Hi, Folks. I haven't been around for a while since things have been going smoothly in my long term buy and hold world.I have a friend who is looking to put some money into a Roth, but doesn't have a lot of cash up front. I am wondering what company is the best choice, and allows someone to open a Roth for only $500? The preference would be to use Vanguard index funds and opening an account with them is not an option since she doesn't have the $1,000 (or is it $3,000?) to open the account.She will just be doing the methodical investing X number of dollars per month, going into a simple total stock market/int'l fund.Thanks!-Amy
For a brokerage - Scottrade has a $500 minimum and she could do ETFs but Sharebuilder may be her best bet at the moment and there's at least a $50 bonus there.
Vanguard has a few funds with $1000 minimums, but, none lower.You might check Schwab. I believe they may have some $500 minimum funds.ETFs through a brokerage would also be a possibility.Bob
Fidelity Roth info:https://www.fidelity.com/retirement-ira/ira/roth-iraTo open the Roth account, they don't seem to have any minimum requirement. They offer 65 trade-for-free iShares ETFs.If there is a particular mutual fund your friend is interested in, their research screener can help them out even if they don't go with Fidelity.I like Fidelity because if I had a question, I could call them right now (at 9:30PM on a Saturday night) and talk to someone in the US.
Thanks, everyone! I very much appreciate the responses and will follow up. You guys saved me a lot of time!
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