VFIAX Transaction fee through Charles Schwab?

Submitted by Houlio599 t3_11elrhy in personalfinance

I just recently purchased $3,100 of VFIAX through Charles Schwab in my Roth IRA. There was a transaction fee of $75 on the purchase which I wasn’t expecting. Is this a normal fee to have to pay? Also, is it a fee charged by investing in VFIAX or a fee charged by Charles Schwab?

Lastly, is this a fee I’m going to have to pay every time I purchase more into VFIAX?

Thanks for the help

4

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DeluxeXL t1_jaernl3 wrote

You can buy VOO with no commission at Schwab since ETF trades are commission-free.

You can buy Schwab or affiliate-branded mutual fund at Schwab also with no commission.

But Schwab, Fidelity, and Vanguard are competitors, so they'll charge the max commission on each other's mutual funds. The commission is charged by the brokerage, not the fund.

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Werewolfdad t1_jaer5qi wrote

> Lastly, is this a fee I’m going to have to pay every time I purchase more into VFIAX?

Yes to everything.

Buy vanguard funds at vanguard. But schwab funds at Schwab

Also read your fee schedules

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BouncyEgg t1_jaeqtnc wrote

You should be buying either any brand of ETFs or Charles Schwab specific brand of mutual funds.

Schwab's SP500 fund is SWPPX.

Personally, I use total market funds, but that's besides the point.

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Houlio599 OP t1_jaer02l wrote

What’s wrong with Vanguards version?

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BouncyEgg t1_jaer4am wrote

As you've discovered... Costs you $75 each time you buy it.

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Houlio599 OP t1_jaerq6t wrote

Well that was my first time buying into the mutual fund.

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DeluxeXL t1_jaerzu9 wrote

You can possibly get the commission waived one time if you contact customer service.

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Houlio599 OP t1_jaesawy wrote

Okay thanks

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Celodurismo t1_jaexhg1 wrote

You should take another look at the transactions screens too, somewhere along the way when you were buying the fund it definitely told you there was a fee, but you must've missed it. So figure out where that information is so you can look for it next time.

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elcheapodeluxe t1_jaexl9i wrote

Nothing if you switch to another brokerage that doesn't compete with Vanguard and charge fees to discourage you to buy them.

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nothlit t1_jaerzkb wrote

Schwab charges a transaction fee to buy Vanguard mutual funds in a Schwab account.

You can avoid this by:

  • Only buying Vanguard mutual funds in a Vanguard account, or
  • Only buying Schwab mutual funds in a Schwab account (SWPPX is the Schwab equivalent of VFIAX), or
  • Buying commission-free ETFs in any account (VOO is the ETF equivalent of VFIAX)
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cballowe t1_jaf0u5x wrote

Schwab has tons of no-load, no-fee mutual funds that aren't Schwab, none of them are vanguard. The mutual fund screener can help find them if you're looking for a particular strategy.

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