Vanguard review tarding



Vanguard


Vanguard review 2010: very high commissions, weak trading tools

Vanguard Commissions

  • Stocks and ETFs: $25 or $0.025 per share, whichever is greater
  • Options: $30 plus $1.50 per contract
  • Mutual funds: $35
  • U.S. Treasury: $0.75 per $1,000 face amount, $40 min–$75 max
  • Mortgage-backed securities: $50 per transaction; GNMA minimum purchase: $25,000
  • Investment products: stocks, options, mutual funds, bonds, CDs, foreign securities, insurance, commercial paper, ETFs
  • Minimum to open account: $3,000

Vanguard mutual funds include a collection of 117 actively managed mutual funds, and over 150 U.S., exchange traded and International funds and financial portfolios. Vanguard's funds focus on a number of financial goals, risk levels, sectors and returns.


Vanguard.com Trading Tools Review

Vanguard review

Vanguard trading tools are not keeping up with the industry. You can't modify your order: you have to cancel it then resubmit it (!). Poor charts with no possibility of saving your indicators. Terrible research tools. Really bad stock screener.


Vanguard Pros/Advantages

  • Low cost and good performance Vanguard mutual funds.
  • Free dividend reinvestment


Vanguard Cons/Disadvantages

  • Extremely high trading costs
  • $30 annual maintenance fee for regular accounts
  • Very bad customer service
  • Poor trading and research tools
  • $3,000 minimum to open account
  • If the balance is below $2,500, Vanguard will deduct a monthly fee of $10


Vanguard Brokerage Review Summary


There is a reason Vanguard is known for its mutual funds and not for its brokerage services. Excessively high trading commissions, sloppy customer service, terrible trading and research tools make it hard for Vanguard to get any recognition.

Unlike most other brokers, the company is charging $30 annual maintenance fee for regular accounts and monthly $10 "low-balance fee" for all accounts below $2500 in balance. There are no setup and annual fees for IRA accounts, but due to high commissions the firm did not make it into Best Brokerages for IRA list.

The time of mutual funds is slowly but surely coming to the end. They are being replaced by low-cost and easy to buy/sell Exchange Traded Funds or ETFs. We believe that Vanguard will have hard time attracting new customers in this new environment.

Because of all the above reasons, we could recommend Vanguard only to people looking to invest exclusively in Vanguard mutual funds. For everything else there are better Discount Brokerage Firms.


Vanguard Promotional Code: none right now


Vanguard


Share |

Stock broker promotions:
Copyright ©2009-2010 Brokerage-Review.com. All rights reserved.
The stock brokerage firm you select is solely responsible for its services to you, the user. Brokerage-Review.com shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of a brokerage house's services. Brokerage-Review.com has partner relationships with other companies. As a partner, we often provide reviews of products and services based on our personal opinions. We are not compensated for positive reviews. While we strive to make sure that the information we present here is true and accurate upon publication, the rates and offers that we share with you may change without notice, so please visit the sites we reference for more up to date information.