Fidelity vs Vanguard vs Schwab: My Take Having Used All 3 for 20+ Years

Today, we'll look at three of the largest investing platforms, Fidelity, Vanguard, and Schwab. I'll share 7 things based on using these platforms for 20+ years.
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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[@funtechu]

Fidelity support is one of the best parts. The wait times are short, and their support agents are knowledgeable and helpful. I don't think I've ever waited more than 5 minutes to get to a human.

[@richardrainey2124]

Rob mentioned that Fidelity offers the eAdvisor tool. Do you know if it's the basic version or the eAdvisor Pro which allows you to do Roth conversion modeling like New Retirement (only better!)

[@hero108zero3]

Disagree - of late there has been a lot of XXX hires who have not been trained, do not even understand the questions, and give wrong answers on top of that. This is what happens when merit is not the criteria for hiring and new people are not trained well and their mastery tested before put in front of the customer.

[@allen_p]

Support has been good in my experience

[@frankwoodbery2473]

What is an XXX hire?

[@vinyl1Earthlink]

If your account is bigger than $1 million, Fidelity offers a dedicated group of support agents. They are really very nice, but they don't know much more than than the regular agents.

[@darnellcapriccioso]

My portfolio for the past 30 years has always been self managed and I own 3 shares of Berkshire Hathaway Class A stock (BRK:A) which I bought in at about $17,000 during the mid 90s, I’m currently liquidating some of these positions to incoporate new Gen. Stocks, but am I better off re-investing into Gold as it seems stocks are a little too unstable right now.

[@maiadazz]

Invest in real estate, ETFs and high-yield savings account.

[@Aaronduckstein49]

The market is not necessarily a rollercoaster if you know your way around the market, there are various opportunities in the present market to accrue good profit, If you are not too savvy with the market, just buy and hold on strong companies with good earnings, or consult with advisors on ETFs and actively managed funds.

[@garryb.1334]

​@@maiadazz not sure about investing in real estate right now. I believe we are in for a housing crash in 2028.

[@tatianastarcic]

@@Aaronduckstein49 I want to play the long term game with well diversified fund. Please how can i reach this CFP of yours?

[@Aaronduckstein49]

Finding financial advisors like Tenley Megan Amerson who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@alYnj]

Vanguard's UI (user interface) is like something designed by a bunch of first year law students, who tried so hard to show their "legal knowledge".

[@CaptainBenjamins]

Sometimes having a UI that looks like cancer is a good thing. I open my vanguard app like once per day while I open my robinhood app like 100 times per day

[@xxxxMonkeyGirlxxxx]

@@CaptainBenjaminslol

[@RickWilson13-kd2zv]

When you log into Vanguard, you get a pop-up window asking you how they should change the website

[@shimitsu11]

Vanguard's Settlement Fund is also a Money Market producing 5%. Seemed like that got glossed over in the video. That particular weakness is unique to Schwab.

[@DrBilly90210]

Vanguard settlement fund is Federal Money Market Fund (VMFXX); current 7-day SEC yield 5.27%

[@psdaengr911]

@@JeffreyStock Not for all kinds of accounts.

[@fairx]

He certainly did minimize the automatic sweep advantages of fidelity.

[@fairx]

​@@JeffreyStockwrong

[@chrisblock6697]

Issue I had with Vanguard's Settlement Fund is for last year it did not meet the threshold requirements for my CA State Tax Return (49.37% and needed 50% - seems like an unforgivable miss on their side), so taxed on 100% on state return. Moved that money to VUSXX.

[@anthonyruggiero9143]

Fidelity also has tools, resources, apps for every demographic. Whether you're in retirement or in high school, there's somebody you can talk to and a tool on their platform that will allow you to invest or save appropriately.

[@ValeriaReyes-]

SO glad you released this video in particular Blcktken300. I was accumulating AR and then saw your video last year saying that you see Blcktken300 may hit 300-400 and then you changed your view. Great and very informative!!! Thanks

[@orpheusny]

Heads up for younger folks who have not yet reached the estate planning phase of your life- our relatively straightforward estate plan involved a 1-2 page instruction letter for successor beneficiaries. We had accounts at both Fidelity and Vanguard at the time. Fidelity requested one minor change in language, but accepted the custom beneficiary letter. Vanguard told us that at assets with them over 1.2 mm we “weren’t even close” to the kind of customer that they’d accept a custom beneficiary designation from. That was the end of our 35 year relationship with Vanguard. Mind you, these were not complex instructions with a million contingencies. We were shocked that they wouldn’t do it.

[@Dividendflywheel]

My first experience with Vanguard proved they were NOT “customer-centric”. I will access their funds (and ETF) via a competitor

[@zoner__]

Merrill is just as bad.

[@hevoforo1629]

I had an unbelievable issue with Vanguard that THEY created out of the blue and caused me financial harm. I won't bore with the details, but I lost a lot of respect for VG with that. I had been a Bogle-head. I moved my major retirement account to Fidelity as a consequence. Though I still have several accounts with VG, my intent is to move them at the appropriate time. I like VGs low costs and offerings, but I really don't trust them. Fidelity's interface is much more user friendly than VG.

[@erickarnell]

Schwab pays ATM fees if you are overseas. Many international travelers prefer a Schwab banking account for that.

