Change to Fidelity excessive trading policy

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FIREchief
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Joined: Fri Aug 19, 2016 6:40 pm

Change to Fidelity excessive trading policy

Post by FIREchief »

I think this is welcomed news. Trades over $1000 used to be subject to round trip restrictions. It appears that this was increased to $10,000 late last year. This won't necessarily simplify large TLH transactions, but it will be helpful for some of our more routine buy and sell orders. I hadn't seen this posted on the forum previously.
Fidelity is amending its excessive trading policy by increasing the $1,000 per trade monitoring threshold to $10,000 for mutual funds. This change will significantly reduce smaller dollar and less impactful round-trip transactions from impacting shareholders’ abilities to purchase Fidelity Funds while continuing to protect the funds and the funds’ long-term shareholder interests. The change goes into effect in Q4 of 2020.
https://www.fidelity.com/bin-public/060 ... b-Post.pdf
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JonnyDVM
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Re: Change to Fidelity excessive trading policy

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FIREchief wrote: Mon Feb 22, 2021 2:47 pm I think this is welcomed news. Trades over $1000 used to be subject to round trip restrictions. It appears that this was increased to $10,000 late last year. This won't necessarily simplify large TLH transactions, but it will be helpful for some of our more routine buy and sell orders. I hadn't seen this posted on the forum previously.
Fidelity is amending its excessive trading policy by increasing the $1,000 per trade monitoring threshold to $10,000 for mutual funds. This change will significantly reduce smaller dollar and less impactful round-trip transactions from impacting shareholders’ abilities to purchase Fidelity Funds while continuing to protect the funds and the funds’ long-term shareholder interests. The change goes into effect in Q4 of 2020.
https://www.fidelity.com/bin-public/060 ... b-Post.pdf
This would have been useful to me a year ago when I was frantically flipping bonds into equities and they hit me with restrictions for making too many round trips. It was a blessing in disguise. Not being able to buy fidelity funds for a while led me to some other things that have worked out to be significantly more profitable.
I’d trade it all for a little more | -C Montgomery Burns
GoneOnTilt
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Joined: Fri Sep 28, 2018 4:59 pm

Re: Change to Fidelity excessive trading policy

Post by GoneOnTilt »

FIREchief wrote: Mon Feb 22, 2021 2:47 pm I think this is welcomed news. Trades over $1000 used to be subject to round trip restrictions. It appears that this was increased to $10,000 late last year. This won't necessarily simplify large TLH transactions, but it will be helpful for some of our more routine buy and sell orders. I hadn't seen this posted on the forum previously.
Fidelity is amending its excessive trading policy by increasing the $1,000 per trade monitoring threshold to $10,000 for mutual funds. This change will significantly reduce smaller dollar and less impactful round-trip transactions from impacting shareholders’ abilities to purchase Fidelity Funds while continuing to protect the funds and the funds’ long-term shareholder interests. The change goes into effect in Q4 of 2020.
https://www.fidelity.com/bin-public/060 ... b-Post.pdf
I just read this memo online, and this is great news and important for Fidelity customers to know. That's why I'm bumping this up even though it's an older post. Until the other day I was still under the impression that the monitoring limit was $1,000. The increase to $10,000 was, perhaps understandably, not well advertised.

This will make it much easier for me to access money in my taxable account when needed and to rebalance when needed as well.
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