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Fidelity Bond Pricing is Less Expensive 98.6% of the Time

Sept. 20, 2013
Brokers, Investing
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  • Fidelity issued a study that examined bond pricing for retail investors from five brokerage firms (Fidelity, Charles Schwab, TD Ameritrade, Merrill Lynch and Wells Fargo). The study found that Fidelity’s pricing at $1 per bond transaction was less expensive 98.6% of the time versus “markup-based” brokers that bundle transaction fees with the price of the bond. Brokerage firms charge fees on bond transaction in two ways – either a fee clearly stated as separate from the offered price of a bond, or a markup fee that is bundled in with the price of the bond. It is no surprise that Fidelity’s own study would find themselves to be one of the least expensive amongst their competitors; regardless it still highlights the importance of being a careful shopper when it comes to selecting your broker.
  • E-trade ranked their Top 5 International funds for the quarter:
Fund Name & Symbol Fund Category 1-Year Return
1. OAKMARK INTERNATIONAL I Foreign Large Blend 35.57%
2. OAKMARK INTERNATIONAL SMALL CAP I Foreign Small/Mid Blend 28.80%
3. ISHARES MSCI EAFE SMALL-CAP ETF Foreign Small/Mid Blend 24.61%
4. DODGE & COX INTERNATIONAL STOCK Foreign Large Blend 22.29%
5. AMERICAN BEACON INTL EQUITY INV Foreign Large Value 20.19%


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