Fidelity vs Vanguard in Comparison 2022 | Which One is Better?


Vanguard and Fidelity are both the biggest names in the brokerage firm. When you have to choose one for investing your money, it is not easy to answer quickly. Vanguard is the best choice if you are new and intend to invest a small amount. On the other hand, Fidelity has a wide range of options and much preferable for experts and investing a handsome amount. However, there are too many factors you have to consider before selecting a brokerage firm for investment. So in this article, you are about to see the comparison of Fidelity vs. Vanguard brokerage firm. It's going to be a neutral comparison. AtoZ Markets is in no way responsible for any information given by the writer.

About Fidelity

Fidelity vs Vanguard

image credit: Fidelity

The company has over $2 trillion in assets under management, making it the largest mutual fund company globally. Fidelity offers a wide range of financial products and services, including mutual funds, retirement plans, brokerage services, and more.

About Vanguard

Vanguard vs Fidelity

image credit: Vanguard

Vanguard is a company that provides investment products and services to individual and institutional investors in the United States and internationally. In addition, it provides services to financial advisors and investors, including investment research and investment advice. Vanguard is headquartered in Valley Forge, Pennsylvania.

Fidelity vs. Vanguard Comparison

Fidelity vs vanguard

Trading Experience

In terms of trading experience, both companies are excellent. However, Vanguard is more suitable for entry-level traders.

Desktop Trading Platform

In terms of design, Vanguard's desktop platform is more minimalist, while Fidelity's is more cluttered. Vanguard's platform is also a little more user-friendly, with more oversized buttons and a cleaner layout.

Fidelity offers more features than Vanguard, including real-time streaming quotes, news and analysis, and market data. Vanguard does not provide any of these features.

Trading platform

image credit: Fidelity

Fidelity also has a more comprehensive research offering, with analyst reports, stock screeners, and portfolio analysis tools. Conversely, Vanguard's research offering is limited, with only basic analyst reports and stock screeners.

When it comes to trading, Vanguard's platform is more sophisticated. Also, it offers various order types, but Fidelity's platform does not provide as many order types.

Vanguard also offers more comprehensive account and portfolio management features. Fidelity does not provide these features.

Overall, Vanguard's desktop trading experience is more sophisticated and user-friendly than Fidelity's. As a result, Vanguard is the better choice if you are looking for a comprehensive research offering and a wide range of order types. On the other hand, Fidelity is the better choice if you are looking for a more minimalist design and more features, such as real-time streaming quotes, news and analysis, and market data.

Mobile Trading Platform

In general, Vanguard's mobile app is better designed and more user-friendly. For example, with Vanguard, you can view your account summary, holdings, and recent transactions all on the home screen. The app also includes various tools, such as a portfolio analysis tool and a retirement planner.

Mobile trading app

image credit: Vanguard

Fidelity's mobile app is not as well designed as Vanguard's, but it does offer more features. In addition to viewing your account summary and holdings, you can also trade stocks, ETFs (Exchange Traded Fund), and mutual funds on the app. Fidelity also offers a suite of investment tools, including a stock screener, a bond screener, and a retirement planner.

Overall, Vanguard's mobile app is more user-friendly. But if you're looking for more investment options and tools, Fidelity's app is the better choice.

Usability

Fidelity's website is much more difficult to navigate. For example, you can't see your account balance or investment performance without clicking on different links. Likewise, you can't view your account history or make changes to your investment allocations without navigating to different pages.

Vanguard also has a more user-friendly mobile app than Fidelity. With Vanguard, you can easily see your account balance, investment performance, and recent transactions. Also, you can check your account history and make changes in your investment.

In contrast, the Fidelity app is difficult compared to Vanguard. For example, you can't see your account balance or investment performance without clicking on different links. Likewise, you can't view your account history or make changes to your investment allocations without navigating to different pages.

Overall, Vanguard is much more user-friendly than Fidelity. Their website and mobile app are easy to use. Fidelity's website and mobile app are much more difficult to use.

Fees

Since Fidelity offers a variety of investment options, it is also going to cost you more money than Vanguard.

So, Vanguard is known for its low-cost investment products. And, having the cheapest platform is their main reason for popularity. Many Vanguard's funds have no account fees, redemption fees, or purchase fees. And if you do have to pay a fee, it's typically lower than what you would pay at a competing firm.

Fidelity, on the other hand, costs you money in every turn. However, the company does offer a number of low-cost funds and a number of no-fee funds. Fidelity also offers a wide range of products and services, including both commission-based and fee-based accounts.

Investment Options

Fidelity is a great option for those who want to invest in a variety of different options. Indeed they have mutual funds along with other investment options such as stock, bonds, and ETFs. As a result, you will have many options to choose the best investment plan that is profitable as well as suitable for you.

On the other hand, Vanguard has almost similar but fewer investment options than Fidelity. Also, it costs less. So if you are looking for a mutual fund, It would be better to choose Vanguard.

Account Types Comparison

Fidelity possibly comes with a wide range of account types. And, most of the accounts are suitable for expert traders. Here are the account types of Fidelity.

