Brokerage with a DRiP plan?

[woodywoodford]

I've heard of brokerages offering fee-free DRIP plans, at least in the US. Not talking about reinvesting dividends on your holdings, pretty sure everybody does, but one where your brokerage automatically takes say $100 out of your chequing account and buys (partial shares when necessary) whatever company you designate at the start. Basically, a way to build up large positions in a specific stock without getting busted over commissions and whatnot.

Does anyone offer that here? Particularly RBC? I found their AIF, but seems like thats just for mutual funds, but I'm looking to specifically do this for a single company.

[sabad66]

Questrade allows you to buy ETFs without fees... Haven't seen a brokerage that does something like that for individual stocks tho

[woodywoodford]

Ah, I should've paid more attention to the article I was reading then haha.

You piqued my interest on the Questrade thing though - no commissions or anything to trade ETF's? Almost sounds too good to be true since I use ETF's for diversification, is there any reason I can't/shouldn't open another TFSA there and buy my SPY/IWM/whatever with it? I'm thinking just pick my stocks in the RBC account and hold ETF's in QT...or forget RBC altogether lol.

[sabad66]

No commissions on the buy, only when you sell. But it would work really well if you want to do x amount every paycheque or whatever.

http://www.questrade.com/trading/services/free_etf

I actually just recently switched over my RRSP investment account from BMO to Questrade. I just couldn't continue paying $30 per trade. It starts to add up real quick...

When i switched over, i got 100 free trades (2 months to use them), and after the 2 months my commission is 6.95-9.95 max. RBC and the other big banks have 9.95 commish but only when you have 50k+ assets... i'm not quite there yet so i'm happy with my switch.

[toor]

+1 for Questrade

[themack89]

Just use interactivebrokers.... the fees are so low you wont care if you need to execute the transaction manually

[J.M.]

If you have a TFSA with Questrade and you decide to withdraw some funds is it as simple as transferring them over to your bank account the obviously making a withdrawal at your bank? Sorry not too familiar with this online brokerage stuff..

[sabad66]

^ pretty much, but there is a good 2-3 day turnaround time before you can actually withdraw your money.

[J.M.]

Originally posted by sabad66
^ pretty much, but there is a good 2-3 day turnaround time before you can actually withdraw your money.

Awesome thanks! Looks like I will be opening up a TFSA with Questrade!

[bmeier]

If anyone wants to open a questrade account let me refer you. We both get $50 in free trades

PM if interested. you need to fund your account with $1000 to start.


edit: actually it looks like i get $100 in free trades to your $50