Author Topic: Low balance Fidelity Brokerage account  (Read 2606 times)

cbender49

  • 5 O'Clock Shadow
  • *
  • Posts: 12
Low balance Fidelity Brokerage account
« on: January 14, 2015, 11:23:52 AM »
Hi All,
This situation seems a little different than others bringing up the same type of accounts, so I hope someone here can chime in.

I have a Fidelity Brokerage account with $700 - $800 in it and am finding the accounts I want to invest in require $2,500 - $10K in up front load, which I don't have currently. I will be adding to this account, likely to the tune of $1K - $1,500 per year and am trying to figure out where to beneficially park these funds, taking transaction fees expense ratios into consideration. These, and future contributions, are the product of a rewards credit card so I'm not able to consider other avenues outside of Fidelity.

Is there a solid option for me or is it best to simply leave it stagnant until I reach the $2,500 threshold?

TIA

RapmasterD

  • Pencil Stache
  • ****
  • Posts: 589
  • Location: SF Peninsula
Re: Low balance Fidelity Brokerage account
« Reply #1 on: January 14, 2015, 11:34:36 AM »
I'm biased toward Vanguard and most of our money is there.

But Fidelity's brokerage services are good. I'm just not enough of a frequent trader to avail myself of them.

I agree. Go in with ETFs until you reach the minimum.

GGNoob

  • Pencil Stache
  • ****
  • Posts: 725
  • Age: 32
  • Location: Colorado
Re: Low balance Fidelity Brokerage account
« Reply #2 on: January 14, 2015, 11:45:45 AM »
I'm not sure what Fidelity offers for low minimum funds, but you could always move to Vanguard to open a Target Retirement fund with the $1,000 minimum. Otherwise I'm with everybody else, just purchase ETFs. Fidelity has quite a few iShares ETFs that can be traded commission-free.

cbender49

  • 5 O'Clock Shadow
  • *
  • Posts: 12
Re: Low balance Fidelity Brokerage account
« Reply #3 on: January 14, 2015, 02:29:47 PM »
Thanks for the thoughts so far! It's very appreciated.

BarkyardBQ

  • Pencil Stache
  • ****
  • Posts: 667
Re: Low balance Fidelity Brokerage account
« Reply #4 on: January 14, 2015, 02:35:47 PM »
I think OP is more stating that he can't move the funds from this account and what he should invest in if the money is stuck there...

Are you using this? https://www.fidelity.com/cash-management/american-express-cards

If so, couldn't you try putting in 1800 cash right now to get to the 2500 fund limit, pick your fund, and then all your cash back would just sit in that fund?

Otherwise ETFs would be your best option.

cbender49

  • 5 O'Clock Shadow
  • *
  • Posts: 12
Re: Low balance Fidelity Brokerage account
« Reply #5 on: January 16, 2015, 08:12:54 AM »
I guess I thought the choices would be more clear-cut but I'm having a difficult time finding and researching ETF's via Fidelity's site. Are there any 'go-to' ETF's I can park this money in until I'm able to get up to the $2,500 of buying into a more preferred account?

Also, I'm assuming 'commission free' means there isn't a cost to add or remove these funds from said ETF over the next 12 months or so - is that correct?

Thanks for the newbie help!

Franklin

  • Stubble
  • **
  • Posts: 204
  • Location: Rochester, NY
Re: Low balance Fidelity Brokerage account
« Reply #6 on: January 16, 2015, 08:18:57 AM »
I guess I thought the choices would be more clear-cut but I'm having a difficult time finding and researching ETF's via Fidelity's site. Are there any 'go-to' ETF's I can park this money in until I'm able to get up to the $2,500 of buying into a more preferred account?

Also, I'm assuming 'commission free' means there isn't a cost to add or remove these funds from said ETF over the next 12 months or so - is that correct?

Thanks for the newbie help!


I had the same situation with my teenage daughter who just opened her first Roth with $200 in Fidelity.  Look at IVV, which is the iShares S&P 500 ETF.  Commission free with Fidelity, which means it will not cost anything to place your initial or subsequent trades.  Good luck!
« Last Edit: January 16, 2015, 08:21:07 AM by Franklin »