TD Ameritrade 300

Does RobinHood Offer Mutual Funds?


Does RobinHood offer mutual funds from Vanguard or Fidelity? RobinHood mutual funds review: selection, fees, cost of trading.



RobinHood Mutual Funds


Right now RobinHood does NOT offer investing in mutual funds. Only about 5,000 stocks and ETF's are available to RobinHood customers. Read RobinHood review.

RobinHood does NOT support investing in Foreign domiciled securities, OTC equities, Options, Preferred Stocks, Tracking Stocks, Warrants, Mutual Funds, Bonds and fixed income trading, and Foreign Exchange.


Commission-Free Mutual Funds Brokers


Unlike RobinHood, most other online brokers do offer investing in mutual funds. Moreover, many brokers offer NTF (No-Transaction Fee) funds - funds where customers pay no commission to buy or sell. As you see from the table below, the companies that do offer these funds tend to be large and well known names.

The five largest brokerage houses in the U.S. - TD Ameritrade, Charles Schwab, Etrade, Fidelity Investments, and Scottrade - do offer NTF funds. A few small, little known brokers also provide NTF funds - Cobra Trading and Firstrade.

Surprisingly, the sixth largest brokerage house, Ally Invest, does not offer NTF mutual funds right now.

It's very important to understand that No-Transaction Fee, No-Load mutual fund is not free. Every mutual fund has an expense ratio which is the total of the few following two components:

The Investment Advisory Fee or Management Fee is the money necessary to pay the manager(s) of the mutual fund. On average, this fee is about 0.50% of the fund's assets.

Administrative Costs are the costs of record keeping, mailings, maintaining a customer service line, etc. These are all necessary costs, though they vary in size from fund to fund. This fee is between 0.05% and 0.40% of fund's assets.

These fees are much more important than the transaction costs. As an example, a mutual fund with Management Fee of 1.00% and Administrative Costs of 0.40% will cost you $90 EVERY YEAR on a $5,000 investment!

Studies have shown that more expensive mutual funds do not perform better than the cheaper ones. Therefore it makes sense to invest in the lowest expense ratio NTF, no-load mutual fund that performed well over the years.


Number of Mutual Funds at Online Brokers


Broker # of Funds # of No Load Funds # of NTF Funds Fee on Non NTF Funds New Account Promotion
Ally Invest11,9684,287NA$9.95 Get a $200 cash bonus or $500 in commission-free trades.
TD Ameritrade12,8415,4412,458$49.99Trade free for 60 days + get up to $600.
Capital One10591059465$19.95Get $50 when you open new non-IRA account at Capital One Investing.
Charles Schwab16,19911,0896,682$76None
Choice Trade10,0002,000NA$25None
Cobra Trading8,8171,236436$25None
Etrade7,7334,4576,244$19.99 At E*TRADE, get $6.95 trades + 65₵ per options contract.
Fidelity11,3904,6771,655$76None
Firstrade12,0974,784624$9.95Up to $300 Cash Rewards + 500 Free Trades.
IB1,800NANA14.95None
KapitallNANANANANone
LTNANANANANone
Merrill Edge12,0085,1554,709$19.95None
MotifNANANANANone
Scottrade15,0127,5983,114$17Trade free for 60 days + get up to $600.
SogotradeNANANANANone
Trade Station4,413898NA$14.95 Get $5 per trade stock and ETF commissions. $4 per trade for IRAs.
Trading Block11,9324,282NA$20None








Best Investments When Dollar Falls


For the last few decades U.S. dollar has been the key reserve currency worldwide and it can be easily exchanged into any currency in most countries. Leading world economies are more or less connected to the U.S. dollar as well as to few other major currencies. Participants of global trade system often use U.S. dollar as a transaction currency. Even more importantly, U.S. Treasures are one of the major assets in government reserve portfolios of countries such as China, Japan, Russia and others. As an example, China owns more than $1 trillion of U.S. debt.

Naturally, there are a lot of discussions around U.S. dollar and its further fate as one of major financial instruments. From common citizens and all the way to the members of central banks, everyone talks about the possibility of U.S. dollar loosing value.

Few potential driving forces of potential dollar collapse are listed below:

1) Main U.S. Treasury holders could abandon this asset as a major part of government reserves. Such scenario is disadvantageous for both USA and for countries-holders because their economies could be harmed considerably.

2) Potential change to the status of “world currency”. As we all remember, at the beginning of the European Union establishment there were many talks about EUR potentially replacing USD worldwide in financial transactions. However, it didn’t happen. Deep crisis in EU lead to single European currency being criticized by many economists, and today there is little chance for EUR to replace USD in the world of commerce.

3) USA technical default - not being able to pay country’s debts. At some point the level of U.S. debt will reach a critical point, when the country won't be able to service it. Hyperinflation will almost definitely appear and dollar will loose its value.


Best Investments When Dollar Falls


1) Gold. Gold bars are considered a safe way for preserving capital. You can keep gold ingots in the banks’ cells over the years and pass them from generation to generation. But gold hasn’t been used as full-fledged money for many years. Though some modern economists in their works state that returning to gold standard is the solution to the recent economic troubles around the world.

Buying and storing physical gold could be a hassle. That's why gold ETFs that could be bought and sold quickly similar to a regular stock became a popular investment instrument.

2) Other currencies. We know that EU economy is experiencing considerable difficulties because of the problems with debt and budgeting policies of some union members. This doesn't inspire confidence in Euro. Potential other options are British pound, Swiss franc, Yen, Norwegian krone and Australian dollar.

3) Real estate investments. Real estate is the classic way to preserve capital in inflationary environment. But private and institutional investors had a discouraging experience having invested into real estate during recent economic crisis. After the events of 2008-2009 real estate prices dropped in USA and all over the world. Thankfully, during the last several years property prices increased and real estate is once more a darling for investors.


Summary


There is no currency that could totally replace the dollar as the main currency in the foreign exchange markets right now. However, investors could form diversified portfolio from a few currencies and gold ETFs to protect themselves from the possibility of dollar devaluation. Real estate, gold bullion and coins are the next best option in case of the disaster.


Updated on 9/19/2017.







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