What You Need to Know
- The 50% fee hike applies to funds for which Schwab isn't compensated for shareholder servicing expenses.
- It's effective Nov. 1 for Schwab retail investors; Oct. 1 for TD Ameritrade retail investors
- The increase does not apply to RIAs who custody at Schwab or TD Ameritrade.
Schwab is hiking fees for retail investors to buy Vanguard, Fidelity at Dodge Cox funds from $49.95 to $74.95, effective Nov. 1. Retail clients at TD Ameritrade, which Schwab acquired last October, will be subject to the new fees as of Oct. 1.
Registered investment advisors who custody at Schwab and TD Ameritrade, however, will not be subject to the higher fees.
Schwab spokeswoman Alison Wertheim said the 50% fee hikes apply only to those funds for which Schwab does not receive compensation for the expenses Schwab incurs from servicing shareholders. Those funds are Vanguard funds, Dodge & Cox and investor-class funds from Fidelity, Wertheim said.