Any fees at Fidelity that you did not know about when you first joined?
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Any fees at Fidelity that you did not know about when you first joined?
Any fees to reinvest dividends from ETF's?
Any fees to reinvest dividends from Vanguard mutual funds?
It seems like Fidelity is the best of the one stop shops is this true?
Seems like Fidelity is the least work to have dividends go into a money market fund paying a good rate automatically with no work. That you can use to pay bills.
Thinking about getting rid of my bank.
Any thing you do not like at Fidelity after switching?
Why is the Fidelity bonus so low compared with other brokerages?
Any fees to reinvest dividends from Vanguard mutual funds?
It seems like Fidelity is the best of the one stop shops is this true?
Seems like Fidelity is the least work to have dividends go into a money market fund paying a good rate automatically with no work. That you can use to pay bills.
Thinking about getting rid of my bank.
Any thing you do not like at Fidelity after switching?
Why is the Fidelity bonus so low compared with other brokerages?
Last edited by iamblessed on Sun Aug 07, 2022 3:41 pm, edited 2 times in total.
- anon_investor
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Re: Any fees at Fidelity that you did not know about when you first joined?
The only potential fees to look out for is new purchases of mutual funds that are not commission free to purchase (e.g. you transferred in some mutual funds). I did an in-kind transfer of a Vanguard mutual fund that was not commission free. Dividend and capital gains reinvestment is commission free, as well as sales? But new commissions have a commission fee. New purchases at Fidelity for me are either commission free ETFs of mutual funds.iamblessed wrote: ↑Sun Aug 07, 2022 3:33 pm Any fees to reinvest dividends from ETF's?
Any fees to reinvest dividends from mutual funds?
It seems like Fidelity is the best of the one stop shops is this true?
Seems like Fidelity is the least work to have dividends go into a money market fund paying a good rate automatically with no work.
Thinking about getting rid of my bank.
Re: Any fees at Fidelity that you did not know about when you first joined?
The only fees I've had at Fidelity have been when selling a stock/ETF there are the SEC fees that are pretty trivial (required at all brokers https://www.investopedia.com/terms/s/secfee.asp )
If by "one stop shop" you mean having bank-like features with your stock broker, there are others like Schwab, M1, and others... as well as brokerage add-ons to your bank at Chase, Bank of America, Wells Fargo.
I'm pretty happy at Fidelity, I don't know that makes it "best" for everyone though. I've stopped using Fidelity's cash-back rewards Visa card in favor of other credit cards.
If by "one stop shop" you mean having bank-like features with your stock broker, there are others like Schwab, M1, and others... as well as brokerage add-ons to your bank at Chase, Bank of America, Wells Fargo.
I'm pretty happy at Fidelity, I don't know that makes it "best" for everyone though. I've stopped using Fidelity's cash-back rewards Visa card in favor of other credit cards.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
Re: Any fees at Fidelity that you did not know about when you first joined?
Schwab does not have or need "bank-like" features. Schwab, unlike Fidelity, actually is a bank. --vtMaps
"Truly, whoever can make you believe absurdities can make you commit atrocities" --Voltaire, as translated by Norman Lewis Torrey
Re: Any fees at Fidelity that you did not know about when you first joined?
Any fees? No
I got a few hundred thousand Delta frequent flyer miles at one time. They don't do that any more.
I got a few hundred thousand Delta frequent flyer miles at one time. They don't do that any more.
- AnnetteLouisan
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Re: Any fees at Fidelity that you did not know about when you first joined?
It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?
Re: Any fees at Fidelity that you did not know about when you first joined?
Maybe by signing people up to pay 1% for advice and then buy funds at ER's of .5%AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts?
I actually don't know, but I am aware offers to sign up for the above deal appear to be something they do. I don't doubt there is some margin taken on cash on account, but I don't have any.
I do remember having to fight to get one of my bonuses and the sticking point was some next up level CSR wanted to know how much trading I planned to do. Somehow or another I got my bonus for nothing but putting some VTI on account.
It might not have hurt that my Megacorp ESPP and MSO accounts were also with Fidelity. They still list them but it is all zeros now.
- AnnetteLouisan
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Re: Any fees at Fidelity that you did not know about when you first joined?
Their introductory leaflet mentions 17 different kinds of fees but except for ERs I have seen any yet in my account. And I received the intro bonus, no problem.dbr wrote: ↑Sun Aug 07, 2022 4:24 pmMaybe by signing people up to pay 1% for advice and then buy funds at ER's of .5%AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts?
