TD Ameritrade 300

Vanguard Hidden Fees and Charges

2022 Vanguard hidden fees list. Does Vanguard have hidden charges on taxable brokerage or IRA accounts? Vanguard monthly fee.

Vanguard Hidden Fees

NTF mutual funds at Vanguard that are sold within two months of purchase are assessed a $50 short-term redemption fee.

The broker also charges $20 for every Vanguard mutual fund if it has a balance under $10,000. This low-balance fee, however, can be waived by singing up for e-delivery of account documents.

Transactions for mutual funds that aren't on the broker's NTF list are charged $20. Ally Invest, in contrast, charges $9.95 for mutual fund transactions.

Many brokers provide dollar-cost averaging services for free. Vanguard itself doesn't charge anything if a fund enrolled in an automatic investment plan normally has no transaction fee. However, if the fund isn't on the broker's NTF list, Vanguard imposes a $3 fee for each transaction.

Cash management services are available today at many brokerage houses free of charge. For example, TD Ameritrade and Schwab all provide banking services at no cost. Vanguard, though, has some pretty steep fees for checkwriting and debit card privileges.

The broker imposes a $30 annual fee for a cash management account. In order to qualify for the account, the client must first have at least $500,000 in assets with the company. Checkbook reorders are $9.95, whereas at Fidelity, they are free. Vanguard will waive the fee for accounts above $1,000,000.

Customers with balances below this amount must also pay $4.95 per month for bill pay. Using Vanguard's debit card at an ATM machine outside of PNC Bank's network will also incur ATM fees. Schwab, by contrast, reimburses all cash machine charges.

Vanguard traders must pay a $50 processing fee for foreign securities that are not DTC-eligible. This charge is on top of the broker's standard commission schedule. It will also be assessed multiple times if a trade execution occurs over several days.

A $20 annual fee is applied to every retirement and non-retirement account at Vanguard. Many other brokers, including Firstrade and TD Ameritrade, don't charge any type of on-going fees. Vanguard's annual fee can be avoided by signing up for electronic delivery of account documents.

Fees That Vanguard Doesn't Charge

Outgoing wires are free at Vanguard. Most other brokerage firms do charge for this service. Charles Schwab, for instance, charges $25 to wire funds out of a securities account.

U.S. Treasury bonds, certificates of deposit, and corporate bonds carry no commission when purchased on the primary market. Not all brokers have such a generous policy.

Vanguard Fees vs Competitors

Broker Review Promotion
Mutual Fund
Annual IRA
M1 Finance Up to $500 cash bonus for funding account at M1 Finance. $0 na $0 $0
Ally Invest Up to $3,000 cash bonus + $0 commission trades. $0 $9.95 $0 $0
TD Ameritrade $0 commissions + transfer fee reimbursement. $0 $49.99 ($0 to sell) $0 $0
Vanguard na $0 $20 $20* $20*

List of Vanguard Fees

List of all account fees charged is located here.

Vanguard Monthly Fees

Vanguard does not have monthly fees on both IRA and taxable accounts.

Vanguard Annual Fees

Vanguard charges a $20 annual fee for each account if the total Vanguard assets (Vanguard mutual funds and ETFs) in the account are less than $10,000. Mutual fund-only accounts: $20 for each Vanguard mutual fund with an account balance of less than $10,000.

Investors typically use Vanguard for the low expense ratios offered in its funds. While these are very low by industry standards, the broker nevertheless has important drawbacks in other areas.

The firm's charge for mutual funds transactions ranges from $0 to $20, depending on the fund. Firstrade, by comparison, charges a simple flat rate of $0 on all funds, including Vanguard. Many customers will probably prefer a simpler and lower commission schedule.

Vanguard also has no advanced trading platform for its clients to trade on. Other brokers, including Webull, Fidelity, Schwab, and Merrill Edge, do offer advanced trading software.

Vanguard's website is difficult to navigate. The company obviously doesn't spend a lot of resources on its trading tools. Firstrade's site, by comparison, is more intuitive and user-friendly.

Vanguard Hidden Fees

The Vanguard mobile app also doesn't have mobile check deposit or live streaming of business news. Schwab's app, by comparison, has both. Vanguard's app also cannot be used on Windows phone. Capital One Investing's app, by comparison, can be. Vanguard does not have an app for Apple TV, whereas Fidelity does. Vanguard also doesn't offer a platform for Apple Watch. Clearly, the broker does not have an emphasis on trading technology.

Vanguard only offers customer support five days a week from 8 o'clock in the morning until 10 o'clock in the evening, EST. In today's fast-paced world, traders usually need 24/7 service. The broker also doesn't offer on-line chat, nor does it operate a nationwide network of branch locations. Other brokers, such as E*Trade and TD Ameritrade, have offices located throughout the United States.

Vanguard charges a $20 annual fee for each account if the total Vanguard assets (Vanguard mutual funds and ETFs) in the account are less than $10,000. Mutual fund-only accounts: $20 for each Vanguard mutual fund with an account balance of less than $10,000.

Vanguard has to fend off criticisms on certain issues, but the broker has some advantages in other areas. For instance:

Most brokers are either publicly traded (like Schwab) or privately owned (like Fidelity). In either case, the company ultimately wants to generate a profit for shareholders. But Vanguard is different. It is a not-for-profit company, which is owned by Vanguard funds, which in turn are owned by their shareholders. So indirectly, Vanguard is owned by fund investors. This ownership structure creates less conflict of interest and has a tendency to put investor needs first.

Given the ownership structure of the firm, it should be no surprise that Vanguard funds have some of the lowest expense ratios of any fund family, which is just what shareholders want.

The broker's clients have access to over 16,000 mutual funds, the largest selection in the industry. Traders can also buy and sell 55 Vanguard ETFs without paying a dime in trading fees.

Signing up for electronic delivery of statements and other documents eliminates several account fees.


Vanguard hidden fees are as of 2022 and are subject to change. For the most recent information on Vanguard hidden charges visit their website.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.