Let's assume you had $500 per month via a death benefit insurance check you wanted to invest for your child for the next 8 years. What would be the best broker for that with the goal of cheap commissions with no monthly expenses? No bells and whistles are needed as this money will likely be invested in SPY or QQQ. thanks fan27
You can open an account at a few brokers that offer free commissions for ETF investing. TD Ameritrade would be one. https://www.tdameritrade.com/invest...1469898945632521b25212521g25212521EFKWcad=rjt
TDameritrade, Schwab and Vanguard all have some sort of free ETF list that would work for your purposes. All are financially strong, IMO. Scottrade, has an enormous list of no-fee/no-load mutual funds. I have accounts at all of the above except Schwab and can any of the other 3, but my preference would be Scottrade or TD, in that order. I just don't like Vanguard's platform.
I don't like mutual funds.You get a tax bill every year while with an ETF, you don't get one unless you sell it. The only issue is trying to buy $500 a month of an ETF. Have you considered a 529 account. The fees are high you earn tax free for the education of your child. That would likely be a mutual fund. 1245
This is not a problem at all with TD, Schwab or Vanguard. Their ETF programs are all slightly different, but he can easily purchase $500/month without incurring any trading costs with these three.
TD looks good, plus I used to have an account with them and did not have any issues. The free ETF option is prefect! The child already has college paid for via a pre-pay plan so no need for a 529 account. thanks for the replies! fan27