How many are switching from Fidelity?

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CardinalRule
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Re: How many are switching from Fidelity?

Post by CardinalRule » Sat Oct 05, 2019 12:18 pm

I do some of that too, in a couple of accounts. I was glad to see that assignment fees are also zero for TD Ameritrade now, for those cases when a position actually gets called. Some brokers, like TD Ameritrade and Wells Fargo Advisors, have charged me absurdly high commissions in the past, for what amounts to basically a bookkeeping entry. I've always liked that Fidelity charges just a standard ($4.95) commission for option assignments.
pkjr wrote:
Sat Oct 05, 2019 10:36 am
I moved one account which I use to sell calls against positions to generate income.

Lee_WSP
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Re: How many are switching from Fidelity?

Post by Lee_WSP » Sat Oct 05, 2019 12:23 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...
When you make weekly contributions, that is 52x trades per year. Sure, you can trade their free funds & ETF's, but what if I don't want to? I currently only trade non-free funds as little as possible (not at all if I can avoid it), but if I had a choice, I'd trade once a week.
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.
I'd be happy with 50 free trades per year. Or like 1 per month or some small token "we appreciate your business" gesture.

Pow
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Re: How many are switching from Fidelity?

Post by Pow » Sat Oct 05, 2019 1:12 pm

I see multiple responses mention 2% cashback credit card. If you like that then you would love Bank of America’s 2.625% card. Need 100K+ in assets at Merrill to qualify for highest tier.

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abuss368
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Re: How many are switching from Fidelity?

Post by abuss368 » Sat Oct 05, 2019 1:17 pm

ruralavalon wrote:
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.
I guess when I was with eTrade (but that was picking individual stocks back then) I had all investment and banking (including loans) on one simple website. At the time that was very nice and one can get used to that quickly.
John C. Bogle: "Simplicity is the master key to financial success."

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abuss368
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Re: How many are switching from Fidelity?

Post by abuss368 » Sat Oct 05, 2019 1:18 pm

SevenBridgesRoad wrote:
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.
Any time I have left an employer and rolled the accounts to Vanguard it was a nice feeling. Someday when retired, things should be much more simple and easier.
John C. Bogle: "Simplicity is the master key to financial success."

MotoTrojan
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Re: How many are switching from Fidelity?

Post by MotoTrojan » Sat Oct 05, 2019 1:21 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...
+1 CMA and a linked brokerage (higher yielding MM on direct deposits) forms my primary checking and savings combined account. No other assets held there though.

MotoTrojan
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Re: How many are switching from Fidelity?

Post by MotoTrojan » Sat Oct 05, 2019 1:23 pm

Pow wrote:
Sat Oct 05, 2019 1:12 pm
I see multiple responses mention 2% cashback credit card. If you like that then you would love Bank of America’s 2.625% card. Need 100K+ in assets at Merrill to qualify for highest tier.
Or if you spend mostly on dining, travel, or gas you can get 3-4.5% easily with Wells Fargo (4.5% if spent on airfare, not cash).

DrCheese
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Re: How many are switching from Fidelity?

Post by DrCheese » Sat Oct 05, 2019 1:29 pm

Yeah, I will be moving my stocks to Schwab. However, I will be keeping my IRA and HSA at Fidelity.

No commission trades plus the bonus is enough to make me switch. Easy $1,200 (minus taxes).

Bonus link: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit

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RootSki
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Re: How many are switching from Fidelity?

Post by RootSki » Sat Oct 05, 2019 1:34 pm

Nope. Not even thinking about leaving Fidelity. I’ll take zero ER over “free” equity trades.

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Leif
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Re: How many are switching from Fidelity?

Post by Leif » Sat Oct 05, 2019 1:42 pm

I will not be changing anything. If I could buy Vanguard funds (admiral) at Fidelity for free (no $75 out of network fee) they would get more of my business. I prefer MF to ETFs. Saving $5 on the ETF would not attract me.

bondsr4me
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Re: How many are switching from Fidelity?

Post by bondsr4me » Sat Oct 05, 2019 1:48 pm

I'm waiting to see what Fidelity's response is.

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Leif
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Re: How many are switching from Fidelity?

