Fidelity versus Vanguard: Commissions, Fees and Investments Offered
- $7.95 per stock/etf trade
- Options: $7.95 + $0.75 per contract
- Mutual Funds: no transaction fee when trading over 1,400 Fidelity and non–Fidelity mutual funds; $75 for all others
- Bonds: U.S. Treasury Auctions: free; GSE, secondary CDs, Municipals, Corporates (BBB- or higher), CATS/TIGRS, Corporates (BB+ or lower):
1.00 per bond, $8 min., $250 max.
- $7 first 25 trades, $20 subsequent trades for stock/etfs for account with less than $50,000
- Options commission: $30 + $1.50/contract
- Mutual funds: $35
- U.S. Treasury: $0.75 per $1,000 face amount, $40 min–$75 max
- Mortgage-backed securities: $50 per transaction; GNMA minimum purchase: $25,000
|
Fidelity vs Vanguard: Advantages
- Fidelity mutual funds
- Great research amenities
- Many asset classes to invest
- Vanguard ETFs are free
- Very good range of products offered
- Free DRIPs
|
Fidelity vs Vanguard: Disadvantages
- High trading commissions
- Minimum initial account deposit of $2,500 (cash and margin accounts)
- Mutual funds fees
- Customer service level depends on account size
- Unless you are rich, commissions are high
- Outdated trading technology
- Annual maintennace fee - $20
- $20 per each mutual fund with a balance of less than $10,000 if no electronic statements
- Customer service issues
|
Fidelity and Vanguard Websites and Ratings
|