Vanguard Brokerage Announces a Cheaper Trade Commission Structure

Today, Vanguard announced a new trading commission structure for Vanguard brokerage accounts. Here is a quick overview of the new commision structure:

Assets invested in Vanguard funds and Vanguard ETFs® Vanguard ETFs1 Stocks and non-Vanguard ETFs
  • Less than $50,000
  • Free
  • $7 for the first 25 trades3
  • $20 for subsequent trades
  • Free
  • All trades: $7
  • $500,000–$ 1 million
    (Voyager Select Services®)
  • Free
  • All trades: $2
  • Free
  • Free for first 25 trades3
  • $2 for subsequent trades

Voyager Services, Voyager Select Services®, and Vanguard Flagship™ are trademarks of The Vanguard Group.

I have been using our Vanguard Advantage account as our primary brokerage account for a couple years now. This new commission structure even looks more attractive to me. As a Vanguard Flagship client we previously received 12 free trades a year and paid a very reasonable flat $8 fee per trade thereafter. Under the new trading structure we will get 25 free trades and then pay a flat $2 fee per trade thereafter. In addition all Vanguard ETF trades will now be free.

Does this Change Our Investment Purchase Strategy?
I think this will alter the frequency of our stock investment purchases. With a lower trading cost it makes traditional DRIPs less appealing to us and allows us to trade more frequently and in smaller amounts without increasing the trading costs. I can now make a couple limit order investments every month with as little as 1 share for basically no cost.

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Comments (2)

Well, I guess people are investing less and.....saving more? Or maybe we've all just lost faith in investments?

I like that the more money you have is offsetted by cheaper trades.

I pay 4.50 at zecco. I used to pay 0 but I took some out of the market to buy a house.

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