I'm largely a buy and hold DIY investor (as we all are these days
). All my holdings are at a self-directed discount brokerage.
As part of my maximizing gains strategy, I minimize fees - and try to keep them below 0.5% of the transaction. With a $9.95 transaction fee, this means I only buy in chunks of $1990 or more.
But when I think about it, if I'm holding on to something for 5 years, is it acceptable to buy $398 at a time, since over the holding period, my annual fees would only be 0.5% (better than most ETFs)
Am I being too strict with the minimize transaction fees strategy?
As part of my maximizing gains strategy, I minimize fees - and try to keep them below 0.5% of the transaction. With a $9.95 transaction fee, this means I only buy in chunks of $1990 or more.
But when I think about it, if I'm holding on to something for 5 years, is it acceptable to buy $398 at a time, since over the holding period, my annual fees would only be 0.5% (better than most ETFs)
Am I being too strict with the minimize transaction fees strategy?