Online Brokerage Account Question

[poboy]

I hold my stock certificates, always have and was in the process of setting up account with vanguard .* I just rolled 401 to IRA with vanguard and thought wrongly it would be easy to set up brokerage account. Called vanguard as this is not addressed in faq section nor info.* I was informed that the certificates needed to be sent in and held by them.* I am looking for an online account that does not required me to sent them in and wonder if anyone can offer suggestions.* Otherwise, guess I will stick with current broker.

[grumpy]

I'm not certain but I think as long as you hold the certificates (shares are registered in your name) a brokerage can't do any transactions for you. The shares must be held by the brokerage in "street name". If this is not correct I'm sure others here will set us straight.

Grumpy

[poboy]

Possible with online accounts. My current account executes, I send in certificates, deal is done. Just thought I could save a few bucks on commission.

[maddythebeagle]

You dont have to pay commissions, unless you sell and if you have enough, many will not have any fees. Many offer free dividend reinvestment and cash management (free checks), too.

[frayne]

Originally Posted by grumpy

I'm not certain but I think as long as you hold the certificates (shares are registered in your name) a brokerage can't do any transactions for you.* The shares must be held by the brokerage in "street name".* If this is not correct I'm sure others here will set us straight.

* Grumpy

Bingo, give this man a cigar.

[LOL!]

I have walked into my local TDWaterhouse office with some stock certs mailed to me when another account closed. I said, "I want to sell these".
They said, "Sure."
I said, "How much commission?"
They said, "Broker assisted trade is $45."
I said, "Can you just put these in my account at no cost?"
They said, "Sure, done."

I sold the next day online.

I cannot imagine any advantages to holding stock certificates in your own fireproof safe or safety deposit box. Are there any advantages to not having the broker hold your shares electronically?

[poboy]

My main reason for holding certificates is it allows me to purchase additional shares directly from the companies I own. Some brokers will set up a dividend reinvestment for customers but I am not aware of those that allow a cash purchase option without commission. I have done this over thirty years, sometimes sending $25, other times more. I hold original certificates , the various companies hold the shares bought either through dividends or optional cash purchases. Has been a good system for me. Started my four kids with these plans when they were little. And, I don't worry about the churn.

[grumpy]

poboy,

Check out Buy & Hold Securites:

https://www.buyandhold.com/

I shifted all of my DRIP shares there about 5 years ago. For $7 a month you get 2 free trades and for $15 a month you get unlimited trades with free reinvestment of dividends. Works well for me.

Grumpy