Choose Your Broker
The table below compares five popular brokerage firms based on how well they support implementing SMI’s strategies at relatively low cost, including the popular 50/40/10 strategy combination. (See Higher Returns With Less Risk, Re-Examined to learn more about 50/40/10.)
SMI’s strategies can be implemented with any of the five popular brokerage firms listed below. However, some brokers are a better fit for certain strategies due to differences in fund availability, costs, and features.
Note: SMI has no financial incentive to favor or recommend one broker over another.
Next Step:
After choosing your broker, and opening an account, continue to the next step to buy your funds and put your plan into action.
Recommended Reading
| Suitability of Leading Brokerage Firms for Implementing SMI Strategies | |||||
|---|---|---|---|---|---|
| Compare (scroll right for more brokers) | E-Trade | Schwab | Fidelity | Firstrade | Vanguard |
| Fund Upgrading | Excellent | Good | Good | Good* | Fair |
| Dynamic Asset Allocation | Good | Excellent | Excellent | Excellent | Excellent |
| Sector Rotation | Excellent | Good | Excellent | Excellent | Poor |
| 50-40-10 | Excellent | Good | Excellent | Excellent | Fair |
| Just-the-Basics | Excellent** | Excellent** | Excellent** | Excellent | Excellent |
| NTF Fund Selection | Excellent | Good | Good | Excellent | Fair |
| NTF Fund Holding Period | None | 90 days | 60 days | 90 days | 60 days |
| NTF Fund S-T Redemption Fee | None | $49.95^ | $49.95^^ | $19.95 | $50^^^ |
| Non-NTF Fund Purchase Fee | N/A | $49.95 - $74.95 | $49.95 - $75 | N/A | $20 online+ |
| Non-NTF Fund Sell Fee | N/A | None | None | N/A | $20 online+ |
| Fractional-Share ETF Trading | Limited | No | Yes | Limited | Yes++ |
| Suitability for Small Portfolios | Excellent | Excellent | Good | Excellent | Excellent |
| Transfer Fee (to close account) | $75 | $50 | $0 | $75 | $100 |
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** | Schwab, Fidelity, and E-Trade investors can implement JtB with Vanguard ETFs or by using their broker’s JtB-oriented traditional funds. Click "View Alternate Funds" here. |
^ | Fee may be waived for certain in-house Schwab funds. |
^^ | Fee does not apply to Fidelity-branded funds. |
^^^ | Fee does not apply to Vanguard-branded funds. |
+ | $45 for telephone trades. The $20 trading fee may be reduced for recurring trades. |
++ | Available for Vanguard-branded ETFs only. |