At TDameritrade/Schwab/Fidelity incentives have replaced commissions

[docnews]

Advisers at Leading Discount Brokers Win Bonuses to Push Higher-Priced Products https://www.wsj.com/articles/advisers-at-leading-discount-brokers-win-bonuses-to-push-higher-priced-products-1515604130

Basically we need to stop with the nonsense about other good options other than Vanguard... unless you want to spend your time saying no to sales pitches. That's how they give that customer "service."

 

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[Lithium]

Interesting.  I've never been pushed any products at TD Ameritrade or Schwab.  Maybe they can tell from looking at my portfolio that it's a waste of time.  Merrill Edge called me once to try to get to know me, but I just said I just move things around to get bonuses, then started saying my goal was to minimize costs, and the call was over with pretty quickly.  My E*Trade rep once suggested a managed account with a 1.25% AUM fee over email, but didn't push after I declined.  If they were calling me once a quarter like Personal Capital, I'd be more annoyed.

[bean1970]

Vanguard is an excellent company. But they are primarily a fund company, with not the greatest online resources or commission/fee schedule for brokerage services. Heck they have one of the highest minimums to get discounted trading. While they are not necessarily pushy, they get the bang for the buck by loyal customers who only invest in their own funds.  There is absolutely nothing wrong with sticking with Vanguard and only buying their funds and ETFs, but I'm not a fan of their brokerage services as a DIY person. And there is nothing wrong with us who buy stocks. There have been companies with automatic brokerage investing. We did that for over ten years. Cannot do that at Vanguard.  My brokerage firm has never called us.

[Zaphod]

I have accounts at TDA, Fidelity, Merrill, and Interactive Brokers. Merrill is the only one to ever call me, but i have checking, mortgage, etc..there as well. I didnt return the call.

Yes, PC has called me so many times, I finally blocked their number.

[notadoc]

Same with TIAA.  Link should be open access

https://www.nytimes.com/2017/10/21/business/the-finger-pointing-at-the-finance-firm-tiaa.html?rref=collection%2Fbyline%2Fgretchen-morgenson&action=click&contentCollection=undefined&region=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=collection&_r=0

[docnews]

Zaphod wrote:

I have accounts at TDA, Fidelity, Merrill, and Interactive Brokers. Merrill is the only one to ever call me, but i have checking, mortgage, etc..there as well. I didnt return the call.

Yes, PC has called me so many times, I finally blocked their number.

Click to expand...

Good to hear. I just can't recommend them to family members these companies who - unlike you - would fall for these gimics.

[djohnflatfeecfp]

Here is why I hate Fidelity and use them as little as possible.  https://www.reuters.com/investigates/special-report/usa-fidelity-family/

 

Also, I was at a lunch meeting yesterday put on by a "smart-beta" shop.  There was a co-presentation by Riskalyze which I why I attended.  I slipped out when the investment company started presenting on all their UITs and Structured Products, which often means high profits for them and high commissions for advisors.  I would like to say I was surprised how many advisors wanted to know more, but I wasn't.

 

For the most part, investment companies are not your friends.  Heck, many advisors aren't either especially if they aren't full-time fiducaries.  Hanging around places like WCI is important so investors become more knowledgeable and more aware so they make fully informed decisions.

[docnews]

bean1970 wrote:

Vanguard is an excellent company. But they are primarily a fund company, with not the greatest online resources or commission/fee schedule for brokerage services. Heck they have one of the highest minimums to get discounted trading. While they are not necessarily pushy, they get the bang for the buck by loyal customers who only invest in their own funds.  There is absolutely nothing wrong with sticking with Vanguard and only buying their funds and ETFs, but I’m not a fan of their brokerage services as a DIY person. And there is nothing wrong with us who buy stocks. There have been companies with automatic brokerage investing. We did that for over ten years. Cannot do that at Vanguard.  My brokerage firm has never called us.

Click to expand...

Yes, Vanguard is not a great stock pickers company. If professionals can't beat the index consistently, I am not going to try. Do what you want with your asset allocation but beware that these "better brokerages" have their sights are getting you to make their incentives. The average investor will get caught up in one of these schemes but hopefully/probably not you.

[Kamban]

I am on the "gold" tier on Vanguard, TD Ameritrade and possibly Schwab based on the size of my investments but never ever had spoken to them or used their services. I don't see the value to paying any of them any commission or AUM when all I need is to invest directly in their low cost funds without additional expense.

[StarTrekDoc]

Merrill Lynch is great counterpart to Vanguard if you're looking for stocks -- free trades for those holding >100k -- and 75% bonus on earnings rewards cash card.

Only reason we have fidelity is because all our NetBenefits/401k/DCP/DAF are there over the years

--No push for added services from either of them -- Fidelity does offer a review, but they never pushed active management or their multiple wealth management services --- yet.

[Zaphod]

docnews wrote:

Zaphod wrote:

I have accounts at TDA, Fidelity, Merrill, and Interactive Brokers. Merrill is the only one to ever call me, but i have checking, mortgage, etc..there as well. I didnt return the call.

Yes, PC has called me so many times, I finally blocked their number.

Click to expand…

Good to hear. I just can’t recommend them to family members these companies who – unlike you – would fall for these gimics.

Click to expand...

Yep, agree with that. No benefit to not keeping it dead simple and safe in those kind of circumstances.

[VagabondMD]

I have been at Fidelity for about 20 years, originally drawn by their low cost stock trades and their mutual fund offerings (mostly used the funds network, to buy non Fido funds without fees). Lately, I buy almost exclusively their index funds and the ishares ETFs. I cannot recall ever being solicited for wealth management, insurance, active funds, etc.

My retirement plan was located at Fidelity, and my wife’s retirement and deferred compensation plans were also later located there, too. I have used their DAF since 2003 and their credit card rewards get swept into my brokerage account. I am not sure if I will ever use their advice services, and I am not sure how they are presently profiting from my account.

I have also been using Vanguard for 15 years or so, have had limited interactions with a person, maybe 5 in 15 years and none in last few, and have had no problems here either.

[bean1970]

docnews wrote:

bean1970 wrote:

Vanguard is an excellent company. But they are primarily a fund company, with not the greatest online resources or commission/fee schedule for brokerage services. Heck they have one of the highest minimums to get discounted trading. While they are not necessarily pushy, they get the bang for the buck by loyal customers who only invest in their own funds.  There is absolutely nothing wrong with sticking with Vanguard and only buying their funds and ETFs, but I’m not a fan of their brokerage services as a DIY person. And there is nothing wrong with us who buy stocks. There have been companies with automatic brokerage investing. We did that for over ten years. Cannot do that at Vanguard.  My brokerage firm has never called us.

Click to expand…

Yes, Vanguard is not a great stock pickers company. If professionals can’t beat the index consistently, I am not going to try. Do what you want with your asset allocation but beware that these “better brokerages” have their sights are getting you to make their incentives. The average investor will get caught up in one of these schemes but hopefully/probably not you.

Click to expand...

Yes the key to not getting caught up is to be financially literate enough to know better. It is amazing how many folks will buy loaded funds......for no reason other than that is what was "recommended" to them by their "advisor".

[Bmac]

The majority of our taxable investments are at Vanguard. We also have an account at Schwab. Much of our retirement accounts are with Fidelity. I have never been contacted by any of the above with an attempt to push products or services. Personal Capital on the otherhand . . . suffice to say that if you use their platform to monitor your various investment accounts, as we do, despite never utilizing any of their services or products, one can expect to receive a phone call every 3-6 months from someone asking if you would like to do a "portfolio review." (I always decline.) I'm not sure how Betterment or Wealthfront behave in this regard.