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I have a Scottrade Roth IRA account and I usually dump money into it once a month. My entire RIRA contains cash and Vanguard S&P 500 (VFINX). I don't always go ahead and buy VFINX as soon as the money posts. The last time I bought was Spetember 27, 2004. I didn't see any extra fees with the tranaction. This evening, I was going to put in an order today for $500 worth to be bought tomorrow, until I saw a tranaction fee of $17. This really threw me off and I didn't buy the stock. Has VFINX started charging tranaction fees everywhere (at other brokerages) or did I do something wrong? Any else run into this?

Thanks,
Diat
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I am going to answer my last queastion and post another one. I went back to the Scottrade website and read their list of changes in fees, effective January 3, 2005. So, I now know what is going on. Has anyone left Scottrade because of the new fees? I guess I need to do some research....

diat
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Has anyone left Scottrade because of the new fees?

I filled out my Brown & Co account transfer forms today. I really liked Scottrade (esp their email support), but don't want to pay $34 each time I rebalance a couple of funds.

I decided I needed to own mutuals, ETFs, and individual stocks (small amount as my entertainment allocation), so couldn't go pure Vanguard or pure Scottrade/ETF.

I think Brown's cost structure is lower (no branches) so their pricing should be more sustainable.

Nick
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Yeah, some people have left Scottrade just because of this. There was a lot of discussion (some of it pretty heated) over on the Discount Brokers board and on the Scottrade.com board when the fees first went into effect.

--SirTas
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Welcome to BrownCo.

sunray
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Diat wrote:

I have a Scottrade Roth IRA account and I usually dump money into it once a month. My entire RIRA contains cash and Vanguard S&P 500 (VFINX). I don't always go ahead and buy VFINX as soon as the money posts. The last time I bought was Spetember 27, 2004. I didn't see any extra fees with the tranaction. This evening, I was going to put in an order today for $500 worth to be bought tomorrow, until I saw a tranaction fee of $17. This really threw me off and I didn't buy the stock. Has VFINX started charging tranaction fees everywhere (at other brokerages) or did I do something wrong? Any else run into this?
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The short answer is - No, (VFINX) or Vanguard, has not started charging anything for the purchase of their funds. However, ScotTrade has started charging "Transaction Fees" ($17.00 - buy/sell/transfer) for several fund companies beginning the first of this year (2005) and Vanguard is one of the companies they are charging this fee for. They publish a list of the fund companies that they "DO NOT" charge a fee for (NTF), however, either they do not publish a similar list of those they charge for or they have hidden well within their site.

Regards,
Bill


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They publish a list of the fund companies that they "DO NOT" charge a fee for (NTF), however, either they do not publish a similar list of those they charge for or they have hidden well within their site.

It seems pretty simple to me that any fund not on the NTF list will be charged a fee at time of purchase.

IF

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The short answer is - No, (VFINX) or Vanguard, has not started charging anything for the purchase of their funds. However, ScotTrade has started charging "Transaction Fees" ($17.00 - buy/sell/transfer) for several fund companies beginning the first of this year (2005) and Vanguard is one of the companies they are charging this fee for. They publish a list of the fund companies that they "DO NOT" charge a fee for (NTF), however, either they do not publish a similar list of those they charge for or they have hidden well within their site.

Actually all three lists, those NTF, TF and Load are listed on the web site. However, to be accurate, the reason Vanguard is on the transaction fee list is because the fund family would not pay Scottrade for the costs of making the funds available to investors. As I understand it, changes in laws over mutual fund/broker accountability require transaction costs be clearly covered to avoid the appearance of any backhanded impropriety.

Fuskie
Who guesses this is just the price of financial accountability in the wake of all the accounting scandals...
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It seems pretty simple to me that any fund not on the NTF list will be charged a fee at time of purchase.
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Is your statement made in defense of ScotTrade or do you just like to make redundant comments?

Bill
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Is your statement made in defense of ScotTrade or do you just like to make redundant comments?

Let's break down your sentence.

"They publish a list of the fund companies that they "DO NOT" charge a fee for (NTF)"

"however, either they do not publish a similar list of those they charge for or they have hidden well within their site."

I interpret the "hidden well within their site" comment to be a complaint that ScotTrade does not publish a list of transaction-fee funds. I don't see a need for ScotTrade to publish one if you have a list of the no transaction-fee funds. If a fund isn't on one list, then it is on the other. It is not necessary to publish both lists.

IF



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Let's break down your sentence.
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Let's break down my sentence?? I'm not too sure why you think you have to "break down my sentence". What I said was perfectly clear and didn't need your personal interpretation. My interpretation of your statement was that it was condecending and unnecessary. Maybe we should end this chicken fight!

Bill
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Let's break down my sentence?? I'm not too sure why you think you have to "break down my sentence". What I said was perfectly clear and didn't need your personal interpretation. My interpretation of your statement was that it was condecending and unnecessary. Maybe we should end this chicken fight!

My statement was not intended to be condescending. Yes, it was in defense of ScotTrade. There was no intention to start a chicken fight.

IF


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Though you did get a good response to your question I believe, I'll add that I actually did the following. Upon finding out that my fees were going to nearly triple, I went to the Scottrade board and saw that some folks were simply goign to transfer their Vanguard holdings...to Vanguard itself. So i contacted them through their website number and you would honestly probably not being able to find a more friendly staff. You basically are guided as if you were NOT a Fool, so you're going to hear some suggestions you probably already know, at least I did from the customer service rep. Identify that you wish to transfer your roth to them, and if vanguard is your only holding and you don't wish to make any stock purchases in your RIRA....then maybe you would want to close it but it costs you nothing to maintain it. I happened to have made my first stock purchase, I had only purchased VTSMX and that was last year when initiating my RIRA. I was disappointed to hear the change, but Vanguard made it quite easy. They email you the pdf files to print out and mail back, and about 2-3 weeks later you receive a statement stating you have an account setup...then and I was checking everyday, when you'll verify your account around that time period, I did so yesterday and noticed that I know had no more Vanugard in my scottrade account, the deal is done. Now I need to see about online access and purchasing etc, but Vanguard can also send you an autoplan sign up sheet, which I have chosen not too do, or simply one that allows you to draft your account a la Ewire on scottrade. Hope this helps. It takes a bit of patience, but a month of your time to spare yourself of fees is worth it in my opinion, especially if like myself you make 200 dollar purchases or so.
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