How to go about buying an Index Fund | TigerDroppings.com

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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
469 posts

How to go about buying an Index Fund


What is the best way to do this?I currently have Tradeking. Can I purchase Vanguard funds through them or will I need to buy them through Vanguard?

Also what fees should I expect? Commission fees?







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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29678 posts

re: How to go about buying an Index Fund


I have my accounts at Schwab and just buy through them.

If you are paying commissions with an index fund something is wrong.






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ClownQuestionBro
LSU Fan
Member since Jun 2012
252 posts

re: How to go about buying an Index Fund


Dude read the prospectus to get the expense ratio and fees.





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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: How to go about buying an Index Fund


Call Tradeking and ask the fee for buying. I pay Scott 17 for mutual funds, 7 for stocks and ETFs.

Also, try to find the equivalent ETF to lower cost. I just did that with a Vanguard ETF for short term bond rather than their mutual fund.

Check msn money website for the annual expense fees






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Springfield XD
Member since Feb 2013
1782 posts

re: How to go about buying an Index Fund


quote:

buy them through Vanguard






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11976 posts

re: How to go about buying an Index Fund


quote:

Call Tradeking and ask the fee for buying. I pay Scott 17 for mutual funds, 7 for stocks and ETFs.

Also, try to find the equivalent ETF to lower cost. I just did that with a Vanguard ETF for short term bond rather than their mutual fund.

Check msn money website for the annual expense fees




TradeKing has no fee if you buy a loaded fund (Class A Shares), you will still pay the load from the fund family, between 2-6%. (index funds are no load, but just giving you the info)
$9.95 for buy and sell of No-Load fund. So you are better off just going through Vanguard to buy Index Funds. If you're gonna buy an Index ETF, also go through Vanguard, it's just much less expensive long term.

For the ETF's it's $4.95/trade just like a stock. I would only buy Sector Specific, Inverse, or Leveraged ETFs from tradeking. (I don't buy these products often, they're extremely risky and would strongly advise against them if you aren't a seasoned investor)


***WORD OF CAUTION***

If you're gonna buy an ETF, resist the temptation to trade it like a stock. I like ETF's because of the low expenses and liquidity, especially if you plan on investing a large sum of money all at once. But a lot of investors would have been much better off just buying an index mutual fund and avoiding the commission charges from buying shares every month as well as the risk of buying too high intraday.






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jmtigers
Southern Miss Fan
1826.71 miles from USC
Member since Sep 2003
3598 posts

re: How to go about buying an Index Fund


quote:

Dude read the prospectus to get the expense ratio and fees.


Also, Its probably worth noting Vanguard has different classes of index funds. IF you have over a certain amount you can get into the fund with the lower fee.






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BayouBengal
LSU Fan
München
Member since Nov 2003
26676 posts

re: How to go about buying an Index Fund


I opened my Roth with Vanguard and have a couple of their funds in that portfolio. Just read the prospectus.

There are also index funds like SPDR and QQQQ that you can buy through your regular stock broker.






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