Online trading platforms

kizer permanente Senior Member

1,309 posts 18 reps Joined Aug 2017

Thu, Dec 15, 2022 8:44 AM

Who do you use? I want to start taking some of the money that's currently going into savings and put it into stocks. Etrade was who I was leaning towards, but there seems to be other options too.

Laley23 GOAT

33,369 posts 133 reps Joined Nov 2009

Thu, Dec 15, 2022 10:43 AM

posted by kizer permanente
Who do you use? I want to start taking some of the money that's currently going into savings and put it into stocks. Etrade was who I was leaning towards, but there seems to be other options too.

I'm lazy and boring and use Acorns. Its small, and most of our money is involved in I think 5 or 6 other firms. But Acorns is what I use for the small change stuff.

We use Charles Schwab, LPL, Fidelity for stock brockerage. Then John Hancock and I forget who my wife has for retirement. Vanguard for the kids college funds (and I think my dad and wifes uncle opened 2 accounts as well for them and forget who they went through).

We also have money in Roth IRA through LPL I believe, but we havent qualified to contribute last few years. May hit the reduced number this year with my wifes raised quota, she hasnt been getting the bigger sales payouts.

As you probably can tell, I do not handle our finances. My wifes mom passed when she was in college, and she immediately had to step in and do the books for her dads business. So, she is a bit of an expert on it at this point, and I just sit back and let her cook.

gut Senior Member

18,369 posts 117 reps Joined Nov 2009

Thu, Dec 15, 2022 11:38 AM

I switched from Scottrade to Vanguard years ago because Vanguard allows free unlimited trading in their low-cost ETFs. And IMO that should be the bulk/core of any investment account.

Other factors to consider, most of which I think the major players offer. If you want to write checks from the account, whether you can buy CDs or Treasuries direct.

The Bank-type brokerages (Schwabb, JPM, ML, Citi, etc) tend to be on the expensive side unless you're high net worth getting additional perks. Or if you're willing to pay them an advisory fee.

But, IMO, most investment advisors don't know a whole lot more than you can find doing some reading on your own. They do have internal in-house research to give them a leg up, but in most cases that doesn't beat the market, either.

justincredible Honorable Admin

37,969 posts 250 reps Joined Nov 2009

Thu, Dec 15, 2022 11:55 AM

FTX

Wait a minute...

kizer permanente Senior Member

1,309 posts 18 reps Joined Aug 2017

Thu, Dec 15, 2022 1:20 PM

posted by gut
I switched from Scottrade to Vanguard years ago because Vanguard allows free unlimited trading in their low-cost ETFs. And IMO that should be the bulk/core of any investment account.
Other factors to consider, most of which I think the major players offer. If you want to write checks from the account, whether you can buy CDs or Treasuries direct.
The Bank-type brokerages (Schwabb, JPM, ML, Citi, etc) tend to be on the expensive side unless you're high net worth getting additional perks. Or if you're willing to pay them an advisory fee.
But, IMO, most investment advisors don't know a whole lot more than you can find doing some reading on your own. They do have internal in-house research to give them a leg up, but in most cases that doesn't beat the market, either.

With vanguard you can’t buy specific stocks right?

gut Senior Member

18,369 posts 117 reps Joined Nov 2009

Thu, Dec 15, 2022 1:28 PM

posted by kizer permanente
With vanguard you can’t buy specific stocks right?

I buy anything I want with Vanguard, including CDs or Treasuries. I don't know if you can buy crypto directly through them, though.

That's if you rollover into an IRA. I do have a self-employed 401k with them and it is indeed limited to 4-8 investment choices.

kizer permanente Senior Member

1,309 posts 18 reps Joined Aug 2017

Thu, Dec 15, 2022 1:53 PM

posted by gut
I buy anything I want with Vanguard, including CDs or Treasuries. I don't know if you can buy crypto directly through them, though.
That's if you rollover into an IRA. I do have a self-employed 401k with them and it is indeed limited to 4-8 investment choices.

Ok I didn’t realize Vanguard has online trading I knew they did IRA and 401k but thought that was it

ernest_t_bass 12th Son of the Lama

26,698 posts 204 reps Joined Nov 2009

Thu, Dec 15, 2022 2:59 PM

posted by gut
I buy anything I want with Vanguard, including CDs or Treasuries. I don't know if you can buy crypto directly through them, though.
That's if you rollover into an IRA. I do have a self-employed 401k with them and it is indeed limited to 4-8 investment choices.

I have a current (small) Roth. It's sole purpose is to recoup money that my Ex will get from my retirement in 20 years. That number is $85k. I am investing a little here and there to have $85k in 20 years.

With Vanguard, how can I make small investments to then roll into that Roth? Is this possible?

gut Senior Member

18,369 posts 117 reps Joined Nov 2009

Thu, Dec 15, 2022 3:32 PM

posted by ernest_t_bass
With Vanguard, how can I make small investments to then roll into that Roth? Is this possible?

This is somewhat complicated. You can open a Roth IRA and directly contribute up to the max after-tax each year (I think 7500 with catch-up if you're over 50).

But that is subject to an income limit. Alternatively, assuming you have no other pre-tax IRA savings anywhere (which introduces a pro-rata rule), you can contribute $7500 after-ta to an IRA, and then Vanguard allows you to auto-roll that into a Roth IRA (no cost or tax consequences if done almost immediately).

You need two accounts at Vanguard - a traditional IRA, and then the Roth IRA. The advantage over putting that money into a brokerage account is the investment returns are tax-free (as opposed to subject to cap gains).

The problem becomes if you have an IRA with pre-tax money, and then contribute the after-tax piece, then the pro-rate rule applies. And I'm debating if I want to roll those IRA's over into a 401k in order to avoid that issue myself.

TL;DR....Read up on Backdoor Roth Conversions. Vanguard has a bit of a primer on its site, and there are blog posts that go into more detail.

gut Senior Member

18,369 posts 117 reps Joined Nov 2009

Thu, Dec 15, 2022 3:41 PM

posted by kizer permanente
Ok I didn’t realize Vanguard has online trading I knew they did IRA and 401k but thought that was it

All the big brokerages offer online trading. But you'll want to look at the fees & commission structures. Most of the big brokerages will also offer retirement or rollover accounts, but again look at the costs.

FDIC insured, too. Places like Robinhood probably are also, but considering Vanguard doesn't cost me a frickin' dime in administrative or other costs, I wouldn't take any chances on one of these fly-by-night "disruptor" platforms.

I mean, Vanguard DOES charge trading fees, but not on Vanguard assets. Vanguard offers HUNDREDS of ETFs and mutual funds - I don't need anything else.

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