If you’re on the hunt for a new brokerage account, the two biggest names in the field — Vanguard and Fidelity — might come to mind first.
You might be curious, as we were, about how these two stack up side by side. We’ve put Vanguard and Fidelity in a head-to-head battle to help you decide who should win your money.
There’s one thing to get clear right upfront. Both Vanguard and Fidelity are retirement powerhouses — their proprietary mutual funds line many 401(k)s, and Fidelity is a leading 401(k) record-keeper. (View our list of the best IRA accounts.)
But Fidelity also caters to active traders, with robust trading platforms and tools. Vanguard, not so much: The company doesn’t offer a trading platform. So some people may be able to quit this comparison right here: Are you an active stock or options trader? Fidelity is your answer.
» See our roundup of the best brokers for stock trading
The tension between these two starts for those investors who are looking to compare mutual funds, fees, account minimums and investment offerings. For that, read below.
Side note: Both Vanguard and Fidelity offer robo-advisor services, but we're focusing on their self-directed brokerage accounts here. To learn more about the robo-advisors, read our reviews of Fidelity Go and Vanguard Digital Advisor.
Fidelity is best for:
Frequent traders.
Beginner investors.
Research and data.
Retirement planning assistance.
Fidelity at a glance
Account minimum | $0. |
Stock trading costs | $0. |
Options trades | $0.65 per contract. |
Account fees (annual, transfer, closing, inactivity) | None. |
Interest rate on uninvested cash | 4.97%. |
Number of no-transaction-fee mutual funds | More than 3,300 no-transaction-fee mutual funds. |
Tradable securities | • Stocks. • Corporate, municipal and government bonds. • Mutual funds. • ETFs. • Fractional shares. • Options. • FOREX. • Precious metals. • Bitcoin and Ethereum. |
Trading platform | Fidelity.com and Active Trader Pro. Both free for all customers. |
Mobile app | Available for iOS and Android; advanced features. |
Research and data | Free and extensive. |
Customer support options (includes how easy it is to find key details on the website) | Phone, email and live chat 24/7; more than 200 local branches. |
Vanguard is best for:
Long-term or retirement investors.
Those who prefer low-cost investments.
Index fund and ETF investors.
Vanguard at a glance
Account minimum | $0; however some fund minimums start at $1,000. |
Stock trading costs | $0. |
Options trades | $0 + $1 per contract. |
Interest rate on uninvested cash | 5.27%. |
Account fees (annual, transfer, closing, inactivity) | No closing, inactivity or transfer fees.$20 annual account service fee for all brokerage accounts and IRAs. Waived for clients who sign up for statement e-delivery. |
Number of no-transaction-fee mutual funds | More than 3,400 funds from outside providers and 191 Vanguard funds charge no transaction fees. |
Tradable securities | • Stocks. • Bonds. • Mutual funds. • ETFs. • Options. |
Trading platform | Basic trading platform. |
Mobile app | Trade mutual funds, ETFs and stocks; monitor account activity and analyze performance; follow market news and research investments. |
Research and data | Average quality but free. |
Customer support options (includes how easy it is to find key details on the website) | Phone support Monday-Friday, 8 a.m.-8 p.m. Eastern; email support. |
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NerdWallet rating 4.9 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 |
Fees $0 per online equity trade | Fees $0 per trade for online U.S. stocks and ETFs | Fees $0 per trade |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
Promotion None no promotion available at this time | Promotion None no promotion available at this time | Promotion None no promotion available at this time |
