Mark Freeland wrote:
> "HW "Skip" Weldon" <skip5700removethis@[EMAIL PROTECTED]
> wrote in message
> news:js6r14p6rv661t59hhkt42n3s1afaqsbci@[EMAIL PROTECTED]
>
>>>My reinvested dividends (through Schwab) do not have any
>>>commission.
>>
>>How does Schwab cover their costs?
>
>
> They force most customers into low interest transaction accounts. Same
way
> that banks recover costs for "free" checking.
Well, to answer both of you, Skip, I really don't know. I assume their
cost for such a transaction is actually in the pennies, and they can
afford to extend this courtesy. And Mark, you are right, but, by having
stock dividends reinvested, and cash sitting in their 'better' MM fund
also reinvesting, I have no .15% money at Schwab.
I know that in margin accounts, they make money loaning out my shares,
but since IRAs cannot have a margin side, I don't see their revenue
source on a large balance IRA all in ETFs, no major trading.
Joe
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