Want to buy Vanguard funds but you feel Vanguard may not be the broker for you? We detail our experience and give you another broker who may suit you better.
Choosing Vanguard As A Beginner Investor
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We know that a lot of people want to invest in Index Funds and have heard about Vanguard.
Vanguard was the first broker to make Index Funds available for the average investor at a low cost.
However, there are a couple of reasons why you may want to reconsider using Vanguard if you are new to investing.
There are enough barriers to entry that prevent most people from investing. You don’t need your broker to be one of them.
In this article we will discuss reasons why we believe that Vanguard is not the best choice for a beginner to use unless they have significant funds to invest.
1. Website Experience
Like most brokers, Vanguard has an app and a website for users to begin trading on their platform.
From our experience the app is not that difficult to use however, using their website is another story.
Navigating their website after logging in is one of the most daunting tasks we have seen on any broker’s platform.
It is not easy to find information on your account details, linking bank accounts, and forget about trying to sell an investment.
It is like the website was created without any regard to the user experience especially, if that user is a beginner investor.
2. Vanguard Customer Service
When you are a beginner investor, customer service plays an important part in alleviating your fears that you may have done something wrong when investing.
Vanguard’s customer service number is very hard to locate for personal investors and it takes a long time to get a representative on the phone.
Additionally, their customer service is tiered.
Tiered customer service means that the level of customer service they provide is determined by the amount of money you have invested with them.
I don’t know about you, but I feel that is pretty messed up. The baseline customer service should be high and then when you move up in tiers it should be more a la carte.
3. Alternative Brokers To Use
If you are looking to buy Vanguard Index Funds as a beginner, using another broker may be easier for you to get started.
You don’t have to open a Vanguard Brokerage account if you just want to buy Vanguard Index Funds or ETFs.
You can use another broker like Charles Schwab to buy Vanguard Index Funds and ETFs.
They have a more user-friendly website that is easier to navigate for beginners. Additionally, customer service is not determined by the amount of money you have invested.
Conclusion
When you are just starting out with investing, the last thing you need to be confusing is the site where you buy your investments.
Additionally, you really need customer support to help you start investing successfully.
If you are interested in investing in the stock market and are just a beginner there is a lot of information out there.
It is hard to determine where you should start and where you should get your information.
We are here to make your journey as a beginner as smooth as possible so you can stay on the road to building wealth.
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Nadia is a Financial Independence Coach from New York City. She holds a B.A from Columbia University and worked 13+ years in Investment Banking and Financial Services. She is an entrepreneur, investor, and partner at Wealth Twins LLC. She reached Financial Independence in her 30’s and is passionate about showing others how to achieve the same.
