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 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.)

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


*


Upgrading increasingly uses “load-waived” funds. Such funds typically are not load-waived at Firstrade.

**

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.