Schwab Transaction Fee Mutual Funds

Comments

• msf

  June 24

  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

  June 24 edited June 24

  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

  June 24 edited June 24

  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

  June 24 edited June 24

  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

  June 24

  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

  June 24

  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

  June 24

  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

  June 24

  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

  3:27AM edited 3:36AM

  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.
• msf

  8:52AM

  Derf said:

  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.......

  Or you could be spot on ...

  FD1000 said:

  For me.
  ... 4. Here come the biggest advantage for Schwab. I trade only mutual funds and preferably Inst shares. Schwab waves the $49.95 fee while at Fidelity I hardly ever got that. 4 switches annually for 5 accounts is a $1000.

  That post was in June 2024.
  
  In that same 2024 thread, another post:

  FD1000 said:

  All I'm going to say is that Schwab reps have been waiving my I share fees for over 7 years. I'm not going to tell you how. It's not a policy you will find anywhere, just as they will match other brokers offers for cash rewards when you transfer money.
  I ask for the moon and get a lot.

  Yet this (fee) pass doesn't seem apply to all $49.95 TF Inst shares:
  
  When I tried PIMIX, I see a fee of $49.95.
  No confusion again.
  
  I'm not so sure about that "no confusion" part.
  
  As to how to get fee waivers at Schwab, other posters have provided information. In that same thread:

  sma3 said:

  I got the fee waived when I told my rep that I wanted to move VTMFX over from Vanguard but would not because of the fee. He waived it

  More recently (about a year ago) I believe I posted something about Schwab being interested in getting investors who were leaving Vanguard (VG had just added more fees). They would consider waiving TFs on Vanguard funds and perhaps a few other fund families if an investor brought over enough money. The rep said that Schwab didn't want the TF to be an impediment to moving assets.
  
  I didn't ask for the moon. But I did open the door by asking simply what can you do for me if I bring in these assets?
  
  FD specifically mentioned getting VG NTF. So that's one family where Schwab is waiving FD's fees. Given that, the description FD gave above about how to see what one's personalized TFs looks correct. The fees are personalized; YMMV.