Post by Leif » Sat Oct 05, 2019 2:08 pm

I listened to an interesting podcast on Morningstar. They said the result of a "free" trades might be they will outsource their trade which could result in poor buy/sell execution by the third party.

Are No-Commission Trades Good for Investors?
Last edited by Leif on Sat Oct 05, 2019 3:10 pm, edited 2 times in total.

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ruralavalon
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Re: How many are switching from Fidelity?

Post by ruralavalon » Sat Oct 05, 2019 2:24 pm

Leif wrote:
Sat Oct 05, 2019 2:08 pm
I listened to an interesting podcast on Morningstar. They said the result of a "free" ETF might me they will outsource their trade which could result in poor buy/sell execution by the third party.
There is an interesting article by Jason Zweig in today's Wall Street Journal "Your Stock Trades Go Free but Your Cash Is in Chains".

The Zweig article points out that Schwab nicks you by putting you in their very low interest bank accounts rather than higher interest money market funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Alan S.
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Re: How many are switching from Fidelity?

Post by Alan S. » Sat Oct 05, 2019 2:39 pm

The financial industry expects that the brokerages who have made the most drastic commission cuts will have to replace that commission income in some manner. Most expect it to be with staff cuts and that equates to service erosion.

Even if you calculate your annual commission savings (less the small amount of additional cap gains tax you will owe), and it appears worth a move, why not wait a couple months to see if Fidelity eventually matches the others? If so, it saves you the hassle of transferring accounts.

ncage
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Re: How many are switching from Fidelity?

Post by ncage » Sat Oct 05, 2019 3:42 pm

My investment style is a lot different than most people here. I still like the forums because there is some excellent info on here. I invest primarily in undervalued high quality blue chip dividend growth stocks. I just don't index. I'm by no means a high volume trader but i probably do 6-7 trades a month. I will probably give fidelity until November 1st then i will start moving some of my accounts. I'm not sure who i'm going to go with at this point but i'm looking at schwab, tdameritrade, & ibkr. What i need to decide if i every want to dable in day trading (with a small amount of money for fun more than anything else). If i do tdameritrade with thinkorswim or ibrk (upgrading my account to pro) would probably be better options. I agree with everyone else that fidelity support has been excellent but i heard schwab support is also excellent. For the few times i've had to call them not worth spending ~$420 a year.

I've actually used robinhood for some free trades. Although i think they have one of the best mobile apps their services suck. No DRIP, NO IRA/Roth, ect. I've been using firstrade some. Their mobile app i would say is just barely ok. Its good enough to do the limited amount of order i need i guess. Their website is better and they give you access to morningstar research which is great. Their support is decent but kind of can be hard to understand they support reps because they have a heavy asian accent. So while these options have been servicable i'm happy to move my money for these accounts to a more reputable broker.

I do need to do some research on which broker has the best tools. Fidelity tools are descent and i'll probably keep a little money in firstrade just for access to the morningstar feed.

i will probably keep my fidelity cash management account for awhile because of how big in a pain it is to change your checking account and all your bill pay stuff. The inconvenience is the transfer speed. When everything is almost in the same institution of course its almost instantaneous. Otherwise its usually 5 business days. I remember scwab having a pretty comparable checking account feature on their accounts too though.

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Re: How many are switching from Fidelity?

Post by sperry8 » Sat Oct 05, 2019 3:51 pm

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 would switch, but not just because. It would take a promo to get me to do so. I've heard some others claim they got offered a promo from Schwab to move funds to them. If they offered this to me (they have never offered me a promo) I'd switch. Otherwise staying where I am for now.
BH contest results: 2018: #150 of 493 | 2017: #516 of 647 | 2016: #121 of 610 | 2015: #18 of 552 | 2014: #225 of 503 | 2013: #383 of 433 | 2012: #366 of 410 | 2011: #113 of 369 | 2010: #53 of 282

DrCheese
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Re: How many are switching from Fidelity?

Post by DrCheese » Sat Oct 05, 2019 4:34 pm

sperry8 wrote:
Sat Oct 05, 2019 3:51 pm
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 would switch, but not just because. It would take a promo to get me to do so. I've heard some others claim they got offered a promo from Schwab to move funds to them. If they offered this to me (they have never offered me a promo) I'd switch. Otherwise staying where I am for now.
Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit

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sperry8
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Re: How many are switching from Fidelity?

