Fidelity vs Vanguard vs Schwab 2026: Complete Brokerage Comparison

In-depth comparison of America's top 3 brokerages. Compare fees, fund selection, research tools, and customer service to find the best broker for your investment style.

#Fidelity #Vanguard #Schwab #Brokerage Comparison #Index Funds #Zero Funds

Overview: The Big Three

When it comes to choosing a brokerage, three names dominate the conversation: Fidelity, Vanguard, and Charles Schwab. Together, they manage over $20 trillion in client assets. Each has distinct strengths, philosophies, and ideal customer profiles.

Here's the quick snapshot:

Broker Founded AUM Philosophy Best Known For
Fidelity 1946 $4.5+ trillion Full-service excellence Zero expense ratio funds, research
Vanguard 1975 $8+ trillion Low-cost indexing pioneer Index funds, investor ownership
Schwab 1971 $8+ trillion Discount broker innovation Banking integration, accessibility

Quick Take

  • Fidelity: Best overall for most investors. Superior research, no minimums, Zero funds
  • Vanguard: Best for buy-and-hold index investors. Pioneered low-cost investing
  • Schwab: Best for those who want banking + investing under one roof

But the details matter. Let's dive deep.

Fee Comparison

All three brokers eliminated stock trading commissions in 2019. But fees go far beyond trades.

Trading Commissions

Trade Type Fidelity Vanguard Schwab
US Stocks & ETFs $0 $0 $0
Options (per contract) $0.65 $1.00 $0.65
Mutual Funds (in-house) $0 $0 $0
Mutual Funds (third-party) $0 (many NTF) $0-$20 $0 (many NTF)
Treasury Bonds $0 $0 $0
Broker-Assisted Trades $32.95 $25 $25

Fund Expense Ratios

This is where the real competition happens:

Fund Type Fidelity Vanguard Schwab
S&P 500 Index Fund 0.015% (FXAIX) 0.04% (VFIAX) 0.02% (SWPPX)
Total Stock Market 0.015% (FSKAX) 0.04% (VTSAX) 0.03% (SWTSX)
International Stock 0.035% (FTIHX) 0.11% (VTIAX) 0.06% (SWISX)
Total Bond Market 0.025% (FXNAX) 0.05% (VBTLX) 0.03% (SWAGX)

Fidelity's Zero Funds

Fidelity's boldest move: mutual funds with 0.00% expense ratios. Not 0.01%. Zero.

Zero Fund Ticker Expense Ratio Tracks
Fidelity ZERO Total Market FZROX 0.00% US Total Market
Fidelity ZERO Large Cap FNILX 0.00% S&P 500 equivalent
Fidelity ZERO International FZILX 0.00% International developed + emerging
Fidelity ZERO Extended Market FZIPX 0.00% Mid and small caps

The catch: These funds are only available at Fidelity and track proprietary indexes (not S&P 500 directly). For practical purposes, performance is nearly identical to their benchmarks.

Account Fees

Fee Type Fidelity Vanguard Schwab
Account Maintenance $0 $25/year (waivable) $0
IRA Closing Fee $0 $0 $0
Account Transfer (ACAT) $0 $0 $0
Wire Transfer (Outgoing) $0 $10 $0
Paper Statements $0 $10/mailing $0

Winner: Fidelity. Zero funds are unbeatable for pure cost, and they have the fewest miscellaneous fees.

Fund Selection & Investment Options

Mutual Funds

Category Fidelity Vanguard Schwab
Proprietary Funds 500+ 200+ 100+
No-Transaction-Fee Funds 3,500+ 3,000+ 4,000+
Total Funds Available 10,000+ 3,000+ 4,000+
Active Fund Strength Excellent Limited Good

Vanguard's Index Fund Advantage

Vanguard pioneered index investing. Their Admiral Shares offer rock-bottom expenses once you hit $3,000 minimums. Key Vanguard funds:

  • VTSAX: Total Stock Market. The gold standard
  • VTIAX: Total International. Complete global ex-US exposure
  • VBTLX: Total Bond Market. Core fixed income
  • VTWAX: Total World. Everything in one fund

Vanguard's unique ownership structure (investors own Vanguard) means profits go back to reducing expenses.

