ETFs : Better to rotate 1 large trade monthly or make 5 smaller trades each month?

Question

Just starting out investing in ETFs.

Making an initial investment of $500. $100 in 5 different, diverse, ETFs. Then I am going to put $125 more in each month.

ShareBuilder.com offers 6 "free" automatic investments per month for $12 a month.

So, if I use all 6 free Auto Investments, then i am only paying $2/trade. If I use only 4, then I am still only paying $3/trade, which, if I am correct, is Sogo's price.

Thus, I was going to make 5 trades a month, $25 into each ETF mentioned above.

Do you think it better that I sign up with SogoTrade (no monthly fee, but $3 trade comission charge), make only 1 trade ($125 into one of the ETFs above and rotate each month) a month for $3 and cut commission costs by 9 a month?

Since this is a very long term plan, I am thinking that the Sogo method is better because those $9 saved on comissions could go towards the investment. But then I lose the immediate diversity gained from equal monthly investments.

Thanks for your help!!!

Answer 1

I'm not familiar with either service other than browsing their website.  But based on your plans, I agree with your conclusion.    Over a year, the $9 a month savings is almost another months investment.