I have an IRA at Vanguard in which I do not carry any free cash (i.e., like to stay fully invested). If I sell a Vanguard mutual fund in that IRA, is it possible to invest on the same day in a Vanguard ETF or do I have to wait until the mutual fund sale transaction settles? If same day purchase is allowed (presumably with a broker assistance), what percentage of the mutual fund balance is allowed to be used to purchase the ETF?
P.S.: I always used the exchange feature to swap Vanguard mutual funds but now I want to hold ETFs in that account. Vanguard customer service is not available on the weekends and holidays. Besides, it is good to know others' experience in case I get a customer service person new to Vanguard and does not know the rules.
Same exhausting protocol at Fidelity. In spite of the broker at Fidelity confirming that they will charge only online commission, I get charged sometimes $250 and then I have to call to get it corrected. Recently, at Fidelity I was charged $50 for auto investment, I had to talk to 5 people and correspond thru email twice and then speak with a supervisor that confirmed auto investment is still alive and credited $45. What is interesting is each customer service person gave me a different reason why the original charges were correct and would not let me speak to a supervisor. Both Fidelity errors happened this month. Vanguard is a lot better. I have made some suggestions for improvements and they actually implemented them - shocking for a big company like Vanguard.
P.S.: The telephone wait times are not very long at Vanguard as they have always been a remote broker and have adapted to Covid better than others.
Pleasantly surprised by Vanguard. These days when somebody does their job we are grateful to them - current state of affairs!
I was able to first buy an ETF in my Vangaurd IRA with no free cash. That told me how much I owe them to place a sell mutual fund order. After my ETF Order went through, I lost internet connection- we had power outage. (I still do not have internet connection). Vangaurd said No Problem and that I could sell mutual fund tomorrow to sync with the settlement of the ETF buy.
There have been times when Fido and/or Schwab have prevented me from entering a buy in IRA with message that sufficient cash is not available. If I were to redesign their websites, I would change that screen to another for a sell order to cover the buy.
I don't encounter this issue for my taxable a/c as those have margin capabilities.