Compare Fidelity vs Vanguard? pros n cons..

[dgcoupe]

For me fidelity is local and vanguard is not... heard Roth IRA for fidelity is free and minimum is 2500 while vanguard is .023%ish or something charge n minimum is 3k. Please help me choose

[disneysteve]

Local vs. not local really isn't a factor as everything can be done online or by mail.

I'm not sure what you are referring to with Fidelity being "free". I'm sure their funds have expense ratios just like everyone else's. And Vanguard is 0.23% not .023%, and that varies by the specific fund you are looking at. Some are more. Some are less.

Vanguard does have a higher minimum, except for one fund (STAR I think it is) that is $1,000. But there isn't really a huge difference between a $2,500 and a $3,000 minimum.

[MonkeyMama]

Vanguard waives all fees if you received everything electronically from them. Fidelity charges fees if your balance is under $2500 or so (I forget the exact amount). MEaning, you have to invest $2500 in any given fund, but if the value goes down, they can ding you.

The expense ratios (more fees) tend to be lower with Vanguard.

I have accounts with both brokerages. (More like, my spouse uses Vanguard, and I have a Fidelity account from when I used to have a 401k). I like Fidelity well enough to stick with them for some funds, but if I Was starting from scratch, I'd probably just choose Vanguard. Lower fees and more good choices.

[JoshuaHeckathorn]

I've used both for the past 7 years. Vanguard has lower expense ratios and I've seen better performance from similar funds over the same time period. If I were just starting out again, I would choose Vanguard. I like their online interface much better too.

[snshijuptr]

Fidelity IRA's don't have a fee if you deposit min $200 a month into them. These are the SIMPLE IRAs.

[Ima saver]

I have both . I like Vanguard better.

[Snodog]

I prefer Vanguard as they have more index funds which have lower expense ratios.

[Broken Arrow]

For me fidelity is local and vanguard is not... heard Roth IRA for fidelity is free and minimum is 2500 while vanguard is .023%ish or something charge n minimum is 3k. Please help me choose

As far as I know, it doesn't cost money to open and maintain an account with either companies.

Fidelity: "Fidelity offers No-Fee IRAs. Other fees and expenses applicable to continued investment are described in the fund's current prospectus."

Vanguard: "No (account services) fees if you sign up to receive statements and other important documents electronically or if you're a Voyager, Voyager Select, or Flagship member. Otherwise, a $20 fee applies to each fund in an account with a balance of less than $10,000."

Vanguard's 0.23% is a hypothetical mutual fund expense ratio they use to compare your savings with. However, that's pretty much what you can expect from Vanguard, and it's pretty good.

Speaking of which, there are minimum balance requirements to buy the mutual funds within these accounts. Generally speaking, Fidelity is about $2500 per fund while Vanguard is about $3000 per fund. There are exceptions.

Finally, Vanguard specializes in index funds and index ETFs, whereas Fidelity offers a wider range of investment services (from checking with direct deposit all the way to options trading). However, between the two, Vanguard usually has the lower overall costs for investors. So, the question I would ask is whether Vanguard has all that you're looking for, or if you want to pay a little bit more for a bigger selection under one roof?