For a guide to asset allocation, diversification, and building your first investment portfolio, see the Portfolio Basics hub.
Choosing the right brokerage account can save you thousands in fees over a lifetime of investing. The good news: competition has driven every major brokerage to $0 commissions and no minimums. The real differences come down to research tools, fund selection, banking features, and advisory services — and which one matters most depends on how you invest.
Top Brokerage Accounts Compared
| Feature | Fidelity | Charles Schwab | Vanguard | E*TRADE | Interactive Brokers |
|---|---|---|---|---|---|
| Stock/ETF commissions | $0 | $0 | $0 | $0 | $0 |
| Account minimum | $0 | $0 | $0 | $0 | $0 |
| Mutual fund selection | 10,000+ (3,400+ no-load, no-fee) | 4,200+ no-load, no-fee | 200+ Vanguard + others | 4,400+ no-fee | 40,000+ |
| Fractional shares | Yes (stocks + ETFs) | Yes (Schwab Stock Slices) | No | No | Yes |
| Options (per contract) | $0.65 | $0.65 | $1.00 | $0.50-$0.65 | $0.65 |
| Research/tools | Excellent | Excellent | Basic | Good | Advanced |
| Mobile app | Excellent | Good | Basic-Good | Good | Complex |
| Banking services | Yes (cash management) | Yes (checking, savings) | Limited | Limited | Limited |
| Customer service | Excellent | Excellent | Good | Good | Limited |
| Best for | Most investors | Banking + investing | Long-term index investing | Options traders | Advanced/international |
Fee Comparison: What You Actually Pay
| Fee Type | Fidelity | Schwab | Vanguard |
|---|---|---|---|
| Stock/ETF trades | $0 | $0 | $0 |
| Mutual fund trades (non-NTF) | $49.95 | $49.95 | $0-$20 |
| Options base | $0 | $0 | $0 |
| Options per contract | $0.65 | $0.65 | $1.00 |
| Account transfer (ACAT) | $0 | $0 | $0 |
| Wire transfer | $0-$10 | $0-$25 | $0-$10 |
| Paper statements | $0 | $0 | $0 |
| Annual fee | $0 | $0 | $0 ($20/fund if under $50K for some) |
Lowest-Cost Index Funds by Brokerage
| Index | Fidelity Fund (Expense Ratio) | Schwab Fund | Vanguard Fund |
|---|---|---|---|
| S&P 500 | FXAIX (0.015%) | SWPPX (0.02%) | VFIAX (0.04%) |
| Total US Stock Market | FSKAX (0.015%) | SWTSX (0.03%) | VTSAX (0.04%) |
| International Stock | FTIHX (0.06%) | SWISX (0.06%) | VTIAX (0.12%) |
| US Bond Market | FXNAX (0.025%) | SWAGX (0.04%) | VBTLX (0.05%) |
| S&P 500 ETF | — | SCHB (0.03%) | VOO (0.03%) |
Fidelity has a slight edge on expense ratios for index funds, but the differences are negligible at these levels.
Choosing the Right Brokerage
| Your Priority | Best Choice | Why |
|---|---|---|
| All-around best | Fidelity | Best research, fractional shares, lowest index fund fees |
| Banking + investing | Schwab | Best checking account, ATM fee reimbursement |
| Simple index investing | Vanguard | Investor-owned, invented index funds |
| Options trading | E*TRADE or Interactive Brokers | Better options tools and pricing |
| International investing | Interactive Brokers | Best international market access |
| Beginner investor | Fidelity | Simple interface, fractional shares, no minimums |
| Retirement accounts | All three are excellent | Any of the big three work great for IRAs/401k rollovers |
Account Types Available
| Account Type | Fidelity | Schwab | Vanguard |
|---|---|---|---|
| Individual taxable | Yes | Yes | Yes |
| Joint taxable | Yes | Yes | Yes |
| Traditional IRA | Yes | Yes | Yes |
| Roth IRA | Yes | Yes | Yes |
| SEP IRA | Yes | Yes | Yes |
| 529 Plan | Yes | Yes (certain states) | Yes |
| HSA | Yes | Yes | No (indirectly) |
| Trust account | Yes | Yes | Yes |
| Custodial (UTMA/UGMA) | Yes | Yes | Yes |
| Solo 401(k) | Yes | Yes | Yes (limited) |
See How to Open a Brokerage Account for a step-by-step walkthrough and Before You Open a Brokerage Account for key decisions to make first.
