Hello, I have a question - having diligently read through ‘The Bogleheads Guide to Investing’, I quote from pages 47 - 48 on the topic of EFTs:
‘EFTs are not suited for investors who make number of smaller purchases, such as with dollar-cost averaging, since they’d have to pay a commission on each purchase. Rather these investors should stick with low-cost, open-end index mutual funds.’
At present, I have a brokerage account with Interactive Brokers and am able to buy Vanguard EFTs, such as VTI, and the commission charged on each purchase is (I think) negligible. On a purchase of $500 the charge is something like $1 - 2. I have no idea how a broker is going to be cheaper than that, and I also don’t even know what platform to use. I thought the IBRK Pro pricing was very competitive, there are no monthly holding fees, no fee to sell, and I cannot clearly understand in my mind why an 'open-end index mutual style fund' is different to an ETF - I thought it was the same thing.
Inviting any comments, plus any recommendations for a broker/platform that is willing to beat that price. For reference, I am resident in Switzerland.
Thank you!
‘EFTs are not suited for investors who make number of smaller purchases, such as with dollar-cost averaging, since they’d have to pay a commission on each purchase. Rather these investors should stick with low-cost, open-end index mutual funds.’
At present, I have a brokerage account with Interactive Brokers and am able to buy Vanguard EFTs, such as VTI, and the commission charged on each purchase is (I think) negligible. On a purchase of $500 the charge is something like $1 - 2. I have no idea how a broker is going to be cheaper than that, and I also don’t even know what platform to use. I thought the IBRK Pro pricing was very competitive, there are no monthly holding fees, no fee to sell, and I cannot clearly understand in my mind why an 'open-end index mutual style fund' is different to an ETF - I thought it was the same thing.
Inviting any comments, plus any recommendations for a broker/platform that is willing to beat that price. For reference, I am resident in Switzerland.
Thank you!
Statistics: Posted by nreid1 — Mon Aug 12, 2024 4:03 am — Replies 5 — Views 247