What is the Difference Between Fidelity and Vanguard?
🆚 Go to Comparative Table 🆚Fidelity and Vanguard are both major brokerage firms with a wide range of financial offerings, including DIY brokerage accounts, financial advisors, robo-advisors, and financial planning services. They have some similarities and differences, which can help you decide which one is better for your investment needs.
Similarities between Fidelity and Vanguard:
- Both firms offer a broad range of low-cost mutual funds and ETFs.
- They both provide robo-advisor services, educational tools, and mobile apps.
Differences between Fidelity and Vanguard:
- Active Trading: Fidelity might be a better option for those who want to actively trade within their accounts, as it offers Active Trader Pro. Vanguard, on the other hand, is more focused on buy-and-hold investing and does not offer a trading platform.
- Retirement Investing: Vanguard is considered an excellent choice for long-term and retirement investors, especially those who prefer low-cost investments and index fund/ETF investing. Fidelity, however, offers a more well-rounded platform that caters to active traders and beginner investors.
- Tools and Resources: Fidelity's website offers more tools and resources to support a broader range of investor types, while Vanguard's platform is geared more towards retirement savers and buy-and-hold investors.
- Customer Support: Fidelity provides in-person service at more than 200 branches, whereas Vanguard operates no branches.
In summary, if you are looking for active trading and a broader range of tools and resources, Fidelity might be the better option. However, if you are focused on long-term, low-cost index investing or retirement planning, Vanguard could be more suitable for your needs.
Comparative Table: Fidelity vs Vanguard
Here is a table comparing the differences between Fidelity and Vanguard:
Feature | Fidelity | Vanguard |
---|---|---|
Assets under management | $4.4 trillion (September 2023) | $8.1 trillion (June 2023) |
Account minimum | $0 | $0, but most Vanguard mutual funds require a minimum investment of $1,000 to $3,000 |
Types of accounts | 529 college savings plan, Individual 401(k), IRA, SEP IRA, SIMPLE IRA, Small plan 401(k), Taxable investment account, UGMA/UTMA, 403(b) | IRA, SEP IRA, SIMPLE IRA, Small plan 401(k), Taxable investment account, 403(b), 529 college savings plan |
Stock trading costs | $0 | $0 |
Options trades | $0.65 per contract | $1 per contract |
Account fees | Annual, transfer, closing, and inactivity fees vary | No account maintenance fees |
Customer support | Phone, email, and live chat 24/7; more than 200 local branches | Phone and email support; limited chat support |
Trading platform | Robust trading platforms and tools for active traders | No trading platform, focused on long-term and retirement investors |
Both Fidelity and Vanguard are popular investment firms offering a range of account types and investment options. Fidelity is known for its robust customer service, active trading platform, and research tools, while Vanguard is known for its low-cost investments, particularly in index funds and ETFs. The choice between the two depends on your unique circumstances, investment goals, and preferences.
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