Points to Know:
• Clients of Voya, Schwab, Vanguard, and Fidelity can open investment accounts in brokerage and advisory modes.
• Voya is not a commission-free broker.
• Quality of trading tools varies widely among these brokerage firms.
Fidelity vs. Schwab, Voya, and Vanguard Introduction
Is Voya worth a shot for your next brokerage account? This four-way comparison among some of the industry’s biggest players may help you find an answer.
Voya vs Fidelity & Others: Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
13.075%
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
13.075%
|
$0
|
$0
|
|
Firstrade
|
$0
|
$0
|
13.25%
|
$0
|
$0
|
|
Vanguard
|
$0
|
$20
|
13.25%
|
$20*
|
$20*
|
|
Voya
|
$8.50+
|
$6.50
|
na
|
$47
|
$42.50
|
Voya vs Vanguard & Others: Services
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Visit Schwab Website
Fidelity: Get $0 stock commissions.
Visit Fidelity Website
Vanguard and Voya: none
Investment Accounts
A brokerage or investment-advisory account can be opened at any of the four companies in this survey. Voya only offers full-service accounts, so every account must be opened through a financial advisor. For the other three, most accounts can be opened online, although there are some exceptions, such as a Schwab 401k plan. While full-service accounts typically are opened through a local advisor, Vanguard is a notable exception (it has no branch locations).
Robo accounts, which replace the traditional human investment advisor with a software program, are available at Fidelity, Vanguard, and Schwab. These accounts trade only exchange-traded funds, although the management fee is lower than traditional managed accounts.
A larger selection of asset classes can be obtained by opting for old-school advisory accounts or brokerage accounts. We’re talking stocks, bonds, mutual funds, and options. Fidelity and Schwab offer annuities. Voya has SMAs (separately managed accounts). Fidelity has cryptocurrencies, and Schwab offers trading in futures and forex.
Voya has an annual inactivity fee of $30 ($20 for mutual-fund only accounts). And Vanguard can now forcibly close low-balance accounts. Neither Fidelity nor Schwab has these draconian policies.
Winner: Pretty even between Fidelity and Schwab
Cash Management
Every brokerage firm in this contest has come up with some type of banking service for its clients. Voya has a simple FDIC sweep, at least simple by today’s standards. Checkwriting and debit cards are available, and the level of insurance is at $2.5 million per customer.
Schwab doesn’t have a sweep program, so the maximum level of FDIC insurance is only a tenth of what Voya delivers. However, Schwab offers unlimited ATM fee refunds around the globe, so it’s a great option for world travelers.
Vanguard has a hybrid cash-brokerage account that pays 4.60% on uninvested cash, and this account also gets FDIC insurance on up to $1.25 million through a sweep system. There are five money market funds available in the account. These yield around 5.0% right now, as they do at the other four broker-dealers.
Speaking of the fourth, Fidelity has some great banking tools. Up first is the Cash Management Account (CMA), which is a hybrid cash-brokerage account with FDIC insurance up to $5 million. Then there are the company’s Bloom accounts. These are hybrid accounts, too, and they come with a lot of perks that the CMA doesn’t, including automated savings strategies and educational materials.
Winner: Another draw between Schwab and Fidelity
Trading on Margin
Margin trading is on tap inside brokerage accounts at all four investment firms. Voya uses Pershing
as its clearing firm, and interest rates may be assessed by the latter firm. For the big three
brokerage houses, we find margin rates starting at around 13.075% and dropping to 11.325% or lower. Schwab
and Vanguard negotiate rates for loans greater than $500,000.
Schwab is the only brokerage firm in this contest to display the maintenance margin requirement for
each security on the asset’s profile. This information is available on both Schwab’s website and its
mobile app.
Winner: Schwab
Websites
Voya clients get to use the NetXInvestor website. This trading platform has tools for market research, quotes, charting, and trading. There’s also a security screener, an economic calendar, custom watchlists, and alerts.
The Vanguard site isn’t quite as advanced. For example, there are no alerts. But there are other resources, including security screeners, an order form, and basic charting.
The Schwab site has something that neither Vanguard nor NetXInvestor offers: a browser platform. Called thinkorswim, this intuitive platform offers simulated trading and a lot of advanced features in either live or simulated mode.
The Fidelity website doesn’t have a web-browser platform but it does boast a lot of great features, including very advanced option tools and full-screen charting with many gadgets.
Winner: Schwab
Mobile Apps
All four securities firms in this faceoff have mobile apps to bring trading to a more portable experience. Voya clients use the NetXInvestor app. It has the same features its website cousin has.
Vanguard has a mobile app with fewer features than its website cousin. For example, there are no charting tools at all, and option chains are missing in action.
This problem is solved at Fidelity. Its app has integrated option spreads plus a host of other great features, including horizontal charting with tools and mobile check deposit.
Schwab has two trading apps: a main app and a thinkorswim platform. The latter app is on a very high level with tons of technical studies and a pro-level order ticket.
Winner: Schwab
Desktop Platforms
The only two brokerage houses in this matchup with desktop programs are Fidelity and Charles Schwab. The latter has thinkorswim in desktop mode, and Fidelity has Active Trader Pro. A lot of the features are the same, such as Level II quotes. thinkorswim is on a slightly higher level overall.
Winner: Schwab
Further Services
Extended Hours: Vanguard restricts its extended-hours service to the late-night session only. Fidelity and Schwab customers get to trade in the early-morning session, too. Futures and forex at Schwab are available 24 hours a day, 6 days a week. Cryptocurrencies at Fidelity trade around the clock. And Schwab has overnight trading in a short list of ETFs.
IPOs: Fidelity and Schwab have them.
Fractional Shares: Through its clearing broker Pershing, Voya offers fractional-share trading. The other three broker-dealers have the same, although the list of available securities is restricted at Vanguard and Schwab.
Periodic Mutual Fund Investing: Available at all four securities firms. Fidelity also provides autopilot investing for stocks (look for the “Recurring Investing” option under the “Trade” drop-down menu on the order ticket).
DRIP Service: Cash dividends can be converted into additional shares of the securities that paid them at any of the four brokerage firms in this contest.
IRAs: Available at all four. Vanguard has fees on some of its business IRAs (SIMPLE and SEP plans), and Voya has both a $95 IRA termination fee and a $42.50 yearly IRA maintenance fee.
Fully-Paid Securities Lending Program: On tap at Fidelity, Vanguard, and Schwab.
Winner: Fidelity
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
Our Recommendations
High-Powered Stock Trading: Schwab with thinkorswim will provide the closest thing to professional-level trading.
Mutual Funds: Fidelity has 9,263 mutual funds. With Schwab’s screener, we found 5,885 funds. Schwab has the better search engine, though. Take your pick.
Small Accounts: Schwab has no minimum investment amount for either brokerage or automated accounts.
Beginning Investors: We suggest an investment-advisory account with any firm presented here (preferably with a human financial advisor somewhere in the picture).
Long-Term Investing & Retirement Saving: Schwab and Fidelity are very good for do-it-yourselfers. For advisory accounts, we would stick with the same two.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Visit Schwab Website
Fidelity: Get $0 stock commissions.
Visit Fidelity Website
Vanguard and Voya: none
Judgment
Compared to what else is available these days, Voya does not look well at all for brokerage services.
Updated on 7/2/2024.
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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