Choosing Your Brokerage

The good news: for index fund investing, it almost does not matter which brokerage you use. The three major options are all excellent.

The Big Three

Fidelity

• Best for beginners: clean interface, excellent customer service
• Offers zero-expense-ratio index funds (FZROX, FZILX)
• No account minimums
• Fractional shares on ETFs

Vanguard

• The original champion of index investing
• Best for die-hard Bogleheads and long-term holders
• Interface is dated; customer service is slower
• Minimum $3,000 for most mutual funds
• ETFs have no minimums

Schwab

• Strong all-around option
• Excellent customer service and physical branches
• Fractional shares
• No account minimums

What Actually Matters

When choosing a brokerage, verify:

1. Commission-free trades: All three have $0 trades on ETFs and stocks. This is standard now.
2. SIPC protection: All three are SIPC members. Your account is protected up to $500,000.
3. Fund availability: All three offer their own funds plus competitors' funds.
4. No account minimums: All three have eliminated minimums for most accounts.

What Does Not Matter

• Which app looks better: They all work. You will rarely use it.
• The exact expense ratio differences: 0.03% vs 0.04% is $1 per year on $10,000.
• Promotional offers: A $100 bonus should not drive a decade-long financial relationship.

One Brokerage Warning

Robinhood, Webull, and similar 'fintech' brokerages are fine for active trading. They are suboptimal for long-term index investing because their design actively encourages frequent trading. The gamified interface, push notifications, and options availability are engineered to increase engagement -- which means more trading -- which is the opposite of what long-term index investors should do.

For your long-term wealth, use a boring brokerage. The boring ones are winning.