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.
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:
Fidelity at a glance
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Account fees (annual, transfer, closing, inactivity) | |
Interest rate on uninvested cash | |
Number of no-transaction-fee mutual funds | More than 3,300 no-transaction-fee mutual funds. |
| • Stocks. • Corporate, municipal and government bonds. • Mutual funds. • ETFs. • Fractional shares. • Options. • FOREX. • Precious metals. • Bitcoin and Ethereum. |
| Fidelity.com and Active Trader Pro. Both free for all customers. |
| Available for iOS and Android; advanced features. |
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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
| $0; however some fund minimums start at $1,000. |
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Interest rate on uninvested cash | |
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. |
| • Stocks. • Bonds. • Mutual funds. • ETFs. • Options. |
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| Trade mutual funds, ETFs and stocks; monitor account activity and analyze performance; follow market news and research investments. |
| 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 online equity trade | | |
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Promotion None no promotion available at this time | Promotion None no promotion available at this time | Promotion Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money. |
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FAQs
While both institutions offer robo-advisors, Vanguard's Personal Advisor Services, which is available to clients who can meet a $50,000 account minimum, offers a little more hands-on investment guidance and assistance with portfolio construction. Vanguard also has slightly lower expense ratios on its index funds.
Which index to buy in 2024? ›
5 of the best index funds tracking the S&P 500
| Index fund | Minimum investment | Expense ratio |
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| Schwab S&P 500 Index Fund (SWPPX) | No minimum. | 0.02%. |
| Fidelity 500 Index Fund (FXAIX) | No minimum. | 0.015%. |
| Fidelity Zero Large Cap Index (FNILX) | No minimum. | 0.0%. |
| T. Rowe Price Equity Index 500 Fund (PREIX) | $2,500. | 0.20%. |
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In most situations, you will find what you need at Fidelity. There are a few downsides. Fidelity does not offer cryptocurrency investing. The company is also missing some features found on other investment platforms, like futures trading and paper trading, where you can practice trading.
What is the Fidelity bonus for 2024? ›
To earn the $300 bonus and Fitbit® Luxe, open any Fidelity Bank personal checking account before April 30th, 2024, and within 60 days of account opening you must: have direct deposits into your new account that total at least $1,000; enroll and use online or mobile banking (log-in to check balance, make transfer, etc. ...
Should I choose Vanguard or Fidelity? ›
While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.
What are the cons of Vanguard? ›
Cons
- Options commissions.
- Only offers fractional share investing on Vanguard ETFs.
- Active trading platform isn't as robust as competitors.
Here are the best low-risk investments in April 2024:
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
3 Growth Stocks That Could More Than Double Their Revenue by 2025
- Rivian is finally hitting its production targets.
- SentinelOne aims to disrupt the cybersecurity market with its AI algorithms.
- IonQ is a speculative bet on the nascent quantum-computing market.
Top money market ETFs for Q1 2024 include PULS, CSHI, and GSY. Money market ETFs are designed to preserve capital and provide income during times of market uncertainty. These funds primarily invest in highly liquid short-term debt instruments, such as Treasury Bills and investment grade corporate bonds.
Is my money safe in Fidelity? ›
Protecting your assets
With our Customer Protection Guarantee, we reimburse you for losses from unauthorized activity in your accounts. We also participate in asset protection programs such as FDIC and SIPC to help provide the best service possible.
Fidelity owns our Best Broker for Low Costs designation, with transparent fees and no fees for a wide range of products and services. Online trading for stocks and ETFs is commission-free. Investors can trade these two coins through a crypto account with as little as $1.
Is Fidelity financially stable? ›
Fidelity was voted the most trusted wealth management company for 2023 by the readers of Investor's Business Daily,9 earning top rankings for "financial soundness, quality of products and services, protecting privacy and security, and sensitivity to customer needs."
What is Fidelity 5 year rule? ›
Contributions can always be taken tax- and penalty-free. But Roth IRAs must meet the 5-year aging rule before withdrawals from earnings can be taken tax- and penalty-free. Failing to meet the 5-year rule can result in taxes and penalties.
Is Schwab or Fidelity better? ›
Overall Appeal. Fidelity and Schwab are both excellent choices. These investment firms offer thousands of funds. There are some nuances, such as Fidelity being better for crypto traders and Schwab being more optimal for futures traders.
How to get free money on Fidelity? ›
Use the offer code Fidelity100 to register for the offer. Fund the account with a minimum of $50 ("Net Deposit") from an external, non-Fidelity source. The Net Deposit at the end of the 15 calendar days after account opening ("the qualification period") must be at least $50.
Why do people choose Vanguard? ›
Vanguard is owned by its funds, which in turn, are owned by their shareholders. With no other parties to answer to and therefore no conflicting loyalties, Vanguard makes decisions, including the decision to keep investing costs as low as possible, with clients' interests in mind.
Why do people love Vanguard? ›
Leader in low-cost funds: The company has a solid reputation for the well-below-average expense ratios on its index funds and exchange-traded funds. For long-term investors looking to pair a buy-and-hold strategy with the lowest-cost offerings, it's hard to beat the service and selection found with Vanguard.
Should I have both Vanguard and Fidelity? ›
The answer depends on you and your investment goals. There's no reason you can't have accounts with both Fidelity and Vanguard (among others). You'll have two (or more) sets of statements to review, multiple phone numbers to remember, several websites to navigate and hundreds of funds to understand and monitor.
Why are investors pulling money from Vanguard? ›
When the market cratered, investors withdrew $16.4 billion from Vanguard's index mutual funds. What accounts for remaining index mutual fund outflows? Johnson says it could be clients pulling out money because they're retiring, or because they're negatively affected by the pandemic.
