I currently use Edward Jones, which is face to face investment firm. I have been doing ok, but I am interested in switching to something where I feel I have more control. I am not a day trader, I invest for the long term, so cheap daily transactions are not an emphasis. I have been seeing a lot of ads as well as good reports on E*Trade…any recommendations?
First, what are you currently paying in fees? If you have a 'financial advisor', realize that this is a scam:
http://www.saveyournestegg.com/scam.html
You say you are doing OK – are you comparing your returns to their proper benchmark?
I recommend Vanguard for several reasons. They are client-owned so they do not have conflicts of interest with clients. They stayed out of the scandals. Their costs are very low. They are set up so that active trading is not allowed (so you don't pay the costs for active traders). They have excellent funds. Their philosophy is 'buy and hold'. They have a wide selection of mutual funds and ETFs. Their index funds are very well-managed (often the expense ratio is partially offset). They have excellent customer service.
July 19th, 2009 at 3:16 pm
I’m an FA at EDJ. First I would say that you should only use a small amount of money for this endeavor of fun. I have clients who choose to day trade go to Scottrade bc of their low cost and phone service.
July 19th, 2009 at 5:39 pm
Financial advisors exist to help you manage risk, expectations and emotions. Online trading is fine as long as you are disciplined and don’t let your emotions drive your investment plans. They are also there because most people don’t have the time or desire to do the research that is necessary to make wise investment decisions. I like EJ because they are not publicly traded (client owned). This enables them to do what is best for their clients and not have to worry about traditional stock holders who are only looking at the profitability of the firm.