I actually don't know, but I am aware offers to sign up for the above deal appear to be something they do. I don't doubt there is some margin taken on cash on account, but I don't have any.
I do remember having to fight to get one of my bonuses and the sticking point was some next up level CSR wanted to know how much trading I planned to do. Somehow or another I got my bonus for nothing but putting some VTI on account.
It might not have hurt that my Megacorp ESPP and MSO accounts were also with Fidelity. They still list them but it is all zeros now.
I’m very happy with them so far. The user interface is great and so is customer service. Thanks to everyone who recommended them (when I first got to BH I was planning to open an IRA with my bank and put the money in CDs!)
Last edited by AnnetteLouisan on Sun Aug 07, 2022 4:35 pm, edited 2 times in total.
- anon_investor
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Re: Any fees at Fidelity that you did not know about when you first joined?
I also think fund/ETF companies pay them money to have their products listed as recommended etc. This is why Fidelity always recommends iShares ETFs.dbr wrote: ↑Sun Aug 07, 2022 4:24 pmMaybe by signing people up to pay 1% for advice and then buy funds at ER's of .5%AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts?
I actually don't know, but I am aware offers to sign up for the above deal appear to be something they do. I don't doubt there is some margin taken on cash on account, but I don't have any.
I do remember having to fight to get one of my bonuses and the sticking point was some next up level CSR wanted to know how much trading I planned to do. Somehow or another I got my bonus for nothing but putting some VTI on account.
It might not have hurt that my Megacorp ESPP and MSO accounts were also with Fidelity. They still list them but it is all zeros now.
- AnnetteLouisan
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Re: Any fees at Fidelity that you did not know about when you first joined?
Makes sense. I think some brokerages have affiliate fee arrangements for sweep accounts but I don’t know if Fido does. Anyway I don’t use the sweep feature or CMA.anon_investor wrote: ↑Sun Aug 07, 2022 4:33 pmI also think fund/ETF companies pay them money to have their products listed as recommended etc. This is why Fidelity always recommends iShares ETFs.dbr wrote: ↑Sun Aug 07, 2022 4:24 pmMaybe by signing people up to pay 1% for advice and then buy funds at ER's of .5%AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts?
I actually don't know, but I am aware offers to sign up for the above deal appear to be something they do. I don't doubt there is some margin taken on cash on account, but I don't have any.
I do remember having to fight to get one of my bonuses and the sticking point was some next up level CSR wanted to know how much trading I planned to do. Somehow or another I got my bonus for nothing but putting some VTI on account.
It might not have hurt that my Megacorp ESPP and MSO accounts were also with Fidelity. They still list them but it is all zeros now.
Re: Any fees at Fidelity that you did not know about when you first joined?
Iamblessed,
I would not use Fidelity as my bank account, but their brokerage services are terrific. As a Boglehead, you get all the benefits of low-cost investing at Fidelity — and you benefit from customer service subsidized by those who choose to pay for AUM-fee-based advice.
They’re especially great when I need to make a wire transfer. No fee, and a competent person on the phone immediately.
Every 6-12 months, I have to parry a call from my account rep, who encourages me to sign up for a meeting to discuss my investments (i.e. a sales pitch). I just politely tell them that I’m thrilled with the service I’m receiving at present and don’t need anything more, but two thumbs up, keep up the good work, etc.
lgs88
I would not use Fidelity as my bank account, but their brokerage services are terrific. As a Boglehead, you get all the benefits of low-cost investing at Fidelity — and you benefit from customer service subsidized by those who choose to pay for AUM-fee-based advice.
They’re especially great when I need to make a wire transfer. No fee, and a competent person on the phone immediately.
Every 6-12 months, I have to parry a call from my account rep, who encourages me to sign up for a meeting to discuss my investments (i.e. a sales pitch). I just politely tell them that I’m thrilled with the service I’m receiving at present and don’t need anything more, but two thumbs up, keep up the good work, etc.
lgs88
merely an interested amateur
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Re: Any fees at Fidelity that you did not know about when you first joined?
There are really no fees outside the ones they list. Nothing unexpected and that means I have not paid any direct fees. Fidelity makes money on the expense ratios obviously. Their expense ratios for things like money market funds are higher so they can make a few bucks there. Fidelity also owns National Financial Services as their trading clearing house. Basically they can internalize some of your trades and make a few pennies on the spread if you buy/sell stocks or ETFs.