Post by sperry8 » Sat Oct 05, 2019 4:41 pm

DrCheese wrote:
Sat Oct 05, 2019 4:34 pm
sperry8 wrote:
Sat Oct 05, 2019 3:51 pm
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 would switch, but not just because. It would take a promo to get me to do so. I've heard some others claim they got offered a promo from Schwab to move funds to them. If they offered this to me (they have never offered me a promo) I'd switch. Otherwise staying where I am for now.
Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit
Thanks! If Schwab counts in-kind fund transfers, then I'll be switching asap.
BH contest results: 2018: #150 of 493 | 2017: #516 of 647 | 2016: #121 of 610 | 2015: #18 of 552 | 2014: #225 of 503 | 2013: #383 of 433 | 2012: #366 of 410 | 2011: #113 of 369 | 2010: #53 of 282

jjface
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Re: How many are switching from Fidelity?

Post by jjface » Sat Oct 05, 2019 4:45 pm

If it was free vanguard mutual fund purchases outside of vanguard I'd be moving in a heartbeat. Free trades meh.

2commaBH
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Re: How many are switching from Fidelity?

Post by 2commaBH » Sat Oct 05, 2019 5:59 pm

I am waiting to see what Fidelity does (someone else said Nov 1, I will likely not wait that long - if they don't cut by 10/15 I don't think they will). I have a few accounts at Fidelity, although the bulk of our assets are at VG. One of the accounts at Fidelity is my "play account", where I do a good bit of active trading. I would rather just leave it where it is, but I do enough trading in my "play account" that it's worth it to switch.

As far as where to move it, I used TDA in the past, but it seems they have fees on 30-day ETF buy/sells, which I don't love. Schwab didn't seem to have that cost so I may choose them, although I'll miss the better Fidelity MMF rates.

I'm hoping Fidelity just steps up to the plate, we'll see.

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Re: How many are switching from Fidelity?

Post by indexfundfan » Sat Oct 05, 2019 6:05 pm

2commaBH wrote:
Sat Oct 05, 2019 5:59 pm
I am waiting to see what Fidelity does (someone else said Nov 1, I will likely not wait that long - if they don't cut by 10/15 I don't think they will). I have a few accounts at Fidelity, although the bulk of our assets are at VG. One of the accounts at Fidelity is my "play account", where I do a good bit of active trading. I would rather just leave it where it is, but I do enough trading in my "play account" that it's worth it to switch.

As far as where to move it, I used TDA in the past, but it seems they have fees on 30-day ETF buy/sells, which I don't love. Schwab didn't seem to have that cost so I may choose them, although I'll miss the better Fidelity MMF rates.

I'm hoping Fidelity just steps up to the plate, we'll see.
According to feedback in the TDA thread, the short term trading fee has been eliminated.
My signature has been deleted.

CrossOverGuy
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Re: How many are switching from Fidelity?

Post by CrossOverGuy » Sat Oct 05, 2019 6:17 pm

Is this going to be something of a "loss leader" the way supermarkets rotate what they have on sale each week? How are they going to make money? Are they going to try to add some sneaky fees elsewhere? One of the big things historically is that whether the market went up or down didn't necessarily matter in the long run to the financial institutions since they were going to get paid from everyone buying stocks whether they were buying in greed or selling in fear (or for other reasons, of course). How are they making their money? In mutual funds, there is the ER, which because of competition and popularity of Vanguard index funds and others is now decreasing, as well as active funds since ER is more openly discussed (though other fees may not be).
Last edited by CrossOverGuy on Sun Oct 06, 2019 4:07 pm, edited 1 time in total.

usagi
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Re: How many are switching from Fidelity?

Post by usagi » Sat Oct 05, 2019 6:34 pm

This happened at an opportune time. I am very pro Fido and have been consolidating at Fidelity for years and was just starting to transfer from TDA to Fido then the commission free thing happened. I contacted my Fido assigned account rep and all he could say was he would give me some more free trades but that is dependent on his generosity and company policy. So I decided to keep my current TDA allocation for now, in addition I transferred an additional 300K to TDA with 200K more to follow. I would take the identity theft risk of opening a new account, but given I already have one I see no reason not to take advantage of free, it will buy me two pizzas or amonths supply of Mexican Pepsi at least (I tend to view things as how many pizzas or bottles of Mexican Pepsi I can buy when making purchase decisions - LOL).

