Quote:
Originally Posted by poundwise
That is simply not true.
From the E*TRADE web site:
"No annual fees and no account minimums when you sign up for electronic statements and confirms."
"You can invest in the mutual funds... without paying loads, transaction fees, or commissions."
It is a complete myth that the only way to buy funds without paying extra fees is to hold an account directly with the fund family. While there is nothing wrong with having your account through Vanguard, T. Rowe Price, etc. there is also nothing wrong with E*TRADE, etc. where you can hold an account, buy from many different fund families (with no additional fees, etc. as mentioned above) with the option to also purchase ETFs, individual stocks, etc. etc. (if desired) all from the same account.
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You can buy funds without extra fees, however most, if not all of the funds, that you can purchase without a transaction fee have either very high expense ratios or loads. So for the money you would save, and more, by not paying a transaction fee gets eaten up with high expense ratios. If you'd want to buy funds from Vanguard, T Rowe, etc. you then have to pay a transaction fee.
I don't necessarily think having an IRA with a brokerage firm is bad, but I think it's more beneficial to have it with a large fund family of your choice instead. You can then purchase most, if not all, of your funds through them with no transaction fee whatsoever. And if there is a particular fund you want outside of the family you choose, you could always use their brokerage to purchase them. I just think that there's enough choices in the bigger fund families to satisfy most people's needs and there's no need to use a brokerage.