[@TravelingtheWorld96]

That is how I use them. I just keep the bulk of my cash elsewhere and transfer minimal amounts to Schwab in order to top up the balance but I don't leave much there since their interest rates are so low (probably due to paying off those ATM fees which I love).

[@nunuvyurbiz123]

So does Fidelity for their cash management accounts.

[@TravelingtheWorld96]

@@nunuvyurbiz123 Yes, you get the ATM reimbursement but from what I have seen on the Fidelity site, there is also a 1% foreign transaction fee that is charged for using your debit card to withdraw cash in the local currency. If that has changed then it would be great.

[@happymanA2]

I loved that when I traveled overseas before I retired …I don’t miss airports!

[@LeslieM.-nj7wz]

​@@nunuvyurbiz123I think Fidelity's Debit card doesn't charge fees in US only.

[@normacruz5335]

That's a solid list! I'm also big on Blcktken300 , avalanche, algo, and matic too.

[@jfigarr]

4:33 #3 - Cash management features/ options was a great point of discussion. Thanks for including it in your evaluation criteria!👍🏾

[@Chef-Soda]

I wish I loved investing with Vanguard but their UI is awful.

[@jamesandersonwalsh]

Same. Been with them for a couple years and honestly I just want M1Finance. I want automatic investment that always brings my portfolio into the right allocation by default.

[@krisevans4379]

user interface got it lol and i agree

[@mere_cat]

So true. They also don’t allow automatic investing or DRIP with ETFs which was the main reason I left them for M1.

[@MrCrs9225]

Their app on Apple IOS has gotten really good

[@Byssbod]

Yeah I really don't understand how they have such a bad platform. I wish I knew their UI was bad before I invested on their platform. Im still pretty new and I had no comparisons or context, and didn't know about this particular issue back then.

[@SallySamsara]

Fidelity is better than Schwab for buying, doing auto roll w T Bills. Schwab has a I week delay in auto roll. Also w Fidelity funds automatically go to high interest MMF when duration is up. With Schwab the funds go to low interest fund. Have to manually move it to higher interest fund.

[@ccrider8483]

Yes, this annoys me about Schawb as well.

[@GiantBlue1963]

Correct! Schwab T-Bill rollovers are bad. But in conversations with them, it’s something they’re working on. I liked that they acknowledged it was something that needed improvement. But I only did a rollover once, then cancelled the others.

[@gregbannish8423]

Yep, agreed on both points, and is annoying. However, one can roll them over manually with no delay. For instance, with 6 month Tbills with auctions each Monday and issuing each Thursday, if your Tbill is coming due Thursday, you can order a new tbill on the auction day (Monday prior) even with no money in your sweep account. The computer is smart enough to know to use money from the maturing tbill to purchase the new tbill on the same day. That still doesn't solve the other issue of money going to/from the sweep account instead of money market that makes good interest, but that can be done manually. For me, these issues aren't enough of a reason to switch brokerages, yet...

[@jamesmorris913]

And..not only that..but if you don't want Schwabs SUCKY interest rate on their default MM sweep acct..you have to pick one of their alternative MM accounts..which have EXHORBITANT expense-ratios, and; are NOT F.D.I.C. insured.

[@claricehirata3303]

Hi Rob, great video , thank you! Based on your review of Fidelity a while back, I did transfer part of my Vanguard funds over to Fidelity and am very happy that I did. What was useful to me in this video was learning about Full View on Fidelity that has now enabled me to post my Vanguard funds on Fidelity so I am able to see my entire portfolio in one place, sweet! Take good care and be well.

[@patrickwal55]

Am a big fan of your videos and newsletter - thanks Rob! Very useful info, and clearly presented.

[@rickdunn3883]

Ive been a Vanguard investor for 30+ years...have continued to see a degrading of their services, free plans, customer approach, advice...likely moving to Fidelity.

[@Wbrundog]

I am moving to Fidelity this week.

[@brentb3969]

Will the Fidelity reps help you move all of your funds over the way you want or do you have to do it yourself?

[@chrism9037]

@@brentb3969when I moved from Vanguard to Fidelity, the Fidelity reps were very helpful, no issues

[@funtechu]

@@brentb3969 You can call them up and they will help you figure out what can be moved in-kind and what has to be liquidated before moving.

[@danielclark8388]

I’ve had two 401k accounts moved to fidelity, and both times the Fidelity rep arranged a 3-way call and walked me and the other company through it. Easy and simple

[@srconrad]

I switched from Vanguard to Schwab and I have zero complaints. Their customer service is excellent and their technology and UI is very good. I had been using their checking with its excellent benefits for many years before switching all my investment accounts over. Okay, one complaint. What Rob mentioned about not having automatic transfer of cash to money market. Hopefully, they’ll add that. I’m pretty good about doing it myself but it would be a nicety.

[@Quantris]

it's weird...they used to have better options for cash but iirc it was always a bit overcomplicated baffling why it's worse now

[@jeeplife5262]

Completely agree. Schwab has some great rates on different money funds, but manually managing the movements is annoying.

[@ej3476]

Schwartz will autosweep cash to a MM like account for clients with >$20mm cumulative account value

[@bradleyhurley6755]

I think they went the opposite way and got rid of it. I'd imagine trying to make sure it didn't lose value became difficult at certain times. And obviously people wouldn't be happy their money dropped in value while sitting there, despite the warnings. The sweep account is one thing I like about Fidelity over Schwab. The biggest advantage to fidelity in my point of view is fractional shares. The Sweep account would be the 2nd.

