Chosing a broker

[candyman24]

Hey basically I'm 20 years old just starting. I was thinking about going with either wellstrade or fidelity. I don't qualify for the 100 free trades though. Only considering them as an option because I've been banking with them for about a year.

Wellstrade pros: All accounts under one roof and easy to navigate back and between the bank account and broker.

Fedelity pros: Lots of research

Anyone have any preferances or one they would go with over the other?

Thanks

[jazz4cash]

i use Fidelity, no complaints. They manage our 401k and I get a consolidated summary with 401k, IRA, and taxable account all on one web page.

[candyman24]

One more question also Should I start with an IRA or normal account? If IRA roth or traditional? Starting investment is 2,500 by the way.

[LOL!]

Quote:

Fedelity pros: Lots of research

Uh, I would not consider that as a 'pro' since the internet makes all research free. I don't bother to use any research tools at my brokers. But you also have to remember that research is really a distraction once you've figured out your asset allocation.

[2B]

candyman 24,

Welcome to the forum. Fidelity and Vanguard are probably the hands down favorites for places to stash money. You mentioned brokerage accounts and I'd encourage you to do some research about no load, low fee index mutual funds available at both Fidelity and Vanguard. Research show that a diversified portfolio of low cost mutual funds out performs most individual investors stock portfolios over the long term.

As for your other question, a Roth IRA is the best place to put money after maxing out any match from your employers to your 401k. After maxing out the Roth, max out the 401k and then save "after tax." You should also have about 3 to 6 months of savings available out of any retirement account for emergencies. If you are saving for a car or house, these funds are also outside of any retirement accounts.