Vanguard's Frequent Trading explanation is HERE. There may be a more detailed explanation elsewhere on the site (I didn't look too hard).
I think if the "system" can easily detect something that's against policy, they simply prevent the order from going through. I sold shares of fund XYZ in my taxable account in Jan (gifts to the kids), but that triggered my automated monthly buy into the system to be rejected by "the system" in early Feb. I didn't get any warnings or restrictions placed on the account; just a notice of why the automated purchase was rejected. I just waited until 31 days after the sale I made in Jan and manually purchased the shares without any issue. In Mar my automated purchases resumed without me having to do anything. (Dumb on my part as I know about the rule, but forgot about my auto-purchase as it's kind of out-of-sight until I run my budget at end-of-month.)
Doesn't directly answer your questions, but you could simply try and see if it gets rejected, or you could call a representative and ask directly.
I think if the "system" can easily detect something that's against policy, they simply prevent the order from going through. I sold shares of fund XYZ in my taxable account in Jan (gifts to the kids), but that triggered my automated monthly buy into the system to be rejected by "the system" in early Feb. I didn't get any warnings or restrictions placed on the account; just a notice of why the automated purchase was rejected. I just waited until 31 days after the sale I made in Jan and manually purchased the shares without any issue. In Mar my automated purchases resumed without me having to do anything. (Dumb on my part as I know about the rule, but forgot about my auto-purchase as it's kind of out-of-sight until I run my budget at end-of-month.)
Doesn't directly answer your questions, but you could simply try and see if it gets rejected, or you could call a representative and ask directly.
Statistics: Posted by bonesly — Tue Dec 19, 2023 12:42 am