Fidelity vs. Vanguard Comparison
Highlights:
• Investors at Schwab, Vanguard, and Fidelity can open brokerage and managed accounts.
• All three firms offer financial planning, wealth management, trust creation, and similar services.
• The best trading software will be found at Schwab and Fidelity.
Three of the biggest names in investing are Charles Schwab, Fidelity Investments, and Vanguard. Even with their strong reputations, the investing and trading experience can be very different at each firm.
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
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: Does not offer promotions.
Category 1: Trading and Investing
For full investing guidance, the three firms in this comparison offer wealth-management programs that include a licensed advisor who can help with key financial topics. Examples include retirement planning and tax-smart investing. Other managed accounts are also available that usually include fewer services; all three firms offer robo accounts.
Then there are brokerage accounts. These allow online self-directed trading and provide access to these investments:
• Mutual funds
• Exchange traded funds
• Closed end funds
• Option contracts
• Stocks
• Fixed income
The stock category at Schwab and Fidelity, but not at Vanguard, includes over-the-counter (OTC) stocks and foreign securities. Fidelity offers cryptocurrencies, and Schwab clients can trade forex and futures.
Winner: Draw between Fidelity and Schwab
Category 2: Mobile Apps
Vanguard clients get one mobile app, and the software is very basic. During our test, we found no charting tools at all. There is an order ticket, though, and it can place trades for stocks, ETFs, and mutual funds. Options cannot be traded on the app.
Fidelity customers get one app, and the platform supports options trading. Multi-leg strategies are included, which raises the level of trading. Charts on the Fidelity app can be viewed horizontally and vertically, and there are several helpful tools.
Schwab customers can use two apps. One is thinkorswim, which is the advanced app. It can trade futures and forex, and charts include several hundred technical studies. Paper trading through paperMoney is another benefit.
Winner: Schwab
Category 3: Websites
Schwab’s website includes thinkorswim for browser trading. In this mode, thinkorswim opens in its own browser window and includes tools that advanced traders will want, like Level II quotes. The main site also has advanced order tickets and strong research tools.
Fidelity’s website doesn’t have a separate browser platform, but the site is still very strong. We found trade ideas from several outside analysts, including Merrill Lynch, Oppenheimer, and Deutsche Bank. Charting and the trade ticket are high quality, and options traders will like the advanced derivatives tools.
Vanguard’s website only offers basic call and put chains, so options traders may be disappointed. Charts do include some useful tools, including comparisons and indicators, but there are no drawing tools. The order ticket includes choices like buy to cover and sell short, but there are no other advanced features.
Winner: Schwab
Category 4: Desktop Software
Vanguard does not offer desktop software, so website trading is as advanced as it gets there. Schwab and Fidelity, however, both offer desktop platforms. At Schwab, thinkorswim on desktop includes some very advanced tools. We enjoyed using these:
- Backtesting tool
- Direct access to market centers
- Full-screen charting with right-click trading
- Advanced order ticket with many pro-level trade choices
- Price ladder
- Live streaming of video news
Fidelity customers can use Active Trader Pro. This advanced desktop platform delivers many professional tools. A lot of the features listed above for thinkorswim are also found on Active Trader Pro, although backtesting is not included. Active Trader Pro also does not offer paper trading, which thinkorswim does.
Winner: Schwab
Category 5: Margin
Margin trading is available in brokerage accounts at all three firms. Margin can also allow option spread strategies, but Vanguard does not offer spread trading. Here are the margin rate ranges:
| Vanguard: | 12% to 10% (negotiated rates above $500,000) |
| Fidelity: | 11.825% to 7.825% |
| Schwab: | 11.825% to 10.075% (negotiated rates above $500,000) |
Winner: Tie between Fidelity and Schwab
Category 6: Bonus Features
With a brokerage account at Fidelity or Schwab, it’s possible to trade Initial Public Offerings.
Schwab and Fidelity offer periodic mutual fund investing in all fund families. Vanguard offers this service only for Vanguard funds.
All three firms in this comparison offer a Dividend Reinvestment Plan.
Fractional-share trading is available in some form at all three firms. Vanguard limits this feature to Vanguard ETFs. Schwab offers it for stocks, and Fidelity offers it for stocks, ETFs, and cryptocurrencies.
Fidelity and Schwab customers can trade during extended hours. Only Schwab offers overnight trading in select securities. Fidelity crypto trading is 24/7, while Schwab futures and forex trading are available around the clock but not 7 days a week. Vanguard offers after-hours trading in select securities.
An Individual Retirement Account can be opened at any firm in this three-way comparison. Like other account types, an IRA at Vanguard has a $100 closeout fee.
All three firms offer a fully-paid securities-lending program.
Winner: Another tie between Fidelity and Schwab
Recommendations
All three brokers are solid choices for long-term investing and retirement planning. Fidelity and Schwab have an edge over Vanguard because they offer annuities and branch locations.
For beginning investors, we recommend a managed account at any firm in this group (even better is an advisory account with a human financial planner).
Fidelity and Schwab are strong choices for frequent stock trading thanks to their robust trading software.
Small investors should choose Fidelity for managed accounts (its robo service has a $10 minimum, the lowest in this comparison). Brokerage customers should also choose Fidelity because of its fractional-share trading.
Finally, we suggest Fidelity or Schwab for mutual funds. Fidelity offers the most in this contest (more than 9,000), while Schwab has the best mutual fund screener.
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: Currently, no promotions.
Conclusion
Vanguard is a well-known name in asset management, but it doesn’t offer the strongest experience for retail investors. Fidelity and Schwab, on the other hand, deliver a much better overall package.
Updated on 3/5/2026.
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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