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James HancockFlag for United States of America

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

Hi,

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?
Thanks
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Dr. Klahn

"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.
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Martin Nguyen
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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).
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thanks all