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Hey guys fairly new to trading very happy I found this website. I've been playing with penny stocks since September of last year, I've come to find out that this wasn't for me. But new question is should I stick with scottrade? There dividend reinvesting program kinda bothers me I feel like I will be losing out on compounded interest since they won't reinvest until you have enough in the dividend account to purchase a complete share. Am I right should I change brokers?
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Hello Hasted -- welcome to the site! I don't have any personal experience with Scottrade, so can't answer directly. But I am surprised to learn that they do not have free automatic reinvestment with fractional shares. If your account is still on the smaller side, I'd probably head over to a brokerage that offers that.
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Everyone has their favorites. I use and like TD Ameritrade. I find the people to be quite friendly and helpful. Trades are $9.95 per. As for Dripping, as long as the company allows, it is done even in small fractions at no cost.
Check other posts here you will find several other company's with better pricing. I thought it was Scott's that allowed you to accumulate funds and apply as you may see fit.
Jim
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I use Schwab and have no complaints. $8.95 per trade and free dividend reinvestment for all U.S. companies.
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I wouldn't use a brokerage that didn't allow free reinvestment of dividends in fractional shares. The small positions as you're building your need that little extra bit of compounding the most.
I'd be looking. Vanguard and Fidelity I believe also have commission schedules lower than TDAmeritrade and E*Trade and allow fractional share reinvestments. Don't take my word though since I don't have accounts there.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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(06-08-2014, 08:51 PM)Dividend Watcher Wrote: I wouldn't use a brokerage that didn't allow free reinvestment of dividends in fractional shares. The small positions as you're building your need that little extra bit of compounding the most.
I'd be looking. Vanguard and Fidelity I believe also have commission schedules lower than TDAmeritrade and E*Trade and allow fractional share reinvestments. Don't take my word though since I don't have accounts there.
I agree. This came up with a quick Google search:
http://online-stock-trading-review.toptenreviews.com
Vanguard Schedule:
https://personal.vanguard.com/us/whatweo...ommissions
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
