Account closure and full transfer out fee Vanguard Brokerage may charge a $100 processing fee for each account closure and full transfer of account assets to another firm.
Moving assets between your Vanguard accounts
You can transfer to consolidate assets, change which accounts hold certain investments, or maintain your money in a different way. Move investments between your nonretirement accounts. Investments transferred are not exchanged, bought, or sold.
An account transfer is the easier option to move your money from one institution to Schwab as is. For example, if you have a brokerage account with stocks, ETFs, or mutual funds, you can move over the entire account to Schwab while keeping the investments as they are (or, in-kind).
Considerations: Moving stocks from one broker to another
You have two options: In-cash: Your original institution will liquidate your assets and transfer the funds to the receiving institution. In-kind: You have your account transferred “as-is” and assets are moved over in the same form.
No worries - Vanguard is a reliable broker that lets you access your funds any time. You can use only bank transfers to withdraw funds. In most cases, you can get your money back within 2 days. Vanguard charges $0 for basic withdrawals, but some methods may cost more.
While Schwab takes the lead in overall versatility, Vanguard remains an excellent choice for those who prefer a more concentrated investment approach, capitalizing on its robust selection of mutual funds and advisory services.
For customers who do nothing, "Vanguard will simply transition your account to its brokerage platform, whether you like it or not," he said.
If required by law, Vanguard will withhold some taxes for you. You may need to pay a 10% federal penalty tax if you take money out early.
Vanguard Brokerage may charge a $100 processing fee for each account closure and full transfer of account assets to another firm.
There are several reasons you might not be able to withdraw. If your money is invested you will have to sell funds first so you have cash available in your account to withdraw to your bank account. Withdrawals can be stopped if: you do not have sufficient cash in your account.
Vanguard accounts are protected by Securities Investor Protection Corporation (SIPC) insurance. This insurance covers up to $500,000 in securities and up to $250,000 in cash if the firm fails.
While both institutions offer robo-advisors, Vanguard's Personal Advisor Services, which is available to clients who can meet a $50,000 account minimum, offers a little more hands-on investment guidance and assistance with portfolio construction. Vanguard also has slightly lower expense ratios on its index funds.
Vanguard's platform is geared toward buy-and-hold investors, not active traders. While the platform gets the job done (that is, you can enter orders), there aren't any bells and whistles. The order entry process is clunky and not particularly intuitive, and there's no real-time data until you open a trade ticket.
In Vanguard's case, it was a no-brainer to switch to the brokerage option, which is operationally much simpler, he said. And brokerages have pushed against the use of held-away assets that are invested directly with funds.
VBS' sweep program automatically transfers (“sweeps”) any uninvested funds, such as new deposits or the proceeds from securities transactions, into a money market fund or bank product sweep option. Funds are swept out to pay for transactions.
Transfer fees may hold you back, but many brokerage accounts handle the fees when you transfer funds because they want your business. The fees for transferring a brokerage account over can range from $30 to $150.