[@bradleyhurley6755]

@@Quantris I assume it has to do with keeping the value of the funds positive and how its just easier to not automatically do it. Of course with Fidelity I have made interest from the sweep account with funds just hanging out for a couple days while my stock purchase clears. Pro for me, but I would imagine on fidelities end it isn't that great.

[@andyh4518]

I've never used Vanguard, but if you like to buy T-Bills then Fidelity is the way to go. You can buy the 17 week ones and any CMBs (the 42-day ones seem to have become a permanent thing) with Fidelity, but not with Schwab. Schwab not automatically dumping cash into a MMF is kind of annoying - clearly it is easy enough to do since Fidelity can handle it.

[@frankj8585]

Great timing on this video. I’ve been a loyal Vanguard client for about 40 years. I’ve been contemplating switching to another firm because I’m fed up with Vanguard's decline in customer service. I too had a personal account rep some years ago, with much less invested than I do today. They do have some great funds, but they just don’t care about their Legacy Customers any more. Probably moving to Fidelity. Thanks for the video!

[@Wbrundog]

I posted about the same thing just a minute ago. Vanguard sucks now. I am getting my money over to Fidelity this week.

[@urbinblytte429]

agreed--i've been with vanguard from the get-go. Vanguard's customer service has fallen off a cliff in the recent past. Its hit or miss @ best. it seems its turned into a tele-marketing sales organization; with their main focus is getting people to sign up for the PAS.

[@bobmonson6432]

I agree that Vanguard’s customer service has declined over the years. Such a disappointment. I will try Fidelity.

[@rickdunn3883]

@@Wbrundog me too.

[@psdaengr911]

It depends what kind of services you need. I find it easier to make purchases and rebalance accounts at Vanguard ta at tne others.

[@coast_into_retirement]

Thanks for another great video. I would like to mention that when I opened my first Roth IRA , I didn't have the $3000 to start with Vanguard and started with Fidelity. They allowed me to open an account and make small monthly deposits. That was a BIG deal . As time passed, I have also had accounts with Vanguard but moved them to Fidelity last year. I do not have any experience with Shwab. Thanks again for the video

[@paulmerriman2947]

Terrific presentation Rob. I do think the ability to buy and sell partial shares of all ETFs, at Fidelity, is a game changer for first time ETF investors. I'm going to put a link to this video in our newsletter. This is another example why we consider your work so valuable to do it yourself investors and why we consider you one of the best Truth-Tellers in the business. Thank you for your commitment to helping do it yourself investors.

[@chrisblock6697]

And thank you for you commitment Paul... can't begin to tell you how much you have helped me. Confidently retired this week thanks to you.

[@paulmerriman2947]

@@chrisblock6697 Thanks for your kind comment. I'm thrilled to learn you "confidently" retired this week. I'm curious which portfolio you are using for the equity portion of you portfolio. Yes, I'm interested even if it isn't a pure Sound Investing Portfolio. I hope you have as much fun in your retirement as I have in mine. It is a very special time in life.

[@chrisblock6697]

@@paulmerriman2947 Using the Ultimate Buy and Hold with Vanguard. Got into it after the 2008 debacle (I think it was the only one you had at the time?) and I didn't feel like I had clue what to do. My only exception is that I'm 6% into commodities (energy was a great buy in March of 2020). My kids, however, are 100% Equity UB&H at Schwab in their Roth's (I could buy shares for $1.00 with them and at first didn't have a lot to invest based on their income). I've, however, overweighed small cap value substantially in their Roth's.

[@1714allen]

Hi Rob, thanks for your content. I believe we should evaluate based on prioritization of principles/goals. Does a person need: (1). banking ? (2). a local office ? (3) best sweep interest, (4) best UI, (5) fiduciary, (6) most principled, but less-convenient access. , etc... Then, for long term, low transaction investing - the best User Interface may not be a priority. I recommend segmenting your recommendation based on individuals' goals.

[@grwbt8703]

Vanguard's funds have lower fees over-all than Fidelity. I know there are exceptions, but if you self-direct and use 12 or 15 funds (like I do), chances are pretty good you'll end up paying less over-all for fund management. This wasn't covered in the video but maybe should have been. When I was with Fidelity, I loved their customer service and their UI. But if saving on management fees is an important goal, my own experience is that it's tough to beat Vanguard.

[@Dividendflywheel]

Most of us are moving from traditional mutual funds to ETF s because of the fees and tax advantages you mentioned. In that case you can hold a Vanguard ETF at any firm. This is true democratization of investment choices for the average investor.

[@Random-ld6wg]

same thing with my reasoning to continue at vanguard though i do have a bit with fidelity as well. . i am all about the fees and am self directed. will fidelity change in 10 yrs as more people flock to it?

[@happymanA2]

I use Vanguard ETFs at Fidelity with no transaction fees plus Fidelity zero-fee mutual index funds.

[@rightwingsafetysquad9872]

If you're still investing in old fashioned mutual funds, the best time to stop was 15 years ago, the second best time is now. ETFs are vastly superior and have the same management fees regardless of which broker you use. For a Vanguard ETF, you pay exactly the same whether you buy with Schwab, Vanguard, or Robin Hood (transaction fees may vary).

