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Personal Finance · head to head

PayPal vs Vanguard

PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
Vanguard logo

Vanguard

Personal Finance

Investing for your future

From
On request
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios; 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: PayPal covers Payment processing, Vanguard covers Low-cost index funds.

Where they differ

Only the attributes on which PayPal and Vanguard actually diverge.

Attributes where PayPal and Vanguard differ
AttributePayPalVanguard
Starting price$29/monthOn request
Pricing modelusage-basedtransaction
PlatformsWeb, Ios, Android, ApiWeb, IOS, Android
Founded19981975

Identical on both: free tier (No), user rating (Not yet rated), category (Personal Finance).

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 PayPal

  • Payment processing
  • PayPal Checkout
  • Invoicing
  • Business debit card
  • Working capital loans
  • Shopify
  • WooCommerce
  • BigCommerce

Only in Vanguard

  • Low-cost index funds
  • Commission-free trading
  • Retirement accounts
  • Financial advisors
  • Bank accounts
  • Investment accounts
  • IOS support

Both cover

  • Web support
  • Android support

What people use each for

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

PayPal

  • Paying online merchants without sharing card detailsnot Vanguard
  • Sending money to friends and family domestically and internationallynot Vanguard
  • Holding balances in multiple currencies for cross border purchasesnot Vanguard

Vanguard

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

Where each one falls short

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

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

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

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

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 PayPal if

  • You need payment processing.
  • You work on Web, Ios, Android, Api.
  • You also want paypal checkout.
PayPal review

Choose Vanguard if

  • You need low-cost index funds.
  • You work on Web, IOS, Android.
  • You also want commission-free trading.
Vanguard review

Questions people ask

Is PayPal or Vanguard better?
Neither clearly leads. PayPal starts at $29/month and Vanguard at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or Vanguard?
PayPal starts at $29/month and Vanguard at On request.
Does PayPal or Vanguard run on more platforms?
PayPal runs on Web, Ios, Android, Api. Vanguard runs on Web, IOS, Android.
What is PayPal best used for?
PayPal is most often used for paying online merchants without sharing card details, sending money to friends and family domestically and internationally, holding balances in multiple currencies for cross border purchases. Of those, paying online merchants without sharing card details and sending money to friends and family domestically and internationally are not what Vanguard is typically brought in for.
What can PayPal do that Vanguard cannot?
PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Vanguard covers Low-cost index funds, Commission-free trading, Retirement accounts, Financial advisors. Both handle Web support, Android support.
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