Vanguard Brokerage just sent out an update with tons of new fees for Brokerage services, but notably, they will now charge to $100 to close or transfer an account if your account has <$5 million in qualifying Vanguard assets.
Other highlights include
$25 fee for broker assisted buys of Mutual funds or ETF
$100 fee for deposit of physical cert
20% fee for class action recovery
1% fee on dividends for foreign or ADR funds held in US dollar
It does appear a bit anti-consumer…especially those with smaller accounts. The MLP tax filing fee seems ridiculous and account transfer and closing fees are very high. I have seen HSA providers try and create a walled garden by adding account termination fees…but not brokerage accounts.
I have to say that I don’t understand what any of these fees are for!
I’m just a regular person with mutual funds, though a few years back VG forced me to change to a brokerage account which I don’t use because I don’t understand ETFs!!
For the regular, not-fancy investor, do these fees mean anything?
This applies to all existing accounts and goes into effect June 1 so a little over a month to make a decision on if you want to close your brokerage account without fees.
A lot of these fees are fairly typical for brokerages that are not one of Clark’s favorites. However, the closure fee/transfer fee is pretty unusual especially for any account under $5 million
All this has got me to thinking… I’m a Flagship member and get e-statements etc., so I don’t pay any fees. But now we’re retired and spending the money, so eventually I’ll drop below $1M. Am I then going to get hit with fees? There used to be low-balance fees, does that even exist any more? Would be kinda rude to have been a Vanguard investor since 1985, built up my portfolio to 7 figures, then get charged stupid fees in my old age. I guess I could look online to see all their fees. Maybe I will tomorrow when I’m less tired and seeing straight.
from what I read, the $100 fee is if you move your account from Vanguard.
The other fees are for various services – help w/ brokerage transactions, certain types of CDs, etc. I didn’t see anything about fees for just having a VG account.
UPCOMING PODCAST: Clark does not like these fees or the way Vanguard announced them. However, he is sticking with Vanguard. He will explain more during the May 22 podcast.
In the meantime, why not make an appointment w/Fidelity and/or anyone else you think might be a good alternative and listen to their pitch. Then if you decide to jump to someone else you’ll be prepared.
