I hope the pseudo code in the subject is comprehensible.
I have most of my retirement accounts and a taxable account at Fidelity. The question of choosing a brokerage provider has been discussed here and it sounds like Vanguard and TDA were both graded as solid options. Both offer commission-free ETFs. TDA also is an investment account provider for HSABank-hosted HSAs (I might consider to move my HSA there if/when Adirondack drops their APY). Additionally, TDA offers 30+ Vanguard ETFs commission-free as well as many other fund families' ETFs. Vanguard doesn't need an introduction, but there were some reports about slow funds transfers/clearing. Also, they charge management fee for total balances <50K.
Since some of the forum members have real-life experience with one or both of these institutions I wanted to ask a question: which company would you go with if you had a need to diversify from having all your eggs in one basket (in my case - Fidelity)?
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
I have accounts with both Fidelity and Vanguard. Both are solid choices. I prefer Fidelity only because I like how their website displays my accounts. Everything is very intuitive.
Vanguard's website is good as well, but I find their site is not as clearly displayed. On more than one occassion I had to call their 800-number to learn how to initiate a transaction.
I think having accounts at two brokerages provides some degree of flexibility, especially with commissions. One or the other usually has the lowest commission on a specific transaction.
I have accounts with TDA and Vanguard. I prefer TDA's trading platform by a wide margin. I feel both are as rock solid as it comes in regards to safety, with maybe a slight edge to Vanguard.
All things being equal, I prefer financial institutions with a mutual company or co-op model. In general there are fewer conflicts of interest and opportunities for shenanigans. Also, all things being equal I prefer mutual funds over ETFs since ETFs involve more counterparties.
So, my favorite broker is Vanguard due to its availability of PP-compatible mutual funds and client-owned structure.
I used to have a Fidelity 401k and was happy with them. They also have cheap PP-compatible funds and their execution and customer service was excellent. Fidelity is a privately owned for-profit corporation though so I feel I need to keep an eye on them.
TDA and other reputable discount brokers are probably fine, but as stated, I prefer to work directly with fund sponsors.
IMO a PP ought to be spread across at least two distinct brokers for institutional diversification. Currently I think the best combination is Vanguard and Fidelity. I'm always on the lookout for a nonprofit alternative to Fidelity though.
