Dividend Reinvestment Stocks=Get rich slowly

[oc16]

Do you know you can buy a lot of stocks directly through the Transfer agent basically for free or as little as $1.00 to $2.50 a month instead of paying an online broker, let's say $10.00 per trade. I am so glad I found out about this.

So....What is a transfer agent?

Transfer agents keep records of who owns a company's stocks and bonds and how those stocks and bonds are held—whether by the owner in certificate form, by the company in book-entry form, or by the investor's brokerage firm in street name. They also keep records of how many shares or bonds each investor owns.

Computer Share is the biggest transfer agent.

Read More about Direct Stock Purchasing Here!

http://www.getrichslowly.org/blog/2012/06/18/how-to-invest-using-direct-stock-purchase-plans/

 

[Bible_Belt]

Nothing is ever really free. You're likely getting filled at a price away from the real market, to insure that someone makes a spread on your order. Most online brokers do that. The advertised commission is so low, because you don't get the real price. If you want to pay $10 for a stock, you don't get traded until it drops to $9.85 or so...at that point you get to pay $10. Brokers are *not* required to disclose that spread as commission.

Online brokers that are meant for people who know what they are doing charge on a cents per share basis, .01/share is common, plus whatever applicable exchange fees. Check out interactivebrokers.com There are always small fees and taxes on any trade. You're paying them, one way or the other. If you don't see them itemized on your confirmations, then you are paying a higher price for your shares.

 

[BlueAlpha1]

Nothing is ever really free. You're likely getting filled at a price away from the real market, to insure that someone makes a spread on your order. Most online brokers do that. The advertised commission is so low, because you don't get the real price. If you want to pay $10 for a stock, you don't get traded until it drops to $9.85 or so...at that point you get to pay $10. Brokers are *not* required to disclose that spread as commission.

Online brokers that are meant for people who know what they are doing charge on a cents per share basis, .01/share is common, plus whatever applicable exchange fees. Check out interactivebrokers.com There are always small fees and taxes on any trade. You're paying them, one way or the other. If you don't see them itemized on your confirmations, then you are paying a higher price for your shares.

Robinhood advertises "free trading". When you do a market order sell, you get 5% less than the stock price at that moment. That could be a lot more than $10. Only way around it is to set up a limit order and hope it goes through.

 

[Bible_Belt]

The other fun part about those "cheap" commission trades are that if a stock is really moving up, they are going to wait a while to execute your buy order. It's in the fine print of the customer agreement contract as "fast or volatile market conditions."

The last place I traded stocks made a living with market orders on the NYSE specialist system. They could tell we were day traders and most of them hated us, and would fill market orders at a price that says "fvck off." But, there were some specialists who would tolerate us, especially if you sent market orders that made his life easier, buying on dips when the other buyers disappeared, and doing the opposite on the sell side. Through price improvement, one could get very generous fills. I remember once getting filled on a mkt sell order at the absolute high of the day on Chevron. For a stock that trades 20 million shares a day, that's like a hole in one in golf.