Fido's loss is my waist's caloric gain and transfer will not change my tier status at Fido.
Last edited by usagi on Sat Oct 05, 2019 6:45 pm, edited 1 time in total.

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nedsaid
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Re: How many are switching from Fidelity?

Post by nedsaid » Sat Oct 05, 2019 6:40 pm

I am very pleased with Fidelity. No plans to switch.
A fool and his money are good for business.

hudson
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Re: How many are switching from Fidelity?

Post by hudson » Sat Oct 05, 2019 7:23 pm

Vanguard holds most of my funds/etfs. I can't see moving from Vanguard.

Since I heard many good things about Fidelity's website and service, I signed up for an account. I wanted the ability to buy fixed income products from Fidelity. Fidelity does have first class service and a great website!
I also got the 2% Visa card.

Vanguard also has great service and a great website. I'd give Fidelity an A+ and Vanguard an A in both categories.

The Fidelity Visa card does have a drawback for those who pay their balance as soon as the end of the month bill shows on the website. When you make an online payment, you can sign up for an email notice, but the payment does not show up anywhere online. If one pays on Friday night, the payment may not show up until Monday night. Those who are hyper and have short memories can pay the balance twice. All other credit card companies that I deal with show payments immediately under "pending transactions". I learned all of this the hard way.
Last edited by hudson on Sat Oct 05, 2019 7:46 pm, edited 5 times in total.

557880yvi
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Re: How many are switching from Fidelity?

Post by 557880yvi » Sat Oct 05, 2019 7:35 pm

sperry8 wrote:
Sat Oct 05, 2019 4:41 pm


Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit

Just read the fine print on the offer. The "Bonus" is taxable and you will receive a 1099-INT. You must also maintain the bonused level of assets in the account for 12 months or they will take back the bonuse.

ncage
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Re: How many are switching from Fidelity?

Post by ncage » Sat Oct 05, 2019 7:49 pm

CrossOverGuy wrote:
Sat Oct 05, 2019 6:17 pm
Is this going to be something of a "loss leader" the way supermarkets rotate what they have on sale each week? How are they going to make money? Are they going to try to add some sneaky fees elsewhere? One of the big things historically is that whether the market went up or down didn't necessarily matter in the long run to the financial institutions since they were going to get paid from everyone buying stocks whether they were buying in greed or selling in fear (or for other reasons, of course). How are they making their money? In mutual funds, there is the ER, which because of competition and popularity of Vanguard index funds and others is now now decreasing, as well as active funds since ER is more openly discussed (though other fees may not be).
There are ways for them to make money. For example many of the discount brokers (i can't tell you which ones for sure) sell your orders to market makers which can front front your trades. Sure they might make a penny or two per share but if free trades gets you to trade more and depending on how many shares are in you buy/sell they could make quite a bit. This is essentially how robinhood makes moneys. I think its a fair trade. Ya your excecutions aren't nearly as good but for long term investors this isn't going to make much difference. For day traders it would. They also have a credit card, make a small amount of money off of your idle cash, and possibly other things depending on what services they offer.

ARoseByAnyOtherName
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Re: How many are switching from Fidelity?

Post by ARoseByAnyOtherName » Sat Oct 05, 2019 8:29 pm

Pow wrote:
Sat Oct 05, 2019 1:12 pm
I see multiple responses mention 2% cashback credit card. If you like that then you would love Bank of America’s 2.625% card. Need 100K+ in assets at Merrill to qualify for highest tier.
Can I get 2.625% at Bank of America without putting 100K in assets at Merrill?

I‘m not going to open an account at Merrill. What’s the cash back in that case? Is it greater than 2%?

ncage
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Re: How many are switching from Fidelity?

