My Encounter of Using Vanguard Brokerage

This is my third report about brokerage review. In my previous report, I have provided testimonials about Just2Trade and Zecco brokerage. In , I’ll critique Vanguard Brokerage Solutions also recognized as VBS. Vanguard is recognized for low price mutual fund since the expense ratio is generally lower than most mutual fund provider. Not until not too long ago, Vanguard will not be my initially choice to trade. The commission for trading is $7.00 per trade for 1st 25 trades and $20 for subsequent trades. Even so trading Vanguard ETFs is totally free, for any account balance. This is a excellent selection for most passive (acquire and hold) investor.


Vanguard was established on 1975 by John Bogle. John Bogle is known for his creation of index fund for investor. The current headquarter is positioned at Malvern Pennsylvania USA. It currently makes use of its own clearing Vanguard Brokerage Services as their clearing / asset custodial. Vanguard Brokerage Solutions, member of FINRA & SIPC, holds and clears all Vanguard client assets. All Vanguard accounts are insured below SIPC (up to $500,000 / $250,000 money balance) and supplemental Lloyd’s of London coverage (up to $250 million) provided by its personal clearing firm.

What are the particulars?

Vanguard Brokerage Solutions provide Stock, ETF, Bond, Mutual Fund, and CD. As pointed out above, the commission charges for trading is $7.00 per trade up to 25 trades and $20 for subsequent trades. The most effective deal of using Vanguard is their supplying of ETF and Mutual fund. You get totally free trade to obtain or sell vanguard ETF up to 25 trades per year for every single ETF. The following is the details charges related to Vanguard brokerage Solutions:

Merchandise: Stocks, solutions, mutual funds, bonds, CDs, foreign securities, insurance coverage, industrial paper
Industry Orders: Free of charge & $7.00 up to 25 trades per year, subsequent $20.00.
Limit Orders: Totally free & $7.00 up to 25 trades per year, subsequent $20.00
Mutual Funds: $35.00 for transaction-charge funds. NTF funds accessible.
Possibilities: $30.00/trade+$1.50/contract
Minimum to Open: $3000 ($ VBS)
Account Inactivity Charge: $.00 although $20.00/yr for maintenance
Account Maintenance fee: $20.00/year (balance < $50K)
ACAT In/Out: $0.00
Maximum Margin Rate: Unknown
How to open Vanguard Brokerage Services account?

Opening account is very straight forward by filling its online application. Most people will get their account information within 10 minutes after application submission. To apply for margin account, option trading account and Money Market Sweep Account, you will need to fill separate form. You need to mail in the forms for this application. For foreigner, you might need to check with Vanguard customer services. It is possible to open an account with filling the application form manually.

My Experience

Opening Vanguard account is fast and easy. It took me 10 minutes to fill the application online and open my account. ACH electronic transfer also can be setup through online easily. Vanguard also offers various mutual funds as well as ETF for my account. One of the most famous things with vanguard is the low expense ratio of the funds. This can be very significant for long term investor most of the funds have lower than 0.50% expense ratio. For example Vanguard Total Stock Market ETF (VTI) only has 0.07% expense ratio. This means if you have invested $10,000 in this ETF, your expense for holding this ETF is only $7.00. There are currently 46 ETFs are offered by Vanguard.