Since Loyal3 has shut down
As some of you may remember, back in 2016 I wrote about my use of Loyal3. That article was a Loyal3 Review. I continued to use Loyal3 up until they decided to shut down and transfer all holdings over to Folio Investing. I contemplated on this transfer for sometime. One of the key reasons that I liked Loyal3 was because there were no fees attached to it. No fees to trade and no fees for the account. If I made the switch over to Folio Investing, I knew that eventually I would be forced to start paying a monthly fee for the account.
One thing that I have always kept in my mind while investing is that I always need an exit strategy, just in case. When I opened up my Loyal3 and RobinHood accounts I knew that one day I would probably want to consolidate my holdings. I had done the research and knew that it would cost me around $75 to make the transfer. If I were to take advantage of the opportunity in front of me, I would be able to consolidate my Loyal3 account into one of my existing brokerage accounts free of charge.
As the days were passing, I knew that I would have to make a decision soon. Ultimately, I chose to transfer my holdings into my Ally Invest (formerly TradeKing) account. For anyone who has ever transferred stock from one account to another, they know that there is some paper work that goes along with it. Once all the paper work was done all I could do then was just wait.
Once the transfer was complete I did make one quick observation that I had not thought of beforehand. Loyal3 does not transfer fractional shares. They only transfer whole shares. They sell the fractional shares. With those proceeds and whatever cash was left in the account they then cut you a check for the amount.
That was my first observation. The next thing that occured to me was that Loyal3 did not offer the ability to DRIP in my account but with the stock now being transferred to Ally Invest that I would be able to start DRIPing these stocks now.
All in all I am happy with my decision to transfer these holdings over to Ally Invest. It seems to me that it will work out to be a win win. I have updated my portfolio to reflect the sell of the fractional shares. While it did shrink the current size of the portfolio, once I get the check in the mail I will be able to redeploy the capital into some other investment.
Be sure to follow my new Page on Facebook at Facebook.com/MoreDividendsdotcom
Be sure to follow me on Twitter @MoreDividends
I look forward to reading your comments and questions about my latest move in my portfolio! Until next time, happy investing!!!
Thanks for the update! I hate the paperwork that comes along with transferring trading and investing accounts, but I guess it’s a necessary evil. Thanks for pointing out the fractional share factor as well. That’s something I wouldn’t have wanted to be aware of when transferring shares in-kind. Thanks again!
Jay recently posted…Trend Following Trade Ideas for May 2017 (Part 5)