Post by ncage » Sat Oct 05, 2019 8:39 pm

ARoseByAnyOtherName wrote:
Sat Oct 05, 2019 8:29 pm
Pow wrote:
Sat Oct 05, 2019 1:12 pm
I see multiple responses mention 2% cashback credit card. If you like that then you would love Bank of America’s 2.625% card. Need 100K+ in assets at Merrill to qualify for highest tier.
Can I get 2.625% at Bank of America without putting 100K in assets at Merrill?

I‘m not going to open an account at Merrill. What’s the cash back in that case? Is it greater than 2%?
Please someone post a link to this card. I'm assuming no annual fee? Is it 2.625% on everything?

2commaBH
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Re: How many are switching from Fidelity?

Post by 2commaBH » Sat Oct 05, 2019 10:27 pm

indexfundfan wrote:
Sat Oct 05, 2019 6:05 pm
2commaBH wrote:
Sat Oct 05, 2019 5:59 pm
I am waiting to see what Fidelity does (someone else said Nov 1, I will likely not wait that long - if they don't cut by 10/15 I don't think they will). I have a few accounts at Fidelity, although the bulk of our assets are at VG. One of the accounts at Fidelity is my "play account", where I do a good bit of active trading. I would rather just leave it where it is, but I do enough trading in my "play account" that it's worth it to switch.

As far as where to move it, I used TDA in the past, but it seems they have fees on 30-day ETF buy/sells, which I don't love. Schwab didn't seem to have that cost so I may choose them, although I'll miss the better Fidelity MMF rates.

I'm hoping Fidelity just steps up to the plate, we'll see.
According to feedback in the TDA thread, the short term trading fee has been eliminated.
Interesting, thank you!

2commaBH
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Location: SFBA

Re: How many are switching from Fidelity?

Post by 2commaBH » Sat Oct 05, 2019 10:29 pm

557880yvi wrote:
Sat Oct 05, 2019 7:35 pm
sperry8 wrote:
Sat Oct 05, 2019 4:41 pm


Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit

Just read the fine print on the offer. The "Bonus" is taxable and you will receive a 1099-INT. You must also maintain the bonused level of assets in the account for 12 months or they will take back the bonuse.
What if you only move tax-free accounts?

Cash
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Re: How many are switching from Fidelity?

Post by Cash » Sun Oct 06, 2019 6:30 am

I love Fidelity, but they need to match this. They aren’t so different that I’m willing to pay more to stay. Schwab is basically the same. Higher rates on the sweep account don’t mean much to me bc I keep all cash invested or in FZEXX.

ARoseByAnyOtherName
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Re: How many are switching from Fidelity?

Post by ARoseByAnyOtherName » Sun Oct 06, 2019 7:49 am

ncage wrote:
Sat Oct 05, 2019 8:39 pm
ARoseByAnyOtherName wrote:
Sat Oct 05, 2019 8:29 pm
Pow wrote:
Sat Oct 05, 2019 1:12 pm
I see multiple responses mention 2% cashback credit card. If you like that then you would love Bank of America’s 2.625% card. Need 100K+ in assets at Merrill to qualify for highest tier.
Can I get 2.625% at Bank of America without putting 100K in assets at Merrill?

I‘m not going to open an account at Merrill. What’s the cash back in that case? Is it greater than 2%?
Please someone post a link to this card. I'm assuming no annual fee? Is it 2.625% on everything?
This looks like a good overview of these Bank of America cards:
https://thewirecutter.com/money/credit- ... ds-review/

$95 annual fee and $100K in assets at BoA/Merrill gets you 2.625% cash back.

Compare to the Fidelity 2% back (on everything) credit card. Assuming a spend of $3,000 a month on the credit card, straight 2% cash back will result in $720 a year / $60 a month cash back.

With this Bank of America credit card, the same $3,000 a month spend will give you $859 a year / $71.58 a month cash back (after annual fee).

Now the BoA credit card does give additional cash back on travel and dining, it seems, which I didn't count at all in the numbers above because those aren't regular or large spending categories for me.

All the numbers above can be adjusted to taste. Bottom line, for me it's not worth it to open an account with yet another brokerage for the small amount of extra $$$ that would result.

How about you?

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indexfundfan
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Re: How many are switching from Fidelity?

