Systematic Purchases & Redemptions
Scottrade offers systematic purchases and redemptions for mutual fund positions currently held in your Scottrade account. In order to establish a systematic mutual fund transaction, there must already be a settled mutual fund position in your account. Mutual fund purchases take an average of four business days to be completely settled in your account.
Some mutual funds may not be eligible for this program. Systematic purchase and redemptions established after Jan. 3, 2005, for no-load, transaction fee mutual funds will be charged a $2 transaction fee. Scottrade will not charge a fee for no-load, no transaction fee funds.
For systematic purchases you choose the month, date and dollar amount to be transacted as long as it meets the minimum subsequent investment amount set by the fund or $100, whichever is greater. Systematic purchases may be transacted in dollar amounts only. Cleared cash or free cash must be in your Scottrade account to cover systematic purchases. If your systematic purchase results in a debit in your Scottrade account, you will be responsible for covering the debit.
For systematic redemptions you can choose the month, date, and dollar or share amount to be transacted. Redemptions using dollars may not be transacted for less than $100. Redemptions using shares may not be transacted for fewer than five shares. Shares being redeemed must be fully settled and in good form in your account. Some funds may restrict redemptions or impose a penalty for early redemptions. Please read the fund's prospectus for details.
You can obtain a form from the Forms Center on our site or by calling your local Scottrade office. Please allow 10 days from the day your broker receives the form for the systematic transaction to be initiated. Please contact your local Scottrade office for more details.
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 or through a Scottrade branch office. The prospectus should be read carefully before investing.