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Fidelity vs Vanguard

Fidelity logo

Fidelity

Software

Building a better financial future

From
On request
Rated
-
Full reviewWebsite
Vanguard logo

Vanguard

Software

Investing for your future

From
On request
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Fidelity options trades carry a 0.65 USD per contract fee on top of zero commission; Vanguard a 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
  • They diverge on capability: Fidelity covers Retirement planning, Vanguard covers Low-cost index funds.

Where they differ

Only the attributes on which Fidelity and Vanguard actually diverge.

Attributes where Fidelity and Vanguard differ
AttributeFidelityVanguard
Founded19461975

Identical on both: starting price (On request), pricing model (transaction), free tier (No), platforms (Web, IOS, Android), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Fidelity

  • Retirement planning
  • Advisory services
  • Research tools

Only in Vanguard

  • Low-cost index funds
  • Retirement accounts
  • Financial advisors

Both cover

  • Commission-free trading
  • Bank accounts
  • Investment accounts
  • Web support
  • IOS support
  • Android support

What people use each for

The jobs each tool is most often brought in to do.

Fidelity

  • Commission free trading of US stocks and ETFsnot Vanguard
  • Holding IRAs, 401(k) plans and taxable brokerage accountsnot Vanguard
  • Trading bonds, options and mutual funds from one accountnot Vanguard

Vanguard

  • Holding low cost index mutual funds and ETFs for long term investingnot Fidelity
  • Running IRAs and taxable brokerage accountsnot Fidelity
  • Employer retirement plan participationnot Fidelity

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Fidelity

  • Options trades carry a 0.65 USD per contract fee on top of zero commission
  • Non Fidelity mutual funds carry a 49.95 USD transaction fee per purchase
  • Secondary market bonds cost 1.00 USD per bond, while new issues are free
  • A foreign settlement fee of 50 USD applies per trade
  • Margin rates are tiered by debit balance, from 11.825 percent below 25,000 USD down to 7.50 percent at 1 million USD or more, against a base rate of 10.575 percent effective 12 December 2025
  • Margin liquidation by the broker costs 32.95 USD per liquidation

Vanguard

  • A 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
  • Broker assisted trades cost 25 USD each, waived only at 1 million USD in qualifying assets or with an advisory service
  • Options trades carry a 1 USD per contract fee on top of zero commission
  • Transaction fee mutual funds cost 20 USD per online trade below 1 million USD in qualifying assets, falling to 8 USD only at higher tiers
  • Outgoing wire transfers cost 10 USD unless the account is a retirement account or holds 1 million USD or more
  • Commission levels are tied to a Qualifying Assets balance, so the cheapest rates require 1 million USD or more

Pricing, plan by plan

Fidelity

On request
  • Brokerage$undefined/month
    • Commission-free trading
    • Research tools
  • Advisory$undefined/month
    • Personal advisor
    • Wealth management

Vanguard

On request
  • Self-Directed Investor$undefined/month
    • Low-cost index funds
    • Commission-free trading
  • Advisory Services$undefined/month
    • All Self-Directed features
    • Financial advisors

Which should you pick?

Choose Fidelity if

  • You need retirement planning.
  • You work on Web, IOS, Android.
  • You also want advisory services.
Fidelity review

Choose Vanguard if

  • You need low-cost index funds.
  • You work on Web, IOS, Android.
  • You also want retirement accounts.
Vanguard review

Questions people ask

Is Fidelity or Vanguard better?
Neither clearly leads. Fidelity starts at On request and Vanguard at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Fidelity or Vanguard?
Fidelity starts at On request and Vanguard at On request.
Does Fidelity or Vanguard run on more platforms?
Both run on Web, IOS, Android, so platform support will not decide this one for you.
What is Fidelity best used for?
Fidelity is most often used for commission free trading of us stocks and etfs, holding iras, 401(k) plans and taxable brokerage accounts, trading bonds, options and mutual funds from one account. Of those, commission free trading of us stocks and etfs and holding iras, 401(k) plans and taxable brokerage accounts are not what Vanguard is typically brought in for.
What can Fidelity do that Vanguard cannot?
Fidelity covers Retirement planning, Advisory services, Research tools. Vanguard covers Low-cost index funds, Retirement accounts, Financial advisors. Both handle Commission-free trading, Bank accounts, Investment accounts, Web support.
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