Fidelity's Active Management

If you want active funds, Fidelity has the strongest lineup:

  • Fidelity Contrafund (FCNTX): Large-cap growth, legendary track record
  • Fidelity Blue Chip Growth (FBGRX): Top performer in growth category
  • Fidelity Low-Priced Stock (FLPSX): Small/mid-cap value
  • Fidelity Magellan (FMAGX): Peter Lynch's old fund, still relevant

ETFs

All three offer commission-free trading on thousands of ETFs. But proprietary ETF offerings differ:

Feature Fidelity Vanguard Schwab
Proprietary ETF Count 70+ 80+ 30+
Flagship S&P 500 ETF - VOO (0.03%) SCHX (0.03%)
Fractional ETF Shares Yes No Yes (Schwab Stock Slices)
Thematic ETFs Limited Limited Limited

Winner: Vanguard for pure indexing. Fidelity for variety and active funds.

Research Tools & Platform Features

Research Quality

Feature Fidelity Vanguard Schwab
Third-Party Research 20+ sources Limited 10+ sources
Equity Research Reports Excellent Basic Very Good
Stock Screeners Advanced Basic Good
Fund Comparison Tools Excellent Good Good
Portfolio Analysis Full Analysis Basic Portfolio Checkup

Fidelity's Research Advantage

Fidelity provides free access to:

  • Zacks, Argus, Ned Davis Research
  • Technical analysis from Recognia
  • Real-time news and quotes
  • Advanced charting with 100+ indicators
  • Options analytics and probability calculators

Trading Platforms

Platform Fidelity Vanguard Schwab
Web Platform Excellent Functional Very Good
Desktop Platform Active Trader Pro None thinkorswim
Real-Time Streaming Yes Limited Yes
Conditional Orders Yes Limited Yes
Direct Market Access Available No Available

Schwab gained thinkorswim through the TD Ameritrade acquisition. It's one of the most powerful retail trading platforms available, particularly for options and futures.

Winner: Tie between Fidelity and Schwab. Fidelity for research, Schwab for advanced trading (thinkorswim). Vanguard lags significantly here.

Customer Service & Support

Support Channels

Channel Fidelity Vanguard Schwab
Phone Support 24/7 M-F 8am-10pm ET 24/7
Live Chat Yes Yes Yes
In-Person Branches 200+ Limited 300+
Virtual Assistant Yes Yes Yes
Callback Option Yes Yes Yes

Customer Satisfaction

Based on J.D. Power 2025 Self-Directed Investor Satisfaction Study:

  • Fidelity: Consistently #1 in customer satisfaction
  • Schwab: Strong #2, excellent for high-net-worth clients
  • Vanguard: Good, but phone wait times can be long

Financial Planning Services

Service Fidelity Vanguard Schwab
Robo-Advisor Fidelity Go (0.35%) Digital Advisor (0.25%) Intelligent Portfolios (free)
Hybrid Advisor Fidelity Personalized Planning (0.50%) Personal Advisor (0.30%) Intelligent Portfolios Premium (0.30%)
Full Wealth Management Private Wealth (varies) Personal Advisor Services Schwab Private Client
Minimum for Human Advisor $25,000 $50,000 $25,000

Winner: Fidelity. Best hours, most branches, highest satisfaction scores.

Account Types & Minimums

Account Minimums

Account Type Fidelity Vanguard Schwab
Brokerage Account $0 $0 $0
IRA $0 $0 $0
Target-Date Funds $0 $1,000 $0
Admiral Shares / Equivalent N/A $3,000 N/A
Robo-Advisor $10 $3,000 $5,000

Available Account Types

All three offer:

  • Individual and Joint Brokerage
  • Traditional and Roth IRA
  • SEP IRA and SIMPLE IRA
  • Solo 401(k)
  • 529 Education Savings
  • Custodial Accounts (UGMA/UTMA)
  • Trust Accounts
  • HSA (Health Savings Account)

Cash Management

Feature Fidelity Vanguard Schwab
Cash Management Account Yes Yes Yes (Schwab Bank)
Debit Card Yes Yes Yes
ATM Fee Reimbursement Unlimited worldwide No Unlimited worldwide
Bill Pay Yes Yes Yes
Check Writing Yes Yes Yes
FDIC Insurance Yes (sweep) No (SIPC only) Yes (Schwab Bank)

Winner: Tie between Fidelity and Schwab. Both have excellent cash management with ATM reimbursement. Vanguard has higher minimums for some products.