  • Brokerage Account
  • Cash Management Account
  • Brokerage and Cash Management
  • The Fidelity Account® for Businesses
  • Rollover IRA
  • Traditional IRA
  • Roth IRA
  • Inherited IRA
  • Inherited Roth IRA
  • SEP IRA
  • Self-Employed 401(k)
  • SIMPLE IRA
  • Investment-Only Plans for Small Business
  • 401(k) Plan for Small Businesses
  • Fidelity Go®7
  • Fidelity® Personalized Planning & Advice8
  • Portfolio Advisory Services Accounts9
  • Fidelity® Tax-Managed U.S. Equity Index Strategy
  • Fidelity® Equity-Income Strategy
  • Fidelity® International Equity Strategy
  • Fidelity® Tax-Managed International Equity Index Strategy
  • Fidelity® U.S. Large Cap Equity Strategy
  • Saving and investing account for child
  • Roth IRA for Kids

As you can see, there are various account types available in Fidelity. Therefore, you have a wide range of options to choose the best possible plan for better investing.

In contrast, Vanguard offers less account types and makes it easier to understand and easy to use. Here are some Vanguard account types.

  • 401 (k) Rollover in a Vanguard IRA
  • Annuities
  • Roth IRAs and Traditional IRAs
  • Individual Accounts (Taxable)

So, Vanguard is a good choice if you're looking for a place to save for retirement and you're not interested in employer-sponsored plans. On the other hand, Fidelity is a good choice if you're looking for a variety of account options and you're not concerned about fees.

Product Offering and Cost

Vanguard is a mutual fund company that was founded in 1975. It is headquartered in Valley Forge, Pennsylvania. Vanguard offers a wide variety of mutual funds and ETFs, stocks, and bonds. Fidelity is a financial services company that was founded in 1946. It is headquartered in Boston, Massachusetts. Fidelity offers a wide variety of financial products and services, including mutual funds, ETFs, stocks, bonds, and insurance.

When it comes to costs, Vanguard is typically the cheaper option. For example, Vanguard's Investor Shares of the Vanguard 500 Index Fund (VFINX) has an expense ratio of 0.17%, while Fidelity's Spartan 500 Index Fund (FUSVX) has an expense ratio of 0.10%. Vanguard also offers lower commissions on trades than Fidelity. For example, Vanguard charges $7 for a stock trade, while Fidelity charges $32.

Vanguard's product offering is more diverse than Fidelity's. For example, Vanguard offers more mutual funds and ETFs and also offers stocks and bonds. Fidelity offers various financial products and services.

In general, Vanguard is the cheaper option when it comes to costs, and Vanguard's product offering is more diverse than Fidelity's.

Fidelity vs Vanguard: Security comparison

Both companies are reputable and have a long history of safeguarding customers' investments. However, Vanguard may have a slight edge over Fidelity regarding security.

Vanguard may be more secure because it is a mutual company. This means that Vanguard's customers are also its shareholders. As such, Vanguard has a vested interest in safeguarding customers' investments and is less likely to make risky or imprudent decisions that jeopardize investors' assets.

Fidelity is a for-profit company, which may make it more likely to make decisions that could benefit its shareholders but could be less advantageous for customers. For example, Fidelity may be more likely to invest in riskier assets in order to increase its profits.

Another reason Vanguard may be more secure is that it is much larger than Fidelity. This gives Vanguard economies of scale that allow it to invest in more sophisticated security measures and to employ more security personnel.

Fidelity is a large company as well, but it is not as large as Vanguard. This may mean that Fidelity is not able to invest in as many security measures or hire as many security personnel.

In the end, it is difficult to say which company is more secure. Both Vanguard and Fidelity are reputable and have a long history of safeguarding customers' investments. However, Vanguard may have a slight edge over Fidelity when it comes to security.

Regulations Comparison of Fidelity and Vanguard

Regulations comparison

Fidelity is an US stockbroker that was founded in 1946. It is subject to the supervision of top authorities such as those of Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA). Fidelity is regarded as safe due to the fact that it has a long-standing track record and is overseen by the most prestigious financial authorities.

However, Vanguard is a US stockbroker established in 1975. The firm is regulated by the Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA).

Vanguard is licensed and monitored through the FCA. The Vanguard's UK Registered office can be found the 4th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF.

Customer Support

Both companies offer around-the-clock support, extensive resources, and knowledgeable customer service representatives.

Fidelity's customer service is more personal. If you need help, you can call and speak to a customer service representative immediately. Vanguard's customer service is more automated. If you need help, you can submit a help ticket, and a customer service representative will get back to you within one business day.

Also, Fidelity offers more resources than Vanguard. Fidelity's website is packed with information on various topics, from investing to retirement planning to estate planning. Vanguard's website is a little more limited, but it does offer a wealth of information on investment topics.

Vanguard's customer service representatives are more knowledgeable about investing than Fidelity's customer service representatives. So if you have questions about investments, Vanguard is the better choice.

In general, Vanguard and Fidelity are both excellent providers of customer service. However, Vanguard's customer service is more investing-focused, while Fidelity's customer service is more personal. Decide which provider is best for you by considering your needs and preferences.

Is Fidelity Better Than Vanguard?

Vanguard is known for its small investments, which can be appealing to some investors. However, Vanguard funds may not be as diversified as some of the funds offered by Fidelity. Fidelity offers a wide range of investment options, which can be helpful for investors who want to build a well-diversified portfolio.

Fidelity may be a better choice for investors who are looking for a wide selection of investment options, while Vanguard may be a better choice for investors who are looking for lower costs and more passive investment strategies.

Conclusion

Fidelity or Vanguard, which brokerage firm is suitable for you? If you want a low-cost investment option, you must go for Vanguard. And Fidelity will be suitable for you if you want various investment options, which I recommend for expert traders. However, it is up to your investing plans. In terms of reputation, both companies are the best in their field. And only differs in the features.