Frequent Trading Restriction and Automatic Withdrawal in Vanguard Brokerage Account

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hudson
Posts: 1224
Joined: Fri Apr 06, 2007 9:15 am

Frequent Trading Restriction and Automatic Withdrawal in Vanguard Brokerage Account

Post by hudson » Sun Sep 17, 2017 6:29 am

Have the Frequent Trading Restriction rules changed?
In the new Brokerage Account set-up, do Automatic Withdrawals still work with the Frequent Trading Restriction?
How do I work around this error message? "You have no eligible Vanguard non retirement brokerage account on file."
details below...

For a Non-Retirement account at Vanguard; note...I've converted to the Brokerage Account.
I sold $4000 in a mutual fund; the money went to the Vanguard Federal Money Market Fund (Settlement fund).
The usual notice came up: Frequent Trading Policy...no buying or selling in this fund for 30 days. (I don't sell often; the last time that I did, it was maybe 60 days.)
I wondered, would the Account Maintenance/Automatic Withdrawal method still work?

I tried it and got stuck on "Move money to a Vanguard brokerage non-retirement account."

The next blank for me to fill-in was labeled, "To this account (to the settlement fund) Access more information
You have no eligible Vanguard nonretirement brokerage account on file."


I could not get past this blank; my objective was to put it in the settlement fund. I did not have an option to select from.
I got this error message: "Correction needed...Before continuing, correct the error in each identified field."

I called Vanguard; the representative said that I could not do this in the new brokerage set up. I continued to quiz him on the Automatic Withdrawal/Frequent Trading Policy for 5-10 minutes. I told him that it had worked for me for years; he told me that it would not work in the new brokerage set-up. He did not offer any other solutions.

I tried it again selecting: "Move Money to a Bank Account". That appeared to go through; but I did not click on the final SUBMIT button.

I don't need to buy or sell; my objective is to learn the rules and learn the limits.

I re-read Vanguard's Frequent Trading Policy... https://personal.vanguard.com/us/faces/ ... ontent.jsp

It said that the policy did not apply to the Automatic Withdrawal Plan or to the mail.

I did not find any recent discussions about this.
Last edited by hudson on Sun Sep 17, 2017 9:06 am, edited 3 times in total.

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dwickenh
Posts: 790
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: Frequent Trading Restriction and Automatic Withdrawal in Vanguard Brokerage Account

Post by dwickenh » Sun Sep 17, 2017 8:04 am

800-962-5209. I think I would call them on this one. Let us know what you find out please.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

hudson
Posts: 1224
Joined: Fri Apr 06, 2007 9:15 am

Re: Frequent Trading Restriction and Automatic Withdrawal in Vanguard Brokerage Account

Post by hudson » Sun Sep 17, 2017 9:32 am

dwickenh wrote:
Sun Sep 17, 2017 8:04 am
800-962-5209. I think I would call them on this one. Let us know what you find out please.

Dan
Thanks for the reply Dan!
Chances are, someone here can answer; if not, I'll make the call and report back.

hudson
Posts: 1224
Joined: Fri Apr 06, 2007 9:15 am

Re: Frequent Trading Restriction and Automatic Withdrawal in Vanguard Brokerage Account

Post by hudson » Mon Sep 18, 2017 10:00 am

hudson wrote:
Sun Sep 17, 2017 6:29 am
Have the Frequent Trading Restriction rules changed?
In the new Brokerage Account set-up, do Automatic Withdrawals still work with the Frequent Trading Restriction?
How do I work around this error message? "You have no eligible Vanguard non retirement brokerage account on file."
details below...

For a Non-Retirement account at Vanguard; note...I've converted to the Brokerage Account.
I sold $4000 in a mutual fund; the money went to the Vanguard Federal Money Market Fund (Settlement fund).
The usual notice came up: Frequent Trading Policy...no buying or selling in this fund for 30 days. (I don't sell often; the last time that I did, it was maybe 60 days.)
I wondered, would the Account Maintenance/Automatic Withdrawal method still work?

I tried it and got stuck on "Move money to a Vanguard brokerage non-retirement account."

The next blank for me to fill-in was labeled, "To this account (to the settlement fund) Access more information
You have no eligible Vanguard nonretirement brokerage account on file."


I could not get past this blank; my objective was to put it in the settlement fund. I did not have an option to select from.
I got this error message: "Correction needed...Before continuing, correct the error in each identified field."

I called Vanguard; the representative said that I could not do this in the new brokerage set up. I continued to quiz him on the Automatic Withdrawal/Frequent Trading Policy for 5-10 minutes. I told him that it had worked for me for years; he told me that it would not work in the new brokerage set-up. He did not offer any other solutions.

I tried it again selecting: "Move Money to a Bank Account". That appeared to go through; but I did not click on the final SUBMIT button.

I don't need to buy or sell; my objective is to learn the rules and learn the limits.

I re-read Vanguard's Frequent Trading Policy... https://personal.vanguard.com/us/faces/ ... ontent.jsp

It said that the policy did not apply to the Automatic Withdrawal Plan or to the mail.

I did not find any recent discussions about this.
I'm the OP. I think the Vanguard Representative was wrong. He said that Account Maintenance/Automatic Withdrawal was no longer available for those who had moved to the brokerage. Instead of calling, I just went online and moved some money from the mutual fund that had the 30 day frequent trading hold to my bank. It went through no problem.

Therefore Automatic Withdrawals, at least to a bank account, continue to work in the brokerage account.

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Kevin M
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Re: Frequent Trading Restriction and Automatic Withdrawal in Vanguard Brokerage Account

Post by Kevin M » Mon Sep 18, 2017 10:33 am

hudson wrote:
Sun Sep 17, 2017 6:29 am
I sold $4000 in a mutual fund; the money went to the Vanguard Federal Money Market Fund (Settlement fund).
The usual notice came up: Frequent Trading Policy...no buying or selling in this fund for 30 days. <snip>

I wondered, would the Account Maintenance/Automatic Withdrawal method still work?
The frequent trading restriction applies only to buying more shares of same fund--it does not restrict subsequent sales of shares of that fund. An automatic withdrawal is a sale, so that should not be a problem.

Kevin
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