[@Random-ld6wg]

@@rightwingsafetysquad9872 if you already had index funds in the past before etfs came on most would have continued putting money in the mutual funds as one continued investing regularly through the years especially before buying and selling etfs became free and fractional shares became possible.

[@cwaters3700]

Sorry about your back pain. It is tough. I know. Hope you get better soon and stay better. 🙏🏻

[@johnbeeck2540]

Thanks for another great video Rob! Almost 200K Subs!

[@scottgoebl6194]

Schwab works very well for me as an expat retiree who travels a lot. I just wish their sweep account was a money market fund with decent return. You can always put your money into SWVXX, but it’s an extra step to buy and to sell. GREAT customer service.

[@Drotopia]

Yeah…I just use SWVXX as well. Once you own it it’s easy to buy and sell at least.

[@yentsch]

I’ve never used Schwab. I do have both Fidelity and Vanguard accounts and have found what you have pointed out-Fidelity is better. I’ve been with Vanguard for over 30 years but they have fallen behind their competitors.

[@mikeflair6800]

I am not sure one is better than another. I am a Vanguard Guy 100%, opened up my 1st Vanguard / Bogle's S&P Mutual Fund in 1982, after I had just read 'Random Walk Down Wall Street'. While I don't like their website (being redone once again), they have not 'fallen behind their competitors'. How can they? If you invest in VOO or VTI, that is the market, of which they match very well at a low cost.

[@reneeann5340]

I have all 3. I use Schwab the most, that is just because that's where my Roth is. The other two are old 401k accounts.

[@Dividendflywheel]

@@reneeann5340 Fidelity is excellent. @13:10 this is my experience too.

[@Dividendflywheel]

Mr Berger @13:10 could you start your video here. This is my own experience. I have an idea for a product Fidelity could roll out. Similar concept to target date funds.

[@littlestinker9716]

"Fallen behind" is putting it lightly. My experiences with Vanguard over the past 12+ months were abysmal. Lots of phone shuffling and clueless, unhelpful employees.

[@0bsidianeyes]

This was so helpful, thank you! I’ve only ever used Fidelity, but I’ve always wondered about other platforms. I’ll also agree, that their customer service is good. I was actually surprised by how helpful and patient they were. They took the time to explain how I could do things myself, and weren’t demeaning like some financial professionals can be.

[@pimacanyon6208]

really good info. thanks!

[@ranman1959]

I've been with Schwab since 1996. I've never used Vanguard. My HSA has been at Fidelity for a couple of years. I prefer the Schwab app and and website over Fidelity's. I've never had a problem with customer support with either. Fidelity's sweep account is great. I also have a checking account with Schwab. Rebates on ATM fees and no foreign transaction fees are a great benefit.

[@gregorymcd944]

Great video Rob! Very helpful

[@fredswartley9778]

I've only used Fidelity so far and I've had a positive experience. I'm sticking with Fidelity!

[@aalegalfocus]

Great video. I heard about your channel from a Kiplinger's article. Thank you!

[@obrienortega6942]

I personally have Fidelity, Charles Schwab, and Merrill Edge. Zero complaints. Vanguards index funds need a minimum of $3,000 plus. Fidelity and Charles Schwab have no minimum for index funds.

[@TravelingtheWorld96]

Most of the Vanguard ETF equivalents do not have minimums and often have a slight advantage with regards to expense ratios to boot.

[@fatou1975]

Not index funds, u probably meant mutual funds have a minimum $3000.

[@rightwingsafetysquad9872]

​@p.c.h.6721 Sounds like the video recommends Fidelity. I've never used it. Schwab is good, but their UI on all platforms is cluttered, probably not the best if you want to mess with your stuff more than a couple times per year.

[@bradleyhurley6755]

@@p.c.h.6721 It depends. If you want to buy fractional shares outside of the companies in the S&P 500, then Fidelity is the way to go. My personal opinion is I like Schwab's research tools and layout better than Fidelity. Schwab gives you access to Morningstar reports. You can get reports from fidelity, but I prefer the Morningstar ones. Of course a lot of that information can be found on seeking alpha. Fidelity also has a sweep account that lets your money automatically get roughly 5% interest right now. So if you are going to have a lot of money just sitting there, Fidelity is the way to go. Of course you can always put your money in a money market fund yourself. Not automatic, but it can be done. I'd say either choice isn't bad. Schwab now has Think or Swim. I'd probably recommend Fidelity for the fractional shares and sweep account. Though personally I've prefered Schwab's user interface better. One thing that bothers me with fidelity is that you can't see dividend data from the app, so you have to sign in to the website. That just seems like a major oversite to me.

[@WKre123x4]

Good analysis of the offerings. The major 3 all had benefits at one time or another, but some have taken their foot off the accelerator. At the moment, Fidelity meets my needs and in the process of consolidating the others into this one. By having all in one basket, my net worth with them increases, and some fee waivers (ATM) become available.

[@raydziesinski7165]

Very helpful. Thank you.

[@ervlichterman4714]

I’ve had Schwab for years and love their ease of use. Good free local live support.

[@p.c.h.6721]

Thank you, I was hoping for this type of video.

[@garyharper2943]

I’ve used Fidelity and Vanguard and I’m staying with Vanguard. I have two funds both cheap admiral shares, can’t do any better, set and forget.

