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tlcarriker
Joined: 28 Mar 2009
Posts: 13
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 Posted: Mon Nov 02, 2009 6:19 pm Post subject: Charles Schwab Free ETF's Trades (House ETF's ) |
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Discount broker Charles Schwab & Co. entered the exchange-traded fund, or ETF, arena Monday by announcing the launch of four ETFs, with four more set for December.
To boost sales, Schwab is waiving its customary fee of $12.95 per trade if the ETFs change hands on Schwab's platform. The commission-free feature will be permanent, said Peter Crawford, a Schwab senior vice-president.
Competitor Vanguard Group Inc., which started sponsoring ETFs in 2001 and now has 39 of them, charges from $12 to $25 per trade, depending upon the account size. |
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RJSachs
Joined: 22 Jan 2008
Posts: 221
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| Posted: Mon Nov 02, 2009 6:54 pm Post subject: Re: Charles Schwab Free ETF's Trades (House ETF's ) |
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| tlcarriker wrote: | Discount broker Charles Schwab & Co. entered the exchange-traded fund, or ETF, arena Monday by announcing the launch of four ETFs, with four more set for December.
To boost sales, Schwab is waiving its customary fee of $12.95 per trade if the ETFs change hands on Schwab's platform. |
http://www.bogleheads.org/foru....257198334.
| tlcarriker wrote: | | Competitor Vanguard Group Inc., which started sponsoring ETFs in 2001 and now has 39 of them, charges from $12 to $25 per trade, depending upon the account size. |
Total non-sequitor. You can buy Vanguard ETFs anywhere including Wells Fargo (i.e. free).
Last edited by RJSachs on Mon Nov 02, 2009 7:56 pm; edited 1 time in total |
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KarlJ
Joined: 03 Nov 2008
Posts: 109
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| Posted: Mon Nov 02, 2009 7:53 pm Post subject: |
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| Free trades on Schwab ETFs is clearly good news for Schwab customers. |
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dave.d
Joined: 19 Mar 2007
Posts: 692
Location: Richmond, VA
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| Posted: Mon Nov 02, 2009 9:00 pm Post subject: |
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| Will this put pressure on Vanguard to follow suit, now that brokerage operations are in house? |
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stratton
Joined: 04 Mar 2007
Posts: 6233
Location: Puget Sound
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| Posted: Mon Nov 02, 2009 9:40 pm Post subject: |
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I think this is great. I wonder if this is a way for them to try and lure custodial funds from advisors?
Paul |
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Easy Rhino
Joined: 05 Aug 2007
Posts: 1218
Location: San Diego
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| Posted: Mon Nov 02, 2009 11:07 pm Post subject: |
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| If they had this feature a few years ago, I would probably have kept my accounts at schwab instead of wellstrade. |
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etherscreen78
Joined: 27 Aug 2009
Posts: 45
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| Posted: Mon Nov 02, 2009 11:59 pm Post subject: |
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| anyone notice the 0.25% 12-b-1 fees they reserve the right to impose in 2011? |
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AZInvestor
Joined: 14 Jan 2008
Posts: 4
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| Posted: Tue Nov 03, 2009 1:56 am Post subject: |
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| Intriguing. I have accounts at both CS (stocks) and VG (mutual funds) and am wondering if it is worth moving my money back to Schwab and go the ETF route. I am skeptical as to how Schwab intends to make money, though. Think the only big catch is the aforementioned 12-b-1 fee? Any thoughts? |
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curiouskitty
Joined: 18 Oct 2009
Posts: 19
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| Posted: Tue Nov 03, 2009 4:11 am Post subject: |
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| etherscreen78 wrote: | | anyone notice the 0.25% 12-b-1 fees they reserve the right to impose in 2011? |
the wall street journal article has a quote from a schwab rep saying they don't plan to institute the 12-b-1 fees "at this time" |
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gte834s
Joined: 15 Jul 2007
Posts: 246
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| Posted: Tue Nov 03, 2009 7:33 am Post subject: Re: Charles Schwab Free ETF's Trades (House ETF's ) |
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| tlcarriker wrote: | | Competitor Vanguard Group Inc., which started sponsoring ETFs in 2001 and now has 39 of them, charges from $12 to $25 per trade, depending upon the account size. |
Flagship customers can trade free at Vanguard (albeit only 12/year).
Regards, |
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Default User BR
Joined: 17 Dec 2007
Posts: 362
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| Posted: Tue Nov 03, 2009 12:26 pm Post subject: |
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| AZInvestor wrote: | | Intriguing. I have accounts at both CS (stocks) and VG (mutual funds) and am wondering if it is worth moving my money back to Schwab and go the ETF route. I am skeptical as to how Schwab intends to make money, though. Think the only big catch is the aforementioned 12-b-1 fee? Any thoughts? |
I have Wells Fargo, so I already get 100 free transactions per account. Schwab doesn't intrigue me at all.
Brian |
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sperry8
Joined: 29 Mar 2008
Posts: 130
Location: New York, NY
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| Posted: Tue Nov 03, 2009 2:16 pm Post subject: |
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Aside from free trades I noticed that they are charging lower ER than Vanguard. I hope VG matches... if not, I may consider new future purchases with Schwab ETFs. After all... buy and hold with the lowest cost is the way to go!
_________________
Certainity is a requirement of ignorance. |
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dave.d
Joined: 19 Mar 2007
Posts: 692
Location: Richmond, VA
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| Posted: Thu Nov 05, 2009 12:31 am Post subject: |
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| The prospect of a possible 12b1 fee is enough to scare me off of these. What if it goes up, and THEN they add the fee? In a taxable account, you would either have to pay the fee, or pay the capital gains tax to switch. |
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