I realize this isn’t for everyone but I use Interactive Brokers for most of my investments. A key benefit is their low cost for currency conversions. They charge 0.002% above the spot price. For every $100,000 being converted, they charge $2. The best I have found at other banks is 100x that and usually it is much higher.
I also invest using a “risk parity” passive approach – basically an index approach but diversifying further by investing more in leveraged bonds in order to reduce overall risk – and Interactive Brokers makes it easy to buy future contracts.
I was with Vanguard for 40 years. Sadly about three years ago their service really took a nosedive. It’s hard to breakup with a company that you have relied on and that you have trusted for so many years. Then, they botched up a corporate action on one of my holdings and it took me hours on the telephone to remedy the situation.
Subsequently I walked into a Schwab office and personally met my Schwab advisor, opened an account and transferred my Vanguard holdings to Schwab. When calling there is never a wait. If he doesn’t answer directly, he phones me back within a few minutes. He also responds quickly to emails. Surprisingly I received a rather large cash bonus for opening the account and my rep takes myself and my wife out to lunch a couple times a year. I have a self directed no fee account so am amazed at the service I receive and it makes me feel appreciated.
My only nitpick is that Schwab does not offer a sweep account into a money market fund. So one must sell money market funds first and then buy stocks to avoid margin interest charge. Thiis extra step is irritating. Incidentally Schwab has a fine tool for QCDs that keeps track of how much you have withdrawn from your IRA and how much more you need to withdraw to meet your MRD.
For these brokerage firms, paying little or nothing on cash accounts is how they subsidize the rest of their operations — and pay for those client lunches. I, too, have become disgruntled with Vanguard. But I’m still there, in part because the firm doesn’t play the cross-subsidy game.
Because we are paranoid (thank you Bernie Madoff), my husband and I each have our main assets spread across 3 financial companies: Me: vanguard, fidelity and schwab, my husband: Vanguard, Fidelity and T. Rowe Price. I used to love Vanguard, but not anymore due to poor service, and not so knowledgeable phone help. By far, my favorite is Fidelity – with great intelligent service and relatively easy to use website. My second favorite is Schwab. They also have knowledgeable phone help and also a Roth Conversion Calculator that lets you vary assumptions. Vanguard and TRPrice: Meh.
I realize this isn’t for everyone but I use Interactive Brokers for most of my investments. A key benefit is their low cost for currency conversions. They charge 0.002% above the spot price. For every $100,000 being converted, they charge $2. The best I have found at other banks is 100x that and usually it is much higher.
I also invest using a “risk parity” passive approach – basically an index approach but diversifying further by investing more in leveraged bonds in order to reduce overall risk – and Interactive Brokers makes it easy to buy future contracts.
I was with Vanguard for 40 years. Sadly about three years ago their service really took a nosedive. It’s hard to breakup with a company that you have relied on and that you have trusted for so many years. Then, they botched up a corporate action on one of my holdings and it took me hours on the telephone to remedy the situation.
Subsequently I walked into a Schwab office and personally met my Schwab advisor, opened an account and transferred my Vanguard holdings to Schwab. When calling there is never a wait. If he doesn’t answer directly, he phones me back within a few minutes. He also responds quickly to emails. Surprisingly I received a rather large cash bonus for opening the account and my rep takes myself and my wife out to lunch a couple times a year. I have a self directed no fee account so am amazed at the service I receive and it makes me feel appreciated.
My only nitpick is that Schwab does not offer a sweep account into a money market fund. So one must sell money market funds first and then buy stocks to avoid margin interest charge. Thiis extra step is irritating. Incidentally Schwab has a fine tool for QCDs that keeps track of how much you have withdrawn from your IRA and how much more you need to withdraw to meet your MRD.
For these brokerage firms, paying little or nothing on cash accounts is how they subsidize the rest of their operations — and pay for those client lunches. I, too, have become disgruntled with Vanguard. But I’m still there, in part because the firm doesn’t play the cross-subsidy game.
Because we are paranoid (thank you Bernie Madoff), my husband and I each have our main assets spread across 3 financial companies: Me: vanguard, fidelity and schwab, my husband: Vanguard, Fidelity and T. Rowe Price. I used to love Vanguard, but not anymore due to poor service, and not so knowledgeable phone help. By far, my favorite is Fidelity – with great intelligent service and relatively easy to use website. My second favorite is Schwab. They also have knowledgeable phone help and also a Roth Conversion Calculator that lets you vary assumptions. Vanguard and TRPrice: Meh.