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ronnyr
Member
Cash: $ 2.40
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Joined: 05 Jan 2006
Location: East Bay
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| Newbie wants to invest in mutual funds |
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Hi Team,
After researching in some investment company, I decided to go with Scottrade. However, I don't know where to start to open an account with Scottrade. Is it free for coming to the Scottrade office and ask/consult for advice?
Also, please give me some more opinion about Scottrade, because there is really hard to decide between Scottrade and Fidelity.
Thank you in advance.
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Tue Mar 21, 2006 6:12 am |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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| Re: Newbie wants to invest in mutual funds |
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quote:
Originally posted by ronnyr
Hi Team,
After researching in some investment company, I decided to go with Scottrade. However, I don't know where to start to open an account with Scottrade. Is it free for coming to the Scottrade office and ask/consult for advice?
Also, please give me some more opinion about Scottrade, because there is really hard to decide between Scottrade and Fidelity.
Thank you in advance.
SCOTTRADE is your answer. There is no charge for opening an account and the minimum deposit is $500.00. It normally takes about two weeks for your money to clear your account. They do not offer advice, but they have plenty of resources on their web site. You can always ask one of us here, and if we can help, we will. Good luck with your investment future!
JBendar 
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Tue Mar 21, 2006 6:24 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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Are you looking to just invest in Fidelity funds or do other types of investing with other fund companies or with stocks through this account too?
If you are just interested in Fidelity funds go direct, if you want to invest in various things go with Scottrade.
Debt Elimination
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Wed Mar 22, 2006 7:26 pm |
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bandit290
Member
Cash: $ 2.75
Posts: 13
Joined: 05 Mar 2006
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I thought about Scottrade, but look out. They charge $17 buy/sell each fund.
Is there a way to buy funds directly from the company/etc and cut out scottrade/fidelity?
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Sun Mar 26, 2006 4:14 am |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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quote:
Originally posted by bandit290
I thought about Scottrade, but look out. They charge $17 buy/sell each fund.
Is there a way to buy funds directly from the company/etc and cut out scottrade/fidelity?
You can always buy funds directly from the source. It would be beneficial for you to see what you are actually saving by buying directly from a company. If you read a prospectus from a mutual fund company, you will see that there are fees everywhere. It depends on how much you want to invest as to the level of fees that are charged. Even no-load funds have fees involved (called administrative fees). Before you think you are paying so much through Scottrade or Fidelity, check the actual facts about buying mutual funds anywhere. There is always a cost involved. Companies do not sell products because they are "nice guys". There is always a motive to sell anything, which is how much is the customer going to pay. Shop around and you will see what the differences are.
JBendar
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Sun Mar 26, 2006 4:53 am |
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bandit290
Member
Cash: $ 2.75
Posts: 13
Joined: 05 Mar 2006
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quote:
Originally posted by JBendar
You can always buy funds directly from the source. It would be beneficial for you to see what you are actually saving by buying directly from a company. If you read a prospectus from a mutual fund company, you will see that there are fees everywhere. It depends on how much you want to invest as to the level of fees that are charged. Even no-load funds have fees involved (called administrative fees). Before you think you are paying so much through Scottrade or Fidelity, check the actual facts about buying mutual funds anywhere. There is always a cost involved. Companies do not sell products because they are "nice guys". There is always a motive to sell anything, which is how much is the customer going to pay. Shop around and you will see what the differences are.
JBendar
But even when the funds are bought from brokers, you still pay the funds fee, on top of what you have to pay the broker. So why not just cut out the middle man?
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Sun Mar 26, 2006 6:30 am |
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bandit290
Member
Cash: $ 2.75
Posts: 13
Joined: 05 Mar 2006
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quote:
Originally posted by coaster
When you buy funds directly from the mutual fund company, if it's a no-load fund, you don't pay ANY fees or commissions.
But when I search for no load index funds. they still come back with fees/etc
List of no load index funds....http://www.fool.com/mutualfunds/indexfunds/table01.htm
Take the vanguard 500
Each Vanguard index fund (except the REIT Index Fund) charges a maintenance fee if the balance is below $10,000. The fee of $10 is deducted annually, or $2.50 per quarter for funds that distribute dividends more than once a year. If your distribution is less than the fee, a fraction of a share may be redeemed to make up the difference. Note that this fee applies to each fund account. For example, if you have an account with two index funds, each with less than $10,000, you will be charged a total of $20 a year. Similarly, if you have the same index fund in two different accounts (e.g., individual account, joint account, traditional IRA, Roth IRA, or any two accounts under different registrations or account numbers), each with less than $10,000, you will be charged a total of $20 a year.
