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-related, and similar services.
• The strongest trading software will be found at Schwab and Fidelity.
Three of the biggest names in the investing world are Charles Schwab, Fidelity Investments, and Vanguard. Despite their strong reputations, the investing and trading experience can vary quite a bit among these firms.
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
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 the most complete investing guidance, the three securities firms in this comparison provide wealth-management programs that include a licensed investment advisor who can help with many important financial topics. Examples can include retirement planning and tax-smart investing. Other managed accounts are available with a smaller list of services; all three firms also have robo accounts.
Then there are the brokerage accounts. Online self-directed trading is possible with these accounts, which provide access to these financial vehicles:
• Mutual funds
• Exchange-traded funds
• Closed-end funds
• Option contracts
• Stocks
• Fixed income
At Schwab and Fidelity, the equity lineup includes foreign assets. Schwab’s Global Account offers online stock trading in 12 foreign markets, while Fidelity offers international stock trading in 25 countries. Vanguard no longer accepts purchases and transfers in of most OTC securities, although a limited selection of global ADRs remains eligible. Fidelity has direct cryptocurrency trading, Schwab has announced a phased rollout of direct bitcoin and ethereum trading, and Schwab clients can also trade forex and futures. Vanguard offers access to crypto ETFs, but not direct cryptocurrency trading.
Winner: Draw between Fidelity and Schwab
Category 2: Mobile Apps
Vanguard clients get to use one mobile app; the software is very basic compared to the active-trading apps at Fidelity and Schwab. During our test of the platform, we found no advanced charting tools. There is an order ticket, though; it can be used to invest in stocks, mutual funds, ETFs, and crypto ETFs. Options trading is not a strength of the app.
Fidelity customers get to use one main app, and option contracts can be traded on the platform. Multi-leg strategies are integrated, which helps improve the trading experience. Charts on the Fidelity app can be displayed horizontally and vertically, and there are several useful tools. Fidelity Trader+ also adds an active-trading experience across Fidelity’s web, desktop, and mobile platforms.
Traders at Schwab get to use two apps. One of them is called thinkorswim, and this is the advanced app. It can be used to trade futures and forex, and charts have several hundred technical studies. Simulated trading through a feature called paperMoney is an added bonus.
Winner: Schwab
Category 3: Websites
Schwab’s website recreates thinkorswim for browser-based trading. thinkorswim in this format opens its own browser window, where advanced traders will find useful tools, including Level II quotes. The site itself has advanced order tickets and very good research tools.
Fidelity’s site is also very good, and Fidelity now promotes Fidelity Trader+ as a connected active-trading experience across web, desktop, and mobile. We found trade recommendations and research from multiple independent analysts. Charts and the order ticket are on a high level, and option traders will really like the advanced derivative tools.
Vanguard’s site only has chains for calls and puts, so option traders will be disappointed. Charts, on the other hand, do have several useful tools, including comparisons and indicators. There are no drawing tools, though. The order ticket has separate selections for buy to cover and sell short, but there are no other advanced features.
Winner: Schwab
Category 4: Desktop Software
Website trading is about as advanced as Vanguard gets; it has no desktop platform. Schwab and Fidelity, on the other hand, do have desktop programs. At Schwab, the software keeps the thinkorswim name and includes some very sophisticated features. 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 get to use Active Trader Pro and Fidelity Trader+. These advanced platforms live up to their names with professional features. Many of the resources mentioned above for thinkorswim are on Fidelity’s active-trading platforms; backtesting and paper trading are not as strong as what thinkorswim offers, though.
Winner: Schwab
Category 5: Margin
Margin trading is possible in brokerage accounts at all three firms. Although margin opens the door to trading option spreads, Vanguard’s options tools remain much more basic than Schwab’s and Fidelity’s. As for margin pricing, here are the ranges:
| Vanguard: | 12% to 10% (rate offers available above $500,000) |
| Fidelity: | 11.825% to 10.075% |
| Schwab: | 11.825% to 10.075% (rate offers available 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 the service for Vanguard funds.
All three investment firms in this comparison offer a Dividend Reinvestment Plan.
Fractional-share trading is possible in some form at all three companies. Vanguard allows dollar-based investing in mutual funds and Vanguard ETFs. Schwab has it for stocks and ETFs trading in the U.S. exchanges, and Fidelity has it for many stocks, ETFs, and cryptocurrencies.
Investors at Fidelity and Schwab can trade during extended hours. Schwab has 24/5 trading in all S&P 500, NASDAQ 100, and Dow 30 stocks, plus more than 600 ETFs, on thinkorswim. Fidelity Crypto is available 7 days a week, 23 hours a day. Vanguard offers post-market trading in select securities.
An Individual Retirement Account can be opened at any investment firm in this three-way comparison. As with other account registrations, an IRA at Vanguard can be subject to a $100 account closure and full transfer-out fee.
All three firms offer a fully-paid securities-lending program.
Winner: Another tie between Fidelity and Schwab
Recommendations
All three brokerage firms can work for long-term investing and retirement planning. Fidelity and Schwab will be a little better than Vanguard because of their annuities and branch locations.
For beginning investors, we recommend a managed account at any firm in this comparison. An advisory account with a human financial planner would be even better.
With their robust software, Fidelity and Schwab are strong choices for frequent stock trading.
Small investors should go with Fidelity for managed accounts because Fidelity Go starts investing once the balance reaches $10, the lowest in this comparison. Brokerage customers should choose Fidelity, too, because of its fractional-share service.
Finally, we suggest Fidelity or Schwab for mutual funds. Fidelity has a very large fund lineup, while Schwab advertises 4,000+ no-load, no-transaction-fee mutual funds and has strong fund tools.
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Vanguard: Currently, no promotions.
Conclusion
Although Vanguard has a very popular name in the asset-management world, it doesn’t deliver a spectacular experience for active retail trading. Fidelity and Schwab are much stronger choices for investors who want advanced tools.
Updated on 5/29/2026.
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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