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Post by roi2020 on Sept 1, 2021 17:35:47 GMT
"After decades of price chopping, Charles Schwab & Co. is jacking up the commissions it charges retail clients to buy Vanguard Group, Fidelity Investments and Dodge & Cox mutual funds amid other fund commissions it is reducing or eliminating.The Westlake, Texas, brokerage is raising the price 50%, from $49.95 to $74.95, because it says the three fund providers refuse to pay for recordkeeping and other administrative services."
Fidelity already has $75.00 transaction fees to purchase (not sell) Vanguard and Dodge & Cox funds.
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Post by yogibearbull on Sept 1, 2021 21:05:29 GMT
It makes sense that fund firms that have their own huge distribution arms (Fido, Vanguard) won't pay distribution fees to fund marketplaces (they in fact have their own fund marketplaces too). What these fund marketplaces have done is that they have provided outlets to many tiny/small/midsize fund firms that don't have to make huge investments in developing their own distribution arms. So, they are happy to pay fund marketplaces anywhere from 0.25-0.50% portion/cut from their ERs to be listed on NTF platforms, and much less to be listed TF platforms.
It seems to me that charges for listing on TF platforms may be nominal. So, Schwab won't really get rich on charging $25 extra on buys (none on sales) for funds from a handful of firms - it could have easily ignored this, or applied a slight higher TF to all.
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Post by Chahta on Sept 5, 2021 13:39:53 GMT
I use Schwab (or other less "major" brand) funds/ETFs where possible. In most cases they are as good or better than the opposition. I suppose some will always want to buy the "name brand". If they see their inflows shrinking then they may change their minds. It's all business....
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Post by yogibearbull on Sept 5, 2021 13:50:08 GMT
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