KEEP IT SIMPLE TRADING / Profunds Message Board

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Strategies & Market Trends : KEEP IT SIMPLE TRADING / Profunds

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To: mistermj who wrote (54)	2/9/2004 6:53:19 PM
From: mistermj	Read Replies (1) of 177

Using Scottrade for trading Profunds/Rydex Fund families Just got off the phone with a Scottrade rep. It looks like Scottrade is a decent choice, IMO ,for this type of mutual fund trading through a brokerage rather than going direct with Profunds or Rydex. ************************************************************ Trading Rydex or Profunds with Scottrade per my phone call with customer service: * $500 minimum to open an account * Rydex or Profunds may have minimum amounts they require for trades.(Couldn't find out that info). * Scottrade allows direct switching between funds * Scottrade waives the fee for short term mutual fund trades when trading Rydex or Profunds Profunds cutoff time for trades is 3p.m.EST(Not acceptable) Rydex cutoff time for trades is 4 p.m.EST.( I would question this as that is later than Rydex itself?) ************************************************************ I would use the Rydex family instead of Profunds with Scottrade because of the later trade cutoff time. Rydex has less funds and is less diverse than Profunds but they are the same for trading leveraged funds of the major indexes.If all you wanted to do was trade the major indexes and have the option of going short in an IRA, Rydex is just as good as Profunds. Rydex lacks in not having as many sector funds as Profunds, but if you went with a broker you could just buy the ETF's or ishares that correspond to the various sectors instead. Bottom line...I think going direct with Profunds is the best option for what I'm doing here...but it appears that using Scottrade (and possibly others) is a viable option for staying with a broker and trading funds through them. I also see nothing wrong with just buying or shorting ETF's or ishares exclusively instead of using mutual funds as I do...but you would not have the option of going short in an IRA unless you do it through Profunds or Rydex.Also the cost of broker trades with ETF's may be prohibitive for this style of short term trading. +++Disclaimer. I would highly recommend that people do their own due diligence before switching brokers or trading in this style.I talked with one representative of Scottrade who may or may not have given me accurate information. To the best of my knowledge it is accurate based solely on Scottrade customer service answering my questions.

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