Warning: my broker's 'free' account transfer took 3 weeks and cost me $150

Last month I decided to move my portfolio from my old broker to a new one that offered lower fees. The old broker's website said transfers were free and easy, so I started the process online. A week went by with no update, so I called. They told me there was a 'processing fee' of $75 per account, which wasn't mentioned anywhere in the transfer form. I had two accounts, so that was $150. Then they said the transfer would take 10-15 business days, not the 5-7 they advertised. My money was just stuck in limbo for over three weeks total. I felt totally misled by the fine print they never showed me. Has anyone else had a broker surprise them with hidden fees during a transfer?

2 comments

2 Comments

felixa185d ago

Ugh, that's the oldest trick in the book. It feels like every company does this now, not just brokers. They get you in the door with the big, easy promise, and then the real cost and hassle is buried where you won't look. My internet provider and my old gym pulled the same stuff. The free part is for the basic action, but then they nickel and dime you for every single step of actually doing it. It makes you feel powerless because you're already committed. Sorry you had to deal with that mess.

derekcarr5d ago

Subscription models are the same scam.