[@consciouscrypto3090]

You can buy Vanguard funds at Fidelity 🤷‍♂

[@kitten9644]

As someone who previously worked at Vanguard and now works at fidelity, totally agree with all your points.

[@simone_maya]

Before I stopped dca-ing into my Vanguard account, it was 220k and has now depleted to 175k in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.

[@lymanjoy]

Index crediting account that still makes profit but you cab never loose money

[@oddballchic]

How did you rebalance your account?

[@eddenoy321]

Thanks Rob

[@markpuccio6270]

Rob, thank you for your great analysis of these firms. I have used Fidelity for 20ish years and have had a great experience with them. Their customer service is top notch. Keep up the great work!

[@maaxt]

Here is my experience. Vanguard (since 1992) seems to be moving from the Bogle emphasis on investors toward selling services. Fidelity (since 2009) okay but nothing special for our needs with an emphasis on selling services. Schwab (since 2022). Has been terrific. We inherited some brokerage and ira accounts at Schwab. Their phone support is stupendous. If the rep does not know the answer then they get an expert. No long waits for the rep or expert.

[@Dividendflywheel]

Agree with you on vanguard. My investing mentor tried to steer me to Vanguard. But my conversation with them left a bad taste in my mouth. Never looked back.

[@OldNavyGuy]

Your experience at Schwab has been mine at Fidelity. Fantastic, knowledgable customer service.

[@teddyb4168]

Schwab is a mess stay away. Our rep on our sheets for years and who set up account didn't know she was our rep 🫣

[@sampropane]

Use and enjoy Fidelity. I agree on all you stated. Schwab I like to sign up for email alerts on specific companies and they are extremely fast on releasing news wires and have many free reports that come in regularly on companies I choose to but don’t send Andy spam. I have never tried Vanguard. I also agree Fidelity planning tool is great and still willing to pay for New Retirement in parallel. Both are great.

[@bribradt3450]

I have my roth ira through vanguard and an HSA through fidelity I like them both. People complain about the user interface at vanguard but i dont mind it.

[@austinpop]

Thanks for yet another useful video! I too have a nostalgic fondness for Vanguard and their leadership in index funds. Vanguard has another positive and negative I didn't hear you cover. On the positive, their 529 plan (through Nevada) is great. Limited choices, clunky UI, but low expenses, gets the job done. The negative is a big one, and a reason why I moved all my brokerage holdings over to Fidelity. Vanguard does not allow beneficiary designations for joint accounts! I discovered this after having just dealt with my parents passing away within weeks of each other in India. Having to deal with some of their accounts without nominees (an Indian term similar to beneficiary), I came back home to the US, and rechecked all our accounts. Vanguard's response blew me away. The rep I spoke to said they didn't consider beneficiaries for joint accounts to be necessary or relevant! I'm very pleased with Fidelity overall.

[@lailaatallah1857]

Holy cow. That sounds insane! How many elderly pass away and then their elderly spouse likely might not ever think to or be competent to check all accounts- especially joint accounts - and ensure there is a beneficiary assigned?!

[@adamkirsch1]

That's annoying, but if probate in your state is really a big deal, then it probably makes sense to have a living trust anyway.

[@gnoekus]

Uncle Rob, could you do a video on retirement planning for singles who wish or aim to spend it all - or as much as possible during one's retirement life, depleting a portfolio while managing it as best as possible (the hard part is to predict one's life of course). Most strategies aim to protect and preserve the principle fully which don't work for singles. Thanks Uncle Rob.

[@mashort07]

I was hoping for a better review of Vanguard but it is what it is. I opened accounts with them because I believed in what Jack Bogle stood for and certainly still do, but it’s just disappointing to hear how far they’ve fallen behind. Luckily my needs are very simple, otherwise I’d strongly consider moving my portfolio.

[@PaulLikesMoney]

To me, the lack of a review is the review.

[@Dividendflywheel]

@@PaulLikesMoney YES. Vanguard started straying from Bogle’s philosophy before Mr Bogle depart this planet. Listen to some of his interviews

[@Dividendflywheel]

You can implement Mr Bogle’s philosophy using most other platforms (and buying vanguard ETFs). The truth is vanguard and Jack Bogle started having divergent ideas long before he departed this planet. Vanguard has accumulated so much AUM they no longer appreciate the small investor. To vanguard an account with under $5 million is small. I believe in going where I and my money are appreciated. Stay Hungry

[@mashort07]

@@Dividendflywheel, thanks for the feedback. Consider me stupid-how difficult would the transition be and would there be any costs? Sorry, I just have zero experience with this.

[@Yette]

Agree with each of your points Rob. I have accounts at each provider, Fidelity has the best interface, App and customer service. Hope your back is feeling better

[@robby1423]

I use Fidelity and Vanguard. There is one feature where Vanguard is better, which is their estimated dividends report that comes out in late November and then gets revised in mid December. This is very helpful for doing Roth Conversions and not going over one's target AGI. Thanks for the good review and explanation.

[@AxelVelazquez-us9gi]

Is Blcktken300 a diamond in the rough? Let's analyze!

[@jtsdeals]

Fidelity is my favorite for investing (write put options against the sweep balance that's earning great interest) and the 2% card is good. Merrill edge paired with a BofA cash rewards card gives amazing 5+% cash back on specific categories like restaurants, groceries, and gas.

[@johnsalvatore1473]

How much interest do you earn with the options?

