Last week, TD Ameritrade Institutional, the brokerage firm we typically recommend to our clients to custody and safeguard their managed assets, announced it was reducing their prices.
Dimensional Fund Advisors (DFA) funds are now $9.99 per transaction, down from TD's standard pricing of $24 per transaction. This is exciting news since we use several Dimensional funds in our clients’ portfolios. Vanguard mutual funds, which we also use, remain at $24 per transaction and allow our clients access to the lower expense ratio Admiral share class with no minimums. By way of comparison, other custodians charge as much as $50 per transaction for mutual funds from Dimensional and Vanguard.
Exchange Traded Funds (ETF)
Standard ETF pricing has been lowered from $9.99 per trade to $6.95 per trade. While this is welcomed news, most of the ETFs we use are on TD Ameritrade Institutional’s commission-free list, so our clients were already getting rock-bottom pricing.
Our Relationship with TD Ameritrade Institutional
The recent pricing changes are great news for our clients and reaffirm our confidence in TD Ameritrade Institutional. In addition to competitive pricing, they continue to be at the forefront of technology solutions and client service. As an independent Registered Investment Adviser (RIA), we are completely independent of TD Ameritrade Institutional, but recommend them because of the value they offer our clients.
Posted: March 6, 2017