Should I deal directly with the mutual fund family when purchasing a fund or go through one of the discount brokers that trade mutual funds?
Discount brokers such as Charles Schwab and Fidelity Brokerage offer the convenience of buying different funds without going directly to each fund family and opening separate accounts. Only one brokerage account is necessary, and all mutual fund positions are consolidated in one report. Some of these transactions incur brokerage costs; others are essentially costless. Not all mutual funds or fund families participate, but if convenience is important and your mutual fund transaction sizes are reasonably large, these fund services offered by discount brokers may deserve a look.
Discount brokers such as Charles Schwab and Fidelity Brokerage offer the convenience of buying different funds without going directly to each fund family and opening separate accounts. Only one brokerage account is necessary, and all mutual fund positions are consolidated in one report. Some of these transactions incur brokerage costs; others are essentially costless. Not all mutual funds or fund families participate, but if convenience is important and your mutual fund transaction sizes are reasonably large, these fund services offered by discount brokers may deserve a look. For a list of the discount brokers that trade mutual funds, see AAII’s annual Discount Broker Guide.
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