Fidelity vs Vanguard: Fees, Funds and the Differences That Matter
Quick answer
Fidelity and Vanguard both charge $0 commission on online US stock and ETF trades with no minimum to open an account. Fidelity offers cheaper flagship index funds with no minimums, fractional shares of any listed US stock, and a retail HSA; Vanguard counters with a competitive cash sweep and its own rock-bottom ETF range.
Fidelity vs Vanguard at a glance (figures verified July 2026)
| Fact | Fidelity | Vanguard |
|---|---|---|
| Online US stock and ETF commission | $0 | $0 |
| Options fee | $0.65 per contract | $1 per contract (accounts under $1 million) |
| Account minimum | $0 | $0 |
| Annual account service fee | None | $25, waived with e-delivery of documents or $5 million-plus in qualifying assets |
| Flagship S&P 500 index fund | FXAIX, 0.015% expense ratio, no minimum | VFIAX, 0.04% expense ratio, $3,000 minimum (or the VOO ETF at 0.03%, no minimum via fractional shares) |
| Zero-fee index funds | Yes: the ZERO range, including FZROX at a 0.00% expense ratio | No |
| Fractional shares | From $1, exchange-listed US stocks and ETFs | From $1, but Vanguard ETFs only; other stocks and ETFs need a full share |
| Default treatment of uninvested cash | Swept into a money market fund such as SPAXX automatically (3.30% 7-day yield as of 1 July 2026) | Settlement fund is the VMFXX money market fund (about 3.5% 7-day yield as of 2 July 2026, per Morningstar data) |
| Full account transfer-out or closure fee | None | $100 unless you hold $5 million-plus in qualifying Vanguard assets (introduced July 2024) |
| HSA for individuals | Yes, no account fees or minimums | No |
| Robo-adviser | Fidelity Go | Vanguard Digital Advisor |
| Company scale | About $16.4 trillion administered (mid-2025 reporting) | About $11.6 trillion managed globally (30 September 2025) |
Fidelity vs Vanguard is really a comparison between a full-service brokerage and a fund manager that happens to run one. On the headline numbers there is nothing to split: $0 online US stock and ETF trades, no minimum to open an account, and index funds so cheap the gap is measured in cents. Every figure on this page was verified against provider fee schedules and dated 2026 sources in July 2026, with the fast-moving ones (cash yields, asset totals) date-stamped.
The differences live in the plumbing. Fidelity sells fractional shares of essentially any exchange-listed US stock or ETF from $1; Vanguard's dollar-based investing covers Vanguard ETFs only, so anything else needs the full share price. Fidelity's flagship index funds have no minimum, while Vanguard's VFIAX still wants $3,000 (its ETF twin VOO does not). Vanguard charges a $25 annual account fee unless you accept e-delivery, and since July 2024 a $100 fee to close or transfer out a whole account unless you hold $5 million or more. None of these is ruinous; all of them are friction Fidelity does not have.
Vanguard's counterweight is that its default cash treatment is genuinely good, with the VMFXX settlement fund yielding about 3.5% in early July 2026, and that its fund range needs no introduction. VOO and VTI at 0.03% are the default holdings of millions of portfolios at every broker, including Fidelity, where Vanguard ETFs trade free (Vanguard mutual funds are the exception, at around $100 per online purchase on 2026 fee schedules). Fidelity answers on cost with FXAIX at 0.015% and the ZERO range at exactly 0.00%, with the catch that ZERO funds cannot leave Fidelity without being sold. The wider fund field is compared in our S&P 500 index fund guide, and the structural trade-offs in index funds vs mutual funds vs ETFs.
For most long-term index investors any of the big three works, and this pair splits on temperament: Vanguard's minimalism suits people who want to automate a couple of index funds and log in twice a year, while Fidelity suits people who want one login for everything, including the only retail HSA among the big three. Both offer a robo option (Fidelity Go and Vanguard Digital Advisor). The other two matchups are covered in Fidelity vs Schwab and Vanguard vs Schwab, our best index funds for beginners shortlist covers what to actually hold, and the rest of our US reference pages live at the US guides hub. This page is general information, not personal investment advice: the value of anything you invest through either broker can fall as well as rise.
Frequently asked questions
Is Fidelity better than Vanguard?
Not in any blanket sense; both are excellent low-cost brokers and the headline trading costs are identical at $0. Fidelity wins most of the convenience edges: no-minimum index funds, fractional shares of any listed US stock, no account service fee, a retail HSA. Vanguard remains the fund manager whose ETFs, such as VOO and VTI at 0.03%, many investors hold at every broker. For most long-term index investors, either works.
What is the downside of Vanguard?
The brokerage experience trails the funds. Fractional shares only cover Vanguard ETFs, VFIAX and most other Vanguard index mutual funds need $3,000 to start, the $25 annual account fee applies unless you switch to e-delivery, and since July 2024 a full account transfer out or closure costs $100 unless you hold $5 million-plus. The app and website are deliberately minimal, which suits buy-and-hold investors and frustrates active traders.
Can I buy Vanguard funds through Fidelity?
Vanguard ETFs such as VOO and VTI trade commission-free at Fidelity like any other ETF, from $1 using fractional shares. Vanguard mutual funds such as VFIAX are different: Fidelity charged around $100 per online purchase on 2026 fee schedules. The clean workaround is simply buying the ETF share class instead, which holds the same portfolio without the transaction fee.
Is Fidelity or Vanguard better for a Roth IRA?
The wrapper is the same in both places: no minimum to open, $0 online trades, and the same IRS contribution limits. Differences show up in the details, such as Fidelity having no-minimum index funds while VFIAX needs $3,000, and Vanguard charging $25 a year unless you take e-delivery. Our Roth IRA vs traditional IRA guide covers the tax choice itself. This is general information, not personal advice.
Why do people still choose Vanguard?
Ownership structure and track record. Vanguard is owned by its own funds, and so indirectly by the people who invest in them, and it effectively invented retail index investing. Its settlement fund is a genuine money market fund, VMFXX, yielding about 3.5% in early July 2026, so idle cash is treated well by default. Roughly $11.6 trillion was managed globally as of 30 September 2025.
Are Fidelity and Vanguard safe?
Both are SIPC members, so securities are protected up to $500,000 per customer (including $250,000 for cash) if the broker fails. SIPC does not cover investment losses, and money market fund yields are not guaranteed. Scale is not safety, but for context, Fidelity administered about $16.4 trillion per mid-2025 reporting and Vanguard managed about $11.6 trillion as of 30 September 2025.
Sources
- Vanguard - brokerage commission and fee schedules ($0 online trades, $25 account service fee, options pricing)
- Vanguard - dollar-based investing (fractional shares of Vanguard ETFs)
- Fidelity - fractional shares (Stocks by the Slice), $1 minimum and $0 commissions
- Fidelity - uninvested cash and SPAXX 7-day yield (as of 1 July 2026)
- Morningstar - VMFXX, Vanguard Federal Money Market Fund (yield checked 2 July 2026)
- Fidelity - HSA, no account fees or minimums
General information, not financial advice. Tax rules and figures can change; check the current position on irs.gov or ssa.gov before acting.