Brokerage Services thread

[blueMD]

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Hi there,

I've enjoyed reading the threads from everyone here. I just wanted some feedback about the brokerage firms anyone uses and why you like it. I'm considering using Scottrade vs Etrade vs Ameritrade vs TD Waterhouse

I started residency this year and would also like to start doing some investing. I've been reading a bit on ETFs and wanted to know which brokerage is better.

Thanks for the great posts!

 

[etf]

Hi there,

I've enjoyed reading the threads from everyone here. I just wanted some feedback about the brokerage firms anyone uses and why you like it. I'm considering using Scottrade vs Etrade vs Ameritrade vs TD Waterhouse

I started residency this year and would also like to start doing some investing. I've been reading a bit on ETFs and wanted to know which brokerage is better.

Thanks for the great posts!

in terms of pure brokerage services, you will be hard pressed to find anyone that can touch fidelity. with the most basic account (i.e. less than $50k householded assets) you're going to pay about $20 per equity trade, which is relatively a lot, but if you don't have that much money you're probably not going to want to place too many trades anyway. if you're going to only buy index mutual funds, you'll probably want to stick with vanguard, but don't use them for stocks/bonds, cause the account fees are ridiculous.

 

[The White Coat Investor]

I would have to agree that Vanguard's brokerage service leaves a great deal to be desired. The only reason to use it is if you already have a lot of assets in their mutual funds and want to keep things simple or if you have enough assets to qualify to have their onerous fees waived. (Keep in mind onerous is a relative term compared to full-service brokerages of the past.) I have heard many say they prefer Fidelity's brokerage to Vanguard's because of better customer service and a more useable website. I don't think the fees are dramatically different after the recently decreased prices at Vanguard.

Also, keep in mind that many people are better off with index funds rather than their corresponding ETFs. Generally these are people with few assets who make many, relatively small contributions to their retirement savings. Although ETFs generally have a slightly better expense ratio, an ETF buyer also pays brokerage fees, trading fees, and bid-ask spreads. The additional feature of ETFs (that you can buy and sell them all day long) also probably leads many people to fall into the behavioral finance trap of buying high and selling low while attempting market timing. I for one am better off with mutual funds than ETFs. You should do the calculations prior to deciding which one to use.

 

[Ephesus]

Go with Scottrade (and eventually Scottrade Elite). Cheap, few fees, hassle free, great customer service.

Check out FXI and start buying (today would be a good day). investors.com/etf has good information (don't buy an ETF that IBD ranks under 90).

The new iShares Japanese ETF looks promising, though it may take 10 years to get a good return.