Transferring from Tradeking to USAA

[MaxPowers]

Recently my brokerage account changed over from Zecco to Tradeking. Although it was no cost to me, and I am starting to get used to the new website, I have decided I may want to consolidate my money. I use USAA for my main bank and am looking into using their brokerage service. Can anyone tell me if they have a user friendly service? I do not trade a lot but I do have over $50k so I will be platinum. What kind of fees are involved in moving brokerage accounts? Is it a good idea to consolidate like this? Most of my stocks are index funds and will be with me long term. My IRA is with Vanguard but I am keeping it there.

[kork13]

Individual stocks should not be affected at all by changing brokerages... Stocks you hold remain unchanged (someone please correct me if I'm mistaken).

As for the index mutual funds, you have a couple options. First, if you want to get USAA's mutual funds instead of whatever you have now, you can sell your current holdings and re-purchase USAA's funds. Or, if you want to keep the same index funds you currently have (preventing a taxable sale), you can do that and they will be held by your brokerage account. The only issue here might be if USAA will charge you a transaction fee every time you make a new contribution to your MF's. I really don't know, so you'll want to look at that. But if no fees, then the transition should be a fairly smooth one. When you actually make the move, call USAA and they'll help arrange all of the transfers very simply.

[disneysteve]

Most of my stocks are index funds

This statement doesn't make sense. Are you talking about individual company stocks, mutual funds, or exchange traded funds (ETFs). They are all handled differently.

Individual stocks can just be transferred and you'll pay whatever transfer fee the new place charges.

With mutual funds, you'll want to look and see if you want to keep the same funds. As kork mentioned, you might want to switch to proprietary funds with USAA. That might be cheaper than keeping what you currently have.

ETFs are kind of a cross between stocks and mutual funds. They trade like stocks but are structured like mutual funds. Here you'll also want to look at the options because there are proprietary ETFs that may be cheaper. I'm not sure if USAA has their own offerings.

[MaxPowers]

Most of my stocks are Vanguard ETFs and individual stocks.

[disneysteve]

Most of my stocks are Vanguard ETFs

Just to be clear, Vanguard ETFs are not stocks so it gets a little confusing when you say that.

May I ask why you aren't buying your Vanguard ETFs direct from Vanguard? There is no commission on ETF purchases at Vanguard but I'm guessing you are paying commissions when you buy them through a broker. I'd say to just transfer the account to Vanguard. They also charge only $7 on stock trades unlimited if you have at least $50,000 invested with them.

[WDELTA]

Switching to Vanguard would probably be best. I have a Roth IRA through USAA that I bought VFINX in (one of Vanguards Index funds). The commission was $45 compared to the $7-9 that I pay for stocks. If you have plans to get any new Vanguard MUTUAL FUNDS then I'd stay away from USAA. I eventually sold VFINX and bought the closest ETF equivalent.

[minnie1928]

Personally, I love Tradeking. I like the $4.95 trades with no minimum balance required.

[disneysteve]

Personally, I love Tradeking. I like the $4.95 trades with no minimum balance required.

Why pay $4.95 when OP could be buying the same ETFs for free direct from Vanguard?