VFINX - Buy through Vanguard or myself?

[HairyUpperLip]

Vanguard 500 Index Fund Investor Class (VFINX :NASDAQ)

Hey guys - just learning the ways and had a question...

Should I buy into VFINX shares directly through Vanguard? Or am I better off buying them from my current stock broker situation?

I currently have an IB account and pay only $1 per trade.

What's the pro's or con's of buying them myself? Any advantages to buying them through Vanguard?

I did call Vanguard myself and asked the question and the guy's only response was that it's lower cost then the typical stock brokerage. Which is probably very true, but at a dollar per trade that may not be true for me.

Opinions? Thanks!

[geekette]

If you buy through Vanguard, there's no fee to buy - linkey

[the fixer]

Through a brokerage you'd have to buy the ETF version; you can't buy VFINX as that refers to the mutual fund. See https://investor.vanguard.com/etf/etf-vs-mutual-fund

Some pluses/minuses not referenced at above link: mutual funds offer lower-cost Admiral Shares with a high enough minimum balance (and if you're on this site, you should eventually be able to sock away $10k). ETFs can be bought and sold at any time with no restrictions. Vanguard fund shares have some restrictions that prevent frequent trading, but a buy-and-hold investor will not be seriously affected by these.

[soccerluvof4]

Plus the lower cost Admiral shares. Not sure if available through broker. (looks like the fixer beat me to it)

[HairyUpperLip]

Thanks for the simple answers.

I wonder why the Vanguard rep didn't bother explaining anything properly.... Should I be weary of trusting them then? ...

[geekette]

Do you mean leery of trusting them?  I vote no. 

The rep probably didn't really understand what you were asking.  Besides, he did answer that the costs are lower buying directly from them, which is true.