How many are switching from Fidelity?

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Boilermaker10
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How many are switching from Fidelity?

Post by Boilermaker10 » Fri Oct 04, 2019 8:21 pm

Just curious how many Bogleheads are switching from fidelity to TD Ameritrade, Schwab, or ETrade with the dropping of commission fees?

I have accounts at vanguard and Fidelity, and was considering moving the Fidelity accounts to one of the companies that has dropped commissions. I have already asked Fidelity to match the free trades and they basically said not at this time.

Any advice on which one to move to or which to avoid?

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JoMoney
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Re: How many are switching from Fidelity?

Post by JoMoney » Fri Oct 04, 2019 8:27 pm

I like Fidelity's CMA account and 2% cash back credit card. No intention on changing.
I find it interesting that there are Bogleheads that trade individual stocks so much that "free" brokerage commission is of value...
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Re: How many are switching from Fidelity?

Post by Tyler Aspect » Fri Oct 04, 2019 8:32 pm

I am staying put at Fidelity. Free trade does not impact me that much. Having iShares ETF transaction free at Fidelity is sufficient enough for me. I value a competitive money market yield higher than free trades. If all trades are free but money market expense ratio goes even higher then that would be a wrong direction with my perspective.
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Re: How many are switching from Fidelity?

Post by arf30 » Fri Oct 04, 2019 8:32 pm

Vanguard already has free ETFs, but if someday I wanted stocks and options I'd probably open a Schwab account to do that stuff there and leave my existing investments at Fidelity and Vanguard where they are.
Last edited by arf30 on Fri Oct 04, 2019 8:34 pm, edited 1 time in total.

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Re: How many are switching from Fidelity?

Post by johan851 » Fri Oct 04, 2019 8:32 pm

JoMoney wrote:
Fri Oct 04, 2019 8:27 pm
I find it interesting that there are Bogleheads that trade individual stocks so much that "free" brokerage commission is of value...
Some of us use ETFs instead of mutual funds, which means executing trades on every contribution, withdrawal, tax loss harvest, etc.

I like Fidelity and plan to stay.

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Re: How many are switching from Fidelity?

Post by mpsz » Fri Oct 04, 2019 8:36 pm

It's only been a few days. I would imagine that Fidelity will drop their trading fees in the very near term as well.

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Re: How many are switching from Fidelity?

Post by mathguy3021 » Fri Oct 04, 2019 8:37 pm

JoMoney wrote:
Fri Oct 04, 2019 8:27 pm
I like Fidelity's CMA account and 2% cash back credit card. No intention on changing.
I find it interesting that there are Bogleheads that trade individual stocks so much that "free" brokerage commission is of value...
It is the commission free ETFs that are most valuable for buy and hold investors who use dollar cost averaging with limit orders like I do. I don't trade stocks very often. I like being able to dollar cost average into VTI using a buy limit order every month at TD Ameritrade. The commission costs would compound if I did this at Fidelity since I only have a small amount to invest every month. I prefer vanguard etfs for tax efficiency.

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Re: How many are switching from Fidelity?

Post by indexfundfan » Fri Oct 04, 2019 10:13 pm

mpsz wrote:
Fri Oct 04, 2019 8:36 pm
It's only been a few days. I would imagine that Fidelity will drop their trading fees in the very near term as well.
Reports on social media say that Fidelity's reps are saying that they currently have no plans to follow the free trade route. Fidelity feel as though they already offer more value than the rest. (Of course this will change if there is a mass exodus out from Fidelity.)

I guess if you are always fully invested, then the money market sweep (instead of FDIC sweep) will not matter as much as free trades if you want to buy Vanguard ETFs. In which case, sought out one of the free trade brokers like IBKR lite, Schwab, TDA, Etrade or Ally.
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RoAG
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Re: How many are switching from Fidelity?

Post by RoAG » Fri Oct 04, 2019 10:15 pm

anyone know if commision free is being applied to hsa and ira accounts as well or just the brokerage accounts?

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Re: How many are switching from Fidelity?

Post by penumbra » Fri Oct 04, 2019 10:22 pm

Switch? No way. I have complex accounts, and Fidelity does a fabulous job.

