QQQDirect Account Opening Process

Early last week I learned from SeekingAlpha.com that QQQDirect.com is now offering one commission free purchase of QQQQ, the ETF of NASDAQ-100 tracking stock, every month. After reviewing their website and fee schedule, I opened an account last Wednesday.

MyStockFund.com, which offers QQQDirect plan, also supports other two fee-based investment plans: Basic Plan ($5.98 per month for up to 3 purchases) and Diversified Plan ($39.99 annual fee and $0.99 per purchase). However, I am only interested in the QQQDirect plan as other plans are no better than what I can get from ShareBuilder.com. Actually, I never heard of MyStockFund.com until last week and knew nothing about their reputations in pricing, customer services, order execution, and account securities. And probably not many people are using them either. But since the QQQDirect plan is endorsed by NASDAQ, it should be reliable at least.

The process to open an account was quite simple and standard, though there are as many as eight steps. The only thing to be careful is at Step 5 when the selection of different plans is to be made. For me, I chose the QQQDirect plan and selected dividend automatic reinvestment (this is the default option). As most tech stocks in NASDAQ-100 index don’t pay dividend at all, the yield of QQQQ is very low at 0.24%. At this level, taking cash distribution doesn’t make too much sense. At Step 7, I was asked to choose how to pay the fees for my account, which can be either by credit cards or bank account. Though I only want to make one purchase of QQQQ each month (meaning no fee will be involved), there’s a flat fee of $12 for sells. Finally, the QQQDirect is linked to my bank account via ACH. But since I opened the account right before the holiday break, the account is still in the pending status as of now and until the account is approved (I assume that will happen after the bank information is verified), I can’t set up the purchase schedule.

The interface of MyStockFund is shown below.

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