mutual fund sales fees

[feh]

Hi folks.

I've been an Ameritrade customer for many years, but I've grown tired of the $50 fee for buying/selling mutual funds. Other than that, I've been happy with them.

So - are there any online brokerages out there with more reasonable mutual fund fees?

Thanks!

[disneysteve]

Buy your mutual funds directly from the fund company. There is no reason to ever pay a fee to purchase mutual fund shares. $50 is ridiculous.

If, for some reason, you want to deal through a broker, I know Charles Schwab has a long list of funds that you can purchase in your account for no fee. What I don't know is if there are added expenses that way compared to investing directly.

[Scanner]

What I don't know is if there are added expenses that way compared to investing directly.

Schwab customer here.

Most fees are waived for mutual fund purchases (IRA's, SEP's, etc.). The expense ratios remaind the same. For instance, if the expense ratio is 1%, Schwab negotiates that down to .90% and takes a .1% profit for handling administrative expenses (statements/internet/etc.). There are exceptions like T. Rowe Price Funds. They charge a fee on those. Since TRP is a "competitor" in that they are in the "brokerage" business, I'll have to change over from my wifes Blue Chip fund to a similiar fund, maybe the Schwab S&P 500.

They charge a little more for ETF/stock purchases than Scottrade but I am cool with that since I am mostly an investor and not a trader.

I know Scottrade charges $7.00. Schwab charges $12.95, I think (haven't rebalanced in awhile).

Schwab has great banking too. Any PLUS ATM for free and a 4% return.

The only downside is my paychex from the business has to go to Reno, NV from NJ and can take 7 - 10 days to clear.

But, I am consolidating everything to under that brokerage. A few small compromises but nothing I can't live with.

I try not to get hung up on the co. name. A S&P 500 is an S&P500 is an S&P 500. I like having everything under one roof.

[disneysteve]

I try not to get hung up on the co. name. A S&P 500 is an S&P500 is an S&P 500. I like having everything under one roof.

The only consideration there is the expense ratio. As your account balance grows, even a small difference in ER can really add up over time.

[Broken Arrow]

I must say that I've been really tempted to consolidate all of my finances under one roof as well. There's been quite a bit of cross-overs and competitions lately. BOA and Wachovia both have their own brokerage arms now, while Schwab and Fidelity now offer checking accounts (or checking-like services).

For now though, I am still using the modular approach. That way, if I don't like my savings, for example, I can swap that out with another one. Checking and investing is the same way too, and eventually retirement as well.

[Scanner]

The only consideration there is the expense ratio. As your account balance grows, even a small difference in ER can really add up over time.

DisneySteve,

Admittedly,

Vanguard has an expense ratio of .18% for their S&P 500

Schwab S& P 500 has a .36% expense ratio.

Not sure what that means in $$$ over the years.

If had $75,000, I could get Investor Grade S & P 500, which has an expense ratio of .1%. But for now, it looks like we are paying .36% unless I want to keep the DW's fund "managed" and find an alternate Blue Chip to the TRP Blue Chip.

[Scanner]

I will have owned SLV for about 1 year on Feb 1, and so far I am up 16% as of today (silver is up 3.5% today trading. . .not sure why).

I think gold or silver is neither buy or sell.

I think it's a hold right now and should be part of a long term position. Depending on your portfolio, that may mean buy or sell. If you don't own any, I'd buy some. If all you own is gold. . .I'd definitely sell some.

I like silver over gold because it has more practical applications and I speculate that it will have further applications in superconduction and solar panels.

It's a nice hedge in your portfolio.

[disneysteve]

DisneySteve,

Admittedly,

Vanguard has an expense ratio of .18% for their S&P 500

Schwab S& P 500 has a .36% expense ratio.

Not sure what that means in $$$ over the years.

We all talk about ER but lots of people don't actually know what it means in dollars and cents.

A 1.0% ER means the fund takes $10.00 per year per $1,000 of account assets.

So a 0.36% ER is taking $3.60/$1,000 vs. the 0.18% ER which is only taking $1.80/$1,000. That may not sound like much, and it isn't if your account is small, but once your balances increase, that "small" difference gets magnified. When you have 100K in assets, that "little" difference of 0.18% means you are paying an extra $180/year in expenses. Multiply that over 10 or 20 years or more and you lose thousands of dollars with the more costly fund.

[Broken Arrow]

I will have owned SLV for about 1 year on Feb 1, and so far I am up 16% as of today (silver is up 3.5% today trading. . .not sure why).

I think gold or silver is neither buy or sell.

I think it's a hold right now and should be part of a long term position. Depending on your portfolio, that may mean buy or sell. If you don't own any, I'd buy some. If all you own is gold. . .I'd definitely sell some.

I like silver over gold because it has more practical applications and I speculate that it will have further applications in superconduction and solar panels.

It's a nice hedge in your portfolio.

Perhaps this is a post meant for a different thread. If so, I hope that you will re-post there. Agree or disagree, it's an informed opinion (in my opinion ) that I think is worth sharing with the author.

[Scanner]

Oops - it was meant for the other thread - please move it moderators. Sorry.

[feh]

update

I contacted Ameritrade and asked them to reduce the fee if they wanted to keep me as a customer.

They've knocked the fee down to $17, which is probably acceptable to me, given how few transactions I make and my desire to have all my accounts under one roof.

[disneysteve]

They've knocked the fee down to $17, which is probably acceptable to me, given how few transactions I make and my desire to have all my accounts under one roof.

Certainly the decision is yours to make, but I still think it is silly to pay $17 for something that you can easily get for free.

[kv968]

Oops - it was meant for the other thread - please move it moderators. Sorry.

That posting was no mistake on your part Scanner. I know you're just trying to get it out there and rub it in the Pundit's faces that your silver is up handsomely