Good luck.

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Re: How many are switching from Fidelity?

Post by whodidntante » Fri Oct 04, 2019 10:29 pm

Why would I leave Fidelity? Then I would have to buy TurboTax. :twisted:

I've used every broker that has offered me a good transfer bonus. My Fidelity accounts have always had value to me.

My CMA account and my HSA at Fidelity is a good deal, so no plans to yabba dabba doo with that money. I've got a Roth account there also. 100% ZERO international fund for the HSA and the Roth. I might move the Roth for a good bonus.

The Elan Fidelity Rewards card has also been good to me. They send me a spending bonus three times a year and that means it's greater than 2% rewards. I've had the card since the AmEx days. Actually my oldest credit card is an ancient Fidelity card that they don't issue anymore. I use it a couple of times a year to keep it active.

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Re: How many are switching from Fidelity?

Post by whodidntante » Fri Oct 04, 2019 10:31 pm

RoAG wrote:
Fri Oct 04, 2019 10:15 pm
anyone know if commision free is being applied to hsa and ira accounts as well or just the brokerage accounts?
For the things that are commission-free at Fidelity, they are also commission-free in the HSA and IRA accounts. You do know that Fidelity hasn't joined the zero commission for everything party, right?

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Re: How many are switching from Fidelity?

Post by wander » Fri Oct 04, 2019 10:35 pm

RoAG wrote:
Fri Oct 04, 2019 10:15 pm
anyone know if commision free is being applied to hsa and ira accounts as well or just the brokerage accounts?
Yes, TD offers $0 commission for trading stocks & ETFs in HSA account.

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Re: How many are switching from Fidelity?

Post by Ferdinand2014 » Fri Oct 04, 2019 11:34 pm

I buy and hold no transaction fee mutual funds. I buy and auto-roll no transaction cost treasuries at auction. My average current expense ratio is 1 basis point through Fidelity. That is $100 for every $1,000,000 of my investments. They provide complete product needs and excellent customer service. I am very happy.
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Re: How many are switching from Fidelity?

Post by RoAG » Fri Oct 04, 2019 11:43 pm


For the things that are commission-free at Fidelity, they are also commission-free in the HSA and IRA accounts. You do know that Fidelity hasn't joined the zero commission for everything party, right?

yes I'm aware of that, though you cant trade stocks in an hsa or ira free at fidelity which what I was asking if the other firms that went zero do.

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Re: How many are switching from Fidelity?

Post by JohnSmith123 » Sat Oct 05, 2019 12:51 am

Anyone who worries (and wants to switch) to save $5/trade has their priorities wrong — unless you trade 100’s of time per year!

It is $5/trade. Do 50 trades a year = $250/year.
Noise in the whole scheme of things if your portfolio >$100k. Yes it is .25%, but missing the bigger picture on the error % of the trades which is probably much bigger than this.

Instead I make so much more by the convenience in fidelity, free wires, excellent customer service, free atm, etc. and I can spend all of that extra thinking time on making the right investment decision which is worth a lot more than $5/year. Bigger picture.

Don’t get me wrong — I am cheap. But at $5/trade with all the benefits — that is still cheap.
Btw — I just asked Fidelity for 500 free trades — and they just gave it to me as a good customer!

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Re: How many are switching from Fidelity?

Post by hoaius7 » Sat Oct 05, 2019 12:52 am

whodidntante wrote:
Fri Oct 04, 2019 10:29 pm
Why would I leave Fidelity? Then I would have to buy TurboTax. :twisted:

I've used every broker that has offered me a good transfer bonus. My Fidelity accounts have always had value to me.

My CMA account and my HSA at Fidelity is a good deal, so no plans to yabba dabba doo with that money. I've got a Roth account there also. 100% ZERO international fund for the HSA and the Roth. I might move the Roth for a good bonus.

The Elan Fidelity Rewards card has also been good to me. They send me a spending bonus three times a year and that means it's greater than 2% rewards. I've had the card since the AmEx days. Actually my oldest credit card is an ancient Fidelity card that they don't issue anymore. I use it a couple of times a year to keep it active.
Why international fund for the HSA and the Roth? It's better to hold international fund at brokerage account to get the foreign tax refund, isn't it?