[@jtsdeals]

@@johnsalvatore1473 The interest is on the cash used to secure the puts, it's nearly 5% at fidelity in the default SPAXX money market sweep.

[@michaelevans5328]

Good job as usual, Rob. I have all three and like Fidelity best. What you can get for free at Fidelity is absolutely stunning. It's a great place for a one-stop shop -- investing and checking in one place. Just be on the lookout for high-fee products and services. And I still choose Vanguard ETFs.

[@p.c.h.6721]

I know Schwab has no ATM fees, and no international transaction fees, but what about Fidelity? Do they also give you a debit card with zero fees?

[@boggy7665]

I set up an HSA at Fidelity & am very happy. This was after setting one up through Vanguard & was deceptively directed to a non-Vanguard firm that did business as "Health Savings". Vanguard appeared to recommend this & I couldn't tell it wasn't a Vanguard-run business until I'd signed up. The investment options were heavily proscribed and they took many days to execute a trade. Moved this to Fidelity. About my IRAs, I feel stuck at Vanguard because they'll only close all my positions & send me (or Fidelity) a check some day, not allowing an in-kind transfer to another firm.

[@olivern4784]

I have been buying bonds (TIPS) on the secondary market at both Fidelity and Schwab. Schwab has better pricing. Schwab's pricing of small purchases is extraordinary. I can often purchase 1k at Schwab for less than i can purchase any quantity of bonds at Fidelity.

[@Laura-kb5sr]

Thank you for this video! My husband and I have long been Vanguard fans. But I don't like their lack of ESG offerings in regular mutual funds (they're more in ETFs). And for our kids, there's a $3000 minimum opening for mutual funds (Fidelity is way less), and the ESG ETFs don't allow for automatic investing. And then think about apps and cash management. I don't think Vanguard is thinking of welcoming the next generation, so decades down the road they'll be in trouble. Schwab annoys me after buying TDAmeritrade and having Bank of America push their services, plus their long-term care insurance was pretty crummy for a friend and that soured me on the company. So for new investors, I think Fidelity wins.

[@Bullseye120]

Rob, great video as always! I hope your back is feeling better. It looks like that you finally purchased a "real office chair" .....good for you.

[@urbinblytte429]

Rob would you do a video on how to transfer an account from Vanguard to Fidelity. i've been with VG for the duration and soon going from accumulation to distribution. Thanks in advance.

[@momhouser]

Rob, I Second this question. I moved one account, but didn't realize they would transfer "in kind" and then charge a fee to repurchase Vanguard funds at Fidelity??? Please discuss the pros/cons of changing funds during a rollover?

[@mimi-ny1wq]

For buying T-bills, I like Vanguard the best (less complecated). For some speciailty stocks (ex. penny stocks) Schwab seems to be able to handle when Vanguard and Fidelity didn't allow to trade. Customer service & technolgy, Fidelity seems to be the best overall, Schwab next and then Vanguard. Vanguard didn't even have "print screen" feature on the account page for some time which I thought was ridiculous. Either way, after learning about the book, The Great Taking (by David Webb) not sure if it's good idea about putting "all in one basket."

[@gieb6428]

Yes I don't like the One Basket either. I have Schwab, Vanguard and (Federal )Thrift Savings Plan. (retired)

[@tomroche8091]

I concur…. Fidelity is the best of the three !

[@bridgecross]

This makes me a little sad, because of Vanguard's history, philosophy, and the whole investor-owned aspect of the company. I wanted them to come out on top. But as I get closer to retirement and need to choose where to move my 401k, Fidelity looks like it has the edge. edit: also sad because Vanguard's balanced funds (60/40, 70/30) have *insanely* low fees.

[@Jack63141]

Agree that Fidelity has more options and user friendly. I just logged into my Vanguard account -- previous login was back in February to get 1099s. Under "portfolio analysis" my overall expense ratio is 0.04%. So for the boring, just let your money grow, functionality it is still hard to beat Vanguard!

[@patrickmorgan4006]

Does anything else really matter but letting your money grow?

[@ajsomp]

You can replicate that elsewhere- especially if buying ETFs. Fidelity has mutual funds like FXAIX which have an expense ratio of .02 - which tracks sp500 like VFIAX for lower costs. Things to consider especially when Vanguard has such a terrible platform to use even for routine retirement investing. I’m likely moving my retirement accounts as well as my wife’s to fidelity simply because I’d love to have everything in one platform that is easy to navigate and use, and a regular brokerage account which allows for fractional etf purchases of more than just vanguard funds

[@ggbr07]

I think Fidelity is also better to buy fractional shares.

[@davidbundesen5867]

I believe you can buy fractional shares with Vanguard lately. This just popped up the other day for me.

[@rhick382]

Schwab has fractional shares too.

[@ggbr07]

@@rhick382 I think at Schwab it works only for the stocks in S&P 500.

[@davidbundesen5867]

@@rhick382right.

[@andreslazcano6469]

@@davidbundesen5867no vanguard doesn’t allow fractional shares. They only allow fractional shares if it’s their ETFs

[@sloggerz9805]

I've used the Vanguard Australia site and it looks great, very simple, easy to understand and to navigate.

[@MichaelToub]

Great Video!

