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The Pocket Idiot's Guide™ To Direct Stock Investing by Lita Epstein, Douglas Gerlach

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Watch Out for Fees

You will find that most DRIPs and DSPs charge little or nothing to buy additional shares of stock. But you will find some have a fee structure that makes direct stock investment just as expensive, or more expensive, than working with an online discount broker. Higher and higher fees are popping up each day as some companies hire administrators that increase fees and make direct stock investing less attractive as a low-cost alternative. Sometimes these high fees ruin plans offered by great companies.
For example, suppose a plan caps its fees at $2.50. You may not think this sounds like much, but if you invest $25 a month, the fee would gobble up 10 percent of your investment. If you invest $250 a month, the $2.50 would mean ...

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