Last September, I posted about Wachovia adding a $50 annual fee to its individual investor discount brokerage account. I was disappointed I couldn’t get it waived, so I decided that I would transfer my funds out in 2005 before getting charged another annual fee in September. The account termination fee was $75, so I’d be paying $25 more up front, but saving money down the road by investing with a no-fee broker.
I received notification today that as of May 1, the account cancellation fee will increase to $95. This account is costing more money than it’s generating.
Goodbye, Wachovia—hello, Scottrade. I filled the forms out as soon as I got home. I’m not waiting until May 1 to take care of this. I’ll also switch my investment from AIVSX to VTSMX or something similar, once everything is settled.
Also: I’m going to be on vacation starting Friday and returning the following Saturday. If you’re interested in guest-blogging on Consumerism Commentary, let me know by sending an email.
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I don’t see how a brokerage firm can get away with charging a termination fee. I would raise all kinds of hell over that.
JLP
AllThingsFinancial
I have been having an “issue” with Schwab over their $45 inactivity fee & $95 termination fee. Next week I shift over to Scottrade. How is Scottrade treating you? Do they allow dividend reimbursement of stocks in your portfolio? (I heard they once did not.) I am looking forward to Scottrade but rumors keep swirling that they will be the next firm to be bought. Just my luck I’ll leave Schwab & then find out I’ve been bought back by them.
Comments appreciated.
scottrade will never be bought out