First the Mutual Funds now the entire brokerage

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Frequent Contributor
USAA has never had the best or cheapest brokerage but as others have pointed out, the convenience of having an all-in-one relationship for checking, credit, insurance and brokerage services with easy access was the key.

Schwab is a good company but don’t let those 5$ trades fool you. They don’t offer traditional default money market accounts. The default for holding cash is a bank account at .26% so you’re forced to trade for money market “like” funds and stay invested all the time.

USAA is going back to peanut butter and jelly.

I just have nothing else to say. I’m so disappointed.

17 REPLIES

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Yikes, it's certainly concerning to read you feel this way, @Jay007. I'll be glad to get your feedback to the appropriate for further review and support. Thank you for sharing this with us. ~ Steven

Steven, this isn't about feelings, it's about facts and not your meaningless platitudes. If I wanted to deal with Billy Bobs Mutual Funds I would have but for over 50 years I preferred dealing with USAA. As long as the foolish management is bent on outsourcing everything then send our stuff to China like the rest of the bird brained frat boys that are running corporate America.

 

                                                                       Wesley C Gager

                                                                        Member since 1968 but not much longer

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Charles Schwab is not Billy Bobs mutual funds, it is the third largest broker in the US. Offers far better options for your wallet than what we have had available from the brokerage. This isn't the Victory Capital deal. I would agree that THAT is Billy Bobs mutual funds. 

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Hey, you ought to be shilling in a three card Monty game in NYC. USAA has tripped me up big time and I don’t give a dang about Schwab. You can keep the rah rah to yourself.
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I am most certainly not rah rahing, I am making legitimate points that I believe the deal to be better overall for the average USAA members wallet and I believe they will keep it all self contained here, if Schwab takes over, it'll connect through USAA. Second my point on it not being Billy Bobs mutual funds was spot on. Look I get you have a personal axe to grind with USAA due to whatever it is that you got taken down the river for, but honestly be reasonable and realistic when admitting that Schwab is far better then the IMCO brokerage set up and options that USAA members had. I don't say this to disparage USAA in this regard, they just never built scale and never were because their commissions, fees and expense ratios were far too expensive to do so in this market and that wasn't going to change.

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My personnal axe to grind, as you put it, was not created by me. I've got a bad attitude but I didn't grow it myself. I don't need any propaganda about Schwab either. The bigger they are, the harder they fall. Sooner or later, the way this outfit is being run, they'll screw you up, too. I stopped off at Edward Jones today. Keep in mind that I have been a member since 1968. USAA was much better in the days of yore when it was officers and their families only. I take no joy in skewering this outfit. It makes me sad indeed after such a long relationship.

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You are switching to Edward Jones?

 

That makes no sense based off your posts.

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What do you know about it? Look up the word fiduciary and let your dim little bulb glow bright.
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Hi Jay007, this is standard practice across the board for brokerage firms to use cash management instead of money market funds, they do this because the profit margins are becoming considerably thinner than they're used to so they look to make money in other ways...It's two clicks of the mouse to purchase and you're in money market funds. 

 

I would say that as long as they keep a single sign on, which is possible (Schwab, powered by USAA brokerage platform for example) then the single place to have all your funds shouldn't go away, in fact I highly doubt it will. I would believe that it would be similar to the Victory deal where your USAA mutual fund page hasnt changed or where you purchase them, they probably will work something out in the same vein. Also, I am ecstatic that they are using a real brokerage and I get real tools and a much wider degree of purchase options that are cost effective, they have over 500+ commission free ETFs, versus like 30 here, Schwab has target date funds that are at .08% expense ratio versus the .84% here, it's better for you all around. May it mean getting used to something different, yes, but did you really love USAA funds and their platform that much or the limited options you had in the brokerage overall? Most coming with transaction fees and lack of flexibility.  

 

USAA members on this message board are the only ones who could conceivably complain that they are getting lower costs, more options and a brokerage that is far better for your wallet. I understand your argument about the money market funds, but really, you're concerned about a 1.5% difference, which you can solve by clicking the mouse a few times and willing to turn down the far superior offerings in the form of commission free ETFs, potential Cash Management accounts and the much lower expense ratios backed by the third largest brokerage firm in the country, because we might have to order our money market funds?