Post by indexfundfan » Sun Oct 06, 2019 8:01 am

ncage wrote:
Sat Oct 05, 2019 8:39 pm
ARoseByAnyOtherName wrote:
Sat Oct 05, 2019 8:29 pm
Pow wrote:
Sat Oct 05, 2019 1:12 pm
I see multiple responses mention 2% cashback credit card. If you like that then you would love Bank of America’s 2.625% card. Need 100K+ in assets at Merrill to qualify for highest tier.
Can I get 2.625% at Bank of America without putting 100K in assets at Merrill?

I‘m not going to open an account at Merrill. What’s the cash back in that case? Is it greater than 2%?
Please someone post a link to this card. I'm assuming no annual fee? Is it 2.625% on everything?
The BofA Travel Rewards card has no annual fee and pays 2.625% on everything if you have $100k with BofA/Merrill. But the points are intended for travel expenses.

https://www.bankofamerica.com/credit-ca ... dit-cards/
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student
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Re: How many are switching from Fidelity?

Post by student » Sun Oct 06, 2019 8:25 am

sperry8 wrote:
Sat Oct 05, 2019 4:41 pm
DrCheese wrote:
Sat Oct 05, 2019 4:34 pm
sperry8 wrote:
Sat Oct 05, 2019 3:51 pm
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 would switch, but not just because. It would take a promo to get me to do so. I've heard some others claim they got offered a promo from Schwab to move funds to them. If they offered this to me (they have never offered me a promo) I'd switch. Otherwise staying where I am for now.
Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit
Thanks! If Schwab counts in-kind fund transfers, then I'll be switching asap.
I don't see why not. From my limited experience, it does. If you find out, please let us know.

danaht
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Re: How many are switching from Fidelity?

Post by danaht » Sun Oct 06, 2019 9:03 am

ETrade and Schwab still charge a $25 fee to do partial outbound stock transfers. TD Ameritrade appears to be the best deal so far - since they still have a $0 partial transfer. I like to transfer ETFs/stocks to/from brokerages for Roth conversions and so this would be important to me. If Fidelity changed to $0 - then they would also be a great option.

Now, I think there will be some consequences of going to $0 commission for Fidelity. I suspect that Fidelity's "active traders" would lose some of the "free" benefits such as the free copy of Turbo Tax Premium every year. So - be careful for what you wish for!

hmw
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Re: How many are switching from Fidelity?

Post by hmw » Sun Oct 06, 2019 9:09 am

I have no plan to transfer my money from Fidelity. I make so few trades in my Fidelity account that free trades has very little value to me. However, I am not putting any new money into Fidelity either. Fidelity used to offer American airline points if I transfer $50k or $100k which was nice. I can get some bonus in the order of $200 to $300 if I put new money into TDA. I hope that TDA will not terminate the bonus program after they started offering free trading.

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CardinalRule
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Re: How many are switching from Fidelity?

Post by CardinalRule » Sun Oct 06, 2019 9:10 am

I was a little surprised, not being an investor in brokerage stocks, by some of the facts that were highlighted in the reporting (like the Wall Street Journal) on the move by Schwab (followed by other Ameritrade et al). Commissions only represented 7% of Schwab's revenues. They have been a bigger deal for TD Ameritrade and E*TRADE (one quarter and one fifth of revenues, respectively), but there are clearly a lot of other revenue streams, such as lucrative margin interest spreads and payments for order flow, for the brokers. They really count on investor inertia when it comes to idle cash in sweep accounts that pay essentially nothing. :moneybag
CrossOverGuy wrote:
Sat Oct 05, 2019 6:17 pm
How are they going to make money? Are they going to try to add some sneaky fees elsewhere? One of the big things historically is that whether the market went up or down didn't necessarily matter in the long run to the financial institutions since they were going to get paid from everyone buying stocks whether they were buying in greed or selling in fear (or for other reasons, of course). How are they making their money?
Last edited by CardinalRule on Sun Oct 06, 2019 10:10 am, edited 1 time in total.

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indexfundfan
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Re: How many are switching from Fidelity?

