How to Choose Between Fidelity, Schwab, and Vanguard

Compare the three major brokerages on fees, minimums, features, and funds to pick the right fit for your investing needs.

1. Check account minimums and initial requirements. Vanguard requires $1,000 to open most accounts and $3,000 minimums for many of their mutual funds. Fidelity and Schwab have $0 account minimums and $1 minimums for their funds. If you're starting with less than $1,000, Fidelity or Schwab make more sense.
2. Compare their core investment options. All three offer broad market index funds with expense ratios under 0.10%. Vanguard pioneered low-cost indexing and has the longest track record. Fidelity offers some funds with 0% fees. Schwab sits in the middle with competitive but not rock-bottom costs.
3. Evaluate cash management features. Schwab's checking account has no ATM fees worldwide and no minimums. Fidelity's cash management account offers similar perks. Vanguard doesn't offer checking accounts. If you want banking and investing in one place, skip Vanguard.
4. Test the platforms and customer service. All three have decent websites and apps, but the interfaces feel different. Vanguard's is more basic and slower to update. Fidelity and Schwab have more modern platforms with better research tools. Call their support lines during business hours to test response times.
5. Consider your long-term needs. Think about whether you'll want financial planning services, complex trading, or business accounts later. Schwab and Fidelity have broader service offerings. Vanguard focuses primarily on straightforward long-term investing with some financial planning.
6. Pick one and start investing. The differences between these three are smaller than the difference between investing and not investing. Choose based on minimums and features that matter to you now. You can always transfer accounts later if your needs change.