Fidelity vs Vanguard 2023 (2024)

Comparing brokers side by side is no easy task. We spend hundreds of hours each year testing the platforms, mobile apps, trading tools and general ease of use among online brokerages, as well as comparing commissions and fees, to find the best online broker.

Though many U.S. brokers offer basic trading features, such as an app, charting tools, stock research and educational content, the depth of those features can vary widely. Let's compare Fidelity vs Vanguard.

In stock trading, the more you know, the better you’ll do. Taking advantage of resources like articles, webinars, videos and interactive elements is a great way to shorten the learning curve. In our analysis, we examine the availability of several different types of educational materials.

For 2023, our review finds that Fidelity offers more comprehensive new investor education for beginning investors than Vanguard. Fidelity offers investors access to Videos, Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds) and Education (Retirement), while Vanguard offers investors access to Videos, Education (Stocks) and Education (Retirement). Neither have Paper Trading.

Fidelity and Vanguard charge the same amount for regular stock trades, $0.00. Option contracts are pricier at Vanguard, costing $1.00 per contract versus $0.65 per contract at Fidelity. Fidelity and Vanguard both charge (Not offered) per option contract. For a deeper dive, see our best brokers for free stock trading guide.

Looking at a full range of investment options, including order types and international trading, our research has found that Fidelity offers a more comprehensive offering than Vanguard. Fidelity ranks #3 out of 18 brokers for our Investment Options category, while Vanguard ranks #9.

Fidelity offers investors access to Stock Trading, Fractional Shares, Options Trading, OTC Stocks, Mutual Funds and Advisor Services, while Vanguard offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds and Advisor Services. Neither have Futures Trading and Forex Trading Looking at Mutual Funds, Vanguard trails Fidelity in its offering of no transaction fee (NTF) mutual funds, with Fidelity offering 3401 and Vanguard offering .

In our analysis of top U.S. brokerages, we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum. Though crypto has risen steadily in popularity, availability still varies from broker to broker. Our review finds that neither Fidelity and Vanguard offer crypto trading.

To compare the day trading platforms of Fidelity and Vanguard, we focused on trading tools and functionality across both web and desktop-based platforms. Popular day trading platform tools include streaming real-time quotes, stock alerts, trading hotkeys, direct market routing, streaming time and sales, customizable watch lists, backtesting, and fully functional charting packages, among many others. For day trading, Fidelity offers a better experience.

After testing 25 features across the stock trading apps of Fidelity and Vanguard, we found Fidelity to be better overall. The best stock market apps are easy to use, have excellent design, and deliver a fully featured online trading experience. Fidelity ranks #3 out of 18 brokers, while Vanguard ranks #17.

Fidelity Trading App Gallery

Vanguard Trading App Gallery

For research, Fidelity offers superior market research than Vanguard. Fidelity ranks #5 and Vanguard ranks #9.

Over the years, we've found that the best brokers provide rich market commentary, a variety of third-party research reports, and thorough quote screens that are not just easy to navigate, but that also include a comprehensive selection of fundamental data. Robust stock, ETFs, and mutual fund screeners are also must-haves for trade idea generation.

Fidelity requires a minimum deposit of $0.00, while Vanguard requires a minimum deposit of $0.00. From our testing, we found that SoFi is the only broker that requires a minimum deposit.

Fidelity charges 13.575% for accounts under $25,000 while Vanguard charges a margin rate of 13.75%. The industry average of the 18 brokers we track is 8%.

Fractional shares are not offered by either broker. Our research has found that 41% of brokers offer fractional shares investing. Fractional shares allow traders to buy a part of a whole share of stock. For example, if Amazon is trading at $1,000, you could buy half a share for $500.

Both Fidelity and Vanguard allow you to trade penny stocks. Fidelity charges $0.00 per trade while Vanguard charges $0.00. Penny stocks are companies whose shares trade for under $5 and are listed over the counter (OTC). For brokers that do offer penny stock trades, the average commission is $3.

Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Debit Cards and Credit Cards are offered by Fidelity while Vanguard offers none. Neither have Checking Accounts, Savings Accounts and Mortgage Loans.

StockBrokers.com partners with customer experience research group Confero to conduct phone tests from locations across the United States to thoroughly evaluate the quality and speed of brokerage customer service. (Read more about How We Test.) Here are the results of our current testing.

Fidelity was rated 3rd out of 14 brokers, with an overall score of 8.6 out of 10.

Vanguard was rated 12th out of 14 brokers, with an overall score of 6.4 out of 10.

Our top pick overall for 2023, Fidelity is a value-driven online broker offering $0 trades, industry-leading research, excellent trading tools and an easy-to-use mobile app.

In the 2023 StockBrokers.com Annual Review, Fidelity was rated No. 1 Overall Broker and No. 1 for Commissions & Fees, Education, IRA Accounts and Penny Stocks. It also ranked among Best in Class for Platforms & Tools, Mobile Trading Apps, Ease of Use, Active Trading, Beginners, Customers Service, and Penny Stocks. Fidelity also won four StockBrokers.com Industry Awards: No. 1 for Fractional Shares, Innovation, New Tool and Order Execution.

Vanguard is aimed squarely at buy-and-hold investors, and its platform reflects that focus. Vanguard is known for its low-cost funds, and the investment platform is really built for those looking to invest solely in mutual funds and ETFs.