DRIP Enrollment Service Fee vs Broker Fees
What's the easiest, least expensive, and most efficient way to get enrolled in a DRIP?
| Temper Enrollment Service | E*Trade | ShareBuilder | |
|---|---|---|---|
| Minimum To Open | $0 | $1,000 | $0 |
| Stock Purchase Commission | $0 | $6.99 - $12.99 | $0 |
| Ownership Fee | $50/$25 | $40 | $75 |
| Automatic Enrollment in DRIP | Yes! | No! | Yes |
| Cost Per Trade | $0! | $12.99 | $4 |
A One Time Fee that Only Happens Once!
How many times have you invested time and money into something that seemed like a “great deal”, only to be slammed with hidden fees buried in the fine print? Not with Direct Investing! For a one-time $50 fee we start your relationship with one of over 1300 different companies. Once the first transfer is complete, Direct Investing never asks you for another dime…..EVER! Make as many purchase orders as you want for that company and never pay another fee. The pseudo DRIP company (ShareBuilder) offers you low fees as long as you commit to trading each company 12 times a year. With Direct Investing, you’re in control. Whether the decision is how much to trade or how often to trade it, the choice is yours.
Fees Can Really Add Up
At first glance, investing with an online brokerage house seems like a low-cost way to start and maintain a portfolio. But, as you can see in the calculator above, even the smallest amounts add up over time.
The Moneypaper recommends having a well-diversified portfolio of at least 10 stocks in 10 different industries. If you were to follow that advice, adding funds once a month per company, you would end up making 120 trades a year. If you consider having to pay that fee for 10 or 20 years or more, that "low-cost" trading opportunity can be viewed for what it really is--a prohibitively expensive way to invest.
Direct Investing charges a one-time $50 fee to make your initial purchase and will never charge you another cent for trading with that company. Project that out over 5, 10 or 20 years or more and it becomes very clear why investing through no-fee or low-fee DRIPs is a wise choice for investors.