# Direct purchase plans anyone?



## gibor365 (Apr 1, 2011)

Is anyone has direct purchase plans? I've read that you can buy stocks directly from company with very low initial payment and buy also fractional shares. Just was thinking to opne such plans for my kids


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## GoldStone (Mar 6, 2011)

These plans were popular back in the days before discount brokers. Full service brokers charged $100+ per trade.

What's the point now? Jump through a bunch of hoops to save $9.99 or less? No thanks.


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## Eclectic12 (Oct 20, 2010)

I don't ... but several on CMF do.

Usually since the idea is starting small with low fees, it's a combined direct purchase and DRIP so most links will talk about DRIPs.
http://www.dripprimer.ca/canadiandriplist 
http://cdndrips.blogspot.ca/
http://www.theglobeandmail.com/glob...lding-wealth-a-drip-at-a-time/article4183765/
http://www.milliondollarjourney.com...ed-by-yield-dividend-growth-and-discounts.htm


Actually ... I do have one from a previous employer ... as I'm not an employee anymore I'm not sure I can buy more but what I purchased at an employee discount is still growing. It's a US company so unlike most of the Canada plans I've read, there are charges, albeit small ones.


Cheers


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## gibor365 (Apr 1, 2011)

GoldStone said:


> These plans were popular back in the days before discount brokers. Full service brokers charged $100+ per trade.
> 
> What's the point now? Jump through a bunch of hoops to save $9.99 or less? No thanks.


The point is that is not for me  but for my kids... My son is a student, so he has some small income, but it doesn't worth opening account in dis brokerage as he will be paying administration fees and tradeing fees...
Also I'd like better to give presents to my kids some shares and not usual staff that they throwing out next day....
I'd be happy if my parents gave me 10 shares of MCD when I was a child


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## lostwords (Feb 21, 2014)

gibor said:


> The point is that is not for me  but for my kids... My son is a student, so he has some small income, but it doesn't worth opening account in dis brokerage as he will be paying administration fees and tradeing fees...
> Also I'd like better to give presents to my kids some shares and not usual staff that they throwing out next day....
> I'd be happy if my parents gave me 10 shares of MCD when I was a child


+1.

It is good for beginner taking their time to learn and it doesn't cost much (other than paying someone for the first share). It is good for those that investing for the long run or plan to hold on to that stock for a long time. Let the compounding machine kick in and not have to worry about inactivity fees or have to pay commission every time you want to add more shares. I've purchased a few via that route (BNS, EMA, MFC, PGF). 

I do agree though that with the recent dive in the commission fee, it is less attractive route.


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