Sound Mind Investing
Implement DAA

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


*


Although Fidelity offers fewer NTF funds than either E-Trade or Firstrade, its SMI-friendly 60-day holding period is attractive.

**

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.

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