TD Ameritrade vs Fidelity vs Ally, etc.?

[bevans]

I'm a beginner looking to start investing and am looking for opinions on brokers to go with.

 

[Mrs_Esterhouse]

TDA = GTG

 

[WallsGa]

Traditional advice at step 3 is max out your 401k, then IRA ; then invest

 

[rockyfatcat]

Vanguard and the total stock market fund. The entire market will rise 8-12% per year. Invest 200 (the book says 135) per month, every month and you will retire with a million in your hand

 

[TheGman]

If your simply looking to invest in S and P 500 Index fund , T Rowe Price or Vanguard.
Simply set up a monthly automatic deposit.

I have TD Ameritrade and Etrade both are fine for investing in stocks (buy and sell).

 

[Redfish572]

Thanks.

As the title states Im a beginner, not trying to come off as someone who knows it all.

My employer matches up to 4% and I have been doing that but upped my contribution an additional 2% this year and plan to add an additional 2% every year from here on out. However, I have money sitting in the bank only earning 0.50% and since I can't cut a check to my 401k, I thought I would attempt to make that money in savings earn a little more.

Do what WallsGa said, meet your employer's 401k match, open a Roth IRA and put your additional 2% in it monthly. You can contribute $6k annually to the Roth if under age 50, $7k if over 50.

Figure up what the 2% will be annually, and take all/some of the money you are wanting to open a brokerage account with, to fully meet your Roth contribution maximums.

If you have any funds left over then open a brokerage account, but take full advantage of your Roth first.

 

[jcsblairsville]

You must meet qualifications to open a Roth. Look up IRS rules. If you make too much, you don’t qualify.

 

[WallsGa]

Thanks, just checked and I’m eligible.

Any of the major brokerage houses can set you up. I use Fidelity personally.

They’ll try and sell you on their in-house index fund, which is fine. But remember that you can invest in a Vanguard fund or a Schwab fund even though your IRA is with Fidelity or TDAmeritrade. Check the expense ratio or fees for each fund and pick one with low fees.

They also have options of opening a managed fund. It’s more expensive but can also produce better results. My wife uses a managed fund, I use index funds.

Make sure you’re contributing money you WILL NOT NEED. Don’t ever plan on making early withdrawals. The penalty sucks.

 

[sparked1]

I’ve had/have more brokers than I can count on both hands. No, really. My favorite has been Vanguard and TDA. Vanguard is best for passive investing due to ultra low cost, well managed funds. Their platform and app are very dated, however. TDA is best if you plan to actively manage your portfolio mainly because of the Thinkorswim trading platform. My $.02.

 

[Granite3]

I just moved over to Charles Schwab, fees are now under .05% on about 90% of my portfolio.