Post by indexfundfan » Sun Oct 06, 2019 9:37 am

danaht wrote:
Sun Oct 06, 2019 9:03 am
ETrade and Schwab still charge a $25 fee to do partial outbound stock transfers. TD Ameritrade appears to be the best deal so far - since they still have a $0 partial transfer. I like to transfer ETFs/stocks to/from brokerages for Roth conversions and so this would be important to me.
Schwab has $25 for partial ACAT out.

Etrade's partial ACAT out fee is $0 if you leave at least $5000.
https://us.etrade.com/what-we-offer/pricing-and-rates

Merrill Edge and TDA are both $0 for partial ACAT out.
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hmw
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Re: How many are switching from Fidelity?

Post by hmw » Sun Oct 06, 2019 10:12 am

student wrote:
Sun Oct 06, 2019 8:25 am
sperry8 wrote:
Sat Oct 05, 2019 4:41 pm
DrCheese wrote:
Sat Oct 05, 2019 4:34 pm
sperry8 wrote:
Sat Oct 05, 2019 3:51 pm
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 would switch, but not just because. It would take a promo to get me to do so. I've heard some others claim they got offered a promo from Schwab to move funds to them. If they offered this to me (they have never offered me a promo) I'd switch. Otherwise staying where I am for now.
Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit
Thanks! If Schwab counts in-kind fund transfers, then I'll be switching asap.
I don't see why not. From my limited experience, it does. If you find out, please let us know.
Has anyone gotten a retention bonus from Fidelity for not moving money to Schwab? I am tempted for get free money from Schwab.

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galawdawg
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Re: How many are switching from Fidelity?

Post by galawdawg » Sun Oct 06, 2019 10:32 am

jjface wrote:
Sat Oct 05, 2019 4:45 pm
If it was free vanguard mutual fund purchases outside of vanguard I'd be moving in a heartbeat. Free trades meh.
E*Trade has 110 Vanguard mutual funds with no transaction fees and no commissions. They also have Vanguard money market funds, offer cash management features and pay a cash bonus on new accounts, up to $2,500 on a $1 million transfer in. They also will have no commission on trades starting tomorrow.

jjface
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Re: How many are switching from Fidelity?

Post by jjface » Sun Oct 06, 2019 10:51 am

galawdawg wrote:
Sun Oct 06, 2019 10:32 am
jjface wrote:
Sat Oct 05, 2019 4:45 pm
If it was free vanguard mutual fund purchases outside of vanguard I'd be moving in a heartbeat. Free trades meh.
E*Trade has 110 Vanguard mutual funds with no transaction fees and no commissions. They also have Vanguard money market funds, offer cash management features and pay a cash bonus on new accounts, up to $2,500 on a $1 million transfer in. They also will have no commission on trades starting tomorrow.

Thanks! I'll give them a look.

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sperry8
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Re: How many are switching from Fidelity?

Post by sperry8 » Sun Oct 06, 2019 11:37 am

557880yvi wrote:
Sat Oct 05, 2019 7:35 pm
sperry8 wrote:
Sat Oct 05, 2019 4:41 pm


Schwab is offering you a promo: https://www.schwab.com/public/schwab/nn ... eward.html

Bonus tiers:

$200 bonus for $50,000–$99,999 deposit
$300 bonus for $100,000–$249,999 deposit
$600 bonus for $250,000–$499,999 deposit
$1,200 bonus for $500,000–$999,999 deposit
$2,500 bonus for $1,000,000+ deposit

Just read the fine print on the offer. The "Bonus" is taxable and you will receive a 1099-INT. You must also maintain the bonused level of assets in the account for 12 months or they will take back the bonuse.
One may or may not receive a 1099-INT form (I realize they say it - but there have been reports on certain offers that Schwab doesn't do it via FT). In any event $2,500 taxable or not is still worth the switch to me (assuming in-kind transfers are allowed). What do I care where my money sits? It got into Fido in the first place during the years when they offered airline miles to do so. If Schwab wants to pay me $2,500 to let it sit with them, I'm all for it and would struggle to understand why any buy and hold investor like most of us here wouldn't do the same. I plan to call them tomorrow to identify if in-kind is allowed to get the bonus. Once I have the answer I'll report back.
BH contest results: 2018: #150 of 493 | 2017: #516 of 647 | 2016: #121 of 610 | 2015: #18 of 552 | 2014: #225 of 503 | 2013: #383 of 433 | 2012: #366 of 410 | 2011: #113 of 369 | 2010: #53 of 282

ericcohen
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Re: How many are switching from Fidelity?

