Vanguard Reduces Trading & ETF Transaction Fees

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Vanguard LogoVanguard recently announced a reduction in their fees. For most investors, those with less than $50,000 in their account, their first 25 stock trades each year will cost only $7, subsequent trades are $20. If you have $50-$500k, all trades are $7. $500k- $1M, all trades are $2. If you have over a million, your first 25 trades each year are free, $2 for subsequent trades.

The bigger news is with Vanguard ETFs, all investors now get to buy and sell Vanguard ETFs for free. For Standard accounts (<$50k assets), there is a $20 account service fee. That's waived for those with $50k+ of assets with Vanguard. This makes Vanguard ETFs very attractive people with Vanguard brokerage accounts. They already have really low expense ratios and when you make them free to buy and sell, it's almost a no brainer. The Vanguard Total Stock Market ETF (VTI) has an expense ratio that matches its mutual fund Admiral Shares version (to qualify for Admiral Shares of a Vanguard fund, you need $100,000+ invested in that fund).

{ 11 comments, please add your thoughts now! }

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11 Responses to “Vanguard Reduces Trading & ETF Transaction Fees”

  1. Jonathan Wright says:

    The $20 account service fee is waived with e-Delivery of statements and prospectuses. Which makes it even more attractive.

    I was debating between Schwab and Fidelity, but I think I’ll definitely be with Vanguard.

  2. DIY Investor says:

    It is great seeing competition reducing these fees. Hopefully it doesn’t lead to people increasing their short-term trading. One great benefit is with a short-term bond fund for retirees to make their monthly withdrawals.

  3. Ryan says:

    Very cool. They are making for some stiff competition against the discount brokerage firms. It may be time to drop a brokerage account or two and simplify my financial life a bit more. 🙂

  4. CK says:

    This is fantastic news. Now I can reduce my expenses while making my own losing stock trades. 😉

  5. Anonymous says:

    One thing I don’t like about Vanguard is how you have to have a separate mutual fund account and stock trading account. I wish you could do both from a single account, it’s annoying.

  6. javi says:

    What a nice time to break the $50K of assets at Vanguard. I am loving them even more.

  7. zapeta says:

    I’m glad to see these fees reduced! Their brokerage fees were way too high as far as I was concerned.

  8. Lisa says:

    The good thing about Vanguard is that all investors now get to buy and sell Vanguard ETFs for free.That’s waived for those with $50k+ of assets with Vanguard.

  9. cubiclegeoff says:

    This will definitely make me consider Vanguard a bit more for overall investing.

  10. eric says:

    Thanks for answering my email with the post! 🙂

  11. Michael says:

    I still prefer ThinkorSwim. 7$ trades is expensive. To enter and exit a position, I would end up paying 14$. ThinkOrSwim $5 trades saves me $4. Of course, its a “Day Traders” platform, so I have a seperate Schwab and Ameritrade account with little cash that I use primarily for research reports(both have no monthly fees, etc), etc.

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