What happened to the DRIPs?
I sent you a PM on Thanksgiving as well to offer a solution to you regarding dividends. Can you check that out and reply to me via PM?
DRIP for fractionals will return once we move to the new Penson systems, as I mention above we don't know the date for that yet.
We have our tech team looking at your statement issue. They are looking at your account as if they were logged in as you, with a mac, and they are not able to duplicate the problem. I suggest you work directly with Peter Laptewicz on this issue. His email is [email protected] and he is already aware of your issue.
I agree that a lot of the smaller investors use TradeKing, because of the lower commissions. If you are trading massive volume, the extra $5 probably wouldn't matter. The smaller investors are exactly who this new policy harms. Hopefully TK can get this worked out within the next year, because that is about how long my patience for this will last.
I recently switched to TK myself and thus far have been satisfied with everything. It was this forum topic alone that secured my decision to switch to TK. I wasn't happy with the elimination of the partial share DRIP plans but due to the fact they plan on reinstating them and until they do they will reinvest whole shares with cash holdings and waive the commission fee I was content. However, first dividend was received and when I called to have the commission fee waived or reimbursed they told me they were no longer doing this. This is extremely disappointing as I would have never came over, this affects my long term goals and investing strategies far too much.
Has this reimbursement or waiving stopped? Will TK actually get partials back this year? Not one of my dividend stocks produces enough per dividend to purchase a whole share!
That's correct, dividends pay out by default as Cash. Also, if you have an account encoded for DRIP, and receive a dividend which is for less than the amount of a single share, that would also pay in cash, which is where our offer above would come in handy.
We do not have a schedule confirmed from our clearing firm on when we would be able to offer fractional reinvestment again in the future, however, the above offer will be valid until fractional reinvestment is again available. We do not currently have any plans in place to re-offer DRIP for MLPs or REITs or other securities, which generate a K1 form. ETFs should currently be available for reinvestment, and would be eligible for our offer above for a free future trade if you choose to reinvest a dividend from an ETF that was for less than the cost of a single share.
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Unfortunately, we're still not able to confirm an ETA or schedule. The Clearing Firm is exploring this, and is confident that they will be able to accommodate it in the future, but have not yet laid out a time-frame for us.
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I just want to keep this issue alive....
Any status updates on the Partial DRIP? This is something very important to me and if its not something that is going to happen I will unfortunately move my money. That is the only thing lacking and just happens to be huge to me. I have tried to manage with the trade credits towards making shares whole, but it becomes a hassle with my schedule and not seeing it as something I would sustain.
I do send out props to TK and everything else they offer, excellent staff and site.
Please bring the fractional share repurchases back.
Feedback at TradeKing does not fall on deaf ears, and I can speak confidently to fractional DRIP as an example of exactly this. We weigh client feedback heavily in determining how best to invest in and improve our site, to the end goal of being the best brokerage firm on the planet. For fractional reinvestment, the information from this forum is still currently correct, and I'm glad to expand a bit further on the topic.
Our current clearing firm has not traditionally offered this service, instead as you know, limiting their free reinvestment program to whole shares only. When we converted, and heard our clients' strong desire to see this feature re-introduced with our new clearing partner, we had Penson begin the process to explore how they could accommodate the service. To this point, they've determined how it will be done, and have given us their initial estimation for arrival within Q4-2011.
Essentially, this change is going to require a complete overhaul to certain systems the clearing firm uses in holding and maintaining accounts. They need to coordinate this between all brokerages that they clear for, and in as smooth and seamless a process as possible. Fractional reinvestment is in the works to be offered again in the coming months, and this forum will certainly remain out there for all, clients and public alike, to see.
Please also note from this thread that TradeKing has offered to absorb the commission costs for the reinvestment of eligible dividends which were too small to purchase an additional share, allowing for free reinvestment should a client wish to add funds to the dividend amount to buy more shares. This offer will remain in effect until our DRIP program once again support fractional shares.
At this time, if you are enrolled in our DRIP program, fractional shares are not able to be purchased. If you receive an eligible dividend that was not reinvested because the amount was for less than the cost of a single share, we will credit your account for a future free $4.95 stock trade. This will enable you to reinvest the dividend proceeds.
To take advantage of this offer: Once you have received an eligible dividend paid to your account, please contact us by phone (877-495-5464) or through LiveChat to request a free trade per this DRIP offer. We will then code a free stock trade to the account, and on your next trade, you will see the Activity book normally, then overnight, subtract out $4.95 in commission costs.
Of course, as any more information or update becomes available, we'll certainly keep everyone in the loop.
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