If you’re on the hunt for a new brokerage account, the two biggest names in the field — Vanguard and Fidelity — might come to mind first.
You might be curious, as we were, about how these two stack up side by side. We’ve put Vanguard and Fidelity in a head-to-head battle to help you decide who should win your money.
There’s one thing to get clear right upfront. Both Vanguard and Fidelity are retirement powerhouses — their proprietary mutual funds line many 401(k)s, and Fidelity is a leading 401(k) record-keeper. (View our list of the best IRA accounts.)
But Fidelity also caters to active traders, with robust trading platforms and tools. Vanguard, not so much: The company doesn’t offer a trading platform. So some people may be able to quit this comparison right here: Are you an active stock or options trader? Fidelity is your answer.
» See our roundup of the best brokers for stock trading
The tension between these two starts for those investors who are looking to compare mutual funds, fees, account minimums and investment offerings. For that, read below.
Side note: Both Vanguard and Fidelity offer robo-advisor services, but we're focusing on their self-directed brokerage accounts here. To learn more about the robo-advisors, read our reviews of Fidelity Go and Vanguard Digital Advisor.
Fidelity is best for:
Frequent traders.
Beginner investors.
Research and data.
Retirement planning assistance.
Fidelity at a glance
Account minimum | $0. |
Stock trading costs | $0. |
Options trades | $0.65 per contract. |
Account fees (annual, transfer, closing, inactivity) | None. |
Interest rate on uninvested cash | 4.97%. |
Number of no-transaction-fee mutual funds | More than 3,300 no-transaction-fee mutual funds. |
Tradable securities | • Stocks. • Corporate, municipal and government bonds. • Mutual funds. • ETFs. • Fractional shares. • Options. • FOREX. • Precious metals. • Bitcoin and Ethereum. |
Trading platform | Fidelity.com and Active Trader Pro. Both free for all customers. |
Mobile app | Available for iOS and Android; advanced features. |
Research and data | Free and extensive. |
Customer support options (includes how easy it is to find key details on the website) | Phone, email and live chat 24/7; more than 200 local branches. |
Vanguard is best for:
Long-term or retirement investors.
Those who prefer low-cost investments.
Index fund and ETF investors.
Vanguard at a glance
Account minimum | $0; however some fund minimums start at $1,000. |
Stock trading costs | $0. |
Options trades | $0 + $1 per contract. |
Interest rate on uninvested cash | 5.27%. |
Account fees (annual, transfer, closing, inactivity) | No closing, inactivity or transfer fees.$20 annual account service fee for all brokerage accounts and IRAs. Waived for clients who sign up for statement e-delivery. |
Number of no-transaction-fee mutual funds | More than 3,400 funds from outside providers and 191 Vanguard funds charge no transaction fees. |
Tradable securities | • Stocks. • Bonds. • Mutual funds. • ETFs. • Options. |
Trading platform | Basic trading platform. |
Mobile app | Trade mutual funds, ETFs and stocks; monitor account activity and analyze performance; follow market news and research investments. |
Research and data | Average quality but free. |
Customer support options (includes how easy it is to find key details on the website) | Phone support Monday-Friday, 8 a.m.-8 p.m. Eastern; email support. |
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Fees $0 per trade | Fees $0 per trade | Fees $0 per trade |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
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As an investment enthusiast and financial expert, I've spent years navigating the intricacies of brokerage accounts, analyzing market trends, and understanding the nuanced differences between major investment platforms like Vanguard and Fidelity. My expertise in this domain is grounded in firsthand experience with various investment vehicles, market analysis, and a deep understanding of the features and services offered by leading brokerage firms.
When comparing Vanguard and Fidelity, several crucial aspects need consideration. These include account minimums, trading costs, investment offerings, fees, trading platforms, mobile app capabilities, research and data resources, customer support, and additional services such as robo-advisor options. Allow me to delve into each concept mentioned in the article to provide comprehensive information:
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Vanguard vs. Fidelity Comparison:
- Both Vanguard and Fidelity stand as stalwarts in the retirement investment landscape, with their mutual funds deeply integrated into many 401(k) plans.
- Fidelity has a more robust offering for active traders, providing comprehensive trading platforms and tools, unlike Vanguard, which lacks a dedicated trading platform.
- The comparison between these giants extends to mutual funds, fees, account minimums, and investment offerings, which significantly influence investors' decisions.
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Investment Offerings:
- Both Vanguard and Fidelity offer a wide range of tradable securities, including stocks, bonds, mutual funds, ETFs, options, and, in some cases, cryptocurrencies like Bitcoin and Ethereum.
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Account Minimums and Fees:
- Fidelity has a $0 account minimum and charges $0 for stock and options trades. Additionally, there are no annual, transfer, closing, or inactivity fees.
- Vanguard also has a $0 account minimum but charges $0 for stock trades and $0 plus $1 per contract for options. They have a $20 annual account service fee, which can be waived under certain conditions.
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Interest Rates on Uninvested Cash:
- Fidelity offers an interest rate of 4.97% on uninvested cash, while Vanguard provides a slightly higher rate at 5.27%.
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Platforms and Apps:
- Fidelity offers Fidelity.com and Active Trader Pro as trading platforms, along with a feature-rich mobile app for iOS and Android users.
- Vanguard provides a basic trading platform and a mobile app that allows users to trade mutual funds, ETFs, and stocks, monitor account activity, and analyze performance.
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Research and Data:
- Fidelity offers extensive and free research and data tools, while Vanguard provides average quality but free research resources.
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Customer Support:
- Both Fidelity and Vanguard offer customer support via phone, email, and live chat. Fidelity boasts more than 200 local branches and 24/7 support, while Vanguard's phone support operates Monday to Friday from 8 a.m. to 8 p.m. Eastern time.
In conclusion, Vanguard and Fidelity cater to different investor profiles and preferences. Fidelity tends to suit frequent traders and those seeking robust research tools, while Vanguard is more tailored towards long-term or retirement investors aiming for low-cost investments through index funds and ETFs. Understanding the nuances between these platforms is crucial in making an informed decision aligned with individual investment goals and strategies.
