No. of Recommendations: 0
A few months ago, when I started investing in Treasuries, my broker charged a transaction fee of $54.95 to buy Treasuries at auction, with 20% off if I did it myself online. I can buy Treasuries at auction from a linked checking account for free, and I can use my brokerage checking as the linked account. Why pay a transaction fee when I don't have to?

Other people must have figured that tip out too, because starting July 1, 2006 my broker's transaction fee will be zero for on-line purchases of Treasuries at auction, and only $25 if you need a broker's help. This tips the scales in favor of Schwab, because there are no account fees and Legacy Treasury Direct charges $25/year for large accounts.

It is probably more a reaction to Fidelity and Vanguard charging $0 in fees for purchasing treasuries at auction. Also, I think the new TreasuryDirect doesn't charge anything. Why bother with legacy?

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