I will like to know the average cost of trading services for a portfolio of my size. Currently I am using Folio Financial and they have provided great service. However every year I end up paying about 1.5% of my balance to keep my portfolio there. I have no real startegy, but it has been working providing positive results every year.
It is time for renewal and I wish to look at other services to see if they will provide something better. This is how Folio Financial works:
- Unlimited "Window Trades" — commission-free trades at either of two specific times per day.
- Market trades for $3 per stock
- Cost is $290 / year or $29 / month
One thing that I am interested in having but this company doesn't provide is access to the bond market.
Is 1.5% cost too much? What else could provide the same service for less cost?
My investment style for the most part is buy and hold. I am still learning on investment tactics, since I know I am not following the right approach. Joe's comment below is quite true. I am making in average about 8-10% returns every year, so if I am able to make the same return with an ETF - then why I am spending the extra time and money selecting stocks for my portfolios.
Even if I stick with Folio FN, and I choose ETF fund instead of individual stocks, then I can drop the unlimited plan and just pay for the ETF purchases every month. If I select 2 ETFs funds, and I put money into each every month, then the cost will be around $8 per month or $96 per year, really saving me about $200 a year.
Also this gives me the ability to also put money into the stocks that I really really like.