Exchanging a Mutual Fund
To place an exchange order, first access the trading area for mutual funds. Input the symbol you choose to exchange from and to. Choose dollars, shares or all shares. If choosing dollars or shares, input the amount you would like to exchange. Choose whether you want dividends and capital gains reinvested or paid out. The shares being sold must be in good form in the account and cannot be sold before the original purchase has settled. Mutual fund purchase and exchange orders at Scottrade must be the greater of $100 or the fund's minimum initial investment. You must have sufficient settled funds in the account to meet both the applicable minimum and cover transaction fees and other fees prior to placing the trade. Scottrade's transaction fee is not currently deducted out of the exchange order amount; it is charged in addition to the dollar amount of the order.
You may exchange your mutual fund shares within the same family of funds and within the same share class. For example, if you hold B shares of XYZ fund you may exchange those shares for B shares of another XYZ fund. This is actually a sale and a purchase, and it is a taxable event if not held in a retirement account. If you are exchanging out of a margin position, the fund being purchased must be held in a cash position for 30 days before it is marginable.
Investors should consider the investment objectives, risks, charges, and expenses of mutual fund carefully before investing. A prospectus contains this and other information about the fund and is available through www.scottrade.com or through a Scottrade branch office. The prospectus should be read carefully before investing.