Morgan Stanley vs. Fidelity, Vanguard, and Schwab: Key Details
• These four firms go beyond investing and financial planning.
• Vanguard is the only one without physical branch locations.
• Morgan Stanley is a full-service firm and usually charges the most for investing.
If you’re looking for a place to open a brokerage or bank account, consider Fidelity, Vanguard, Schwab, and Morgan Stanley. You’ll likely be surprised at everything they offer.
Morgan Stanley vs Fidelity (and Others): Fees
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
12.575%
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
12.575%
|
$0
|
$0
|
|
Vanguard
|
$0
|
$20
|
12.75%
|
$20*
|
$20*
|
|
Morgan Stanley
|
varies
|
varies
|
11.45%
|
$175
|
$175
|
Morgan Stanley vs Vanguard (and Others): Services
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
Visit Wiser Advisor
Financial Planning and Investing
Every firm here has financial planners who are registered investment advisors. Vanguard does not have branch offices, so everything with Vanguard is online. The other three have in-person advisors. The amount and type of services you get often depend on the individual advisor rather than on the firm.
All four also have wealth management options. Vanguard’s program is the cheapest at 0.30% to 0.05%, depending on how much you invest. But it requires $5 million in Vanguard funds. Schwab and Fidelity each need $500k, while Morgan Stanley’s requirement could be as high as $30 million (though it’s not published).
Besides wealth management and planning, there are brokerage and advisory accounts. All four firms offer both. Morgan Stanley, being a full-service firm, has the biggest range of tradable products, including alternative assets like real estate, managed futures, and hedge funds. However, Morgan Stanley’s services cost the most because it is full service.
Schwab has self-directed trading in futures and forex, while Fidelity offers crypto trading. Insurance and annuities are available at Fidelity, Schwab, and Morgan Stanley.
Winner: Three-way tie among Fidelity, Schwab, and Morgan Stanley
Banking
Next, we look at cash management. Each firm in this comparison offers some kind of bank-like service. Vanguard has the Cash Plus Account with 5 money market funds and an FDIC sweep paying around 4.7% APY.
Schwab and Morgan Stanley each own a bank. Their checking and savings accounts have lower interest rates than Vanguard’s, but they include extra benefits such as checks and debit cards. Morgan Stanley also has hybrid bank-brokerage accounts with perks like no forex fees and unlimited ATM refunds anywhere. But these come with monthly fees.
Fidelity has multiple cash accounts with no monthly fees. They are hybrid accounts that provide both banking and investing. Benefits include FDIC sweep, ATM refunds, round ups, and cash back.
Winner: Another three-way draw
Margin Services
You can trade on margin at all four firms. Some margin strategies, like spreads or short positions, are limited in certain Morgan Stanley accounts. However, Morgan Stanley has the lowest starting margin rate at 11.45%. The other three start at 12% to 13%. Morgan Stanley also has the lowest top rate, although Schwab may negotiate rates above $500,000 in margin.
Winner: Morgan Stanley
Mobile Apps
Now that we’ve looked at how they handle investing, let’s explore the apps. Each firm offers a mobile app with trading tools and account-management features such as document downloads and research. Vanguard’s app is the simplest and does not allow trading of non-Vanguard funds. Its charts are also minimal.
Schwab’s app is the opposite, with advanced charts. You can trade mutual funds from many families, and options trading includes spreads. Schwab actually has two apps in case one isn’t enough.
Fidelity also has two apps; one is focused on cash management. The trading app has advanced tools, including an AI feature and mobile check deposit. Charting and order entry are robust, and the app includes a lot of market news.
Winner: Schwab
Websites
Fidelity and Schwab each have one main website. Schwab also has a browser platform with extra tools. Both firms’ websites include strong trading features like full-screen charts and built-in option spreads. Schwab’s site has a trade bar, while Fidelity’s does not. Vanguard’s and Morgan Stanley’s websites are simpler and have fewer trading tools.
Winner: Schwab
Desktop Software
Vanguard and Morgan Stanley do not offer a desktop program, as neither focuses on short-term trading. Fidelity and Schwab both have desktop platforms that seasoned traders will find very useful.
Fidelity’s platform lets you route option trades directly. It also has time & sales info and a conditional order feature. Schwab’s desktop has an economic calendar, many charting tools, and a paper-trading mode.
Winner: Schwab
Extra Services
Recurring Mutual Fund Purchases: You can set these up at Schwab, Vanguard, and Fidelity. Morgan Stanley’s subsidiary E*Trade also has it.
IPO Service: You can buy new stock issues at Schwab, Morgan Stanley, and Fidelity.
Extended Hours: All four have post-market trading. Vanguard doesn’t offer pre-market, while the other three do. Schwab has an overnight session on select ETFs, and Fidelity has 24-hour crypto trading.
Dividend Reinvestment Plan: All four have it.
Fully-Paid Stock Lending: All four have this feature.
Fractional Shares: All four support whole-dollar trades in some way. Fidelity’s program is the most extensive.
Individual Retirement Accounts: IRAs are available at all four. Vanguard and Morgan Stanley may charge fees in certain situations.
Winner: Close call between Fidelity and Schwab
Recommendations
Retirement Planning & Long-Term Investing: We recommend Schwab, Fidelity, or Morgan Stanley with a local advisor.
Mutual-Fund Trading: Fidelity or Schwab. Schwab has a better screener, Fidelity has more funds.
Small Accounts: Morgan Stanley is not great for small balances due to its full-service structure. Fidelity has no minimums on brokerage and its robo account, plus fractional trading for over 7,000 securities, with a $1 trade minimum.
Beginning Investors: A managed account at any of the four.
Active Stock Trading: A desktop platform at Schwab or Fidelity offers a professional experience.
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
Visit Wiser Advisor
Morgan Stanley vs Fidelity, Vanguard, & Schwab: Conclusion
Morgan Stanley provides many valuable services, but high costs and large minimums will exclude many people. By contrast, Schwab offers many of the same features (and sometimes even more) at lower costs and with lower minimums, which leads us to the final verdict here.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Visit Schwab Website
Fidelity: Currently, no promotions.
Visit Fidelity Website
Updated on 12/31/2024.
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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