Post by ericcohen » Sun Oct 06, 2019 2:17 pm

I'm sitting tight for now. I have 60 something free trades with Fidelity. I will wait until I've used all those or they've expired and then reassess. If I had no free trades credited, I would probably be looking into moving. I have a TD Ameritrade account and I like it.

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jhfenton
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Re: How many are switching from Fidelity?

Post by jhfenton » Sun Oct 06, 2019 3:14 pm

galawdawg wrote:
Sun Oct 06, 2019 10:32 am
jjface wrote:
Sat Oct 05, 2019 4:45 pm
If it was free vanguard mutual fund purchases outside of vanguard I'd be moving in a heartbeat. Free trades meh.
E*Trade has 110 Vanguard mutual funds with no transaction fees and no commissions. They also have Vanguard money market funds, offer cash management features and pay a cash bonus on new accounts, up to $2,500 on a $1 million transfer in. They also will have no commission on trades starting tomorrow.
Thanks for the suggestion. It's interesting that they have so many Vanguard funds available (116) and that most of them (110) are NTF. Unfortunately, they don't have VEGBX/Vanguard Emerging Market Bond Admiral or VOHIX/Vanguard Ohio Long-Term Tax Exempt available for sale at all. And there are no equivalent ETFs available for those funds, or anything close.

Those two funds are likely to keep us at Vanguard.

As for the original question, I am not going to move my HSA from Fidelity, at least not as long as my 401(k) is also at Fidelity. It's just too easy to have them share a login. I also only have one position in my HSA anyway since it's a small account (~$50K), and it's easy enough to find one attractive fund at Fidelity. (I use FPADX/Fidelity Emerging Markets Index Fund at 7.5 bp.)

The alternative to the Fidelity HSA would be Lively+TD Ameritrade. I had my HSA there before I moved it to Fidelity when Fidelity initially offered their no-fee HSA. (Lively eventually matched Fidelity and dropped their $2.50/month fee, but I had already moved the account.)

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Rainier
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Re: How many are switching from Fidelity?

Post by Rainier » Sun Oct 06, 2019 5:08 pm

I likely will move some assets to Schwab. My SIMPLE is already there.

I will leave enough at Fido to stay a premium client though.

cheesepep
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Re: How many are switching from Fidelity?

Post by cheesepep » Sun Oct 06, 2019 6:22 pm

Fidelity is more akin to Schwab than it is to TD Ameritrade and Etrade, making most of their money through means other than commissions. It doesn't affect them much, but I'm assuming people with smaller and less complicated portfolios will have a mass exodus to Schwab which offers similar service but with $0 commission fees.

And then there is the RH group, ones who only joined it for free commissions but fed up talking to a robot with little to no customer service. Many of them will leave RH for one of the others now.

guyinlaw
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Re: How many are switching from Fidelity?

Post by guyinlaw » Sun Oct 06, 2019 7:03 pm

cheesepep wrote:
Sun Oct 06, 2019 6:22 pm
Fidelity is more akin to Schwab than it is to TD Ameritrade and Etrade, making most of their money through means other than commissions. It doesn't affect them much, but I'm assuming people with smaller and less complicated portfolios will have a mass exodus to Schwab which offers similar service but with $0 commission fees.
+1

I am moving part of my assets from Merrill Edge to Schwab.

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Artful Dodger
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Re: How many are switching from Fidelity?

Post by Artful Dodger » Mon Oct 07, 2019 4:07 pm

Happy with Fidelity. Website and customer service meet my needs. Most of my money is in zero or low cost index funds, some low cost managed funds, and CDs / bonds. Very few individual stocks. I'm in their Private Client group, and expect if i wanted 50 free trades, they'd give them to me.

Nummerkins
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Re: How many are switching from Fidelity?

Post by Nummerkins » Mon Oct 07, 2019 5:19 pm

I recently switched TO Fidelity. They gave me free trades and I think they will give them to most anyone who asks, especially if you mention wanting to leave. That said, I have used a single free trade since moving over.

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