Vanguard vs Fidelity Archived From: Finance |
Interested in opening an account to invest in various mutal funds and have narrowed it down to the big two. Can anyone speak to the pros and cons of each?
Thanks
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Well, I can't say anything about Fidelity, but I recently opened a Vanguard account and transfered my ROTH to them.
Pros
- Helpful staff, I had to call them a few times during the switch and there was no wait time, and they were very helpful.
- Wide selection of funds, you can go with the big boys like s&p index, or global index, or you can pick from funds that are designed to change through time. These are target retirement date funds. I think they go as far as retirement in 2050.
- Easy to navigate website, they give you a lot of different options. I found it pretty easy to set up my bi-weekly transfers into my roth account from my checking account.
Cons
- None so far, however I've only been with them since mid October.
I don't think you can go wrong with either company
I have a Fidelity account and I'm very happy with the service they provide. I also like the idea of knowing there is an office in most major cities should the need arise to visit one. Both their online and local offices have the most professional staff I've encountered so far. I also have investment accounts with BofA and Etrade.
Bottom line, you can't go wrong with either one.
They're both very good. What are your requirements? They are both similar and both very good, but they are enormous companies.
You'll need to go into specifics of what you're looking for.
Basically Im looking for an individual investment account. I have a 401k, Roth IRA and brokerage account (Ameritrade) but am looking at one of the two to invest in no-load mutual funds. Something I can contribute to monthly without incurring a transaction fee as with ETF's.
Except for the Spartan funds, Vanguard has much better funds. But Fidelity is a much better brokerage.
Of course you can always buy Vanguard ETFs in a Fidelity account.
It seems like you should check your asset allocation and see which fund family best meets it. I suspect it will be Vanguard. Or if you just want to invest in a "target retirement" fund then Vanguard's are better.
12thman said:Basically Im looking for an individual investment account. I have a 401k, Roth IRA and brokerage account (Ameritrade) but am looking at one of the two to invest in no-load mutual funds. Something I can contribute to monthly without incurring a transaction fee as with ETF's.
Best Online brokerage for no load mutual funds?
There are of course many many many more threads on the topic, just search.
I am sure either would be fine. I have all my money (IRA, Roth IRA, regular after-tax brokerage account) at Fidelity, and highly recommend them. My investments are in their very low cost index funds (lower than Vanguard) and some ETFs (including one from Vanguard).
I use the Fidelity MasterCard and VISA debit card, 1.5% Cash Back on the former and no ATM fees on the latter, very pleased. I don't use the MySmart cash account, but many have reported good experiences with it.
I like Fidelity because their Customer Service is superb. They offer great Mutual Fund/ETF selections. With the recent addition of My Smart Cash checking account. You cannot go wrong with them.
First, I would decide which one has funds you want. If you want all sorts of low cost funds with low minimums, Vanguard is a good choice. If you want low cost index funds and don't mind a $10k per fund minimum, Fidelity is a good choice for the Spartans. A third option is to go with a place that has low or no cost mutual fund trades - I have my Roth with Thinkorswim for this, but I don't know how much sense it makes for a taxable account.
All other things being equal, for a taxable account, I would go with Fidelity simply because of the better cash management features.
If you have enough money to not get minimum account fees why not just open both and invest dependent on the selection of funds. I have both accounts and like them for their individual purpose. Also Fidelity has usually promotions running to get United miles or 100$ to open an account or similar things.
OP, I am using thinkorswim for my Roth as well as a taxable account. As long as you stay away from the options, currency, and futures trading that they push, they are great. $5 stock trades and 3 free mutual fund trades a month. They can trade just about any mutual fund you request even if it is not on their list of funds. The only negative I see is a measly 1.5% interest rate paid on cash balances.
UncaMikey said:I use the Fidelity MasterCard and VISA debit card, 1.5% Cash Back on the former and no ATM fees on the latter, very pleased.
What is Fidelity MasterCard? Could you please give a little more information? Are you referring to Fidelity 529 College Rewards MasterCard?
The current 1.5% rebate Fidelity 529 College Rewards Am Ex card used to be a M/C with 2% rebate on purchases. The other Fidelity Investment Rewards card is a VISA card. I have both the discontinued 529 M/C card and the Fidelity Investment Rewards VISA card.
Perhaps the other poster referred to the old M/C but mine still has a 2% rebate grandfathered.
wesleman said:The current 1.5% rebate Fidelity 529 College Rewards Am Ex card used to be a M/C with 2% rebate on purchases. The other Fidelity Investment Rewards card is a VISA card. I have both the discontinued 529 M/C card and the Fidelity Investment Rewards VISA card.
Perhaps the other poster referred to the old M/C but mine still has a 2% rebate grandfathered.
Thanks! What is the Cash Back reward on your present Fidelity Investment VISA card?
AugustFour said:wesleman said:The current 1.5% rebate Fidelity 529 College Rewards Am Ex card used to be a M/C with 2% rebate on purchases. The other Fidelity Investment Rewards card is a VISA card. I have both the discontinued 529 M/C card and the Fidelity Investment Rewards VISA card.
Perhaps the other poster referred to the old M/C but mine still has a 2% rebate grandfathered.
Thanks! What is the Cash Back reward on your present Fidelity Investment VISA card?
http://personal.fidelity.com/products/checking/content/visagold.shtml.cvsr
Vanguard is for people who want to index everything. Fidelity is better if you want some active management, either through them (active mutual funds) or do it yourself stock picking.
I chose fidelity largely because they have a local office that is always very helpful with my complicated questions and requests.
The fresh cookies and soda at the office are always a nice touch. I think I am due for another trip over there.
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