Flexible Reinvestment Program Overview
Scottrade's Flexible Reinvestment Program™ provides a commission-free way for you to invest dividends from most dividend-paying stocks or exchange-traded funds (ETF) that you own into eligible* stocks or ETFs. With FRIP™, you'll be able to use cash from dividends to buy most securities at no commission in a way that fits your investment strategy.
FRIP™ is different than a traditional dividend reinvestment program (DRIP), which requires you to reinvest dividends back into the securities that generated them. With FRIP™, dividends accumulate into a pool of funds. Those funds are then used to automatically purchase most stocks or exchange-traded funds of your choosing.
If you enroll in FRIP™, you will have the following flexible choices to make:
- Choose which dividend-paying securities you want to include in the program. After enrolling, any dividend-paying equity is included automatically.
- Select up to five eligible stocks or exchange-traded funds that you want to buy using your FRIP pool.
- Select the date you want orders placed.
- Determine the frequency of your trading, either monthly or quarterly.
You can change your FRIP options at any time.
*Marginable equities are eligible with the Program Balance, as defined in the Flexible Reinvestment Program™ Terms and Conditions.