Schwab Transaction Fee Mutual Funds

Observant1

Someone posted on another forum: "Some of my favorite funds at Schwab now have Transaction Fees
of $74.95, up from $49.95."

I spot-checked several TF funds at Schwab.
The Fund Facts & Fees section states: Schwab Transaction Fee Up to $74.95.
The specified dollar amount was previously $49.95 for these particular funds.
I didn't find any recent Schwab announcements regarding TF increases but didn't conduct an exhaustive search.

msf

I didn't find any recent Schwab announcements regarding TF increases

Nov 1, 2021:

The cost of buying any no-load fund that’s not on Schwab’s NTF list is $49.95.

At least that was the case until today. The $49.95 purchase-only transaction fee remains in place for most non-NTF funds. But retail investors who buy Vanguard, Dodge & Cox, or investor-class Fidelity funds via Schwab will pay more: $74.95.

https://soundmindinvesting.com/articles/schwab-increases-transaction-fees-for-vanguard-and-fidelity-funds

Observant1

Yes, Vanguard and D&C mutual fund TFs have been $74.95 for a while.
TFs for other firms' mutual funds were listed as being $49.95.
This no longer seems to be the case.
I checked the Fund Facts & Fees section for several "other" funds and it stated:
Schwab Transaction Fee Up to $74.95.
Not sure if TFs increased or if the verbiage just changed.

msf

The verbiage clearly changed, otherwise the poster on the other forum would not have stated (somewhat erroneously) that some funds "now have Transaction Fees of $74.95, up from $49.95". You did correct that by saying that Schwab may charge fees up to $74.95.

Schwab charges different fees depending on its arrangements with fund families. I suppose the changed verbiage reduces its website maintenance effort if a fund family stops (or starts) paying for shelf space on Schwab's TF platform:

An increased transaction fee applies to purchases made by self-directed Retail clients of funds from certain fund families that do not pay Schwab for recordkeeping, shareholder, and other administrative services on fund shares held by self-directed Retail clients

To find the actual fee charged (e.g. $49.95 or $74.95), log in and look at the fund page. For example, for MWTIX (a TF fund), its customer page is here

Follow the "View availability and transaction fee" immediately beneath the "Fund Facts & Figures" heading on the fund page.

For MWTIX the fee reads: "Transaction Fee $49.95".
For DODGX, the fee reads: "Transaction Fee $74.95"

These are the fund-specific fees; no "up to's" here.

To see your personalized cost (some customers have TFs waived for some or all funds), enter a test transaction.

FD1000

When I looked at VWINX=Vanguard Wellesley at Schwab, the Schwab site says up to $74.95
I entered a buy for $10K for VWINX. The transaction says zero. Same for DODGX.
I haven't used VG or D&C for decades. I can't remember one fund I was interested in the last 20 years that I paid $74.95.

MrRuffles

FD1000 said:

When I looked at VWINX=Vanguard Wellesley at Schwab, the Schwab site says up to $74.95
I entered a buy for $10K for VWINX. The transaction says zero. Same for DODGX.
I haven't used VG or D&C for decades. I can't remember one fund I was interested in the last 20 years that I paid $74.95.

On the Schwab “Enter Order” page, there are two options under Transaction fee:
Deduct fee from total
Add fee to total

The next “Verify Order” page shows a Transaction Fee of $0.00 but under the fund description next to Transaction Fee there is a “Yes”.

When you click on “Place Order” the “Order Received" page properly accounts for the transaction fee.

It’s just a poor implementation as the exact TF should be disclosed on the Verify Order page.

larryB

I was able to get TF ‘s on funds from three companies of my choosing. The waivers don’t apply to Vanguard Admiral class shares. Ask and you get.

Derf

I could be wrong, but it seems to me that FD1000 said at one time he had a (fee) pass at Schwab. That's off the top of by head, so.......

Dave

In addition to trying a 'test' transaction, be aware that Schwab has a TF policy that "Trades below $100 in principal are exempt from the transaction fee."

So if you're doing a 'test' transaction, make the Buy amount more than $100.00...
TF purchases of $100 or less will show a zero transaction fee.

FD1000

MrRuffles said:

FD1000 said:

When I looked at VWINX=Vanguard Wellesley at Schwab, the Schwab site says up to $74.95
I entered a buy for $10K for VWINX. The transaction says zero. Same for DODGX.
I haven't used VG or D&C for decades. I can't remember one fund I was interested in the last 20 years that I paid $74.95.

On the Schwab “Enter Order” page, there are two options under Transaction fee:
Deduct fee from total
Add fee to total

The next “Verify Order” page shows a Transaction Fee of $0.00 but under the fund description next to Transaction Fee there is a “Yes”.

When you click on “Place Order” the “Order Received" page properly accounts for the transaction fee.

It’s just a poor implementation as the exact TF should be disclosed on the Verify Order page.

When I click on info only at the bottom it's clear. It says

. The transaction fee for this buy order is $ 0.00.

Then I placed the order. The total is only $10K.
Remember, I selected to add fee to the total, but there is no fee. BTW, I don't have any shares in VWINX.

Bottom line there is no fee for me. I don't see any confusion.

When I tried PIMIX, I see a fee of $49.95.
No confusion again.