Morgan Stanley Account Closing Fees
Account or Service |
Standard Fee | Frequency |
Individual Retirement Account (IRA) (Traditional, Roth, Rollover, Inherited, SEP, SIMPLE and SAR-SEP) Termination Fee | $95 | Per Account Termination |
Business Retirement VIP Basic Termination Fee | $50 | Per Account Termination |
Business Retirement VIP Plus Termination Fee | $50 | Per Account Termination |
Business Retirement RPM Termination Fee | $50 | Per Account Termination |
529 College Savings Plan Termination Fee | Waived | n/a |
Coverdell Education Savings Account (ESA)Termination Fee | $95 | Per Account Termination |
Account Transfer Fee | $95 | Per Account Termination |
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Morgan Stanley Top Competitors
Self-Directed vs Full-Service Broker - Which is Better?
While all brokerage firms provide securities trading services, they are definitely not created equal. Some
brokers offer financial advice and account management for a percentage of assets under management. Other firms simply make money from the trades that account owners place in their accounts. And some companies offer both types of services. Let's take a detailed look at the different types of brokers, and see which type provides the best value.
Full-Service Brokers
These companies essentially manage your brokerage account for you. Of course, there is a fee for the service. It can range from 1% up to 3% of an account's value per
year. Unlike the newer robo-advisory method where a computer program decides what to buy and sell, a human manager trades the account.
While the traditional full-service model is the most expensive option, there are certain advantages that come with it. Companies that specialize in this type of management typically offer in-person meetings with investors to go over their financial situation, look at their long-term goals, create a roadmap to retirement, and more. Some of these services will be included in the annual asset-based fee. Others will be extra.
The full-service model is a great option for investors who aren't confident in their own financial ability and would prefer to let a professional or even a team of professionals manage their assets.
Sometimes trading commissions are included in the percent-based annual fee, while other packages may not offer free trades. Brokerage accounts at full-service firms may or may not have annual fees or other charges. Be sure to check with the broker you're interested in and read its fine print before deciding on a firm.
Full-Service Examples
Raymond James is a good example of a full-service broker. It manages client accounts and charges between 1.0% and 2.25% for doing so. The exact charge varies based on account size. Consulting, a financial plan, and commissions all cost extra. In addition to regular brokerage accounts, IRAs can also be opened. The broker has over 2,800 locations globally with 7,100 investment advisors. The broker would be a good choice for investors with large balances or who don't plan to trade frequently.
Edward Jones is another full-service brokerage house that provides portfolio management for a percent of assets. The fee ranges from 0.85% to 2.5%. Commissions are included in the percentage, which varies based on account size and the type of securities the customer wants to invest in. Because Edward Jones has more brick-and-mortar locations than Raymond James, it might be a better choice for investors who live in small towns.
Self-Directed Firms
Investors who are confident enough to make their own trading decisions can find lower costs by opening a self-directed brokerage account with a discount firm. These brokers offer low fees, but don't offer as much guidance and assistance. Some of them, however, do offer a large amount of educational materials on their websites to help do-it-yourself investors make better financial decisions.
Obviously there is no percentage-based annual fee since accounts aren't managed by the broker. There may or may not be an annual fee or other account fees. It depends on the firm. Nowadays, most self-directed brokerage houses are moving towards lower fees; so many firms have no account fees.
Self-directed brokers primarily make money from commissions on trades. These can range from $10 to
$0 per transaction. Options, which typically aren't traded in a managed account, are available at many on-line discount firms.
The primary advantage of the on-line discount broker is obviously its lower cost. Less money will be spent by the investor on an annual basis to maintain the account. On the flip side, full-service brokers, as the name implies, provide more financial oversight.
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Self-Directed Example
Ally Invest
is offering both self-directed and managed accounts. Self-directed investors pay $0 for stock and
ETF transactions and have access to 11,000+ mutual funds that are $9.95 to buy or sell.
Discount vs. Full-Service Broker Review
Full-service brokerage houses are ideal for investors who don't have the ability or the time to manage their financial life. Less expensive alternatives can be
obtained by investors who have the ability to trade on their own.

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 Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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