Vanguard vs. Schwab and Fidelity
Main points:
• Brokerage and investment-advisory accounts can be opened at Fidelity, Schwab, and Vanguard.
• High-level software is available at Fidelity and Schwab but not at Vanguard.
• Cryptocurrencies can be traded at Fidelity, while Schwab offers futures and forex.
Do you want to open a new investment account? Schwab, Fidelity, and Vanguard may have what you're looking for. Before choosing one company over the other, take a look at our three-way comparison.
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 + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: Currently, no promotions.
Assets and Accounts
Most U.S.-listed securities can be traded in self-directed brokerage accounts at all three brokerage firms in this survey. The standard list includes equities, fixed income, options, mutual funds, ETF's, and closed-end funds. Schwab and Fidelity go a step further with foreign stocks, over-the-counter stocks, and annuities. Schwab customers can trade forex and futures; Fidelity has cryptocurrencies.
Then there is investment advice. All three firms offer managed accounts in both robo and traditional formats. Vanguard's program is online only due to the lack of any branch locations. Financial planning is available with traditional advisory accounts at all three firms; Schwab and Fidelity offer the service with robo accounts, too.
An account of any strategy, brokerage or managed, must have some type of registration. All three investment firms offer a variety of account types, including education, custodial, retirement, joint, individual, trust, and more.
A brokerage account at Vanguard is now subject to a closeout fee, and the broker may forcibly close small accounts. Such is not the case at the other two firms.
Winner: Pretty close between Fidelity and Schwab
Banking Features
If you need more than investing, all three broker-dealers have you covered with their own suites of
banking tools. Vanguard has the Cash Plus Account; this special account offers FDIC insurance. There is no debit card, though, and checkwriting is missing, too.
Both oversights are solved at Fidelity and Schwab, both of whom offer cash accounts with debit cards
and checkbooks. Schwab and Fidelity also offer unlimited ATM fee refunds around the world. Because
Fidelity's account is technically a brokerage account with an FDIC sweep.
Schwab operates its own FDIC-insured bank, so its cash accounts are actual bank accounts. Nevertheless,
money market mutual funds are available in brokerage accounts at Schwab.
Winner: Schwab and Fidelity are pretty even
Websites
The three websites in this matchup deliver charting, order entry, account management, and security research. Schwab is the only site of the three with a browser platform. Called thinkorswim, it delivers some pro-level features, including Level II quotes and time & sales data.
Although Fidelity's site doesn't have a discrete web-based platform, it does nevertheless boast some
really sophisticated tools. For example, there are multiple order tickets, some of which can be used
for conditional orders and basket orders.
Winner: Schwab
Mobile Apps
Mobile apps continue the software competition. Schwab is the only broker-dealer in this competition with two apps. One of these is a thinkorswim platform that is designed for advanced trading. It can place orders for futures and forex; plus, it has really sophisticated charting with lots of technical studies.
Fidelity's app can place trades for cryptocurrencies using market and limit orders. The ticket for stocks has many more trade types, including trailing and stop. Fidelity's app has integrated option spreads, and so does Schwab's.
Vanguard's app doesn't have any integrated spreads, and as a matter of fact, the Vanguard app doesn't offer chains for calls and puts, either.
Winner: Schwab
Desktop Programs
Although Vanguard's mobile app is very simple, its desktop program is even worse: it doesn't exist. Fidelity and Schwab, however, do have desktop programs. Fidelity's is called Active Trader Pro, and it is on a professional level. During our test drive of the software, we found lots of great tools, including direct access to market centers.
thinkorswim in desktop form also offers direct-access routing. Other great features include backtesting, option scanners, full-screen charting with a right-click menu, simulated trading, and live streaming of CNBC.
Winner: Schwab
Margin Services
If you want to trade on margin, all three brokerage houses offer the privilege. It's possible to upgrade a cash account to margin status on all three websites. Fidelity is the only company in this survey with a margin calculator (type 'margin calculator' in the search box at the top of the site). Schwab's site shows the maintenance margin of an entered ticker symbol.
Margin customers at all three brokerage firms can short stocks. Only Schwab and Fidelity permit trading
in option spreads.
As for rates, Vanguard customers pay somewhere between 12%
and 10%. Schwab and Fidelity customers pay
11.825% for balances below $25k.
Winner: Schwab and Fidelity
Extra Features
Dividend Reinvestment Plan: Auto dividend reinvesting is possible at all three investment firms in this faceoff.
Extended Hours: Vanguard customers can trade in the post-market session but not in the pre-market period. Fidelity and Schwab have both sessions; Schwab also offers overnight trading in a shortlist of securities.
IPO Access: Only at Schwab and Fidelity.
Fractional-share Trading: Whole dollars can be used to place trades at Vanguard for Vanguard funds, at Schwab for stocks, and at Fidelity for stocks and funds.
IRA Lineups: Retirement accounts are available at all three firms. Vanguard no longer offers the SIMPLE IRA, and it only offers one-participant SEP IRAs.
Automatic Mutual Fund Purchases: Available at all three brokerage firms; at Vanguard, the service is restricted to Vanguard funds.
Fully-Paid Securities Lending: Traders at all three firms can earn extra income by loaning out their stock shares.
Winner: Another tie between Fidelity and Schwab
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: Currently, no promotions.
Recommendations
Beginning Investors: A managed account at any firm in this comparison.
Active Stock/ETF Trading: Schwab with its great software.
Small Investors: Fidelity has no minimum for robo accounts. For brokerage accounts, we suggest
Schwab.
Long-Term Investors and Retirement Planners: Fidelity and Schwab can't be beat.
Mutual Funds: Once again, we defend Schwab and Fidelity.
Final Judgment
Can't go wrong with Fidelity or Schwab. Vanguard, on the other hand, is deficient in many areas.
Updated on 2/5/2026.
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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