I've had their CMA as my "checking" account for about 9 months now and really like it. It's currently paying about 1.2% on any balance in the FDIC insured sweep. Pretty good for a "checking" account. I had been using an Internet bank as my bank for almost 10 years so switching to Fidelity for that function wasn't much of a change.
For what it's worth they seems to have a strategy of providing good services and lots of account types with no fees so you want to keep more of your money there. Certainly works on us for brokerage/IRA/HSA/529/CMA/Credit Card. Sure, they don't offer the highest rates on money market funds, but it's a small price to pay for the little cash we keep there to have great 24/7 support and a website my DW will actually use.
I've had their CMA as my "checking" account for about 9 months now and really like it. It's currently paying about 1.2% on any balance in the FDIC insured sweep. Pretty good for a "checking" account. I had been using an Internet bank as my bank for almost 10 years so switching to Fidelity for that function wasn't much of a change.
For what it's worth they seems to have a strategy of providing good services and lots of account types with no fees so you want to keep more of your money there. Certainly works on us for brokerage/IRA/HSA/529/CMA/Credit Card. Sure, they don't offer the highest rates on money market funds, but it's a small price to pay for the little cash we keep there to have great 24/7 support and a website my DW will actually use.
- RetirementClass2021
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Re: Any fees at Fidelity that you did not know about when you first joined?
I have been using Fidelity as my financial "one stop shop" since January 2009 (401k, Cash Management, Credit Card and IRAs - Traditional & Roth). I have never had any problems with them. I retired in December 2021. Rolling over my 401k was effortless. Moving cash between accounts is instantaneous. Regarding your questions:iamblessed wrote: ↑Sun Aug 07, 2022 3:33 pm Any fees to reinvest dividends from ETF's?
Any fees to reinvest dividends from Vanguard mutual funds?
It seems like Fidelity is the best of the one stop shops is this true?
Seems like Fidelity is the least work to have dividends go into a money market fund paying a good rate automatically with no work. That you can use to pay bills.
Thinking about getting rid of my bank.
Any thing you do not like at Fidelity after switching?
Why is the Fidelity bonus so low compared with other brokerages?
Any fees to reinvest dividends from ETF's? No
Any fees to reinvest dividends from Vanguard mutual funds? No. But when rebalancing there is a $75 fund charge if your rebalance requires purchasing more shares.
It seems like Fidelity is the best of the one stop shops is this true? I have been happy with them.
Seems like Fidelity is the least work to have dividends go into a money market fund paying a good rate automatically with no work. That you can use to pay bills.
Thinking about getting rid of my bank.
Any thing you do not like at Fidelity after switching? I do receive "courtesy" calls/emails every year or two regarding using their management services for a fee (around 1% of portfolio). I politely decline.
Why is the Fidelity bonus so low compared with other brokerages? I am not aware of the bonus program.
What I did in 2009 was opened the Cash Management account with ATM and redirected my direct deposit into it without closing my BofA account. After 3 successful no problem direct deposits and 3 or 4 test ATM withdrawls I closed BofA. Just a suggestion.
Good luck
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- SmileyFace
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Re: Any fees at Fidelity that you did not know about when you first joined?
Probably because they do well without having to offer incentives.iamblessed wrote: ↑Sun Aug 07, 2022 3:33 pm Why is the Fidelity bonus so low compared with other brokerages?
Re: Any fees at Fidelity that you did not know about when you first joined?
Here’s one data point. We’ve been there over 40 years. My former firm has its 401(k) there. A family member recently was preparing to move funds and I reached out and requested a bonus offer and was offered $2500 bonus for the first million, and additional $1000 bonus for each million above that amount. Schwab matched. Ymmv.SmileyFace wrote: ↑Sun Aug 07, 2022 9:01 pmProbably because they do well without having to offer incentives.iamblessed wrote: ↑Sun Aug 07, 2022 3:33 pm Why is the Fidelity bonus so low compared with other brokerages?
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Re: Any fees at Fidelity that you did not know about when you first joined?
I have Fidelity IRA, Roth and taxable along with a 401k. I have had no unexpected fees in 30 something years. With 401k's, it is possible that fees could jump in. But this has to do with and employer deciding that they want their employees to pay the administration fees for the 401k instead of them paying. DW's 401k was kept for 10 years with Fidelity after leaving her job. After the turn of the year, some years ago, a 0.5% management fee appeared which had never been there before.
