Vanguard vs Fidelity

4-star brokerage firm rating

Fidelity Review
3-star brokerage firm rating

Vanguard review

Fidelity vs Vanguard: Account Pricing, Commissions, Fees

Fidelity Investments


  • Stocks and ETFs: $7.95
  • Stocks and ETFs broker assisted: $32.95
  • Stocks and ETFs FAST (automated service phone): $12.95
  • Options: $7.95 + $0.75 per contract
  • Mutual funds: $49.95 ($75 for some funds; Fidelity funds are commission free) to buy, $0 to sell ($49.95 if sold within 60 days)
  • Bonds (U.S. Treasury Auctions, including TIPS Auctions, U.S. Treasury Bills, Notes), primary market CDs: on a net yield basis
  • GSE (Agency Securities), secondary CDs, Municipals, Corporates (BBB- or higher), CATS/TIGRS, Corporates (BB+ or lower): $1 per bond ($250 max.; $50 max if maturing in one year)
  • Commercial Paper: $50 per transaction
  • Investment products: stocks, bonds, mutual funds, options, commercial paper, forex, foreign stocks, UITs, precious metals, ETFs
  • Fidelity minimum deposit to open account: $2,500 ($0 for Rollover IRA; $2,500 or $200 per month for ROTH and Traditional IRA)
  • All Fidelity fees
  • Fidelity login, Fidelity promotion

  • Stocks and ETFs: $7 for the first 25 trades, $20 for subsequent trades for account with less than $50,000
  • $7 for account with $50,000–$500,000 invested in Vanguard products (Voyager Services)
  • $2 for account with $500,000–$1,000,000 invested in Vanguard products (Voyager Select Services)
  • Free for first 25 trades, $2 for subsequent trades for account with $1,000,000-$10,000,000 (Flagship Services)
  • Free for first 500 trades, $2 for subsequent trades for account with $10,000,000+ (Flagship Select Services)
  • Options: $20 + $1 per contract (Voyager: $7 + $1 per contract; Voyager Select and Flagship: $2 + $1 per contract)
  • Options for accounts with over $1 million: $8 + $1.50 per contract
  • Mutual funds: Vanguard mutual funds - free. All others - Standard: $35; Voyager® and Voyager Select®: $20; Flagship®, $8
  • Certificates of deposit (CDs): Purchase: $5 per $1,000, Minimum: $50. Sale: $35 per transaction
  • Commercial paper: $50 per transaction; minimum purchase: $100,000
  • U.S. Treasury: Commission-free
  • Mortgage-backed securities: $50 per transaction; GNMA minimum purchase: $25,000
  • Investment products: stocks, options, mutual funds, bonds, CDs, foreign securities, insurance, commercial paper, ETFs
  • Vanguard minimum deposit to open account: $1,000
  • All Vanguard fees
  • Vanguard login, Vanguard promotions

Fidelity vs Vanguard: Pros

Fidelity Investments


  • No surcharges on penny stocks, large orders, or after-hours trading
  • Great investment research tools with large selection of independent research from 12 firms
  • Huge selection of commission-free mutual funds
  • Free DRIPs (dividend reinvestment plans)
  • No account maintenance or inactivity fees
  • Great customer service
  • Rich selection of investment products
  • Good banking services (checking, savings accounts, and credit cards)
  • 84 commission-free ETFs

  • Low cost and good performance Vanguard mutual funds
  • Commission-free Vanguard ETFs
  • Free dollar-cost-averaging transactions for no-fee mutual funds; for transaction-fee mutual funds dollar-cost-averaging is $3 per transaction, with $100 minimum purchase
  • Free DRIP (dividend reinvestment plan)
  • No ACAT fee

Fidelity vs Vanguard: Cons

Fidelity Investments


  • Very high commissions - $49.95 ($75 for some funds) - to purchase non-Fidelity mutual funds
  • $12 annual Low Balance Fee for each noncore Fidelity mutual fund if balance is under $2,000
  • High margin rates
  • Advanced trading platform, Active Trader Pro, is available only to clients making 36+ trades per year
  • High $2,500 minimum to open an account

  • High commissions for many investors
  • If account is not signed up for electronic statements and it's under $10,000, $20 annual account service fee is charged for each Vanguard fund
  • Annual IRA fees: $25 for SIMPLE IRA, $15 for 403(b)(7), $20 for Individual 401(k)/Roth 401(k) plans (waived if you go paperless or have $10,000 in your account), $20 for 529 plan
  • Poor trading and research tools
  • No pre-market trading and short after-hours trading: 4:15 pm - 6:00 pm EST, instead of 4:00 pm - 8:00 pm EST
  • Vanguard does not list all their fees on their website - they ask to call them for information on fees

Vanguard vs Fidelity Investments: Comparison Summary

Vanguard Brokerage Services (Vanguard Review) and Fidelity Investments (Fidelity Review) are known primarily for their own families of mutual funds rather than their brokerage services. As ETFs (thanks to their lower costs and ease of trading) are increasingly replacing mutual funds in investor portfolios, the importance of both firms is steadily diminishing.

Outside of mutual funds, Vanguard has little to offer: it doesn't seem to be able to keep up with competition in richness of services and in trading technology.

Fidelity Investments provides its customers with rich selection of investment products, access to great independent third-party investment research from 12 companies, and many low cost Fidelity-family mutual funds.

There is a general consensus that Vanguard's mutual funds are lower cost and better performers than most of their counterparts at Fidelity Investments. Vanguard also offers dollar-cost-averaging transactions for mutual funds for those clients who choose to accumulate positions over time. Free dividend reinvestment is a great plus too.

When comparing retirement accounts (Roth, Traditional, and Simple IRA), Vanguard comes ahead: Fidelity disappoints by charging low balance fee and short term redemption fee which many other brokerages don't charge. Neither of these companies was included in our Best IRA Firms in 2016 list.

There are better brokerages for beginner investors, offering vibrant online communities where users can ask questions, learn from more experienced members, and even get investment ideas. Some discount brokers also offer a virtual trading environment that allows users to practice trading and test different trading strategies without risking real money. If you are new to investing, check out our Best Brokers for Beginner Investors recommendations.

We are recommending Fidelity Investments and Vanguard mostly to clients looking to invest in these firms' mutual funds and ETFs. Vanguard Brokerage is a better option for "buy-and-hold" mutual fund investor. Fidelity is great for anyone who likes to research investments extensively before buying, and to have more options of investment products. For everyone else there are better brokerage firms to choose from.

Updated on 1/14/2016.

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Review discount online brokerage firms comparison: Vanguard or Fidelity Investments? Differences between investment companies. Recommendation for stocks, options, ETFs, mutual funds, bonds investors. Fidelity versus Vanguard for beginner investors, long term, individual retirement accounts, active/day traders. See what stock broker service is better, cheaper, offers lower fees, cost, rated higher and easier to use. Which broker should you choose?

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