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Vanguard - Brokerage FAQs - General information

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Brokerage FAQs—General information

What securities can I hold at Vanguard Brokerage Services®?

During what hours can stocks and bonds be traded?

What are your commission rates and maintenance fees?

How is my account protected?

How do I pay for transactions and receive sales proceeds?

Why is there a debit or credit in my account? Why hasn't Vanguard taken money from, or moved money into, my money market fund?

How are dividends and interest credited to my account?

What choices do I have for a security that is considered worthless?

How do I close my brokerage account, and are there any fees for doing so?

What securities can I hold at Vanguard Brokerage Services?

You can hold Vanguard ETFs®, stocks, bonds, options contracts, certificates of deposit (CDs), and funds and ETFs from other companies.

During what hours can stocks and bonds be traded?

At Vanguard Brokerage Services, you can trade stocks from 9:30 a.m. to 4 p.m., Eastern time. You can trade bonds through our Fixed Income Trade Desk from 8 a.m. to 5 p.m., Eastern time.

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What are your commission rates and maintenance fees?

We offer commission-free trading for all Vanguard ETFs and competitive rates for stocks, bonds, CDs, options, and mutual funds and ETFs from other companies. You pay the same amount whether you're trading online or by phone. Trading limits and fund expenses may apply. See the Vanguard Brokerage Services commission and fee schedules for full details.

How is my account protected?

Securities in your brokerage account are held in custody by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation. Vanguard Marketing Corporation is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at sipc.org.

To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from certain insurers at Lloyd's of London and London Company Insurers for eligible customers with an aggregate limit of $250 million, incorporating a customer limit of $49.5 million for securities and $1.75 million for cash. Coverage provided by SIPC and certain Lloyd's of London and London Company Insurers does not protect against loss of market value of securities. The policy provided by certain Lloyd's of London and London Company Insurers is subject to its own terms and conditions.

How do I pay for transactions and receive sales proceeds?

Your brokerage transactions involve the movement, or "sweep," of assets between your brokerage account and your linked Vanguard money market settlement fund. You must have assets in the right account at the right time to prevent rejected orders and account restrictions. The amount required for settlement, plus any commission or purchase fee, is redeemed from your money market settlement fund on the settlement date.

If you plan to pay for a purchase using assets held in another Vanguard fund account, you must initiate the exchange into your settlement fund by 4 p.m., Eastern time, on the business day before settlement.

If you're covering a purchase with a bank wire, see our wiring instructions.

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Why is there a debit or credit in my account?  Why hasn't Vanguard taken money from, or moved money into, my money market account?

When your trades are executed, the proceeds from a sale or the money you owe for a purchase of a security will be reflected as a net credit (for a sale) or net debit (for a buy) until the close of business on the settlement date of your trade.

On the settlement date, Vanguard Brokerage Services will automatically withdraw/sweep money from or deposit/sweep money into your money market settlement fund to settle your trade.

Most equity trades settle within three business days; however, we advise you to verify any trade settlement procedure prior to making trades. For mutual funds from other companies that are offered through FundAccess®, settlement varies depending on the fund family. In the case of late reporting from the fund family, settlement may be delayed.

How are dividends and interest credited to my account?

If your securities are maintained by Vanguard Brokerage Services, all dividends and interest earned are credited to your brokerage account. Earnings will automatically be transferred to your money market settlement fund the following business day.

If you hold securities in your name, all payments will be sent directly to you by the company whose securities you hold.

Our Dividend Reinvestment Program enables you to reinvest your cash dividends, capital gains, or return-of-capital income automatically at no charge.

What choices do I have for a security that is considered worthless?

If a security no longer trades in the open market and can’t be sold, you can authorize us to sell your whole position for the gross proceeds of $1. The transaction will be reported on your IRS Form 1099. Call us at 800-992-8327 for more information and to provide authorization.

How do I close my brokerage account, and are there any fees for doing so?

Call us at 800-992-8327 to close your account. There are no fees for closing an account.

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All investments are subject to risk.

A money market mutual fund investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market mutual fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

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