Vanguard vs Fidelity for investing and your IRA in 2026
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Key takeaways
- IRAs held $19.9 trillion in assets at the end of the second quarter of 2026, up 9.2% from the first quarter.1
- When choosing between Vanguard and Fidelity, start with how much you have for your first fund and whether you trade options before you compare anything else.
- Fidelity is the stronger fit for a new saver who wants index funds with no minimum and a free exit, while Vanguard is the stronger fit for a hands-off investor above $25,000 who wants a lower robo advisor fee.
In this article
- Vanguard vs Fidelity at a glance
- What is Vanguard?
- What is Fidelity?
- Vanguard vs Fidelity features compared
- Vanguard vs Fidelity fees for three kinds of investor
- Vanguard vs Fidelity for a Roth IRA
- Should you choose Vanguard or Fidelity?
- Price your own year before you pick a fund family
- Frequently asked questions about Vanguard vs Fidelity
Key takeaways
- IRAs held $19.9 trillion in assets at the end of the second quarter of 2026, up 9.2% from the first quarter.1
- When choosing between Vanguard and Fidelity, start with how much you have for your first fund and whether you trade options before you compare anything else.
- Fidelity is the stronger fit for a new saver who wants index funds with no minimum and a free exit, while Vanguard is the stronger fit for a hands-off investor above $25,000 who wants a lower robo advisor fee.
Vanguard vs Fidelity is a tie on stock and ETF trades, because both charge $0 online.2 The differences are in options, fund minimums, account fees, and managed accounts. Fidelity charges less per options contract, sells index funds with no minimum, and charges nothing to transfer out, while Vanguard's robo advisor costs less on a larger balance. This guide compares Vanguard and Fidelity across trading costs, fund minimums, managed accounts, and what each charges inside a Roth IRA.
Vanguard vs Fidelity at a glance
Vanguard and Fidelity charge the same for stock and ETF trades and differ on almost everything else. Every figure comes from the firm's own pricing pages, read in the week before October 6, 2026.
| Vanguard | Fidelity | |
|---|---|---|
| Online stock and ETF trades | $0 | $0 |
| Options | $0 + $1 per contract, under $1 million in qualifying assets | $0.65 per contract |
| House index funds | Admiral Shares: $3,000 minimum for most | ZERO index funds: 0% expense ratio, no minimum |
| Target-date funds | Target Retirement Funds: $1,000 minimum | Not compared here |
| Annual account fee | $25 per brokerage account, waived with e-delivery or $1 million in qualifying assets | $0 |
| Robo advisor | Digital Advisor: $100 minimum, 0.20% gross for index portfolios | Fidelity Go: $0 under $25,000, 0.35% at $25,000 and up |
| IRA match | None shown | None |
| Full account transfer out | $100 processing fee | $0 |
What is Vanguard?
Vanguard is a broker and fund company built around its own index mutual funds and ETFs. Vanguard charges $0 on online stock and ETF trades. Vanguard's mutual funds carry minimums, such as $3,000 for most Admiral Shares index funds, and Vanguard runs Digital Advisor, a robo advisor that opens at $100.
What is Fidelity?
Fidelity is a full-service broker with no account fee and no minimum to open. Its fund family includes four ZERO index funds that charge a 0% expense ratio with no minimum investment.3 Fidelity also runs Fidelity Go, a robo advisor that charges no advisory fee on balances under $25,000.
Vanguard vs Fidelity features compared
Each section below opens with the broker that comes out ahead on that feature.
Stock, ETF, and options trading
Fidelity wins for an options trader, because it charges $0.65 per contract vs Vanguard's $1. Vanguard's $1 rate applies to clients with under $1 million in qualifying assets. Stock and ETF trades cost $0 online at both, so a buy-and-hold investor sees no difference here.