Plus the 0.18 percent annually.
Help?!?
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Sun Mar 26, 2006 6:04 pm |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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quote:
Originally posted by bandit290
quote:
Originally posted by coaster
When you buy funds directly from the mutual fund company, if it's a no-load fund, you don't pay ANY fees or commissions.
But when I search for no load index funds. they still come back with fees/etc
List of no load index funds....http://www.fool.com/mutualfunds/indexfunds/table01.htm
Take the vanguard 500
Each Vanguard index fund (except the REIT Index Fund) charges a maintenance fee if the balance is below $10,000. The fee of $10 is deducted annually, or $2.50 per quarter for funds that distribute dividends more than once a year. If your distribution is less than the fee, a fraction of a share may be redeemed to make up the difference. Note that this fee applies to each fund account. For example, if you have an account with two index funds, each with less than $10,000, you will be charged a total of $20 a year. Similarly, if you have the same index fund in two different accounts (e.g., individual account, joint account, traditional IRA, Roth IRA, or any two accounts under different registrations or account numbers), each with less than $10,000, you will be charged a total of $20 a year.
Plus the 0.18 percent annually.
Help?!?
If you are looking to pay no fees for owning mutual funds, it doesn't exist. There are administrative fees, annual maintenance fees, etc. There is no way to avoid this. It just depends on how much is your limit. Some brokerage firms charge no annual fees, but charge fees to purchase mutual funds. Others charge fees for everything. You have to decide what is good for you. If you like a certain company, and they have a good track record, it may be worth paying the fees to get a higher return. There is no cut and dry answer.
JBendar 
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Sun Mar 26, 2006 6:15 pm |
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bandit290
Member
Cash: $ 2.75
Posts: 13
Joined: 05 Mar 2006
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quote:
Originally posted by JBendar
If you are looking to pay no fees for owning mutual funds, it doesn't exist. There are administrative fees, annual maintenance fees, etc. There is no way to avoid this. It just depends on how much is your limit. Some brokerage firms charge no annual fees, but charge fees to purchase mutual funds. Others charge fees for everything. You have to decide what is good for you. If you like a certain company, and they have a good track record, it may be worth paying the fees to get a higher return. There is no cut and dry answer.
JBendar
Ok, I got it. I had the impression that no load = nothing as far as fees/etc.
Now, lets say I buy the vanguard 500 fund....
1. I buy using Scottrade, who would charge me $17 and thats all from their side. From there I would just be paying the fees from the fund.
OR
2. Buy the fund directly from the company and by pass the $17 and just pay the fees for the fund.
Now, if I choose option 1, would the fees be the same or less than option 2, considering I bought them using a broker.
And if the fees are the same. Why mess with Scottrade/fidelity/etc and like I said, cut out the middle man. I'm I right in thinking this and should just buy directly from the company?
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Mon Mar 27, 2006 2:10 am |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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quote:
Originally posted by bandit290
quote:
Originally posted by JBendar
If you are looking to pay no fees for owning mutual funds, it doesn't exist. There are administrative fees, annual maintenance fees, etc. There is no way to avoid this. It just depends on how much is your limit. Some brokerage firms charge no annual fees, but charge fees to purchase mutual funds. Others charge fees for everything. You have to decide what is good for you. If you like a certain company, and they have a good track record, it may be worth paying the fees to get a higher return. There is no cut and dry answer.
JBendar
Ok, I got it. I had the impression that no load = nothing as far as fees/etc.
Now, lets say I buy the vanguard 500 fund....
1. I buy using Scottrade, who would charge me $17 and thats all from their side. From there I would just be paying the fees from the fund.
OR
2. Buy the fund directly from the company and by pass the $17 and just pay the fees for the fund.
Now, if I choose option 1, would the fees be the same or less than option 2, considering I bought them using a broker.
And if the fees are the same. Why mess with Scottrade/fidelity/etc and like I said, cut out the middle man. I'm I right in thinking this and should just buy directly from the company?
You are correct in your thinking. Unless you are purchasing a Fidelity fund, there is no reason that you should buy from them. As was mentioned in the prior statements, you have to do what you feel is right. You can go to the Morningstar web site for their high rated funds. You can also check on Yahoo Finance for the fund families of your choice. Good luck!
JBendar
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Mon Mar 27, 2006 3:01 am |
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