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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#fidelity #vanguard #shcwab #robberger

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.

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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.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.

[Aarrenrhonda]

The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with them, then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but higher fees.

[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.

[fredswartley]

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

[jfigarr]

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

[kitten]

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

[ervlichterman]

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

[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

[shimitsu]

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.

[frankj]

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!

[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.

[erickarnell]

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

[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".

[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.

[Chef-Soda]

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

[scottgoebl]

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.

[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.

[grwbt]

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.

[andyh]

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.

[anthonyruggiero]

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.

[claricehirata]

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.