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Re: How many are switching from Fidelity?

Post by telemark » Sat Oct 05, 2019 1:23 am

Fidelity's low cost index funds are more than good enough for me and trade for free. Not switching.

Also, unlike another brokerage I could mention, Fidelity doesn't make me click through a popup window every time I log in, just to see my balances.

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Re: How many are switching from Fidelity?

Post by zeal » Sat Oct 05, 2019 6:26 am

Another no here. ESPP is at Fidelity, awarded quarterly so I only make one trade per quarter. I'm not going to overcomplicate things to save $20/year.

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Re: How many are switching from Fidelity?

Post by indexfundfan » Sat Oct 05, 2019 6:43 am

The responses in this thread explains why Fidelity is standing firm on not following the rest to offer free trades. They have done some analysis and decided that they probably won't lose too many customers.
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Re: How many are switching from Fidelity?

Post by 6Pack » Sat Oct 05, 2019 6:47 am

JoMoney wrote:
Fri Oct 04, 2019 8:27 pm
I like Fidelity's CMA account and 2% cash back credit card. No intention on changing.
I find it interesting that there are Bogleheads that trade individual stocks so much that "free" brokerage commission is of value...
Same here. Plus, Fidelity has the zero fee mutual funds. If you get all 4 of them, you’ll have a pretty diverse portfolio with no fees. I’d rather have a zero fee mutual fund than free trades.

I thought most Boggleheads were investing in index funds and holding for long periods of time?

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Re: How many are switching from Fidelity?

Post by catfish48084 » Sat Oct 05, 2019 6:53 am

In the big scheme of things, trade fees are irrelevant - for me. I make about 10 purchases per year, so $4.95 per is nothing.

I really hope that you don't ask this question because you are constantly trading. Take it from a guy who lost nearly their entire savings 20 years ago, thinking he knew what he was doing. There is no shortcut to disciplined investing - books and TV programming about "trading" are complete nonsense for individual investors - a sure path to losing big or earning less than you would by throwing everything in a market index and leaving it alone. Anybody thru dumb luck can make a few picks that do well and for a short time convince the gambler - yes that's what you are doing - that he actually knows something that the market doesn't recognize. Imagine how arrogant and naive that thinking is.

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Re: How many are switching from Fidelity?

Post by student » Sat Oct 05, 2019 6:56 am

I am not planning on switching. I made less than 1 trade per year at Fidelity in the past few years.

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Re: How many are switching from Fidelity?

Post by MikeG62 » Sat Oct 05, 2019 6:57 am

I am with Fidelity and have no plans to switch. I mostly use commission free equity-index based ETF's anyway.
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Re: How many are switching from Fidelity?

Post by dcabler » Sat Oct 05, 2019 7:00 am

Fidelity has the vast amounts of my holdings. When I'm done with my current employer, I'll roll over my 401K into my IRA there and I'll move my HSA there. I hold Fidelity Mutual funds + iShares ETFs which trade commission free already. I don't hold any individual stocks at all, so it would make no sense to me to move.

Cheers,

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Re: How many are switching from Fidelity?

Post by Hockey10 » Sat Oct 05, 2019 8:14 am

The majority of my financial assets are at Fidelity. They have been a pleasure to work with over many years. I don't care if they never drop their fees, as I have only a few trades per year. The hassle of switching far outweighs the benefit of saving a few $ in commission expense.

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Re: How many are switching from Fidelity?

Post by CardinalRule » Sat Oct 05, 2019 8:43 am

That's what I think too. Maybe not to zero, but lower than they are now. Not every Fidelity customer is a Boglehead, and Fidelity has always emphasized its competitive commission rates in its marketing.
mpsz wrote:
Fri Oct 04, 2019 8:36 pm
It's only been a few days. I would imagine that Fidelity will drop their trading fees in the very near term as well.

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Re: How many are switching from Fidelity?

