No Load, No Transaction Fee Mutual Fund Question

LordBP · #1 07-27-2006, 12:33 AM

Ok, so I want to use my scottrade account to buy some MFs. I am looking to invest a few hundred dollars once in a while and want to know how these work. Does this mean I can buy and keep buying these type of MFs for free or do I have to pay the $17 per trade fee everytime I want to add some money. If I have to pay everytime I add a few hundred dollars it's not worth it.

Any help is appreciated,
Brandon

leto333 · #2 07-27-2006, 01:34 AM

you have to pay the broker's commission if you use the broker.

RocketManJames · #3 07-27-2006, 10:12 AM

[ QUOTE ]
you have to pay the broker's commission if you use the broker.

[/ QUOTE ]

I am pretty sure that a No-Transaction-Fee fund does not cost you anything to purchase, at least not broker commissions.

-RMJ

MatthewRyan · #4 07-27-2006, 01:14 PM

Scottrade charges $17 for some mutual funds (those which do not give Scottrade a kickback basically for sending them business), and charges $0 for others (no-transaction fee). They have a list of the no-transaction fee funds.

spud · #5 08-01-2006, 07:15 PM

I think Scottrade has another rule about holding a mutual fund for a minimum three months to qualify for no commission. Personally, I have a separate account with Vanguard for that and use the Scottrade account for stocks/options. I have to admit they suck for options though.