No. of Recommendations: 4

You wrote, Fido has a nice selection of no fee ETFs and mutual funds that they sponsor …

I left TD Ameritrade in large part because they changed their NTF list for both ETFs and Mutual Funds. Before the change their ETF list mirrored Fido's and included a lot of low-cost iShares and Vanguard ETFs.

After the change all of the replacement funds had expense ratios that were about 10x their predecessors. I was told by an advisor that they did this to attract advisors and their clientele. There was something about them receiving a payment for the business they drive to TDA. The higher cost NTF funds subsidized these payments through higher expense ratios.

Personally I think TDA has a great website with really good research and other tools. But the switch and the high expense ratio NTF funds really turned me off. In fact I'd procrastinated leaving E*TRADE when they did something similar a few years before so I was rather ticked at TDA for doing much the same thing just a year or two after I'd rolled my E*TRADE accounts over to them. At least I got the account bonus for the move. And since I was entirely in ETFs and individual issues I could roll those over to Merrill Edge and trade them for free there...

BTW, if I used an advisor (not likely) I probably wouldn't follow them to TDA. I can't imagine anything good coming of that. At least not for me. Maybe for them, but not me.

- Joel
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