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Author: 4inthefamily Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75525  
Subject: Scottrade vs. Vanguard Date: 3/6/2004 2:40 PM
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I haven't had time to read through all of the posts here, so I'm sorry if I am asking something that has already been answered a thousand times. It seems that several people are opening up Scottrade accounts and then buying Vanguard Index Funds. My husband and I have a Rollover IRA, Roth IRA and SEP/IRA all in different Vanguard Index Funds directly with the company. I am wondering what the advantage is of using a Scottrade account vs. working directly through Vanguard.

Thanks in Advance,

-4
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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39721 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/6/2004 4:30 PM
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I think that the main reason is that you can avoid some of the minimum account balance requirements that Vanguard imposes when you have your account with Scottrade. A secondary reason might be that if one want to invest in individual stocks in addtion to mutual funds and one desires to minimize the number of accounts one has they might go to Scottrade for their low commissions.
Personally, I have a preference for working directly with the fund family and I have a Vanguard account in addition to a Scottrade account.

Bob

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Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39722 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/6/2004 4:30 PM
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I have extensive experience with both choices.

If you're happy with Vanguard, stick with them- the Vanguard website is far better than the bare-bones Scottrade one, especially if you have Voyager level service (assets > $250K)

If you're feeling constricted by Vanguard, and that you want to buy, for example, individual securities, you can do this more cheaply and Scottrade than Vanguard. That's why people use Scottrade- more choices, and also because they may like going to their local branch and doing business face to face.

However for most people Vanguard is all you need.

Nick

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Author: Seapickle Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39723 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/6/2004 4:32 PM
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I am wondering what the advantage is of using a Scottrade account vs. working directly through Vanguard.

At the time I opened mine it was a way to get around the annual maintenance fee. I wanted to open more than 1 fund with my inital $3000 contribution. IRA mutual fund trades are free at Scottrade and there is no annual maintenance fee.


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Author: goodeeds Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39731 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/7/2004 4:43 PM
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I am wondering what the advantage is of using a Scottrade account vs. working directly through Vanguard

I just recently researched this very question. My daughter has just established her Roth IRA at Scottrade, and purchased a Vanguard index fund. (Smart move for an eighteen year old.)

I advised her to go this way because Scottrade allows setup for only $500 vs. Vanguard requires $3000. Scottrade also has no maintenance fees. So for her, just starting out, Scottrade seemed the best way to go.
Dan

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Author: wcfenton Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39733 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/7/2004 11:26 PM
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Dan...

"I am wondering what the advantage is of using a Scottrade account vs. working directly through Vanguard"

I just recently researched this very question. My daughter has just established her Roth IRA at Scottrade, and purchased a Vanguard index fund. (Smart move for an eighteen year old.)

I advised her to go this way because Scottrade allows setup for only $500 vs. Vanguard requires $3000. Scottrade also has no maintenance fees. So for her, just starting out, Scottrade seemed the best way to go.


----------------

Just to set the record straight - Vanguard only requires $1,000 to start an IRA. It does charge a $10.00 per year maintenance fee for accounts under $5,000 though. However, there certainly is nothing wrong with Scottrade, especially if you are considering the purchase of additional securities. (Look at the bottom of the page of this URL):

http://flagship5.vanguard.com/web/corpcontent/scatSvcsRetIRAStartSaving.html

I agree with you - you have a very smart daughter!

Regards,
Bill



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Author: terminalwriter Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39751 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/9/2004 8:36 AM
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I advised her to go this way because Scottrade allows setup for only $500 vs. Vanguard requires $3000. Scottrade also has no maintenance fees. So for her, just starting out, Scottrade seemed the best way to go.

Actually, Vanguard only requires $1000, for retirement accounts. And the maintence fees for accounts smaller than $10,000 are taken out of the dividends, so you're not avoiding paying them by going with Scottrade.


TW

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Author: WPatch Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39784 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/10/2004 11:25 PM
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Vanguard charges two levels of maintenance fees on index fund IRAs. The $10 fee per account under $5000(waived if total assets at Vanguard are over $50,000)is avoided by investing through Scottrade. The $10 fee per index fund under $10,000 is collected from dividends and is not avoided by investing through Scottrade.

Bill Patch

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Author: kljorgensen One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39793 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/11/2004 12:12 PM
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The cost sheet for the Vanguard index funds also lists a "Low Balance Fee" ($10/yr on balance less thean $2500) which is waived for retirement accounts (IRA, 401k, etc). Speaking to Vanguard they said this is only waived for Vanguard accounts. Would this fee apply on a Scottrade IRA if my position in a particular index fund is less than $2500?

kljorgensen

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Author: Belgoboy Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 39802 of 75525
Subject: Re: Scottrade vs. Vanguard Date: 3/11/2004 11:53 PM
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Good job with that advice Dan. I consider myself on par with my goals having opened my ROTH this past week and purchasing 1k of VTSMX. I'm going to try to get the full 3000 but it won't be easy.

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