Vanguard vs. Schwab and Fidelity
Main points:
• Brokerage and investment-advisory accounts can be opened at Fidelity, Schwab, and Vanguard.
• High-level trading software is available at Fidelity and Schwab but not at Vanguard.
• Cryptocurrencies can be traded through Fidelity Crypto, 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 another, 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
|
$25*
|
$25*
|
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, ETFs, 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 direct cryptocurrency trading through Fidelity Crypto.
Then there is investment advice. All three firms offer managed accounts in both automated and human-advisor formats. Vanguard's program is mostly online, by phone, or by video because Vanguard does not have a branch network. Financial planning is available with traditional advisory accounts at all three firms; Schwab and Fidelity offer access to planning help with some robo or hybrid-advisory 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 may be subject to a $100 account-closure and full-transfer-out fee. Vanguard Brokerage may also close a zero-balance or low-balance account with no account activity. Such policies are not the same 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 or cash management tools. Vanguard has the Cash Plus Account; this special account offers an FDIC-insured bank sweep. There is no debit card, though, and checkwriting is missing, too.
Both oversights are solved at Fidelity and Schwab, both of which offer cash management features with debit cards
and checkwriting. Schwab and Fidelity also offer ATM fee refunds around the world. Fidelity's Cash Management Account is technically a brokerage account with an FDIC-insured sweep, while Schwab's main cash accounts are bank accounts.
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 and Fidelity both offer browser-based active-trading platforms, while Vanguard does not. Schwab's platform is thinkorswim web, which delivers advanced features, including Level II quotes and time & sales data.
Fidelity's website has strong trading tools, and Fidelity Trader+ Web adds a separate browser-based platform experience. 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 offers both the standard Schwab app and thinkorswim mobile. The thinkorswim app is designed for advanced trading. It can place orders for futures and forex; plus, it has sophisticated charting with lots of technical studies.
Fidelity's app can place trades for cryptocurrencies using market and limit orders through Fidelity Crypto. The ticket for stocks has many more trade types, including trailing and stop orders. Fidelity's app has integrated option spreads, and so does Schwab's.
Vanguard's app is much simpler for active trading. It does not have integrated option spreads, and its charting and trading tools trail the mobile platforms at Fidelity and Schwab.
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 downloadable desktop programs. Fidelity now offers Fidelity Trader+ Desktop, which was rebuilt from its legacy Active Trader Pro platform. Active Trader Pro access is still available, too. During our test drive of the software, we found lots of great tools, including directed trading 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 9.75%. 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 24/5 trading in many stocks and ETFs through thinkorswim.
IPO Access: Only at Schwab and Fidelity.
Fractional-share Trading: Whole dollars can be used to place trades at Vanguard for Vanguard ETFs and mutual funds, at Schwab for most U.S.-listed stocks and ETFs, and at Fidelity for U.S. stocks and ETFs. Fidelity mutual funds can generally be purchased in dollar amounts, too.
IRA Lineups: Retirement accounts are available at all three firms. Vanguard's SEP-IRA is designed for self-employed individuals and business owners with no employees. Small-business retirement plans featuring Vanguard investments, including SIMPLE IRA and Individual(k) plans, are available through Ascensus.
Automatic Mutual Fund Purchases: Available at all three brokerage firms; at Vanguard, the service is mostly 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 can work.
Active Stock/ETF Trading: Schwab with its great software.
Small Investors: Fidelity Go has no minimum to open, although $10 is needed before Fidelity starts investing the account. Vanguard Digital Advisor requires $100, and Schwab Intelligent Portfolios requires $5,000. For brokerage accounts, Fidelity and Schwab are strong choices because of their broad fractional-share trading.
Long-Term Investors and Retirement Planners: Fidelity and Schwab can't be beat.
Mutual Funds: Once again, we recommend Schwab and Fidelity.
Final Judgment
You can't go wrong with Fidelity or Schwab. Vanguard, on the other hand, is weaker in many areas.
Updated on 6/19/2026.
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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