Avatar of James Hancock
James Hancock
Flag for United States of America asked on

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
Miscellaneous* FinanceBusiness Management* stock

Avatar of undefined
Last Comment
James Hancock

8/22/2022 - Mon
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.
ASKER CERTIFIED SOLUTION
Martin Nguyen

Log in or sign up to see answer
Become an EE member today7-DAY FREE TRIAL
Members can start a 7-Day Free trial then enjoy unlimited access to the platform
Sign up - Free for 7 days
or
Learn why we charge membership fees
We get it - no one likes a content blocker. Take one extra minute and find out why we block content.
Not exactly the question you had in mind?
Sign up for an EE membership and get your own personalized solution. With an EE membership, you can ask unlimited troubleshooting, research, or opinion questions.
ask a question
John

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 Hancock

ASKER
thanks all
I started with Experts Exchange in 2004 and it's been a mainstay of my professional computing life since. It helped me launch a career as a programmer / Oracle data analyst
William Peck