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Full Service vs Schwab/Ameritrade

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    Full Service vs Schwab/Ameritrade

    if you don't trade often is it worth it to have a full service broker vs a discount broker? for my retirement portfolio now I pay 1% of value and $15 per trade. I only make 6-12 trades per year. I'm really more of a "set it and forget it" account.

    does it make more sense for me to use a discount broker? most of the transactions that I make are mine where I ask the broker to make a trade so i'm really kind of thinking it might be better for me to do it on my own.

    thanks for any thoughts.

    #2
    Originally posted by mwhittington View Post
    if you don't trade often is it worth it to have a full service broker vs a discount broker? for my retirement portfolio now I pay 1% of value and $15 per trade. I only make 6-12 trades per year. I'm really more of a "set it and forget it" account.
    I'm not sure it ever makes sense to use a full service broker.

    You are losing a ton of money by paying 1%/year for absolutely nothing. And $15/trade is high today. Move your account over to a discount broker that will charge you nothing for the account and maybe $5-$7 per trade.

    Why so many trades, though? What are you investing in? Our portfolio is just under $1 million and it's been several years since I made a stock transaction. We invest in mutual funds almost exclusively. We have some individual stocks that we've held for years but I don't actively trade.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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      #3
      what funds are you invested in? they will have fees associated with them on top of the 1% AUM.

      it appears you are ready to venture out on your own for investing so pick a company you want to invest with and have them move your investments "in kind" from your current broker.

      Comment


        #4
        Originally posted by Jluke View Post
        have them move your investments "in kind" from your current broker.
        The one problem is if you are investing in any proprietary funds only sold by that broker. Then you may need to cash out and reinvest the proceeds. However, that might not be a bad thing because the broker's funds are likely high expense options anyway.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment


          #5
          One thing you pay for when you get a full-service broker is access to research - cut rate and newer brokerages tend not to have this.

          For example, A Schwab account comes with access to a full library of reports, market data from Schwab analysts, basic educational materials, etc.

          I have a schwab account - I like them a lot.
          james.c.hendrickson@gmail.com
          202.468.6043

          Comment


            #6
            Originally posted by james.hendrickson View Post
            One thing you pay for when you get a full-service broker is access to research - cut rate and newer brokerages tend not to have this.

            For example, A Schwab account comes with access to a full library of reports, market data from Schwab analysts, basic educational materials, etc.

            I have a schwab account - I like them a lot.
            James. Schwab IS a discount broker.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment

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