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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.


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):

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


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