Post by ruralavalon » Sat Oct 05, 2019 8:53 am

Boilermaker10 wrote:
Fri Oct 04, 2019 8:21 pm
Just curious how many Bogleheads are switching from fidelity to TD Ameritrade, Schwab, or ETrade with the dropping of commission fees?

I have accounts at vanguard and Fidelity, and was considering moving the Fidelity accounts to one of the companies that has dropped commissions. I have already asked Fidelity to match the free trades and they basically said not at this time.

Any advice on which one to move to or which to avoid?
Fidelity already offers free trades on BlackRock iShares ETFs. What else does anyone really need for ETFs?

We have all of our accounts at Vanguard, use only Vanguard index funds, and will not be moving.
Last edited by ruralavalon on Sat Oct 05, 2019 9:05 am, edited 1 time in total.
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Re: How many are switching from Fidelity?

Post by TN_Boy » Sat Oct 05, 2019 9:02 am

Boilermaker10 wrote:
Fri Oct 04, 2019 8:21 pm
Just curious how many Bogleheads are switching from fidelity to TD Ameritrade, Schwab, or ETrade with the dropping of commission fees?

I have accounts at vanguard and Fidelity, and was considering moving the Fidelity accounts to one of the companies that has dropped commissions. I have already asked Fidelity to match the free trades and they basically said not at this time.

Any advice on which one to move to or which to avoid?
I use a combination of Fidelity mutual funds and vanguard or iShares ETFs. My yearly transaction costs are so low -- completely in the noise range -- there is no motivation at all to change.

If I did a lot of active trading with ETFs, I might consider it, but I don't do that.

What are your yearly trading costs at Vanguard and Fidelity? Is there an actual problem here?

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Re: How many are switching from Fidelity?

Post by furnace » Sat Oct 05, 2019 9:06 am

Fidelity will get trounced by the competition if they don't match. A lot of people are sitting tight waiting for the announcement, but if it doesn't come by end of next week, a mass exodus will ensue.

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Re: How many are switching from Fidelity?

Post by Strayshot » Sat Oct 05, 2019 9:17 am

It’s a non issue for me, I have a bunch of free trades at Fidelity anyways but really don’t make more that 30 or so transactions a year. I think Fidelity offers the complete package and wouldn’t move for something this trivial.

That said, they will be forced to go to no-fee trades eventually. Fidelity can pretend they won’t, but the marketing perception alone will make them. Why would they have started the 0 funds? The difference between .05 and 0 is negligible for expense ratio and still they started those funds vs the current offering. Trades will be the same way, just give it a year as they watch their volume drop. If they lose volume they won’t have access to the price improvement they claim adds value and justifies the fee. Meanwhile the other guys will see trade volume grow as they steal customers.

It is so easy to move brokerage houses anymore that someone could easily keep tax advantaged accounts at Fidelity and move all of their taxable trading to somewhere else. I think it will hurt Fidelity in the long run by not acting quickly on this, but since they aren’t publicly traded and I don’t own the company I really don’t care :sharebeer

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Re: How many are switching from Fidelity?

Post by Sandtrap » Sat Oct 05, 2019 9:28 am

Don't trade so doesn't matter.
Have Schwab, Vanguard, Fidelity.
Fidelity's web interface is a good one.

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Re: How many are switching from Fidelity?

Post by beyou » Sat Oct 05, 2019 9:51 am

Execution can impact the cost of your trade as much as commissions. No idea if Fidelity or anyone can guarantee they would be more honest and get you best execution (rather than direct trades to revenue sharing exchanges).

That and cash yields (or lack of) are how these firms make money on self directed investors. Fido and Vanguard have top tier mmkt sweep, others will not. No free lunches. If you keep cash balances , Fido or Vang are cheaper. Of you are an active trader, hard to tell which is cheapest, in next cost with exec price variances.

And finally, they will hound you with advertisements/calls for a managed acct, but most do that today, Vanguard only the most recent to aggressively market that. I get the calls, emails, web adds from Etrade and Vanguard. Ignore them, but this is part of the plan because of low/no commissions and low er on funds. May work for some customers, after they lose $ day trading :-)

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Re: How many are switching from Fidelity?

