Author Topic: Best brokerage to buy index funds through?  (Read 397 times)

vinnybagodonuts

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Best brokerage to buy index funds through?
« on: June 07, 2019, 10:26:14 AM »
New investor here. I was looking to open a new brokerage account to buy some index funds like VTSAX.

I was wondering if some brokers are better than others in regard to commission fees pertaining specifically to index funds. I would also like to buy individual stocks. Thanks!

nereo

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Re: Best brokerage to buy index funds through?
« Reply #1 on: June 07, 2019, 10:40:12 AM »
New investor here. I was looking to open a new brokerage account to buy some index funds like VTSAX.

I was wondering if some brokers are better than others in regard to commission fees pertaining specifically to index funds. I would also like to buy individual stocks. Thanks!

Yes, some brokerages are absolutely better than others. For instance, run away from Edward Jones.
Three very popular choices around here are Vanguard, Fidelity and Schwab.  Off the three, Vanguard is probably the most popular here, for good reason (see below). All three have been in a 'race-to-the-bottom' regarding fees for index funds, with several funds very near zero (I believe Fidelity and now Vanguard have actually started offering zero yield funds).

One thing to note, besides fees, is that Vanguard is client owned, which is why I use them even when Fidelity of Schwab offer the same funds for ~0.01% lower at times.  To me, its worth it to pay a tiny amoutn extra to be in a client-owned business.  REad more about it here: JL Collins on "Why Vanguard."

BeanCounter

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Re: Best brokerage to buy index funds through?
« Reply #2 on: June 07, 2019, 10:53:58 AM »
While I totally agree with nereo on how awesome it is that Vanguard is member owned, my experience has been that Fidelity's website and customer service are far superior to Vanguard. That and the fact that my 401k is there is why I use Fidelity.

IsiahJLoya

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Re: Best brokerage to buy index funds through?
« Reply #3 on: June 07, 2019, 11:05:13 AM »
Personally I love M1 Finance. No commissions or fees, the ability to buy fractional shares, and they have most of all the vanguard funds your looking for.

Enigma

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Re: Best brokerage to buy index funds through?
« Reply #4 on: June 07, 2019, 11:05:49 AM »
I use both Vanguard (IRA & Taxible) and Fidelity (401k/HSA).  I was tempted to move everything to Fidelity due to their 'ZERO' funds that have zero fees.  But have opted to do a mix of the two for now.

Enigma

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Re: Best brokerage to buy index funds through?
« Reply #5 on: June 07, 2019, 11:10:08 AM »
Oh it is also worth noting that I used Betterment at one point to help when I was new to index funds and learning about Vanguard.  Plus you do not have to have much to invest and spin a dial from 100% stocks (aggressive) to 100% bonds (safe).  But you turn the dial to where you feel you are.  Also it will break down which funds it bought in which category.

Now I just buy index funds aggressively at roughtly 80% stocks and 20% bonds.
Vanguard - Total Stock (90%) and Total Bond (20%) [Min $3k per mutual fund initial startup]
Fidelity - ZERO Total Market (80%) and ZERO Total Bond (20%) [No min for initial startup]