[@hunterpayne3058]

I completely agree with this analysis. I likewise have invested on all three platforms over the course of 30 years. The one qualifier I would add is that I like probably like Vanguard PRODUCTS (distinguished from platforms) the best. Vanguard has great index mutual funds and ETFs and good money market fund options. Fidelity and Schwab also have good products, but I might give the slight nod to Vanguard for products. But in terms of platform, interface, and customer service, Fidelity takes the medal hands down. I avail myself of the best of all worlds by buying Vanguard products (index ETFs) on the Fidelity platform in Fidelity accounts.

[@torchy187]

Fidelity cash sweep is awesome and they don’t charge you to close options for .65 or less.

[@cperryisnow]

Perfect timing for this. Long term customer of Vanguard (and TRP) but considering switch to fidelity or Schwab bc of the ability to use local branch offices. Fidelity w numerous branches and Schwab w fewer. Seems like this maybe easier to walk into facilities than deal w phone triage at Vanguard when preparing to consolidate accounts. Agree that Vanguard user interface is not the most user friendly Cheers.

[@ray_glaze]

A walk-in branch office is only as good as the local talent. You should research the experience of the staff in your local office. Include the method of compensation in your analysis.

[@cperryisnow]

Thanks for the advice. I was thinking of their value more on simplicity of paperwork etc not necessarily investing advice.

[@scottgoebl6194]

Schwab has excellent customer service via telephone. I’m very happy with that and have never needed to use a brick and mortar branch.

[@ray_glaze]

@@scottgoebl6194 I'm glad your experience with them was satisfactory. Mine was anything but.

[@gieb6428]

i don't know about Branch Offices, I tried to use one a few years ago with TD Ameritrade. It was a disaster, the manager ducked out of the building five minutes before our appointment. I think she was fired and I know the branch was closed a few weeks later. As you know Schwab owns them now. Good luck

[@rds1978]

Great video, and very timely, based on the many comments I see about folks looking to move. Q around automatic investing: I've got accounts with all three but I'm much more heavily invested w/Vanguard in IRAs and a taxable brokerage account focused almost entirely on low cost index mutual funds. Rob, you mentioned you've been happy investing in Vanguard ETFs through Schwab or Fidelity...is there an easy way to automate those investments? I'm disciplined in theory but sometimes life gets hectic and I rely on automatic monthly investments to keep me honest. Thanks!

[@michaelswami]

Very useful video.

[@rojo9954]

This was a great video for us, we were just thinking of margining our Schwab account funds into our Fidelity account. Wanted to make it easier to merge. I would like your take, is there a problem to having all your money at one place ? Thank you for your knowledgable Videos.

[@alaingracianette2691]

Hello Rob, Thank you very much for the video, which I very much enjoyed like all of your videos. Your comparison of Fidelity, Schwab and Vanguard was fair and factual and matched my own analysis and experience. However, may I suggest adding two additional data points to your analysis? First, I think you should comment upon the fact that Fidelity is privately held, while Schwab is a publicly-traded company, and Vanguard owned by the people who invest in their funds. Second, I think that you should also comment upon the financial assets and strengths of the three companies as the financial woes that Schwab experienced last year were a bit worrisome for a lot of folks. What do you think? Kind regards.

[@StephenPaunovski]

Can you elaborate on this? I'm hunting for the best brokerage account for me (starting to invest in my Roth IRA) and haven't heard of any worrisome financial woes to be on the lookout for.

[@paulbiel517]

Thanks Rob--another great video! I have all 3 accounts too--although I have not used all the features of the Charles Schwab account yet. I will say though the website and tools, customer service, and capabilities of Fidelity are definitely a lot better than Vanguard. I've been disappointed with Vanguard's website and customer service. Once I retire--I plan on moving all my work 401K accounts to Fidelity. Your video confirms my own experience. Thanks.

[@johnfrits8493]

Schwab acquired Think or Swim software from TD. It is a very strong software.

[@mike4jewel]

I switched from Fidelity to Vanguard when my 401K switched from Fidelity. Vanguard has changed and I agree Fidelity is better now. I eventually found ways to navigate Vanguard enough that I’m not interested in switching again. If anyone asked for my advice I would definitely say Fidelity. I never used the other one.

[@RP-xv4wt]

I have good experience with vanguard, high interest rate, low fees on mutual funds. I don’t have problems with customer service

[@georgevella4797]

Appreciate the take on the robo advisors. Vanguard has been heavily marketing theirs and I’ve had my reservations.

[@davidhartley9770]

Thank you Rob for sharing your knowledge. I like Vanguard because (1) settlement account pays slightly better than Fidelity & definitely than Schwab (2) Vanguard Wellington fund Vwenx is expensive at Schwab to purchase & I suspect the same at Fidelity. Cost is priority for me and I give Vanguard the nod. If the other features such as web site, cash management, etc is important I totally agree with your thoughts!

[@zoner__]

Merrill does the same with cash balances. I have started moving more of my assets from Vanguard and Merrill to Fidelity. I keep the other accounts just for access to research.

[@aqua8833]

I consolidated almost everything to Fidelity ~ 8 yrs ago. Except employer 401k & banking. I like Fidelity. I do like the Full View feature. I use it to get an easy net worth graph and tracking. Plus a representative team. Highly recommend Fidelity.

[@shailapandharkar2787]

Hi does Fidelity offer checking and savings account as well?

[@aqua8833]

@@shailapandharkar2787 Yes. You can set an after tax account to have bill pay. I have started to use this.

