Quantcast

Ask The Expert: Investments

Q:
Asked by Robin 5/11/12

Is there a way to open a Roth IRA with ETFs and no trading fees?

Matthew Malone A:
Answered by Matthew Malone 10/24/12
See other answers from this expert.
243 out of 243 people found this useful.

It’s unlikely you’ll find an service provider that let’s you trade without commissions. If commissions are a concern (and they should always be a consideration when evaluating a service provider) you can likely get the same investment mix by investing in no-load index mutual funds. The main difference: unlike ETFs, mutual funds don’t trade like stocks–they trade at the end of every trading day. One caveat: mutual fund fees can be higher than those on ETFs; if there’s a big different between them, the commission savings with a mutual fund could be eaten up by higher fees. Read the fine print.

WAS THIS ANSWER USEFUL?

Leave a Reply