Brokerage Head-to-Head Comparisons
If you’re torn between two specific brokerages, these detailed comparisons break down every difference:
| Comparison | Winner | Key Difference |
|---|---|---|
| Fidelity vs Schwab | Fidelity (slightly) | Better fractional shares and fund selection |
| Fidelity vs Vanguard | Fidelity | Better tools, app, and fractional shares |
| Schwab vs Vanguard | Schwab | Better banking and customer service |
| Vanguard vs Fidelity vs Schwab | All excellent | Comes down to personal priorities |
| Robinhood vs Fidelity | Fidelity | More serious platform, better research |
| Webull vs Robinhood | Depends on needs | Webull better charts; Robinhood simpler |
| E*TRADE vs Schwab | Schwab (post-merger) | Now essentially the same company |
Robo-Advisors vs Self-Directed
| Feature | Self-Directed | Robo-Advisor | Human Advisor |
|---|---|---|---|
| Annual fee | $0 | 0.25-0.50% | 0.50-1.00% |
| Cost on $500K | $0/year | $1,250-$2,500/year | $2,500-$5,000/year |
| Tax-loss harvesting | Manual | Automatic | Usually included |
| Rebalancing | Manual | Automatic | Included |
| Personalization | Full control | Limited (risk-based) | High |
| Best for | Confident investors | Hands-off investors | Complex situations |
For most people investing in 2-3 index funds, self-directed is the clear winner — you save thousands in fees with 15 minutes of work per year. For those who won’t invest unless it’s completely automatic, a robo-advisor is better than not investing at all.
See Best Robo-Advisors and Should I Use a Robo-Advisor?
Do You Need a Financial Advisor?
| Situation | DIY Investing | Robo-Advisor | Financial Advisor |
|---|---|---|---|
| Simple portfolio (index funds) | ✓ Best | ✓ Fine | Overkill |
| Complex tax situation | Maybe | No | ✓ Best |
| Approaching retirement | Maybe | Maybe | ✓ Best |
| Inherited large sum | No | No | ✓ Best |
| Business owner | No | No | ✓ Best |
| Want someone to call | No | Limited | ✓ Yes |
If you do hire an advisor, use a fee-only fiduciary who charges a flat fee or hourly rate — not a percentage of assets or commissions. A one-time financial plan ($1,000-$3,000) can set your strategy without ongoing costs.
See Financial Advisor Guide, Should I Hire a Financial Advisor?, and Before You Hire a Financial Advisor.
What Happens If Your Brokerage Goes Under?
SIPC (Securities Investor Protection Corporation) protects your accounts:
| Protection | Coverage |
|---|---|
| SIPC insurance | Up to $500,000 per account type ($250,000 cash max) |
| Excess SIPC (Fidelity) | Additional coverage beyond SIPC limits |
| Excess SIPC (Schwab) | Additional coverage beyond SIPC limits |
| Your securities | Held in your name, separate from brokerage assets |
Your stocks, bonds, ETFs, and mutual funds are legally your property, not the brokerage’s. Even without SIPC, a brokerage failure means your assets transfer to another brokerage — they don’t disappear.
See What Happens If Your Brokerage Goes Bankrupt? for the full explanation.
Brokerage Account Minimums and Limits
| Brokerage | Account Minimum | Transfer Limit | Mobile Deposit |
|---|---|---|---|
| Fidelity | $0 | $100,000/day (EFT) | $100,000/day |
| Schwab | $0 | $100,000/day | $200,000/day |
| Vanguard | $0 ($3,000 for mutual funds) | $250,000/day | N/A |
| Robinhood | $0 | $50,000/day | N/A |
| E*TRADE | $0 | $100,000/day | $100,000/day |
See Brokerage Account Minimums for the complete comparison.
Quick Reference Table
| Topic | Key Number | Learn More |
|---|---|---|
| Stock/ETF commissions (all major) | $0 | How to start investing |
| Lowest S&P 500 fund ratio | 0.015% (Fidelity FXAIX) | Best index funds |
| Robo-advisor fees | 0.25-0.50%/year | Best robo-advisors |
| SIPC coverage | $500,000 per account type | What happens if brokerage fails |
| Best overall brokerage | Fidelity | Fidelity vs Schwab |
The Bottom Line
Fidelity, Schwab, and Vanguard are all excellent choices — you can’t go wrong with any of them. Fidelity edges ahead for most people with its combination of zero-expense-ratio funds, fractional shares, excellent research tools, and strong customer service. Schwab wins if you want integrated banking. Vanguard is ideal for buy-and-hold index investors who want the simplest approach. The most important decision isn’t which brokerage to pick — it’s starting to invest.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy