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Use Scottrade to buy and sell stocks in real time, then transfer the stocks over to Sharebuilder to take advantage of their automatic dividend reinvestment since Scottrade doesn't do that. Any transfer fees in doing that?

I don't know about Scottrade, but most brokers charge $50 to transfer shares to another account. Why would you use sharebuilder? It is just a high fee product which doesn't allow you to buy and sell at prices you choose.

I use Sharebuilder simply because they allow for automatic dividend reinvestments--so for stocks I want to hold long term and acquire more shares of automatically, Sharebuilder is good. For those that I'm looking to do some value growth on--Scottrade. Unfortunately, Scottrade doesn't do DRIP or I'd use it for both.

Many companies with DRIP programs (wont use them myself for recordkeeping and price on reivestment reasons) also have direct shareholder purchase programs. You may want to eliminate the middleman and the fees if this is how you wish to invest.

DRIP has been very very good for my mom for the last few decades based on results, but I think she leaves too much on the table.

Scottrade doesn't charge for account transfer as far as I can tell.

sandmanwake said:

<< Use Scottrade to buy and sell stocks in real time, then transfer the stocks over to Sharebuilder to take advantage of their automatic dividend reinvestment since Scottrade doesn't do that. Any transfer fees in doing that? >>



You could set up an account at buyandhold.com, they allow real time trades for $15, or just trade through one of their three times a day windows (10AM, 12:30PM, 3PM EST/EDT). With buyandhold you can set up automatic dividend reinvestment.

buyandhold.com is like Sharebuilder but its advantage is you can trade more frequently per week, Sharebuilder is only one window a week (Tuesdays).

Like one of the other posters said, if you have one or two companies you are reinvesting dividends, see if the company has their own DRIP plan. Just watch out for quarterly/yearly fees.

Sharebuilder also allows you to buy stocks in real time for $15.

Most direct purchase plans requires you to already own at least one share of the company's stock in your own name or buy at least $200 of shares from the company at the price of the stock when the paperwork gets processed, so there really isn't too much difference between that and using Sharebuilder--in Sharebuilder's case I'm looking at it as the paperwork gets processed every Tuesday. Some direct purchase plans from companies also actually go through a middleman such as a bank to take care of your account--I believe Microsoft is one of those companies, I can't remember correctly. I like it that you can keep track of all the stocks I'm DRIPing at one location with Sharebuilder.

Basically, I'm looking to save on commission fees while still getting being able to buy and sell in real time. Sure the few dollars difference doesn't sound like much, but I figure over the course of my life time it'll add up to something significant. In other words, I'm a cheapskate but would still like to get the best service combination of service that I can out of my brokerage.



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