Author Topic: Need new solo401k - Schwab charging for OTC  (Read 1188 times)

dizzy

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Need new solo401k - Schwab charging for OTC
« on: November 25, 2021, 06:31:22 AM »
I just realized (bc they send a billion emails, and I was busy with work/getting married last month) that Schwab is going to start charging for OTC trades.  nononono!

I have my solo401k there and want to move it.  Any recommendations where?

Currently leaning towards Fidelity but trying to get some feedback. I liked Schwab since they seemed to be more for the little guy/gal/etc.  No minimum to open an account.  Account opening bonus with $1k.  And long term keeping accounts there would make me eligible for a discount off of Amex Schwab platinum card (Amex hates me tho and I always get the pop up, I guess it's moot).

Vanguard solo401k is more limited in choices and I was annoyed they said you had to have a few thousand to get started.  Etrade I don't know as much about and TD I hate their bank so probably not a fan to open there.  I'm not sure what other options there are.

Please refrain from yelling at me about my stocks and just to invest in VTI.  I'm more than happy with my plan.

MustacheAndaHalf

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Re: Need new solo401k - Schwab charging for OTC
« Reply #1 on: November 25, 2021, 07:56:37 AM »
Where does Schwab say they will begin charging for OTC trades?  The only article I found was about the 4 levels of quality of OTC trades:
https://www.schwab.com/stocks/understand-stocks/otc-stock#beacon-deck--35201

Vanguard currently charges $0/trade for OTC trades, and I didn't see a minimum mentioned.  They charge a ​$20/year fee until one member has $50,000 in their account.
https://investor.vanguard.com/small-business-retirement-plans/individual-solo-401k

Did you know Schwab owns TD Ameritrade?  They had a merger, so if you dislike something at Schwab, you should probably avoid TD Ameritrade.

terran

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Re: Need new solo401k - Schwab charging for OTC
« Reply #2 on: November 25, 2021, 04:37:25 PM »
I would go with Vanguard or E*Trade. I used to have Fidelity, but wanted a Roth option. At the time Vanguard didn't allow rollovers from IRAs, which could be useful if I ever want to backdoor Roth, but supposedly they do now (but you should confirm if that's important to you).

cool7hand

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Re: Need new solo401k - Schwab charging for OTC
« Reply #3 on: November 26, 2021, 09:42:18 AM »
+1 on the request for where Schwab says it is going to charge for OTC trades. This is bad news if true!


reeshau

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Re: Need new solo401k - Schwab charging for OTC
« Reply #5 on: December 22, 2021, 02:23:13 PM »
Yes, TD charges for OTC, and it looks like Schwab thinks that's a good idea.  (Also interesting, the current status quo of $0 commissions was started by Schwab, after their original talks to buy TD stalled.)

Fidelity does not charge for OTC.

 

Wow, a phone plan for fifteen bucks!