Overview
Vanguard, Schwab, and Fidelity Investments are three U.S. brokerage firms widely used for a variety of investment products and services. Let's run them through
their paces and determine which broker is the best value.
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
|
Vanguard
|
$0
|
$20
|
$1.00 per contract
|
$20*
|
$20*
|
Services
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: does not offer promotions.
Fees and Account Minimums
Schwab clients pay $0 for stock and ETF trades, Fidelity and Vanguard now charge $0 too.
At Fidelity and Schwab, derivative traders pay a $0.65 per contract for options. Vanguard customers
pay $1 per contract.
Using a live rep at Vanguard or Schwab to make a trade is $25, and at Fidelity the commission is $32.95.
Accounts at all three firms come with no inactivity or maintenance fees (at Vanguard, clients must sign up for electronic delivery of account documents).
All three brokers have no initial deposit or minimum balance requirements.
This category is a tie between Fidelity and Schwab.
Mutual Funds and ETFs
Over 6,400 mutual funds are available for trade at Schwab. More than 3,500 of these are OneSource products, which are no-load and no-transaction-fee. Transaction fee mutual funds are a somewhat steep $49.95 on the buy side, although they are free to sell.
Vanguard clients can trade over 16,000 mutual funds, some of which have no transaction fee and no load.
Transaction fee mutual funds are $20. The fee is applicable to buys, sells, and exchanges.
Fidelity offers traders more than 10,000 mutual funds. Less than a thousand of these come with no transaction
fee and no load. Transaction fee funds cost $49.95 to buy and they are free to sell.
All three brokers offer ETFs without trading fees.
This category is a tie.
Research and Education
Schwab clients have access to independent stock reports from several providers at no charge. The broker offers videos and other educational material on its website.
Fidelity offers third-party reports at no cost from several researchers. The broker has videos, articles, and webinars on a variety of financial topics.
Vanguard provides equity reports from just two analysts. They are free of charge. The website has fewer instructional videos compared to Schwab and Fidelity.
Fidelity and Schwab tie here.
Customer Service
Schwab has phone representatives available 24/7. The firm has over 400 brick-and-mortar locations in the United States. The company also offers customer service for Chinese speakers.
Vanguard offers phone service Monday through Friday only. Regrettably, the firm does not have a nationwide network of branches.
Phone service at Fidelity is available around the clock. Currently, the broker has over 180 branch locations.
Schwab wins this category.
Trading Tools
Schwab's web site is easy to navigate. Investors can place trades within the web browser, or on
Thinkorswim, a desktop platform.
Making trades at Fidelity is easy with the web browser, which has a trade ticket. The broker also has Active Trader Pro, an advanced platform. The firm recently introduced an app for Apple TV.
Vanguard's website is harder to navigate than Fidelity's and Schwab's. Trading occurs within the web browser. Regrettably, there is no advanced platform here.
Another tie between Fidelity and Schwab.
Mobile Platforms
Schwab offers apps for Kindle Fire, Android, iPad, iPhone, Apple Watch, and mobile web. The app is simple to use. Traders can make a mobile check deposit, transfer funds, contact customer service, or watch CNBC.
Apps for Android, Apple, and Windows Phone 8 are available at Fidelity. The interface is intuitive. Users can transfer funds, contact customer service, make a mobile check deposit, place trades, and watch Bloomberg business news.
Vanguard clients can trade on Android, Kindle Fire, iPhone, and iPad. The interface is easy to learn. Traders can reach out to customer service or deposit a check. Disappointingly, there's no live streaming of financial news.
Schwab wins.
Banking Features
Schwab offers bank accounts with checks and a debit card free of charge. FDIC insurance is included at the regular $250,000 limit. The broker reimburses ATM fees throughout the world.
Fidelity clients can open the Cash Management Account, which comes with checks and a Visa Gold debit card at no cost. Additionally, the account comes with FDIC protection up to $1,250,000, much higher than the normal amount. The firm reimburses all ATM fees.
Vanguard offers an account with cash management features, but clients must have at least $500,000 in Vanguard funds. Checks and a debit card are available, but they both have fees for accounts under $1,000,000.
Fidelity is victorious in this category.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: does not offer promotions.
Fidelity vs Vanguard vs Schwab: Results
Vanguard didn't come out ahead in a single category, Schwab won two categories, Fidelity won once, and there were four ties between Schwab and
Fidelity. It's a win for Schwab. Active stock traders will do well at Schwab, while fund investors
will want to try out Fidelity. Despite Vanguard's poor performance in this contest, the broker is still a good choice to invest in mutual funds.
Much more information about the brokers in this article could be found in detailed brokerage
reviews:
Charles Schwab (learn more),
Fidelity (learn more),
Vanguard (learn more).
Open Charles Schwab Account
Visit Schwab Website
Open Fidelity Account
Visit Fidelity Website
Open Vanguard Account
Visit Vanguard Website
Updated on 12/22/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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