Looking for dirt cheap commissions on DFA funds

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Looking for dirt cheap commissions on DFA funds

Postby sontung » Sun Jul 16, 2017 11:32 am

I'm in the hunt for dirt cheap execution. The cheapest commission I've found to trade a DFA fund is about $20. Does anyone know of a custodian that will execute DFA fund trades cheaper than $20?


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Re: Looking for dirt cheap commissions on DFA funds

Postby mhalley » Sun Jul 16, 2017 3:14 pm

I believe you have to have an advisor to buy dfa funds. That will cost a lot more than 20 bucks. You might check out wci post on dfa vs vanguard.
. So in the end, if you are an educated and disciplined investor, don’t go out and hire an advisor just to get DFA funds. There is probably an advantage there, especially in certain asset classes, but it isn’t large enough to pay for the advisory fees by itself.


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Re: Looking for dirt cheap commissions on DFA funds

Postby heyyou » Sun Jul 16, 2017 8:22 pm

Consider aggregating your periodic savings until your purchase amounts are large enough that the $20 trading costs are negligible. You could store your frequent payroll deductions at some other fund company who has less factor exposure, then buy your DFA shares annually or semi-annually, also after significant crashes. DFA's small, deep value, and EM equity funds are the ones with more differences, and they are only part of your entire portfolio if it is a slice and dice one. VG's domestic small value fund has more size and value exposure than anyone's large blend fund. It could serve as an initial parking spot for your savings headed for DFA. The above process could be reversed if you are a retiree spending from DFA funds.

As was said in the song lyric,
"You can't always get what you want
But if you try sometimes well you might find
You get what you need."

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Re: Looking for dirt cheap commissions on DFA funds

Postby whodidntante » Sun Jul 16, 2017 8:28 pm

You might be limited by who your adviser can work with.

Interactive brokers charges $15 I think. I believe it's per transaction, so 2x for a round-trip. This would be cheaper if your trading pattern is buy and hold, with an infrequent rebalance.

Fidelity charges a reduced fee for an automatic purchase of a mutual fund ($5?). You'll pay full fee for the initial purchase.

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