Mobile App Experience

App Store Ratings (iOS)

Broker Rating Downloads Key Features
Fidelity 4.8/5 5M+ Full trading, Face ID, widgets
Vanguard 4.7/5 1M+ Account management, simple design
Schwab 4.8/5 5M+ Full trading, voice commands

Mobile Capabilities

Feature Fidelity Vanguard Schwab
Stock Trading Full Full Full
Options Trading Yes Limited Yes
Research Access Extensive Basic Good
Real-Time Quotes Yes Yes Yes
Check Deposit Yes Yes Yes
Biometric Login Yes Yes Yes

Winner: Fidelity. Best combination of functionality and usability. Vanguard's app is improving but still behind.

Who Each Broker Is Best For

Choose Fidelity If You:

  • Want the absolute lowest fund expenses (Zero funds)
  • Value extensive research and analysis tools
  • Need 24/7 customer support
  • Want the best mobile app experience
  • Are starting with small amounts (no minimums)
  • Want both active and index funds
  • Need in-person branches for support
  • Want excellent cash management with ATM reimbursement

Choose Vanguard If You:

  • Are a committed index fund investor
  • Appreciate Vanguard's investor-owned structure
  • Plan to buy and hold for decades
  • Don't need advanced trading tools
  • Want to invest in the original index fund company
  • Have enough for Admiral Shares minimums ($3,000)
  • Value simplicity over features
  • Believe in Jack Bogle's philosophy

Choose Schwab If You:

  • Want banking and investing in one place
  • Need powerful trading tools (thinkorswim)
  • Travel internationally (ATM reimbursement + Schwab Bank)
  • Want free robo-advisor services (Intelligent Portfolios)
  • Prefer in-person service (300+ branches)
  • Are an active trader who also wants long-term accounts
  • Want seamless integration between checking and investing
  • Trade options or futures frequently

Investor Profile Summary

Investor Type Best Choice Runner-Up
Beginning Investor Fidelity Schwab
Buy-and-Hold Indexer Vanguard Fidelity
Active Trader Schwab Fidelity
Retiree Fidelity Schwab
High-Net-Worth Schwab Fidelity
Research-Focused Fidelity Schwab
Minimalist Vanguard Fidelity

Final Verdict

After comparing every aspect, here's my honest assessment:

Overall Winner: Fidelity

Fidelity wins for most investors because it combines:

  • Zero expense ratio funds (unbeatable)
  • Best-in-class research and tools
  • No account minimums anywhere
  • 24/7 customer service
  • Excellent mobile experience
  • Strong cash management

The Case for Vanguard

If you're a pure index investor who plans to buy total market funds and hold them for 30 years, Vanguard is philosophically aligned with your goals. Their ownership structure is unique and ensures costs will stay low forever. For the true Boglehead, Vanguard remains home.

The Case for Schwab

If you want everything under one roof, banking integration with Schwab Bank, the power of thinkorswim, and extensive branch access make Schwab compelling. The free Intelligent Portfolios robo-advisor is also a unique offering.

The Reality

Here's the secret: all three are excellent. You won't go wrong with any of them. The differences are at the margins. The most important thing is to start investing, stay invested, and keep costs low. All three accomplish that goal.

If you're paralyzed by choice, just pick Fidelity and move on. Spend your energy on saving more and staying the course, not optimizing between three nearly identical options.

Can You Use Multiple Brokers?

Absolutely. Many investors use:

  • Vanguard for long-term index investing (IRA)
  • Fidelity for taxable accounts and research
  • Schwab for banking and checking

There's no rule against having multiple accounts. Just keep it manageable.


This comparison is based on publicly available information as of January 2026. Fees, features, and services change frequently. Always verify current offerings directly with each broker before opening an account.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instruments. All investment decisions must be made at your own responsibility. Forex and cryptocurrency trading carries risk of capital loss.