Discount Brokers
Understanding Online Discount Brokers and Mutual Fund Supermarkets According to The Mutual Fund Education Alliance
You can purchase mutual funds online and through discount brokers fund supermarkets.
Mutual fund shares are available through online discount brokers and fund supermarkets which offer the funds of many different companies. Schwab's OneSource and Fidelity's No Transaction Fee Program are examples of fund supermarkets of two discount brokers. These discount brokers sell shares directly to you without a sales charge or transaction fee. The discount brokers are reimbursed by the fund company for their services.
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Discount brokers’ supermarkets may also sell other funds that carry transaction fees. In some cases, administrative costs and the minimum initial and subsequent purchase amounts may be higher through discount brokers’ supermarkets than if purchasing funds directly. In addition, mutual fund shares with sales charges, or "loads," may be available through discount brokers’ supermarkets.
Purchasing from a discount brokers’ supermarket allows an investor to consolidate paperwork even if they own funds from several different fund companies. Selling and purchasing funds can often be accomplished with one phone call or one visit to the discount brokers’ supermarkets web site. This method of purchasing mutual funds may work well for those investors who have the time to do their own research and want to conveniently purchase funds from several different fund companies in order to meet their investment goals.
For more information on working with an online broker or fund supermarket, visit these sites:
American Century Brokerage
Charles Schwab OneSource
Fidelity No Transaction Fee Program
Wells Fargo
T. Rowe Price Associates
Vanguard Brokerage
Links to discount brokers
http://www.dfin.com/ldisc_brokers.htm