Skip to main content
No. of Recommendations: 0
Like most mutual fund companies, Vanguard charges a higher commission for stock trades since that's not their main business; they just have it in case somebody wants it.

What you should be concerned about is how much you will be paying in commissions related to your whole portfolio. On a $2000 account, if you make 5 trades in a year at $10 a trade, you'll pay $50 in commissions. That's 2.5% of your portfolio -- which is tolerable, although getting into the "uncomfortable" range, since that limits your returns by that much. If you made 10 trades in a year at $10 a trade, you'd lose 5% of your performance that year--clearly unacceptable.

Wherever you invest, make sure to take all relevant measures of trading costs into account, not just what they advertise as the commission.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.