A few weeks ago, Richard asked:
I have been having an “issue” with Schwab over their $45 inactivity fee & $95 termination fee. Next week I shift over to Scottrade. How is Scottrade treating you? Do they allow dividend reimbursement of stocks in your portfolio? (I heard they once did not.) I am looking forward to Scottrade but rumors keep swirling that they will be the next firm to be bought. Just my luck I’ll leave Schwab & then find out I’ve been bought back by them.
The question was hidden in an entry about Wachovia and addressing the issue slipped my mind.
I have had no problems with Scottrade so far, in fact, since I switched from Wachovia, they have opened a branch much closer to me. I’ve never visited, but everyone I’ve spoken to has been very friendly. Since Wachovia stuck me with a $75 termination fee, I had to send a check to Scottrade to cover that amount after the account was transferred. I was hoping to get the fee waived, but I was unable to get anywhere with anyone.
As far as dividend reimbursement of stocks goes, I know they provide this service for mutual fund investments. Are there rumors about the company being bought? I don’t know, I’m going to take a wild guess and say their low fees won’t be able to sustain the company forever.
I haven’t touched my funds since they were transferred to Scottrade, but if I decide to make any changes, I’ll stick to RC’s advice and stay within the same fund family.
Updated October 14, 2016 and originally published September 1, 2005.