Author Topic: Using Vanguard for individual stocks?  (Read 6134 times)

Sebastian

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Using Vanguard for individual stocks?
« on: June 03, 2014, 06:34:07 AM »
So we are all about Vanguard here and using it to buy index funds, but what happens if you just want to invest into individual companies? I have a company I'd like to invest into so would I just buy ETFs of that company through Vanguard? Any fees associated with Vanguard account that I should look out for?

Thanks!

viper155

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Re: Using Vanguard for individual stocks?
« Reply #1 on: June 03, 2014, 07:01:39 AM »
I recently rolled over an a Etrade account to Vanguard that holds an individual stock. Vanguard charges $7.99 a trade. Period. They are, indeed, a GREAT company. Tell your friends and children!

butchmonkey

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Re: Using Vanguard for individual stocks?
« Reply #2 on: June 03, 2014, 07:17:43 AM »
You can't buy an etf of an individual stock. An etf is a mutual fund traded on a stock market. 


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SDREMNGR

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Re: Using Vanguard for individual stocks?
« Reply #3 on: June 03, 2014, 07:20:42 AM »
You don't buy ETFs of that company.  You buy the stock.  ETFs are index funds that are traded like stock but they are a bundle of stocks.  If you buy individual stocks, it is $7 per trade.  Up to 25 a year at that price or unlimited with $50k in Vanguard branded funds held. $2 per trade if you have $500k held. 


wtjbatman

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Re: Using Vanguard for individual stocks?
« Reply #4 on: June 03, 2014, 02:05:12 PM »
I use Sharebuilder, $6.95 a trade. If you're already using Vanguard and want to stay there, I doubt it would be worth switching over.

rmendpara

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Re: Using Vanguard for individual stocks?
« Reply #5 on: June 03, 2014, 06:17:52 PM »
Probably not worth switching over. I would use Vanguard to trade Vanguard funds/ETFs, because they don't charge fees for their own funds.

If you want a brokerage account, they aren't a bad option, but unless you have >$50k in their funds, you only have 25 trades at $7. It's fine if you don't trade a ton, and makes life a little simpler with one brokerage instead of several. However, there are a handful of other brokerages with comparable trading fees (TD and Schwab come to mind, but there are probably at least 5 others with similar fees).

Eric

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Re: Using Vanguard for individual stocks?
« Reply #6 on: June 03, 2014, 06:27:59 PM »
I'd strongly urge you to re-consider buying any individual stock until you can formulate WHY you think its stock price is going to increase relative to the market.  Most professionals do not beat the market, so why do you think that you, as an amateur that's not even sure how to buy a stock, has the ability to?

http://jlcollinsnh.com/2011/06/02/why-i-cant-pick-winning-stocks-and-you-cant-either/

hodedofome

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Re: Using Vanguard for individual stocks?
« Reply #7 on: June 03, 2014, 07:54:18 PM »
At a certain account balance level Vanguard's stock trades are fairly cheap, I think $2-3 a trade or something like that. It might be $500k+ I can't remember.

Sebastian

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Re: Using Vanguard for individual stocks?
« Reply #8 on: June 04, 2014, 10:24:35 AM »
I'd strongly urge you to re-consider buying any individual stock until you can formulate WHY you think its stock price is going to increase relative to the market.  Most professionals do not beat the market, so why do you think that you, as an amateur that's not even sure how to buy a stock, has the ability to?

http://jlcollinsnh.com/2011/06/02/why-i-cant-pick-winning-stocks-and-you-cant-either/

I was thinking about it because my Dad told me that he got some insider info from a higher up in the company i was going to invest in. After I looked into it the "insider" information he had was publicly announced back in dec '13... So yeah, I'm not going to mess around with individual stocks.

Emg03063

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Re: Using Vanguard for individual stocks?
« Reply #9 on: June 04, 2014, 09:09:20 PM »

I was thinking about it because my Dad told me that he got some insider info from a higher up in the company i was going to invest in. After I looked into it the "insider" information he had was publicly announced back in dec '13... So yeah, I'm not going to mess around with individual stocks.

FYI, had that been true, trading on the info would have been highly illegal.  https://www.sec.gov/answers/insider.htm  Remember Martha Stewart?

hodedofome

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Re: Using Vanguard for individual stocks?
« Reply #10 on: June 04, 2014, 09:20:49 PM »
Never trade based on a 'tip,' those never work out as good as the tipster makes you think they will.

Undecided

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Re: Using Vanguard for individual stocks?
« Reply #11 on: June 05, 2014, 06:08:05 PM »

I was thinking about it because my Dad told me that he got some insider info from a higher up in the company i was going to invest in. After I looked into it the "insider" information he had was publicly announced back in dec '13... So yeah, I'm not going to mess around with individual stocks.

FYI, had that been true, trading on the info would have been highly illegal.  https://www.sec.gov/answers/insider.htm  Remember Martha Stewart?

Well, no, maybe; "remote tippee" liability under 10b-5, anyway, is pretty unclear.

RapmasterD

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Re: Using Vanguard for individual stocks?
« Reply #12 on: June 05, 2014, 09:14:15 PM »
I don't see how you'd ever pay more than $7/trade at Vanguard unless you're a trader versus an investor.

https://personal.vanguard.com/us/whatweoffer/stocksbondscds/feescommissions


Sebastian

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Re: Using Vanguard for individual stocks?
« Reply #13 on: June 06, 2014, 10:37:56 AM »

I was thinking about it because my Dad told me that he got some insider info from a higher up in the company i was going to invest in. After I looked into it the "insider" information he had was publicly announced back in dec '13... So yeah, I'm not going to mess around with individual stocks.

FYI, had that been true, trading on the info would have been highly illegal.  https://www.sec.gov/answers/insider.htm  Remember Martha Stewart?

I know I know... well it's silly to just invest on this company anyways based on a whim. No worries people! Imma just going to stay the course with the whole market.