The below companies will purchase the initial share for you without requiring that you open an account with them. For those without a relationship with a discount broker, this may be the best way to get started with DRiPs.
- DirectInvesting.com, in most cases, will be the best way to get your first share. If you do not have a discount broker and have no plans for this, their reasonable fee will make the purchase, and (in most cases) automatically get you set up in the DRiP.
- Canadian DRIP Primer maps out how to go about getting that first share.
- The Share Exchange Board can get you in touch with others who may be willing to part with a share to get you started.
There are discount brokers who will purchase fractional shares, reinvest dividends, and do so at a reasonable cost. As the ownership of the stock is not transferred, this is not a true DRiP, but what is called a Pseudo-DRiP.
- Sharebuilder will keep the stock in street name, so you will not be able to start a DRiP without paying for the transfer of the certificate. However, their small fee for regular purchase makes them suitable for a Pseudo DRiP.
- BuyandHold offers an inexpensive means of purchasing fractional shares and offers reinvestment of dividends.