Transferring shares to a stock broker costs too much

By: Robert Grosshandler | July 12, 2018

So, you’re thinking of selling some RWRDP…

You’ll need to transfer shares, first to the transfer agent (Issuer Direct) for earned shares, and then to a stock broker (TD Ameritrade is our fave).

The total transfer cost to you is about $32.50 per transfer for stock you’ve earned (via shopping, referring, bonuses, etc.), or about $25 for stock you’ve purchased (directly from iConsumer’s Invest option).  Much higher than we expected.

We know this is too high.  We’re working on it, but I’m not optimistic we’re going to fix it in the short term.

You should also know that it takes about a month to transfer earned shares;  a week for purchased shares.

Which means you should consider waiting to  sell until the total number of shares you’ve earned from shopping (and/or the number you’ve purchased) times the price per share is higher than $32.50.  As of 7/12, you’d probably receive $.20/share if you sold today.  So you would need to sell 163 shares at today’s price, just to cover your transfer cost.

As always, we’re not promising that you’ll be able to sell your shares, ever.  The lawyers want us to say that, and they’re right.  The price of our shares is highly volatile, and will probably continue to go up and down.

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9 Comments

Dustin, July 12, 2018 at 3:56 pm

Is this $32.50 going to be charged to us by iConsumer because Issuer Direct will charge iConsumer or will it be charged to us by Issuer Direct when transferring to our brokerage?

    Robert Grosshandler, July 12, 2018 at 4:57 pm

    The $32.50 is made up of two parts. The first is what iConsumer is charged by the various folks who charge us. That’s currently $7.50 and you’ll pay us. The second will be charged either to you or to the brokerage firm at the time you ask the stock broker to transfer shares from Issuer Direct to them.

Sherry, July 12, 2018 at 10:57 pm

Would it have been less expensive to go the paper stock certificate route instead? When I got free Travelzoo shares way back when, I was sent a stock certificate via snail mail, which I forwarded to my broker. I don’t recall having to pay anything in order to obtain my shares.

    Robert Grosshandler, July 12, 2018 at 11:37 pm

    Great question. I don’t know for sure, but I doubt it from an overall perspective. Talking to people who specialize in small company stocks in today’s world, they complain bitterly about the problems associated with paper certificates.

    Travelzoo did a reverse split to get rid of small shareholders at one point. We don’t want to do that.

    The best answer is to make iConsumer more valuable, so that stock brokers fight to get people to transfer their shares into their brokerage.

Sherry, July 12, 2018 at 11:55 pm

I got 18 measly Travelzoo shares free. At its height, they were worth $1000. I’m crossing my fingers to profit way more with the iConsumer stock.

Jeremy z, July 13, 2018 at 7:23 pm

Like the story. Like the honesty. Like the transparency. Like the easy way to purchase shares through you. Purchase completed in less than 2 minutes.

Am optimistic that as more people find out about this in the future, the more shopping that will happen as it’s a no brainer if you shop online to get something for the efforts besides credit card frequent flyer miles.

Keep up the hard work, it’s appreciated.

Paul, August 9, 2018 at 5:17 pm

I purchased some shares. I received an email, Offering Escrow Successful. Will I receive a separated email from issuer direct stating that they have the shares?

Next, If I transfer the earned shares is that a separate fee from the purchased shares? In other words, do I have two accounts with Issuer Direct since I earned shared and purchased shares?

Thanks,

    Robert Grosshandler, August 9, 2018 at 8:42 pm

    Yes. It takes some time for Issuer Direct to process the information, after we’ve sent it to them. It’s pretty manual between us and them.

    You “should” have only one account with Issuer Direct. If for some reason you end up with two (as I said, pretty darn manual) just contact them and ask them to combine them.

    They do charge a separate fee.


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