Post by abuss368 » Sat Oct 05, 2019 9:59 am

We are staying with Vanguard and always will. In fact moving to Vanguard was the best financial decision we ever made.
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Re: How many are switching from Fidelity?

Post by abuss368 » Sat Oct 05, 2019 10:01 am

Is Vanguard perfect? No. I would be willing to assume that they are aware of the needs and issues and will correct.

I wish they would tackle banking like they have investing. I would have everything there.
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Re: How many are switching from Fidelity?

Post by minesweep » Sat Oct 05, 2019 10:05 am

I switched my Fidelity 401K to a Vanguard IRA in 2001 when I retired. I had a taxable account and a small IRA with Vanguard at the time. So now all of my investments are with Vanguard. I like the idea of one stop shopping.

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Re: How many are switching from Fidelity?

Post by PatrickA5 » Sat Oct 05, 2019 10:13 am

Only the heavy traders will care about no commissions. All of our money is in MF's. It would be interesting to know what percentage of FIDO customers make significant trades? Those people might leave.

Seems like back in my day trading days (early 2000's), I was paying $12 per trade. My commission cost was a very small part of my overall losses. :x

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Re: How many are switching from Fidelity?

Post by ruralavalon » Sat Oct 05, 2019 10:16 am

abuss368 wrote:
Sat Oct 05, 2019 9:59 am
We are staying with Vanguard and always will. In fact moving to Vanguard was the best financial decision we ever made.
+ 1.

I recall being so thrilled when I was able to do an in-service rollover of my expensive 401k into a Vanguard IRA.

abuss368 wrote:
Sat Oct 05, 2019 10:01 am
Is Vanguard perfect? No. I would be willing to assume that they are aware of the needs and issues and will correct.

I wish they would tackle banking like they have investing. I would have everything there.
I have always wondered why some want an excellent fund company to also be a bank.

We use a bank with a branch our home for banking functions (joint checking account, credit cards, debit cards). Any issues, like lost or misplaced cards, can be fully resolved (you walk out with a replacement card) in a 5 minute visit to the branch.
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Re: How many are switching from Fidelity?

Post by Spirit Rider » Sat Oct 05, 2019 10:17 am

johan851 wrote:
Fri Oct 04, 2019 8:32 pm
Some of us use ETFs instead of mutual funds, which means executing trades on every contribution, withdrawal, tax loss harvest, etc.
If you are making contributions more than once/month it is just noise. If you are making more than just one contribution to the asset class farthest away from your asset allocation it is just noise. With 12 base trades a year, < $100 in transaction costs are just noise.

Most brokerages have broad market ETF index funds available with no commissions. If $0 matter to you, you are doing something wrong.

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Re: How many are switching from Fidelity?

Post by retiredjg » Sat Oct 05, 2019 10:26 am

Boilermaker10 wrote:
Fri Oct 04, 2019 8:21 pm
Just curious how many Bogleheads are switching from fidelity to TD Ameritrade, Schwab, or ETrade with the dropping of commission fees?
I doubt that many who believe the Boglehead mantra will move from where they are because most are not paying commissions anyway. One could get all the components that most Bogleheads are interested in - without commissions - at Vanguard, Fidelity, or Schwab before these recent changes. This would include 3 funders as well as tilters.

Even the Bogleheads who buy individual stocks probably don't trade all that much. I can see someone moving a messy portfolio to one of these places to get the necessary free trades to clean up the portfolio though.

If you are paying commissions at Vanguard and Fidelity, you might look at what you are choosing to buy instead of changing brokerages. Since you are so new here, it is possible you might be changing your investment philosophy in the next few months....and find that moving is not needed.

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Re: How many are switching from Fidelity?

Post by pkjr » Sat Oct 05, 2019 10:36 am

I moved one account which I use to sell calls against positions to generate income.
I also prefer Schwab website especially front page with added charts for monthly income received

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Re: How many are switching from Fidelity?