[@RandzWRX]

FIDELITY!!!! thanks for the Video ROb!!

[@georgehelmick]

Great content. What is a "basis point". Thank you. gh

[@rickbunt9969]

Onw basis point = bp = 0.01%, so 25 bp = 0.25% and 100 bp = 1%. It's a way to talk about small percentages in "whole numbers". For example, "the Fed might cut interest rates by 25 basis points next week." (meaning cut by 0.25%; )

[@garrett6064]

​@rickbunt9969 I had same question, so thanks man.

[@willelliott5052]

During a period around three years ago, it was very hard to get a Vanguard rep on the phone.

[@pastormarkbrand]

I have an HSA with HSA Bank that is linked with Schwab that allows me to invest my HSA funds in everything available through Schwab. Originally, HSA Bank was linked with TD Ameritrade, but when Schwab bought out TDA it migrated over seamlessly.

[@Ferocity54]

My HSA through Optum Bank has this option as well. Do you find seamless transfers or transactions from one platform to the other? Optum has quality vanguard mutual funds, but I am hoping to have more investment options available.

[@rendezvu175]

​@Ferocity54 Optum only allows you to choose from a list. Schwab lets you buy individual stocks just like an individual brokerage account.

[@Ferocity54]

@@rendezvu175 yes. Thank you. I was inquiring about the transfer process between them.

[@bstevens9831]

One quibble( at approximately 6:32 in the video ): Vanguard's settlement account is a good ( rate ) money-market and it's automatic. This is better than Schwab , where, as the video points out, you have to manually move it to a money market to get a good rate.

[@amywalker7515]

Thank you very much for your very informative and objective review of these 3 wealth management businesses. It really helped me with my choice of who to go with.

[@warrengibson7898]

Vanguard bullied me into changing to a brokerage account even though all I want is their mutual funds. And yes, their UI is terrible. But I like that they sweep into a high-yielding MM fund.

[@stevenholmes6626]

Fidelity offers fractional share purchases. This is a big factor, especially for those needing or wanting to make regular (bi-monthly, monthly, etc) contributions or deposits with immediate share purchases. The last I checked Vanguard did not offer this for ETFs and stocks (I don't know about mutual funds) and Schwab only offered for S&P 500 stocks.

[@stephenoutram3926]

Which one do you think is best for selling options? I currently use Schwab and have used smaller brokerages (firstrade, webull) but Schwab seems to work better for what I do. I've been considering trying fidelity but haven't tried them yet. Thanks

[@RichClark-fk6qw]

Just started at Fidelity, seems easy to navigate and haven't had any problems yet!

[@007clownfish]

Rob can you explain the difference of excess SIPC coverage among these brokers, there seems to be nuanced differences. Thanks

[@deanrotering879]

Thanks for this

[@taramiller6211]

I like Schwab they have good coustomer service , and the investor checking pays the ATM fees which I like while traveling internationally.

[@p.c.h.6721]

Doesn't Fidelity also pay ATM fees, as well as no international transaction fees?

[@johnm2178]

Agree with bad customer service at Vanguard. Currently I am going through a very bad experience trying to do a partial transfer of Roth funds to Vanguard.

[@video3dvd]

Schwab has some great tools and customer support is avail 24/7. I use the Schwab Street Smart Edge Software tool to trade. However, Fidelity Sweep account would be nice!

[@p.c.h.6721]

I thought they were getting rid of Street Smart Edge, and now they are only going to offer thinkorswin?

[@video3dvd]

@@p.c.h.6721 I just logged into SSE and it was updated but said it will be transitioned into swim by August... haven't used that yet? Is it good?

[@dinooliva]

I like (and use) Schwab's checking - they reimburse atm fees, don't charge any foreign transaction fees, and support Zelle in the app. As a bonus, they have seamless quicken integration, which can be useful.

[@coffeecup3177]

If you like dealing with the Overseas Call Centers after sitting on hold for 50 minutes to have the representative not be able to tell you the problems there having with your accounts not being updated or their supervisor apologizing and promising to look, into this and telling you she will follow up with you and not following up with you. Vanguard is the company to choose. What happened to a once great company?

[@calebyee2883]

As someone who works with both Schwab and Fidelity on their advisor platforms, one of the bigger differences i see is the money market sweep that fidelity automates, as well as billpay with Schwab and Fidelity. Unfortunately the core sweep that fidelity uses isn't my preferred fund, so i don't mind the manual nature of Schwab's MMF yield regardless

[@owenpeller6471]

I learned nothing from this video however I agree with pretty much everything that you have said. I have had a Vanguard account since the 1980s and their customer service used to be better. They also used to offer more products. Over the last 10 or 15 years they have deteriorated severely

[@JoelJames2]

I know someone in Vanguard IT. To answer your question at 4:20, there is no single unified UX team. Self-directed has theirs, PAS has theirs, and the robo advisor platform has theirs. The fallout of this is the UX quality tends to vary based on which department is prioritizing that. And given Vanguard’s strategy moving forward, that’s not a surprise. However, Vanguard is taking steps to unify the experience so it feels like you’re on one continuous site instead of two or three different sites in a trenchcoat. That being said, I initially signed up as a Vanguard investor in 2018. The self-directed UX has gotten much better since then. Which is a pretty low bar to clear, tbf.