Vanguard vs. Fidelity: 2021 Comparison
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 brokers’ funds line many 401(k)s, and Fidelity is the leading 401(k) record-keeper. Both are also among our picks for the best IRA providers. 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.
Fidelity Investments is best for:
Retirement investors.
Active traders.
Premium research.
Low fees.
Commission-free stock, ETF and options trading.
Fidelity Investments at a glance
Account minimum | $0 |
Stock trading costs | $0 |
Options trades | No base commission; $0.65 per contract. |
Account fees (annual, transfer, closing, inactivity) | None. |
Number of commission-free ETFs | All ETFs trade commission-free. |
Number of no-transaction-fee mutual funds | More than 3,400 no-transaction-fee mutual funds. |
Tradable securities | • Stocks • Fractional shares • Bonds • Mutual funds • ETFs • Options |
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 website transparency) | Phone, email and live chat 24/7; 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, fund minimums start at $1,000 |
Stock trading costs | $0 |
Options trades | $0 + $1 per contract Account balances with $1 million+ get 25 trades for free each year; accounts of $5 million+ get 100 free trades per year. |
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 commission-free ETFs | All available ETFs trade commission-free. |
Number of no-transaction-fee mutual funds | More than 3,100 from outside providers; none of Vanguard's 120-plus open funds charge transaction fees. |
Tradable securities | • Stocks. • Bonds. • Mutual funds. • ETFs. • Options. • CDs. |
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 website transparency) | Phone support Monday-Friday, 8 a.m.-9 p.m. Eastern; email support |
 |  |  |
|---|---|---|
Fees$0 per trade | Fees$0 per trade | Fees$0 per trade |
Account Minimum$0 | Account Minimum$0 | Account Minimum$0 |
PromotionNone no promotion available at this time | PromotionNone no promotion available at this time | Promotion$5 to $1,000 in free stock for users who sign up via mobile app |
