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August 10, 2011, 10:45:50 PM *
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Author Topic: Which Discount Broker Should I go with? Why?  (Read 18 times)
John
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« on: July 25, 2011, 10:39:20 PM »

I have around 3000 dollars to invest in Stocks and ETF. I would like a combination between the two. I already have mutual funds with Fidelity but was thinking about doing EFT's and Stocks with another discount broker. What are some idea and personal experience with using other brokers like Scottrade, E-trade, etc. Who is the best for beginning investors in Stocks and EFT. Meaning easlier site, helpful, good customers service, etc.. Also, I am only 22 years old with 9k in mutual funds.
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Levi
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« Reply #1 on: July 26, 2011, 02:37:43 AM »

With a total portfolio value of around 12k, I would recommend you not open an additional account just yet.  Most mutual funds have minimum investments of $1000, $2500, or $5000, with $2500 being the most common.  If you have less than that, you get charged an additional fee.  Therefore, you are better off keeping all of you money in one account, so that you can be sure to hit the minimum investment in each mutual fund you invest in.  

With $12k, I would recommend spreading that out to $3000 in 4 different Fidelity mutual funds.  Or perhaps 3 mutual funds and one ETF.  

Also, with Fidelity, you can still buy ETFs and stocks.
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YahooAnswersProfil
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« Reply #2 on: July 26, 2011, 06:36:51 AM »

with your total portfolio, I dont think its necessary to open another brokerage account. but if you must do so, scottrade is the cheapest one.

remember that it is not possible to pick the best stock or etf or mutual fund as no one know which one will return the most. but it is possible to get higher return by reducing investing cost which involves avoiding trading cost in commission. pick low fee brokerage.

depending on what etfs are you interested, some brokers provided no fess etf tradings.

dont focus only on fess though. expense ratio is another important factor to look for. vanguard etfs are least expensive and you can trade them for free by having account at vanguard. I am not sure, but I think minimum to buy any etf would be 3k there.

I dont think there is anything wrong in opening account at vanguard and get VTI to start with.
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Common_Sense
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« Reply #3 on: July 26, 2011, 07:05:46 AM »

You go to a broker that meets your needs not the view of someone that thinks they know what you need.

In general Schwab & Fidelity are best for new investors.  Scottrade is mediocre, yet cheaper. ETrade is high priced and lower than mediocre.

Having said that, you'd be much better off learning the basics of investing & deciding what type of investor you are... before picking a broker.  You mention nothing about "order types", charting and research/news information.  Those are the three most critical things a broker brings to the table (assuming decent execution & service).

If a broker can't do what you need, especially in executing your needed risk control (order types)... you're wasting your time... and most important money.
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A_nobody
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« Reply #4 on: July 26, 2011, 10:09:44 AM »

I agree with "Common Sense"
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