Post by 2pedals » Sat Oct 05, 2019 10:36 am

Trading stocks is not my thing. Zero fee mutual funds, NTF funds mutual funds are plentiful and iShares ETFs are commission free. I like the %2 cash reward visa, customer service and "free ATM usage"* especially when I travel. *If only I can get DW to always to remember use it when she wants cash or goes shopping without me when traveling.

For a long time I had a small amount in Scott Trade now TD Ameritrade account that used once to keep accounts separate and to "test the waters". I didn't really care for it so I closed it after I did need to keep things separate anymore.

At this point I see no value in switching. So not switching.
Last edited by 2pedals on Sat Oct 05, 2019 10:40 am, edited 1 time in total.

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Re: How many are switching from Fidelity?

Post by LadyGeek » Sat Oct 05, 2019 10:38 am

This thread is now in the Investing - Theory, News & General forum (general discussion).
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Re: How many are switching from Fidelity?

Post by SevenBridgesRoad » Sat Oct 05, 2019 10:40 am

abuss368 wrote:
Sat Oct 05, 2019 9:59 am
We are staying with Vanguard and always will. In fact moving to Vanguard was the best financial decision we ever made.
Similar feelings here. Had accounts at Vanguard and Fidelity because of employer. Moved everything from Fidelity to Vanguard upon retirement.
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Re: How many are switching from Fidelity?

Post by Turbo29 » Sat Oct 05, 2019 10:47 am

I read that Schwab derives $100 million/qtr and E*trade $75million/qtr from trading fees. They are going to have to make up for this somehow.

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Re: How many are switching from Fidelity?

Post by Whakamole » Sat Oct 05, 2019 10:56 am

ruralavalon wrote:
Sat Oct 05, 2019 8:53 am
Fidelity already offers free trades on BlackRock iShares ETFs. What else does anyone really need for ETFs?
The nice thing about having multiple NTF ETFs/funds that track similar indices is that it makes TLH easier. At Vanguard, you can switch from VTI to ITOT to SPTM to SCHB if the market keeps going down and not have to worry about a wash sale since they all track different indices.

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Re: How many are switching from Fidelity?

Post by TBillT » Sat Oct 05, 2019 11:04 am

Good question....the other thing to look at might be money market fund performance.
Right now FiDo is givng us lots of free trades re: moving money over there which we just happen to be doing due to an inheritance of a whole bunch of small stock positions...so right now that is OK.

I do nothing short term but if it appears FiDo non-compeitive long term it makes sense.

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Re: How many are switching from Fidelity?

Post by Sand101 » Sat Oct 05, 2019 11:11 am

JohnSmith123 wrote:
Sat Oct 05, 2019 12:51 am
It is $5/trade. Do 50 trades a year = $250/year.
Noise in the whole scheme of things if your portfolio >$100k. Yes it is .25%, but missing the bigger picture on the error % of the trades which is probably much bigger than this.
I read that part of the way they're affording the move to 0 trading fees is selling order flow. Obviously someone saw value in buying order flow to capture the spread. Part of the equation is how much leakage there is here compared to the way Fidelity executes trades. I have no idea what that is - perhaps the execution Fidelity provides offers some of that $5 back?

KyleAAA
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Re: How many are switching from Fidelity?

Post by KyleAAA » Sat Oct 05, 2019 11:11 am

Nah, they already have free ishares trades. My tax deferred accounts are all at vanguard where I can buy non-ishares ETFs commission free. In taxable, ishares are all I need.

danaht
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Re: How many are switching from Fidelity?

Post by danaht » Sat Oct 05, 2019 11:15 am

johan851 wrote:
Fri Oct 04, 2019 8:32 pm
JoMoney wrote:
Fri Oct 04, 2019 8:27 pm
I find it interesting that there are Bogleheads that trade individual stocks so much that "free" brokerage commission is of value...
Some of us use ETFs instead of mutual funds, which means executing trades on every contribution, withdrawal, tax loss harvest, etc.

I like Fidelity and plan to stay.
Agree 100%. Making most ETFs commission free is also my main reason. I would much rather buy VEA than IDEV... etc. I would be very happy if they at least match Vanguard to expand their commission free ETFs to include most ETFs.

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