I just signed up for this program with Scottrade. Looks like it takes away the paying of commissions when reinvesting which was the beauty of the DRIP.
A typical brokerage DRIP requires you to reinvest dividends from a dividend-paying security back into that same security. However the Flexible Reinvestment Program™ lets you invest dividends into up to five different eligible securities
. The chart below provides a quick review of the differences between FRIP™ and DRIP.
Typical Brokerage DRIP
Pool of Accumulated Dividends
Yes. All designated dividend-paying securities feed into the pool
No. Dividends paid by a security can be invested only in that same security
Reinvest in Most Stocks or ETFs, Including Non-Dividend Securities
Flexible Allocation Percentage
Flexible Reinvestment Date
Yes. Date to invest funds can be altered at any time
No. Reinvest occurs only after a security pays a dividend
No. Only whole shares purchased