Author Topic: Should I switch from Scottrade to Vangaurd?  (Read 4738 times)

FrogStash

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Should I switch from Scottrade to Vangaurd?
« on: October 23, 2015, 12:58:09 PM »
New to the MMM ways, I have been increasing my savings quite a bit and have a solid plan that will let me FIRE.

I have been using Scottrade to buy ETF shares of SDY, their S&P Dividend fund.  My question is, how much better off would I be opening a vanguard account instead.  I'm not too worried about finding a similar fund to buy, but am curious about how bad spending $7 every quarter to invest $3000-$5000 is hurting me?  I could open an account buying admiral shares instead.  Is it worth it?

Tjat

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #1 on: October 23, 2015, 07:01:19 PM »
Let's say you start with 10K (min needed for Vanguard Admiral Fund) and you contribute 4K a quarter (12K a year) and have 6% annual returns. Over 10 years, the difference between a 0.35% and 0.05% will be ~$2700.

mrpercentage

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #2 on: October 24, 2015, 02:34:05 AM »
Just my exerience. I sold some stock on Scottrade and had to call them for a check. They said it needed 3 days to settle before they could send it. I said okay. Over a week later it showed up. I deposited the check. Chase said there was a 3 day hold before they could issue it. In all with weekends I believe it took 12 days. Half a month to give me my money. Im done.

Robinhood sends it in 3 days direct deposit. Its on a phone platform. I will never overlook this experience.

brandino29

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #3 on: October 24, 2015, 04:26:57 PM »
Just my exerience. I sold some stock on Scottrade and had to call them for a check. They said it needed 3 days to settle before they could send it. I said okay. Over a week later it showed up. I deposited the check. Chase said there was a 3 day hold before they could issue it. In all with weekends I believe it took 12 days. Half a month to give me my money. Im done.

Robinhood sends it in 3 days direct deposit. Its on a phone platform. I will never overlook this experience.

Interesting that you had that experience with Scottrade.  I was going to say that I've never had that happen with Scottrade but I realized I've also always kept my money in my account rather than cashing out any gains. 

Thinkum

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #4 on: October 24, 2015, 05:24:12 PM »
Funny this should come up, because this is exactly what I'm doing soon enough. I use both brokerages and after about a year now, am going to switch it all to Vanguard. Those $7 fees add up, plus I like consolidation. Oh and the check thing isn't too bad a deal as long as you're not tight for the money. If you need the money from your account to spend, then you can just open a Scottrade bank account with both a debit card and check writing capabilities. Transferring money however just blows. $25 for an ACH wire transfer. On the other hand it's free if you're making a deposit. Gotta love it.

FrogStash

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #5 on: November 05, 2015, 01:33:58 PM »
Thanks for the insight.  I have not made any withdrawals so the not about that issue is very helpful.

brotatochip

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #6 on: November 05, 2015, 03:04:26 PM »
I purchase Vanguard mutual funds through TD Ameritrade.  It's so infrequent enough the $10 per trade doesn't bother me.  They also have over 100 ETF's that are commission free, VTI being one of them.

david51

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #7 on: November 05, 2015, 10:07:57 PM »
Just my exerience. I sold some stock on Scottrade and had to call them for a check. They said it needed 3 days to settle before they could send it. I said okay. Over a week later it showed up. I deposited the check. Chase said there was a 3 day hold before they could issue it. In all with weekends I believe it took 12 days. Half a month to give me my money. Im done.

Robinhood sends it in 3 days direct deposit. Its on a phone platform. I will never overlook this experience.

Interesting that you had that experience with Scottrade.  I was going to say that I've never had that happen with Scottrade but I realized I've also always kept my money in my account rather than cashing out any gains.
     I once had Scottrade send me a check, two days later it was on my doorstep

gluskap

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #8 on: November 06, 2015, 04:59:07 PM »
I switched all my Scottrade accounts (individual taxable, roth IRA, traditional IRA) to Vanguard and opened up a joint taxable account too with Vanguard.  The fees add up.  Just make the change now.  You'll thank yourself later.

not_a_trex

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #9 on: November 06, 2015, 05:32:04 PM »
I purchase Vanguard mutual funds through TD Ameritrade.  It's so infrequent enough the $10 per trade doesn't bother me.  They also have over 100 ETF's that are commission free, VTI being one of them.

You know you can do this through Vanguard directly for free, correct?

brotatochip

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #10 on: November 06, 2015, 06:46:30 PM »
I purchase Vanguard mutual funds through TD Ameritrade.  It's so infrequent enough the $10 per trade doesn't bother me.  They also have over 100 ETF's that are commission free, VTI being one of them.

You know you can do this through Vanguard directly for free, correct?

Yes, we all know this.  Just pointing out that TD Ameritrade has commission free ETF's so Scott Trade may offer the same.  If you already have an account it's all the same. 

not_a_trex

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #11 on: November 06, 2015, 11:49:13 PM »
Cool, got it.

FrogStash

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #12 on: November 10, 2015, 02:50:24 PM »
I switched all my Scottrade accounts (individual taxable, roth IRA, traditional IRA) to Vanguard and opened up a joint taxable account too with Vanguard.  The fees add up.  Just make the change now.  You'll thank yourself later.

Is there a way to make the switch for a taxable account without paying capital gains tax on it now? 

jim555

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #13 on: November 12, 2015, 09:14:25 AM »
I switched all my Scottrade accounts (individual taxable, roth IRA, traditional IRA) to Vanguard and opened up a joint taxable account too with Vanguard.  The fees add up.  Just make the change now.  You'll thank yourself later.

Is there a way to make the switch for a taxable account without paying capital gains tax on it now?
Yes.  If the broker is holding the shares for you (street name) they can do a ACAT transfer from one broker to another, moving your positions without a sale.

Spork

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #14 on: November 12, 2015, 09:36:38 AM »
I switched all my Scottrade accounts (individual taxable, roth IRA, traditional IRA) to Vanguard and opened up a joint taxable account too with Vanguard.  The fees add up.  Just make the change now.  You'll thank yourself later.

Is there a way to make the switch for a taxable account without paying capital gains tax on it now?
Yes.  If the broker is holding the shares for you (street name) they can do a ACAT transfer from one broker to another, moving your positions without a sale.

Any idea if there is a charge for this?  I've got a pretty decent chunk of individual stocks at TDA.  It's only been reasonably recently I realized I could have been trading these for $0 at Vanguard.  I'm not sure it's worth the trouble... but ... maybe it is.

Thinkum

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Re: Should I switch from Scottrade to Vangaurd?
« Reply #15 on: November 12, 2015, 09:40:59 AM »

Any idea if there is a charge for this?  I've got a pretty decent chunk of individual stocks at TDA.  It's only been reasonably recently I realized I could have been trading these for $0 at Vanguard.  I'm not sure it's worth the trouble... but ... maybe it is.

I am transferring all my individual stocks from Scottrade to Vanguard and there is no charge. It just takes a while to get it all done.