Anonymous
Anonymous asked in Business & FinanceInvesting · 2 months ago

Do brokerages (whether online or full-service brick and mortar) charge you when you take money out of the account (no selling)?

For example, suppose you have dividends that aren't reinvested. And, say you accrue $3,000 worth of those dividends in your account. And now you just want to cash that out and get a check. Note that you didn't sell anything. Would the broker (particularly a brick and mortar full service type) charge you to take cash out?

Update:

@ A Hunch

Not true with my mom's account.  All her dividends at her brick and mortar broker go into the cash portion of her portfolio.  She doesn't get checks (doesn't want them...yet).  

3 Answers

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  • 1 month ago

    Brokerage firms DO NOT charge customers for taking their money from their account.

    When you open a brokerage account, you are asked as to how to handle dividends in the account - do you money sent to you  or to you want the money held in the account, Some firms provided dividend reinvestment programs, then this is another option.  If you want to change this option, contact the firm.

    Monies held in a brokerage account are usually deposited to a money market fund but the money is payable to the client on their demand.

    Point of interest - there is no such thing as an on-line brokerage firm.  All major firms offer the clients on-line services, brokerage firms have one system for operations so on-line activity and in-house activity both run on the same system.

    Source(s): from The Street
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  • Eva
    Lv 7
    1 month ago

    If it's in a cash sweep account, no.

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  • 2 months ago

    If your dividends are not reinvested, you will get a check every quarter when dividends are paid.

    - the broker will never have access to this money.In response to the comments:

    She is putting the money into "cash" account at her brokerage because that is where she had decided to have the money auto deposited... just like if she had it auto deposited to her regular bank account.

    - her cash account is just like a bank account and it's still a check every month.

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