fees like Zecco ultimately did. Then I have to make a decision whether to incur the trade fee or the transaction fee to move my equities somewhere else.

[Jimbo]

I use Merrill Edge and love them.
Fees are very low (no I don't have an extra 25k hangin round).
Customer service is very good.
Very happy, 6 months in.

[DRILLINDK]

(02-10-2015, 12:06 PM)Jimbo Wrote: I use Merrill Edge and love them.
Fees are very low (no I don't have an extra 25k hangin round).
Customer service is very good.
Very happy, 6 months in.

Jimbo,

I'm still doing my homework, but I found this concnerning:

1Additional transaction and management fees
Other management and transaction fees may apply. In addition to your stock, ETF or option commission, sell orders may also be subject to a transaction fee (of between $0.01 to $0.03 per $1,000 of principal). If applicable, this fee appears under "Transaction Fee" on a Trade Confirmation. Your stock or ETF commissions sell orders may also be subject to a fractional share liquidation fee of 10% of proceeds. There are other fees associated with investing in ETFs, Read the "Expenses & Charges" sections of the prospectus to find out what they are. Contact us to obtain a prospectus.

http://www.merrilledge.com/pricing

[cannew]

(02-04-2015, 02:06 PM)DividendGarden Wrote: I use Loyal3 in addition to Computershare and a discount brokerage. When I originally signed up for Loyal3, they allowed us to purchase stocks with a debit or credit card, and I used a cashback rewards card to make these purchases, effectively giving me a further discount. Well, some people were apparently abusing this by purchasing massive quantities of stock for the cashback/rewards and then dumping the stock immediately. Loyal3 cancelled the ability to use a card and now you must use a checking account to make the purchases. Since they made this switch, I only use Loyal3 to purchase Berkshire Hathaway "baby B's" on a regular basis. All other investing is done through Computershare or an online discount brokerage now.

Loyal3 seems like a great option for beginners, especially if they stick to the established companies (APPL, KO, DIS, MCD, MSFT, PEP, VFC, WMT & YUM).
Question. Once you've purchased shares through Loyal3, can you THEN deal directly through the Transfer Agent if you wish (say Computershare)?

[rayray]

Interesting way of investing.

I had an Exxon Drip plan back in the mid to late 90's--my first stock investment that I ever initiated, it eventually became my down payment on my first home. Afterwards, I moved to Vanguard in 1998 and have been with them ever since. Trades are $7 with no charges on Vanguard mutual fund purchases, when you get to a certain levels their fees drop. I don't do a lot of buys or sells so $7 doesn't kill me.

Loyal3 and Robinhood are new to me and are definitely worth a look. I noticed Loyal3 makes all trades once a day so the actual stock purchase price can vary significantly. What about when you put a sell a stock through Loyal3? Not sure if I like that scenario, because you might not be buying/selling what you expected as far as stock price. I glanced at Robinhood and didn't notice how BUYS go through? If Robinhood's purchases go through immediately I would highly consider them as a commission free brokerage account.

[ChadR]

I believe that Loyal3's stock sales are also done once a day. Loyal3 was designed as a buy and hold company for your stocks and not as a day trading company to use.

[DRILLINDK]

I thought this Seeking Alpha article was relevant and informative:
http://seekingalpha.com/article/3496846-...p-drip-tip



One of the article commenter's provided good insight into a possible work around in incurring fee's when selling positions:

"I am a massive ComputerShare investor myself. Currently in 4 DRIPs and starting about 3-4 more here soon. The fee-free funds are the only way to go with this. Also, how do you get out of those waiting periods and high selling fees??? The answer is to do transfers from ComputerShares to a standard brokerage. I set a point that whenever I hold 11+ shares in a stock with Computershare, I will set up a Partial ACAT Transfer from Computershare to my Schwab Brokerage. Now I have fee-free purchases, free drips, AND easy selling access (for lower fees) at my disposal. Computershare is different than most brokers as they charge $0 fees for transfers out of the account."