Choose Your Broker
The table below compares five popular brokers based on their suitability for implementing SMI's strategies at relatively low cost, including the 50/40/10 popular strategy combination.
For more details, see SMI’s 2023 Broker Review: Choosing the Broker That’s Right for You.
Also see Higher Returns With Less Risk, Re-Examined to learn more about 50/40/10.
(Note: SMI has no financial incentive to favor or recommend one broker over another.)
Compare (scroll right for more brokers) | Fidelity | Schwab | E*Trade | Firstrade | Vanguard |
---|---|---|---|---|---|
Fund Upgrading Strategy | Good* | Good | Excellent | Good** | Fair |
Just the Basics Strategy | Excellent*** | Excellent*** | Excellent | Excellent | Excellent |
DAA Strategy | Excellent | Excellent | Excellent | Excellent | Excellent |
Sector Rotation Strategy | Excellent | Good | Excellent | Excellent | Poor |
50/40/10 Strategy | Excellent | Good | Excellent | Excellent | Fair |
NTF Fund Selection | Good | Good | Excellent | Excellent | Fair |
NTF Fund Holding Period | 60 Days | 90 Days | 90 Days | 90 Days | 60 Days |
NTF Short-Term Redemption Fee | $49.95^ | $49.95^^ | $49.99 | $19.95 | $50 |
Non NTF Purchase Fee | $49.95 - $75 | $49.95 - $74.95 | N/A | N/A | $20 online+ |
Non NTF Sell Fee | None | None | N/A | N/A | $20 online+ |
Fractional-Share Trading of ETFs | Yes | No | No | No | Yes++ |
Suitability for Small Portfolios | Excellent | Excellent | Excellent | Excellent | Excellent |
Transfer Fee (to close account) | $50 | $50 | $75 | $75 | None |
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** | Upgrading increasingly uses “load-waived” funds. Unfortunately, such funds typically are not load-waived at Firstrade. |
*** | Fidelity and Schwab investors can implement JtB with Vanguard ETFs or by using their broker’s JtB-oriented traditional funds. Click "View Alternate Funds" here. |
^ | This fee doesn’t apply to Fidelity-branded funds. |
^^ | This fee may be waived for certain in-house Schwab funds. |
+ | $45 for telephone trades. |
++ | Available for Vanguard-branded ETFs only. |