Fidelity Investments vs. Vanguard

Yahoo

19 hours ago

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 in a number of investing categories in the 2025 Bankrate Awards. Fidelity stands out for its low fees, extensive lineup of account types, trove of research and education resources, along with helpful investing tools and great customer service. Vanguard offers thousands of no-transaction-fee mutual funds, including its own with rock-bottom expense ratios. Like Fidelity, the broker offers 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.
BROKER CATEGORY
FIDELITY
VANGUARD
Stock and ETF commissions
$0
$0 ($25 for phone orders)
Options commissions
$0.65 per contract
$1 per contract for accounts below $1 million
Account minimum
$0
$0
Tradable securities
Stocks, ETFs, bonds, mutual funds, options, cryptocurrency
Stocks, ETFs, bonds, mutual funds, options
Account fees
No annual, activity or transfer-out fee
$25 service fee for certain accounts (waived with $5,000,000 in Vanguard assets or email delivery of statements); $100 full account closure/transfer fee for certain accounts
No-transaction-fee mutual funds
3,200+
3,000+
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 and Vanguard ETFs; dividend reinvestment only on stocks/non-Vanguard ETFs
Customer support
Phone 24/7 availability, chat, email, 200+ branches
Phone M-F 8 a.m. – 8 p.m. ET, email
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, but Fidelity charges $0.65 per contract on options trades, while Vanguard charges $1 per contract for customers with less than $1 million in assets.
When it comes to mutual funds, both Fidelity and Vanguard offer more than 3,000 funds with no transaction fees, making each broker an attractive spot for those saving for retirement or other long-term goals. Both firms offer a number of low-cost index funds, but Fidelity goes even further with its lineup of ZERO funds that charge no expense ratio at all.
Account fees are non-existent at Fidelity, while Vanguard does charge a $25 fee in certain accounts, which can be waived if you have at least $5 million in qualifying Vanguard assets or sign up to have statements delivered electronically. Similarly, Vanguard's $100 processing fee for account closure and full transfer out does not apply to customers with high balances or those using a Vanguard-affiliated advisory service.
Both Fidelity and Vanguard have no account minimum, allowing new investors to open accounts and then fund them with any amount when they're ready. However, if you're primarily interested in investing in mutual funds and don't have much in the way of savings to start with, Fidelity may be the better option. It offers a lineup of $0 minimum index funds, whereas Vanguard requires a $1,000–$3,000 minimum investment in its funds. That said, both brokers allow customers to invest as little as $1 in ETFs.
Fidelity and Vanguard are also similar in terms of the number of tradable securities they offer. Both offer the standard choices of stocks, ETFs, mutual funds, bonds and options. Fidelity also recently began offering crypto trading in popular coins such as Bitcoin and Ethereum. This should meet the needs of most investors, but if you're looking for some of the more exotic areas of the market such as futures or forex, you'll need to use a different broker.
You shouldn't have a hard time finding the type of account you're looking for at either broker, but Fidelity does offer a few more options than Vanguard. Both brokers offer standard account types such as individual and joint taxable accounts, IRAs (Roth, traditional and rollovers), small business retirement accounts (SEP IRA, SIMPLE IRA and solo 401(k)) and 529 plans. You'll also have robo-advisor options with Vanguard Digital Advisor and Fidelity Go.
Fidelity also offers health savings accounts (HSAs), which some people use to save for healthcare costs, as well as trusts and charitable accounts. Both Fidelity and Vanguard should be able to meet the account needs of most investors, though.
Fidelity separates itself here with its Stocks by the Slice fractional share offering that lets customers buy into any of the more than 7,000 stocks and ETFs for as little as $1 at a time. Vanguard doesn't offer fractional shares on new purchases of stocks and ETFs (unless it's a Vanguard ETF), only mutual funds. However, both brokers offer fractional shares on dividend reinvestments.
Fractional shares have become a key offering in recent years as stock prices for popular companies such as Alphabet, Amazon and Tesla have, at times, increased into the thousands of dollars for a single share. Fractional shares allow investors an opportunity to invest in companies with high-priced stocks and make sure that their full amount gets invested, instead of sitting in cash while they wait to be able to afford a full share.
Fidelity also has a slight edge in customer support, but both brokers should be able to answer any questions you may have in a timely manner. Fidelity is available to take calls over the phone 24 hours a day, 7 days a week, while also offering email and chat support. You can also get questions answered at one of the more than 200 branch locations they have throughout the country.
Vanguard is also available to answer questions over the phone, but the availability is more limited at just 12 hours each day, Monday through Friday. You can also get questions answered over email.
While each broker is a solid option for investors, the edge goes to Fidelity thanks to slight advantages in cost, the number of account types offered and their fractional shares offering. If these features matter to you, Fidelity is likely the best choice, but Vanguard isn't too far behind.
If you already have significant assets with Vanguard, you may be able to wipe out some account fees, and the lack of fractional shares may not be a deal-breaker. Think about what matters most to you in an online broker; that should help you make your selection. You can always open accounts with both and benefit from the various features that each has to offer.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.