Mutual Funds and Brokers

Status
Not open for further replies.
F

Food Scientist

Joined
Dec 11, 2009
Messages
1,000
Location
Battle Creek, MI
I opened up a Roth IRA in late 2015 and split my money into three things - Biggest chunk into IVV, which is a S&P 500 index fund, a less big chunk into TEDIX, which is actively managed, and the smallest amount into biotech ETF. I am not happy with the brokerage company, as the fees are very well hidden as they don't exactly show what they are and getting a hold of anyone that works there is next to impossible.

Needless to say I am switching my account and was going to put most of my money into index funds. Low expense ratios and outperform most other mutual funds/ETFs in any given year.

My question is should I open an online account like Scottrade or TDAmeritrade or go through someone like Vanguard? The biggest advantage of the online for me is low cost for both transactions and account fees, biggest worry is cyber security. If something like Vanguard is not that open to cyber hacks, then even if they are more expensive peace of mind is more important. Don't need any hand holding as I understand mutual funds quite well which is why I also like the online brokers.
 
I have both TD and Fidelity, I've never paid a fee for having an account (not referring to transaction fees).

I thought Vanguard was pretty low fee as well if you did most things online?

Whoever you use, I'd call them up and ask them to match fees of XYZ broker if fees at a competing broker are better (assuming it's a reasonable competitor).
 
Originally Posted By: SVTCobra
I opened up a Roth IRA in late 2015 and split my money into three things - Biggest chunk into IVV, which is a S&P 500 index fund, a less big chunk into TEDIX, which is actively managed, and the smallest amount into biotech ETF. I am not happy with the brokerage company, as the fees are very well hidden as they don't exactly show what they are and getting a hold of anyone that works there is next to impossible.

Needless to say I am switching my account and was going to put most of my money into index funds. Low expense ratios and outperform most other mutual funds/ETFs in any given year.

My question is should I open an online account like Scottrade or TDAmeritrade or go through someone like Vanguard? The biggest advantage of the online for me is low cost for both transactions and account fees, biggest worry is cyber security. If something like Vanguard is not that open to cyber hacks, then even if they are more expensive peace of mind is more important. Don't need any hand holding as I understand mutual funds quite well which is why I also like the online brokers.


Vanguard is a huge company and would have all the proper security safeguards. I use Vanguard and work in large computer security.
 
You don't need a broker etc to open an account and fund it. Just go to the web site and can do so from there, no broker to deal with etc.

I like T.Rowe Price but it all depends on the fund in question. Very few if any have long term growth, managers change, econom changes etc so one has to evaluate them once a year or so.
 
I've been a Vanguard client for almost 30 years and never had a problem. Although there have been recent problems with customer service lately (long phone wait times for example)their corporate structure really does put its clients first. I attribute Vanguards problems with its recent growth in assets; its measured in the trillions.

To be fair though, you'd probably do fine with Fidelity, Schwab, TD etc.
 
I don't think there is anything special about what you need, although if you are talking 7digits perhaps you need special care.

I would say go to a place where there is a local branch of the brokerage firm available. This means if it comes to it you can show up to the office and get what you need done.
 
Last edited:
Thanks for all the replies. I learned a lot and think I am going with Vanguard. Have a long track record and no account fees since I meet their minimum requirements. I do think that them and Fidelity are about equal so I ever have any problems I know I will have a backup.

From a security standpoint what I do like is both of them offer two-step authentication which I use for PayPal and probably not 100% fool proof, it makes it a lot harder for someone to steal some info from screenshots and then try to login.
 
Is there a online brokerage account where you can have the broker manage it for you for a fee? I'm looking at Charles Schwab... however... I am not confident in self investing!!!
 
Last edited:
I have Fidelity. They also have a 2% back on everything credit card. They're decent, they've got a lot of retail stores and you can go in there to talk with a rep if you have enough in assets.
 
Originally Posted By: NormanBuntz
I don't think anyone beats Fidelity for the combo of low costs and good customer service.

I have had both and still have Fidelity. Vanguard kicks Fidelity's butt. I still have some money with Fidelity just to spread out risk. Don't get married to a Company

Check VTINX (retirement fund) ..Cost is .13%
You can even go cheaper (like less than half that) by buying the composite ETF's that make it up: BND, VTI, BSV, BNDX, VXUS.

By Comparison Fidelity's Retirement Fund is .77%.
 
I have a Vanguard Flagship brokerage account and I'm happy with it.

I still have my TDameritrade IRA account that I don't want to sell anything yet. TD does have better research info compared to Vanguard.
 
Originally Posted By: Wolf359
I have Fidelity. They also have a 2% back on everything credit card. They're decent, they've got a lot of retail stores and you can go in there to talk with a rep if you have enough in assets.


You should be able to talk to a rep at all the brokerages regardless of your assets.

What happens when you have enough assets, is that a rep wants to talk with YOU
 
Vanguard flagship representative called me twice, left a voicemail offering to talk to me about investment 'guidance' and left his phone number. I didn't call him back.

Of course they are commission based advice.

Crazy ER (fees) will eat up market gains.
 
Status
Not open for further replies.

Similar threads

Donald
Financial Advisor
2 3
Replies
49
Views
2K
csandste
P
Maximizing credit card rewards
2
Replies
28
Views
2K
99Saturn
Tharber
How to interview and hire the right Realtor
2
Replies
21
Views
881
AZjeff
Ed_Flecko
403(b) -vs 457(b) -vs Mutual (and/or ETF) Funds
Replies
15
Views
454
bunnspecial
JHZR2
Quickbooks and quickbooks alternative?
2
Replies
25
Views
1K
Andrew1972
Back
Top