Friday, April 21, 2017

Moving from Loyal3 to Merrill Edge

As many readers will know Loyal3 is sadly abandoning the game and charging everyone a $5 monthly fee for using them. So on April 21, 2017, I'm transferring all of my Loyal3 account to Merrill Edge.

Why Merrill Edge? I spoke with a representative today over the free trades and transferring of accounts.

"You may also qualify for 30 $0 online stock and ETF traders per month if you have $25,000 or more in combined balances in your Bank of America deposit accounts or $25,000 or more in combined cash balances in your Merrill Edge self-directed Merrill Edge online brokerage accounts and/or IRA accounts through 09/30/17."

As my Loyal3 account is $36,000, I automatically qualify for free trades. Also Merrill Edge is willing to pay for all transfer cost if I also bring my Scottrade and Motif account. After combining all three I'll have over $100,000 which qualifies me for 100 free trades a month. Here were some of my questions

  • Does ME allow for partial shares?
    • yes
  • Does ME allow for drip?
    • yes
  • Is there a limit on the minimum dollar contribution per trade?
    • no
  • Will you pay my transfer fee?
    • We have to talk to HQ but ME have done so in the past
  • Is there any promotion for transferring?
    • $250 bonus for transferring in $100,000
  • What do you mean not FDIC insured?
    • Means not FDIC insured but SIPC insured up to $500,000 in equity and $250,000 in cash 
  • So if I hit 500k does that mean everything above will not be insured?
    • Yes. But our brokerage normally adds an extra layer of insurance for our higher invested clientele 
In summary, I'm thinking of switching all my accounts to ME and getting 100 free trades a month. This is free for all stock and ETF. No margins, no penny stocks, and mutual funds have their ordinary fees. This is not a recommendation of ME but just how I'm dealing with Loyal3 shutting down.

Disclaimer: trust no one

13 comments:

  1. I'm doing the same I believe is a good deal.

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    1. hey nandy, i hope you're having an easier time transferring than me

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  2. Awesome. 100 free trades a month would be very awesome. But I'm gonna stick with sharebuilder for now. They have been good to me if they ever raise the rates again I might look around but 3.95 for Tuesday trades is decent priced.

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    1. good luck DnH, we are all on the same path with dividend means. i think at the rate everyone is fighting we might get free trades for all eventually

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  3. I had already just recently moved some other accounts to ME. When I got the Loyal3 announcement, I started the process of moving that over. In order to get the free trades, you'll also need to open a Bank of America checking account. You're not really required to use it -- you just need to have one. It's not automatic. You have to sign up for the Preferred Rewards program and you cant do that for 3 months. However, you should be able to get them to give you a certain number of free trades for those 3 months. If you're into CEFs, those count as mutual funds, so no free trades on those. Also, pay attention. I was told my accounts were flagged for the free trades for the first 3 months, but they weren't. I had to send support a message to get that turned on. Setting up my accounts to take transfers from an external checking account was also a pain.

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  4. I am debating between guardian and Capital1 investing. I already have accounts in both (vanguard is for my SEP). I have not yet transferred because I am trying to buy some fractional shares to even out to whole shares. I am going to have to deal with a significant gain in apple, amazon, alibaba, mattel, etc. basically every single stock but for 3.

    This is a huge headache.

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    Replies
    1. i know morrigan, being poor is easy. trying to move up in life is a giant headache

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  5. Moved my Loyal3 to Schwab took one week. After YUM dividend posted in Loyal3 (May 5th) transferred all cash to checking arrived May 6th. Seamless process other than selling the fractionals.

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    Replies
    1. hey Charlie. I'm having a problem uploading my docs. For some reason M.E. won't accept it. I'll keep trying though

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    2. I did have to physically sign the transfer form as Loyal3 was a single account and Schwab was joint. Went to the local office and they took care of the submission.

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  6. This is Anonymous from 4/24. Again, I stress: pay attention! I've been back and forth with them several times to make sure the correct account was flagged for the offer money and the amount. I had thought it was resolved. Today is when the offer money was added to my account. It was the wrong account and wrong amount.

    I also recently had an instance where a portion of a dividend received was reinvested even though I have reinvestment off.

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