Scottrade Flexible Reinvestment Program (FRIP)

[ktsac]

I use Scottrade as my brokerage for brokerage account and IRAs.  They have a new dividend reinvestment program named FRIP that has become available.

The one benefit I see to the program is there are no commission fees on trades utilizing funds in the FRIP balance.

The drawbacks I see is that the trades occur in batch at 2pm EST on the day you specify for the stocks you specify, you cannot execute limit orders, and no partial shares can be purchased.

Has anyone else looked in to the new dividend program that Scottrade offers?

[seattlecyclone]

Thanks for the info! I have an IRA with Scottrade but hadn't heard about this program yet. I will think about it for a little while, and will probably sign up. Being able to re-invest dividends for free is better than paying a commission, even if the trade is done at a pre-determined time.

I don't think I would do this for a taxable account, just because having so many small share lots makes computing capital gains tax more of a pain.