Fidelity hits me with a new fee...help guys!

[Deleted]

Need some help guys. I had recently opened a taxable account and was investing in YACKX. I only have about 10k in the account but this month I was starting to put 2k a month into with transfers twice a month. I logged on this morning to complete the trade and it looks like Fidelity has added a $75 transaction fee.

I am happy with the fund but $150 a month in fees just for the privilege of investing it seems stupid. I want to stay with Fidelity because I have an Amex card that I get 2% back for my monthly expenses.

What are you thoughts? Do you think I should get out now while I don't have a lot in the fund?

If you think so, can you provide some ideas to put this money into? The goal of this account is for a retirement home in 15 - 18 years.

Thanks,
Dave

[jk70]

that's a Transaction fee fund at fidelity (there are many), that charges $75 fee everytime you buy. you might just trying to search for a different Large Value fund or etf, if that's what you like. If you stick with a mutual fund just search for "NTF" funds (these funds do not charge a fee)

Do you have any other funds? If not, I don't know if you should be putting 2k/month into just one fund.

[TD2K]

I'd phone Fidelity up and ask them what the fee is about. $75 for depositing money to my own account would piss me off and I'd be looking for someone else.

[Deleted]

Here is what they told me about the fee

"The change began on April 17th, and it was due to the fact that the fund no longer wanted to absorb any transaction fee costs associated with customers wanting to buy their fund through the Fidelity platform."

I have other funds but they are all in retirement accounts. This is my only taxable account.

[TD2K]

If you buy YACKX directly from the company, do they charge any fees?

[Deleted]

I don't know, I haven't gotten that far to be honest but I was using this account because I have a rollover $ with fidelity and then the 2% cash back I get too.

It just made life easier to be honest to have it in one place.

[SVT]

May 4, 2011 8:39:15 GMT -5 @daveandjen29 said:

It just made life easier to be honest to have it in one place.

And it comes at a cost.

[bcdfgh]

Fidelity website clearly says that there is $75 transaction for this fund plus around 1% for expense ratio. If you're to sell it now there will be 2% redemption fee. I checked other online brokerage firms and it appears that they don't charge transaction fee. You should always check for fees before purchasing any funds. You could transfer it to another brokerage without selling it.

[Gardening Grandma]

YACKX is a NTF (no transaction fee) at Vanguard.

I recently moved our accounts to Vanguard. After doing so, I purchaed some Pimco funds -there was no fee involved. They have a pdf file clearly stating the fee schedule...

[Deleted]

Yep sure does but I guess I am thinking about trying to find a fund at fidelity without that and just moving the money to that since I don't have much in the fund yet.

[Deleted]

Thanks Grandma, I have our Roth's with Vanguard. Maybe I could split the 2k between Fidelity and Vanguard since I do have that 2% already going into the Fidelity account.

[Deleted]

Thanks BCD...it didn't have that $75 fee at Fidelity when I started buying it, they just added it a couple weeks ago.

[phil5185]

The $1800/yr fee eats up about any gain that you could expect on $10,000. YACKX does OK, but an 18%/yr headwind would about kill it.

Of course, the generic index of all NYSE 7000 stocks doubled in the most recent 24 months - so most of the managed funds had super results.