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Re: Any fees at Fidelity that you did not know about when you first joined?
The last 10-K that I saw for Schwab (I’m sure Fidelity is similar) showed that 50% of their revenue came from net interest income, or the difference between what they can get in interest on uninvested cash and what they actually pay you. This is why brokerages always want more assets.AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?
- anon_investor
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Re: Any fees at Fidelity that you did not know about when you first joined?
Fidelity's default sweep option SPAXX pays 1.69%. Vanguard's ddfault sweep option VMFXX pays 2.10%. That is a 0.41% spread. Imagine getting that on billions of dollars...Fclevz wrote: ↑Sun Aug 07, 2022 9:51 pmThe last 10-K that I saw for Schwab (I’m sure Fidelity is similar) showed that 50% of their revenue came from net interest income, or the difference between what they can get in interest on uninvested cash and what they actually pay you. This is why brokerages always want more assets.AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?
Re: Any fees at Fidelity that you did not know about when you first joined?
This is a question I was really interested in when commissions went to $0 at Fidelity, what I remember finding out is that brokers in general make a large part of their revenue off of interest from margin loans and net interest from the cash in money market funds, also from the fees they make for asset management services. So they are probably hoping that many DIY, low ER customers will also keep cash in money market funds, use asset management services, or even use margin loans.AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?
Fidelity is privately held and doesn't publish their financials, but Schwab is a publicly traded company and is probably similar. This is the best article I could find in a quick search showing Schwab's sources of revenue, see the bar graph in the middle, the biggest revenue contributor (40%) is interest. In 2021 they did make a lot on trading but the article says that was from a "raging market" (meme stock craze?) that is probably unsustainable.
https://www.fool.com/investing/2021/05/ ... meritrade/
Re: Any fees at Fidelity that you did not know about when you first joined?
That has not been my experience. The last two times I called I had a long wait and then talked to a trainee who tried to be helpful but was not.a competent person on the phone immediately.
Maybe this is because I have a small account at fidelity, about $30K. If you are getting good service there, how much money do you have there?
Most of what I have is at Vanguard. I don't get great service at Vanguard, but it is better than Fidelity.
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Re: Any fees at Fidelity that you did not know about when you first joined?
I have never only had an account at a single institution. If you choose to do this, I would at least have a back up plan if your account is temporarily unavailable be it because of fraud or any other reason. Maybe that is just credit cards and cash in a home safe. But do not count on always having access to all your funds.
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Re: Any fees at Fidelity that you did not know about when you first joined?
Customer service issues always have a bit of subjectivity to them I think. However, you can't argue that Fidelity does have expanded phone hours and more ways to get potential help (chat/reddit forum) than what Vanguard does. We've used all 3 effectively and it was at least nice to have more options. My DW refuses to call during business hours unless absolutely necessary because she tends to be very focused when working. Fortunately we don't need much support but it has been good when needed.tc101 wrote: ↑Mon Aug 08, 2022 8:22 amThat has not been my experience. The last two times I called I had a long wait and then talked to a trainee who tried to be helpful but was not.a competent person on the phone immediately.
Maybe this is because I have a small account at fidelity, about $30K. If you are getting good service there, how much money do you have there?
Most of what I have is at Vanguard. I don't get great service at Vanguard, but it is better than Fidelity.
- dogagility
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Re: Any fees at Fidelity that you did not know about when you first joined?
AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?
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Re: Any fees at Fidelity that you did not know about when you first joined?
I have a small amount of guilt that my brokerage account is nothing but vanguard etfs. My 401k and roth ira holds fidelity mutual funds but my brockerage account seems like it doesn't get them anything.AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?
60% VT 40% BNDW (no bonds in Roth)
Re: Any fees at Fidelity that you did not know about when you first joined?
Fidelity is more than capable of taking care of themselves. I am not the slightest bit guilty over holding nothing but Vanguard ETFs at Fidelity, including zero cash (I have the dividends immediately deposited to my checking account.) They did get years of holding my ESPP and MSO accounts, though.Trance wrote: ↑Mon Aug 08, 2022 4:09 pmI have a small amount of guilt that my brokerage account is nothing but vanguard etfs. My 401k and roth ira holds fidelity mutual funds but my brockerage account seems like it doesn't get them anything.AnnetteLouisan wrote: ↑Sun Aug 07, 2022 4:18 pm It’s strange though right? How do they make their money then off DIY accounts? I get that their funds have ERs, but is that it?