Fidelity Investments and Vanguard are two of the largest asset managers in the world, with each offering a variety of low-cost funds to meet investors’ needs. But they also operate online brokerages and rate well in Bankrate’s annual review of the best brokers.
Fidelity was named Bankrate’s best broker for beginner investors and for retirement investing in the 2022 Bankrate Awards. Fidelity stands out for its low costs, number of account types offered and great customer service, while Vanguard offers thousands of no-transaction-fee mutual funds and commission-free online trading of stocks and ETFs.
Which one is right for you? That will depend on your unique circumstances and what features you’re looking for in an online broker. Here’s how Fidelity and Vanguard compare on some of the most common features.
|Stock and ETF commissions||$0||$0 ($25 for phone orders)|
|Options commissions||$0.65 per contract||$1 per contract for accounts below $1 million|
|Tradable securities||Stocks, ETFs, bonds, mutual funds, options||Stocks, ETFs, bonds, mutual funds, options|
|Account fees||No annual, activity or transfer-out fee||$20 fee for certain accounts (can be waived with $10,000 in Vanguard assets or email delivery of statements)|
|No-transaction-fee mutual funds||3,400+||3,200+|
|Account types||Individual and joint taxable, IRAs, small business (SEP IRA, solo 401(k), etc.), custodial, 529, HSA, managed portfolio, charitable and trust, among others||Individual and joint taxable, IRAs, small business (SEP IRA, solo 401(k), etc.), custodial, 529, managed portfolio|
|Mobile app||Fidelity Mobile app on the Apple App Store and Google Play Store||Vanguard mobile app on the Apple App Store and Google Play Store|
|Fractional shares||For purchases and dividend reinvestment||Available on purchases of mutual funds, but dividend reinvestment only on stocks/ETFs|
|Customer support||Phone 24/7 availability, chat, email, 200+ branches||Phone M-F 8 a.m. – 8 p.m. ET, email|
Fidelity vs. Vanguard: Costs
Fidelity and Vanguard both do a good job keeping costs fairly low, but Fidelity has a slight edge overall. Both brokers charge zero commission for stock and ETF trades, …….