Morgan Stanley vs. Fidelity, Vanguard, and Schwab: Highlights
• Morgan Stanley, Vanguard, Schwab, and Fidelity do more than just help you invest—they also give financial guidance and other services.
• Of these four brokers, Vanguard is the only one without walk-in offices.
• Morgan Stanley focuses on traditional full-service investing, making it the priciest option among the four in terms of investments.
If you’re interested in opening either a brokerage or bank account, it’s worth looking at what
Fidelity, Vanguard, Schwab, and Morgan Stanley each offer and how they compare to each other.
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
All firms here offer financial-planning assistance from licensed advisors. Vanguard is the only one without physical branches, so all of its advisory services are online. The other three offer in-person help at local locations. The specific help you receive will depend on which advisor you choose.
Each of these four also offers a wealth-management program. Vanguard’s option is the least expensive, costing between 0.30% and 0.05% based on your balance, but you need $5 million in Vanguard funds. Schwab and Fidelity require $500k, while Morgan Stanley’s minimum can be as high as $30 million (though it isn’t publicly posted).
Besides those services, all four firms provide brokerage and investment-advisory accounts. Morgan Stanley, being a full-service company, gives access to the widest range of tradable assets, including not just stocks and bonds but also alternative investments like real estate, managed futures, and hedge funds. However, its fees are also the highest among these firms because it is full-service.
Schwab supports futures and forex for self-directed trading, and Fidelity has cryptocurrency trading. Insurance and annuity products are available at Fidelity, Schwab, and Morgan Stanley.
Winner: Three-way tie among Fidelity, Schwab, and Morgan Stanley
Banking
Let’s look at banking services now. All four of these big investing firms have some sort of banking option. Vanguard has the Cash Plus Account, featuring 5 money market funds and an FDIC sweep yielding about 4.7% APY.
Schwab and Morgan Stanley both own banks. These banks have checking and savings accounts that generally pay less interest than Vanguard’s cash account, but they do come with more extras, such as checks and debit cards. Morgan Stanley, unlike Schwab, also has hybrid accounts that combine banking and brokerage features with worldwide ATM fee refunds and no foreign exchange fees. These accounts charge monthly fees, though.
Fidelity has several cash accounts without monthly fees. These are also hybrid bank-brokerage accounts that come with perks like FDIC sweep, ATM fee refunds, round ups, and cash-back options.
Winner: Another three-way draw
Margin Services
You can trade on margin at each of these four. Morgan Stanley restricts certain margin strategies, such as spreads or shorting, in some of its accounts. However, it also has the lowest starting margin rate at 11.45%. The other three begin at 12% to 13%. Morgan Stanley’s ending rate is also the cheapest, though Schwab may offer rate discounts at balances over $500,000.
Winner: Morgan Stanley
Mobile Apps
With our four contenders, trading can be done on mobile apps, plus these apps provide account features like document access and research tools. Vanguard’s app is the most basic, and it doesn’t allow buying or selling non-Vanguard funds. Its charts are also minimal and only have a single style.
Schwab’s app is the opposite of Vanguard’s. It has advanced charts, and you can buy a wide range of funds from different firms. Options trading includes strategy spreads. There are actually two Schwab apps if you want more variety.
Fidelity also has two apps: one for cash management and another that supports trading. The trading app has high-level tools like an AI assistant and mobile check deposit. The charts and orders can get very advanced, and you’ll find ample news feeds.
Winner: Schwab
Websites
Schwab and Fidelity each operate just one website, although Schwab adds a browser-based platform with extra tools. Both sites are loaded with helpful trading features like full-screen charts and various option spreads. Schwab’s site, unlike Fidelity’s, has a trade bar. Morgan Stanley’s and Vanguard’s sites are simpler and have fewer trading functions.
Winner: Schwab
Desktop Software
Vanguard and Morgan Stanley don’t provide dedicated desktop trading programs because their focus isn’t on day trading or similar strategies. Fidelity and Schwab do have these platforms, which long-time traders may find very useful.
Fidelity’s desktop system features direct-access routing for options, time & sales data, and advanced order types. Schwab’s platform delivers tools like an economic calendar, in-depth charting, and even a simulated-trading mode.
Winner: Schwab
Extra Services
Recurring Mutual Fund Purchases: Schwab, Vanguard, and Fidelity all allow automated mutual-fund purchases. Morgan Stanley’s subsidiary E*Trade also has this option.
IPO Service: Brand-new stock offerings are available at Schwab, Morgan Stanley, and Fidelity.
Extended Hours: All four brokers in this review permit trading after the market closes. Only Vanguard doesn’t let you trade in pre-market hours; the other three do. Schwab also has an overnight session in some ETFs, and Fidelity provides continuous crypto trading.
Dividend Reinvestment Plan: They all offer DRIP.
Fully-Paid Stock Lending: Each one has a program for loaning out shares.
Fractional Shares: All four let you buy dollar amounts of stocks and ETFs, though Fidelity has the broadest selection.
Individual Retirement Accounts: IRAs are available at all four. In certain cases, Morgan Stanley and Vanguard might have fees.
Winner: Very close battle between Fidelity and Schwab
Recommendations
Retirement Planning & Long-Term Investing: Consider Schwab, Fidelity, or Morgan Stanley with an advisor at a local office.
Mutual-Fund Trading: Either Fidelity or Schwab. Schwab has better search tools, but Fidelity has more funds.
Small Accounts: Since Morgan Stanley is a high-end full-service firm, it’s not ideal for smaller balances. Fidelity’s robo service requires no minimum, and its brokerage accounts also have no minimum. Fidelity supports fractional-share trades in over 7,000 assets, and you can invest for as little as $1 per trade.
Beginning Investors: A managed account with any of the four is a good idea.
Active Stock Trading: Fidelity or Schwab both have desktop platforms to meet serious trading needs.
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 Schwab Judgment
Morgan Stanley delivers an impressive range of choices, but its high prices and required balances may discourage many investors. Schwab provides much of the same functionality (and often more) at lower costs, leading us to this comparison’s clear verdict.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Visit Schwab Website
Fidelity: Currently, no promotions.
Visit Fidelity Website
Updated on 3/23/2025.
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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