• filter:

Any promos for Schwab?

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
I am looking to invest about $30,000 into an S&P 500 Index fund. It seems that Schwab currently has the lowest expense ratio. Please correct me if I am wrong. Is anybody aware of any current promos that Schwab runs for new customers?

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
Go with E-Trade, get $200 + free trades, buy VOO.

rated:
zxfvpxez said:   Go with E-Trade, get $200 + free trades, buy VOO.
  Can those free trades be used towards buying index funds? And why VOO and not Fidelity Spartan 500 Index or Schwab S&P 500 Index? The last two offer a lower expense ratio.

rated:
Note: the E-Trade offer is for non-retirement accounts

rated:
vovito said:   
zxfvpxez said:   Go with E-Trade, get $200 + free trades, buy VOO.
  Can those free trades be used towards buying index funds? And why VOO and not Fidelity Spartan 500 Index or Schwab S&P 500 Index? The last two offer a lower expense ratio.

  Easy to move to another broker to get bonuses down the line.

rated:
vovito said:   I am looking to invest about $30,000 into an S&P 500 Index fund. It seems that Schwab currently has the lowest expense ratio. Please correct me if I am wrong. Is anybody aware of any current promos that Schwab runs for new customers?
  
i saw their ad, apparently lower then Vanguard?? and USAA?

rated:
FYI, Schwab will do a hard pull on your credit when you open an account. Fidelity only does a soft pull.

rated:
stanolshefski said:   
vovito said:   
zxfvpxez said:   Go with E-Trade, get $200 + free trades, buy VOO.
  Can those free trades be used towards buying index funds? And why VOO and not Fidelity Spartan 500 Index or Schwab S&P 500 Index? The last two offer a lower expense ratio.

  Easy to move to another broker to get bonuses down the line.

  Could you give example of such bonuses? Why are Fidelity Spartan 500 Index or Schwab S&P 500 Index harder to move to another broker? 

rated:
I'm unsure that you can buy the low fee Schwab index funds from another broker. If you can, there's probably a transaction fee.

I don't know of any account opening bonuses, but there could be. I've been a Schwab customer since the 1990's. They haven't given me any bonus for sticking around.

rated:
vovito said:   
stanolshefski said:   
vovito said:   
zxfvpxez said:   Go with E-Trade, get $200 + free trades, buy VOO.
  Can those free trades be used towards buying index funds? And why VOO and not Fidelity Spartan 500 Index or Schwab S&P 500 Index? The last two offer a lower expense ratio.

  Easy to move to another broker to get bonuses down the line.

  Could you give example of such bonuses? Why are Fidelity Spartan 500 Index or Schwab S&P 500 Index harder to move to another broker? 

  The two funds are not ETFs, and it's possible that some brokerages may not accept them. Every brokerage should accept whole shares of VOO. 

Furthermore, I trust that Vanguard will be able to maintain lower expenses over the long haul that I'd be willing to pay the $6 more per year.

rated:
I would think most ETFs are "portable," meaning that you can transfer your (whole) shares from one broker to another, giving you the ability to easily move your account in the future and rack up more new-account bonuses. Many mutual funds, however, are proprietary and may not necessarily be transferable to another brokerage. So, you would have to sell it - which might cause tax implications, transfer the cash, then buy a similar fund at the new broker.

Also, a lower expense ratio - even for index funds - doesn't necessarily mean the fund will perform better. Different funds have different strategies to minimize index tracking error, and it's how well the fund is able to mimic the index that determines ultimate performance. Keep in mind the difference today between Fidelity, Vanguard and Schwab's expense ratio for their S&P 500 fund is only about 0.005% to 0.010%, so that's equal to 5 to 10 cents per $1,000 invested per year. I'd look at past performance first, then expense ratios to pick the best fund.

rated:
With a $30K portfolio, you're wasting your time obsessing over miniscule differences in expense ratios. ETF's are your best choice.

rated:
gaffer said:   Note: the E-Trade offer is for non-retirement accounts
Wrong. 

rated:
vovito said:   zxfvpxez said:   Go with E-Trade, get $200 + free trades, buy VOO.
  Can those free trades be used towards buying index funds? And why VOO and not Fidelity Spartan 500 Index or Schwab S&P 500 Index? The last two offer a lower expense ratio.
  

Do VTI then. It's low enough. Plus, the difference in expense ratio is much less than $200

rated:
tjguitar85 said:   
vovito said:   
zxfvpxez said:   Go with E-Trade, get $200 + free trades, buy VOO.
  Can those free trades be used towards buying index funds? And why VOO and not Fidelity Spartan 500 Index or Schwab S&P 500 Index? The last two offer a lower expense ratio.

  

Do VTI then. It's low enough. Plus, the difference in expense ratio is much less than $200

  VOO (S&P 500 ETF) and VTI (Total Stock Market ETF) have the same expense ratio (0.05%), and they also have considerable overlap in holdings (the S&P 500 makes up ~80% of VTI). That being said, I prefer a total stock market fund to a S&P 500 fund.

rated:
zxfvpxez said:   
gaffer said:   Note: the E-Trade offer is for non-retirement accounts
 

Wrong.
 

  Thanks for the correction. I looked at your link and see that the bonus applies to retirement accounts (as opposed when I went directly to their main landing page). On to E-Trade!
 

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017