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Firstrade to charge $9.95 for no-load funds
meco1999 02-07-2007, 7:37 PM | Post #194326 | 
I've had my Roth IRA with Firstrade since February 2006. I received an email today from Firstrade that says the following:

"Starting on April 2, 2007, please be advised of the following changes to our mutual fund policy at Firstrade:

-A $9.95 commission will now apply to No-Load mutual fund trades. This allows us to maintain the lowest mutual fund rate in the online brokerage industry.
-No Transaction Fee (NTF) and Load funds will remain commission free. For an updated mutual fund list, please click here.
-The early redemption period has been decreased from 180 calendar days to 90 calendar days."

Up until now, they have had completely free mutual fund trades, so this news rather sucks. All 3 of my funds with them are no-load (TAVFX, DODFX, FAIRX), but 2 of these aren't on the NTF list (DODFX, FAIRX), so will this mean I'll have to pay $9.95 every time I buy or sell shares of these 2 funds?

The reason I picked Firstrade was the free mutual fund trades. I don't think I'm going to switch brokerages because Firstrade has a $50 fee to transfer funds to another brokerage.

What do you think about this policy change at Firstrade? Are you staying with them?

Originally posted in thread: 57223
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