Personal Finance · head to head
Vanguard vs Charles Schwab
The short version
- Each has a real cost: 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; Charles Schwab broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
- They diverge on capability: Vanguard covers Low-cost index funds, Charles Schwab covers Retirement planning.
Where they differ
Only the attributes on which Vanguard and Charles Schwab actually diverge.
| Attribute | Vanguard | Charles Schwab |
|---|---|---|
| Founded | 1975 | 1971 |
Identical on both: starting price (On request), pricing model (transaction), free tier (No), platforms (Web, IOS, Android), 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 Vanguard
- Low-cost index funds
- Retirement accounts
- Financial advisors
Only in Charles Schwab
- Retirement planning
- Wealth management
- Research tools
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.
Vanguard
- Holding low cost index mutual funds and ETFs for long term investingnot Charles Schwab
- Running IRAs and taxable brokerage accountsnot Charles Schwab
- Employer retirement plan participationnot Charles Schwab
Charles Schwab
- Budget Managementnot Vanguard
- Expense Trackingnot Vanguard
- Investment Trackingnot Vanguard
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
Charles Schwab
- Broker-assisted trades cost $25 and automated phone trades cost $5 in addition to the standard $0 online commission, per the App Store listing for Schwab Mobile
- Options trades carry a $0.65 per-contract fee on top of the $0 online commission, per the App Store listing for Schwab Mobile
Pricing, plan by plan
Vanguard
On request- Self-Directed Investor$undefined/month
- Low-cost index funds
- Commission-free trading
- Advisory Services$undefined/month
- All Self-Directed features
- Financial advisors
Charles Schwab
On request- Individual BrokerageFree
- Commission-free trading
- Research tools
- Schwab Advisor Services$undefined/month
- All Brokerage features
- Wealth management
- Personal advisors
Which should you pick?
Choose Vanguard if
- You need low-cost index funds.
- You work on Web, IOS, Android.
- You also want retirement accounts.
Choose Charles Schwab if
- You need retirement planning.
- You work on Web, IOS, Android.
- You also want wealth management.
Questions people ask
- Is Vanguard or Charles Schwab better?
- Neither clearly leads. Vanguard starts at On request and Charles Schwab at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Vanguard or Charles Schwab?
- Vanguard starts at On request and Charles Schwab at On request.
- Does Vanguard or Charles Schwab run on more platforms?
- Both run on Web, IOS, Android, so platform support will not decide this one for you.
- What is Vanguard best used for?
- Vanguard is most often used for holding low cost index mutual funds and etfs for long term investing, running iras and taxable brokerage accounts, employer retirement plan participation. Of those, holding low cost index mutual funds and etfs for long term investing and running iras and taxable brokerage accounts are not what Charles Schwab is typically brought in for.
- What can Vanguard do that Charles Schwab cannot?
- Vanguard covers Low-cost index funds, Retirement accounts, Financial advisors. Charles Schwab covers Retirement planning, Wealth management, Research tools. Both handle Commission-free trading, Bank accounts, Investment accounts, Web support.