fidelity vs vanguard for personal investment

Oct 18, 2019 9 Comments

With Amazon's 401k move on the horizon, i was planning to get a head start and nove my personal vanguard account to fidelity.

Fidelity provides
sort of checking account with debit card.
access to same vanguarf funds(?)
no fees at all

is it too good to be true? Any disadvantage of moving account to fidelity?

tc: 250k


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TOP 9 Comments
  • Google
    Me hh


    Me hhmore
    Fidelity is amazing. I used it while at Microsoft. The best part is, you can have both 401k and stock account at Fidelity
    Oct 18, 2019 0
  • LinkedIn rintintint
    It is not about site speed and bla bla, people, it is about low-cost (low ER) index funds and fund performance. Vanguard has established index funds with low ER and long-term historical performance over other funds. And Fidelity creating these two zero-fee funds does not change a thing, because they started a year ago and we don’t know how their long-term performance will be. And if you are investing in individual stocks, do not use any of them (or if you really want to use it, Fidelity moved to zero commissions just this week).

    I would say, in terms of fund performance, Vanguard is the better choice. Fidelity has better Analytics features. So, do your research in Fidelity, but buy funds in Vanguard (You can buy some Vanguard funds in Fidelity, but comes with a fixed or per-transaction fee).

    One more thing: Vanguard is the only brokerage firm which gave ownership in the company to the shareholders of mutual funds. So, when you hold a Vanguard mutual fund, you are the owner of the company as well. Therefore, Vanguard has no incentive to take extra fees from you.

    Vanguard all the way for investing. Fidelity for analytics.
    Oct 19, 2019 1
    • Microsoft / Eng HINs46
      I thought most people just use ETFs nowadays
      Oct 19, 2019
  • Microsoft / Eng HINs46
    That's a recent change, so sit back and see people change their minds. Note that Fidelity only got free commissions on stock and ETF. Vanguard mutual funds still need transaction fee. If there is some vanguard mutual fund you really like, then vanguard accounts still got some plus here.

    I'm still waiting vanguard to join this commission free war. In the past, the major reason people opening vanguard accounts is access to vanguard funds. Now that advantage boils down to nothing. Don't think vanguard will sit and see people leave, so I'm still waiting...
    Oct 18, 2019 0
  • Amazon az5
    Not really, I still use funds. I like the factor that you can invest any amount and not just rounding upto etf.

    Is it possible to convert vanguard funds to etf and then transfer we etfs to fidelity? I know for sure vanguard allows conversion but not sure if you can move them to fidelity without selling.
    Oct 19, 2019 1
    • LinkedIn rintintint
      You can. Look up in-kind transfer. You may have to fill forms and send the transfer request form in a direct mail.
      Oct 19, 2019
  • Charles Schwab iKyr23
    Obviously biased myself, but I would suspect that the service you’ll receive at Fidelity will be a lot better. Plus, the benefit of having physical locations will prove useful at some point. To my understanding, Vanguard has a difficult time when there are high call volumes. From a service perspective, this could be a nightmare.
    Oct 19, 2019 0
  • Amazon sbsjhskab
    I don't have a beef with vanguard fees as I only invest in etf there. There site and app are horrible though.
    Oct 18, 2019 0
  • I don't know why everyone seemingly has a hard-on for Vanguard these days. I have accounts with both Fidelity and Vanguard and I think Fidelity is much better. Vanguard's site and app are a UI/UX nightmare
    Oct 18, 2019 0


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