Morgan Stanley Account Closing Fee and ACAT/Transfer Cost (2020)


Morgan Stanley account transfer fee. Cost and how to close brokerage investing or IRA accounts. Morgan Stanley termination/canceling fee.



Morgan Stanley Account Closing Fees


Account or Service Standard FeeFrequency
Individual Retirement Account (IRA) (Traditional, Roth, Rollover, Inherited, SEP, SIMPLE and SAR-SEP) Termination Fee$95Per Account Termination
Business Retirement VIP Basic Termination Fee$50Per Account Termination
Business Retirement VIP Plus Termination Fee$50Per Account Termination
Business Retirement RPM Termination Fee$50Per Account Termination
529 College Savings Plan Termination FeeWaivedn/a
Coverdell Education Savings Account (ESA)Termination Fee$95Per Account Termination
Account Transfer Fee$95Per Account Termination


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Morgan Stanley Top Competitors


Broker Review Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
Promotion
Offer
TD Ameritrade $0 $49.99 $0 $0 $0 commission stock and ETF trades.
Ally Invest $0 $9.95 $0 $0 Up to $3,500 cash bonus + $0 commission trades.
M1 Finance $0 na $0 $0 Pay $0 commissions. Transfer account to get up to $2,500 bonus at M1 Finance.



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.


Morgan Stanley Closing Fee


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, IRA's 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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Vanguard vs Ally Invest


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.