Buying Vanguard mutual fund through Vanguard or a Broker?
Question by cuitarded: Buying Vanguard mutual fund through Vanguard or a Broker?
I was planning on purchasing shares in Vanguard’s 2055 retirement mutual fund. However there is a $ 3000 minimum initial deposit to start a fund.
Does this minimum still apply if I bought shares in the fund through a low-cost broker such as Tradeking that let me purchase individual funds and stocks? Or would this fund not be available through them?
If it is, would it make sense to buy it through them and avoid the fees associated with Vanguard?
Tradeking is $ 4.95 per trade. I don’t believe there are any other fees with them.
Best answer:
Answer by 60187guy
1) Buy directly through Vanguard. You will minimize fees that way.
2) If you buy through another broker, you will have to pay additional fees over and above what Vanguard would charge.
Know better? Leave your own answer in the comments!
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Comments
Mutual Funds
No Load
Purchases: $ 14.95
Sale: $ 14.95
The above is directly from TradeKing’s web site. It will cost you $ 14.95 to buy Vanguard’s funds. The funds that are free from TradeKing’s fees are loaded funds that give TradeKing a kickback. So you pay even more via the load.
Many of Vanguard’s funds charge a $ 10 per year account maintence fee if you invest under $ 10,000 with the fund. Figure out how many years you intend to keep the fund and if so will the amount be under $ 10,000? Does the fund charge an annual fee? It may pay to pay TradeKing’s fee if Vanguard’s fee is not charged to you through TradeKing.
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