Timeline for Are 'per trade' fees charged on every order or just once per stock?
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| Jul 24, 2017 at 22:02 | comment | added | blm | There are brokers that don't charge commissions and those that have asymmetrical commissions, so it's not quite as straightforward as this answer implies. Also, E*Trade at least allows dividend reinvestment without commission and buying fractional shares. I have a number of holdings where I have a non-integral number of shares. I suspect they handle it all internally by buying the number of integral shares needed + 1 on the open market, then allotting the integral plus fractional shares in their internal records. | |
| Oct 30, 2015 at 17:07 | comment | added | Jack Swayze Sr | Sorry I did not specify this. No Scottrade does not buy fractional shares. They buy only whole shares in the automatic Reinvestment program. The amount not spent buying whole shares is kept in a hands off fund and is added to the amount to purchase shares the next time dividends are paid. | |
| Oct 30, 2015 at 13:11 | comment | added | Dilip Sarwate | You mean that if you bought 100 shares of some stock, and the stock paid a dividend that allows the purchase of only 3.125 shares of that stock, then your holdings will be 103.125 shares? That is, Scottrade will buy 3.125 shares for you on the open market (or from the company directly) without charging any fees? Many brokerages will not charge a fee for re-investment of distributions from a mutual fund back into the fund, and some load funds even waive the sales charge for re-investing distributions, but I have never heard of fractional shares of individual stocks, only of mutual funds. | |
| Oct 30, 2015 at 3:52 | comment | added | Jack Swayze Sr | I have found one way to avoid the commission on a purchase. But it only works for reinvesting dividends. Scottrade has a feature that will automatically reinvest the dividends from a security (or a set of securities). They do this without charging a commission on the Reinvestment. You still have to pay the commission on the initial buy (and on any sell orders) but this feature will allow you to avoid commissions when reinvesting dividends. | |
| Oct 29, 2015 at 21:36 | vote | accept | Thompson | ||
| Oct 29, 2015 at 21:23 | history | answered | Jack Swayze Sr | CC BY-SA 3.0 |