Brokerage Comparison - Schwab vs Scottrade

I have accounts with both Schwab and Scottrade. They both have features that I like. I use each brokerage differently to take advantage of these features.

Schwab

Better research

Better calculation of gains up to the minute

Better service

Dividend reinvestment can be done on both stocks and mutual funds for free
Better planning tools like Retirement planning
Trades are $12.95 and up
Has Banking services like credit cards, checking accounts, loans, etc.

Scottrade
Cheaper trades $7

Calculation of gains is a day late in their Gainskeeper application

Online market and stock data with minute by minute price and trading info
Scottrade has a graph on the front page that shows your overall account value.

So this is how I use these different brokerages. I buy stocks that I plan to trade more often with Scottrade. The trading is cheaper and I can monitor the stocks for quicker turn arounds with their live data feed. Scottrade also has this simple graph that shows the value of my account by day over the last week, month, 6 months, etc. I like this because it gives me instant feedback on how my decisions have played out over time. This is such a simple, basic thing but I can't find a comparable feature on Schwab. I buy dividend paying stocks at Schwab and reinvest the dividends. I also do all my retirement planning on Schwab to use their very useful tools. I do the majority of my research at Schwab since they have the most different suppliers of analysis including their own, S&P, Argus and others. I also tend to buy all my mutual funds from Schwab since they have a very wide selection of free, no-load funds.

Reinvest Your Stock Dividends - Schwab vs Scottrade

I have quite a few stocks that pay dividends. The best way to grow that stock is to reinvest your dividends. Other financial advice sites suggest doing it with your mutual funds. I am suggesting doing it with your stocks too. By reinvesting your dividends your are increasing your stock holdings for free. Assuming the stock you own is worth keeping, what better way to increase your holdings for free. I have accounts at both Schwab and Scottrade. Scottrade doesn't allow dividend reinvestment on individual stocks and Schwab does. Therefore, I keep all my dividend paying stocks in Schwab and reinvest those dividends. Schwab does this for free.

I did this for two main reasons. One, with my Scottrade account I found that the money I received from dividends just went into a money market account. Most of the time the stocks I owned paid a higher yield than the money market so I felt I was leaving money on the table. The second reason I do it is that I can then see the true growth of that stock since the dividends, which are part of the overall return, are reinvested. I get a more accurate picture of the true return of that stock.

My Dollar Plan Website

My Dollar Plan is my favorite site for learning ways to save, make, and conserve money. Madison DuPaix made a calculated move to quit her job. It was a bold move but has worked out well for her. Read her story and you'll see that this was a well thought out plan. She is a real numbers person. She has some very ingenious ways to stretch a buck. One thing she does that is not conventional, but effective, is what she calls credit card arbitrage. She looks for credit cards that offer free interest for credit transfers and new purchases. She then puts the money she would have spent in an interest bearing account and pockets the interest. She has a intricate method of tracking all these credit cards and keeps moving them so she never has to pay interest. You need to read her plan to even consider it. Miss one transfer date and you'll pay more in interest to the credit card company than you will make in a savings account. She covers just about any topic from Insurance to IRA's to college savings. I have her on my daily read list. I never miss a post. I have picked up several items that she has written about to save me money or look for a better deal.

Dick Davis Digest Newsletter Review

I have subscribed to the Dick Davis Digest newsletter for the last few years. The newsletter is a culmination of all the other newsletters. They get one or two stock selections and write ups from all the different newsletters. They publish these along with all the others. They probably have 20-30 stock recommendations in every newsletter. The newsletter is published every two weeks and is mailed to your home. Their online offerings are pretty slim. The write ups are usually pretty short and concise which coincides with my theory on picking stocks. If you can't explain in about 4 sentences why you own the stock then you probably shouldn't own it. I have made some very good stock purchases over the years based on recommendations from this newsletter. The other advantage of this newsletter is that you start to learn which other newsletters have the best selections or conform to your stock picking methodology. This way you can "try before you buy" the other usually more costly newsletter. I highly recommend this service.