We help IT Professionals succeed at work.

Must I let Scottrade invest my earnings for me? Do I get paid?

Last Modified: 2019-03-17

I have a few stocks in my Scottrade account (now TD Ameritrade) that get sporadic earnings. It seems that they do "cash alternatives Purchase"-s with the earnings. What happened to that money? Should I tell them to stop buying alternatives and give me the cash? Do I benefit from these alternatives? Do they pay off?
Watch Question

Dr. KlahnPrincipal Software Engineer

"Cash alternative" is a money market account which earns higher interest rates than a normal savings account.  It is called a cash alternative because it is equivalent to cash and you can withdraw that money at any time.

You can have Scottrade automatically reinvest dividends in the stocks that paid the dividends, but this is a good decision only if those stocks are (a) stable and paying good dividends greater than the rate of inflation, or (b) show good potential for future appreciation.
Member Experience manager
Distinguished Expert 2018
This one is on us!
(Get your first solution completely free - no credit card required)
JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018

The "Cash Alternative" Account as described above and as I have seen used from time to time should be available in an instant for purchasing a stock. Make sure this is the case by asking TD Ameritrade Support.

Do not accept any waffling answers  (which will likely mean there are limitations on getting the cash for trading).
James HancockSelf Employed


thanks all

Gain unlimited access to on-demand training courses with an Experts Exchange subscription.

Get Access
Why Experts Exchange?

Experts Exchange always has the answer, or at the least points me in the correct direction! It is like having another employee that is extremely experienced.

Jim Murphy
Programmer at Smart IT Solutions

When asked, what has been your best career decision?

Deciding to stick with EE.

Mohamed Asif
Technical Department Head

Being involved with EE helped me to grow personally and professionally.

Carl Webster
CTP, Sr Infrastructure Consultant
Empower Your Career
Did You Know?

We've partnered with two important charities to provide clean water and computer science education to those who need it most. READ MORE

Ask ANY Question

Connect with Certified Experts to gain insight and support on specific technology challenges including:

  • Troubleshooting
  • Research
  • Professional Opinions
Unlock the solution to this question.
Join our community and discover your potential

Experts Exchange is the only place where you can interact directly with leading experts in the technology field. Become a member today and access the collective knowledge of thousands of technology experts.

*This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


Please enter a first name

Please enter a last name

8+ characters (letters, numbers, and a symbol)

By clicking, you agree to the Terms of Use and Privacy Policy.