Index and mutual funds
Fidelity wins for a saver starting small, because its ZERO index funds have no minimum, while most of Vanguard's Admiral Shares index funds need $3,000.4 Vanguard's Target Retirement Funds open lower, at $1,000. A few Vanguard funds also charge a purchase or redemption fee. Expense ratios on Vanguard's funds weren't part of this check, so read the fund's own page before you buy.
Account fees
Fidelity wins on account fees by charging none. Vanguard charges $25 a year per brokerage account and waives it for e-delivery or $1 million in qualifying assets. If you switch to e-delivery, Vanguard's account fee drops to $0, the same as Fidelity's.
Managed accounts
Vanguard wins for a hands-off investor with a larger balance, because Digital Advisor's gross fee of 0.20% is lower than Fidelity Go's 0.35%. Below $25,000, Fidelity Go is cheaper: Fidelity Go charges no advisory fee at all, while Digital Advisor charges its 0.20% fee from the $100 minimum up.
Vanguard vs Fidelity fees for three kinds of investor
Vanguard vs Fidelity fees depend on what you'll do with the account, so here is a year priced for three investors. Every figure is a published fee; returns and fund expense ratios aren't modeled.
An options trader
An options trader pays more per contract at Vanguard, and the gap grows with every contract you trade. Most savers never place an options trade.
| Options contracts per year | Vanguard | Fidelity |
|---|---|---|
| 100 | $100 | $65 |
| 500 | $500 | $325 |
| 1,000 | $1,000 | $650 |
A new saver opening with $1,000
A saver opening with $1,000 can buy any Fidelity ZERO index fund. At Vanguard, the same saver can buy a Target Retirement Fund but not most Admiral Shares index funds.
| Opening with $1,000 | Vanguard | Fidelity |
|---|---|---|
| The firm's main index funds | Not yet: most Admiral Shares need $3,000 | Yes: ZERO funds have no minimum |
| Commission on an ETF purchase | $0 | $0 |
| Annual account fee, paper statements | $25 | $0 |
| Annual account fee, e-delivery | $0 | $0 |
A hands-off investor using a robo advisor
An investor using a robo advisor pays less at Fidelity below $25,000 and less at Vanguard above $25,000. The table uses Vanguard's gross fee. Fidelity Go's 0.35% covers the whole balance once the balance reaches $25,000, because Fidelity calculates the fee at the account level. Vanguard's own all-in estimate for an all-index portfolio is lower than the gross fee, so the Vanguard column overstates Vanguard's cost.
| Balance managed | Vanguard Digital Advisor, 0.20% gross | Fidelity Go |
|---|---|---|
| $10,000 | $20 | $0 |
| $25,000 | $50 | $87.50 |
| $50,000 | $100 | $175 |
| $100,000 | $200 | $350 |
Vanguard vs Fidelity for a Roth IRA
Vanguard vs Fidelity for a Roth IRA is closer than the account fee makes it look. Neither pays an IRA match, both charge $0 on online stock and ETF trades, and Vanguard's $25 fee goes away with e-delivery. That leaves two places where a Roth saver pays a different price: the first deposit and the cost of leaving. Fidelity lets you start a Roth with $1 and charges nothing to leave, while Vanguard offers a spousal IRA alongside its traditional, Roth, and rollover accounts.
| Roth IRA | Vanguard | Fidelity |
|---|---|---|
| IRA match | None shown | None |
| Smallest way in | Digital Advisor at $100; Target Retirement Funds at $1,000 | $1 |
| Managed Roth option | Digital Advisor, 0.20% gross for index portfolios | Fidelity Go, $0 under $25,000, 0.35% of the whole balance from $25,000 |
| Fee to close or transfer out | $100 | $0 |
The 2026 IRA limit is the same at any broker, so where you hold the account changes what you pay, not how much you can save. If a match matters more to you than fund choice, the best Roth IRA accounts list includes brokers that pay a match.
Should you choose Vanguard or Fidelity?
Should you choose Vanguard or Fidelity? Both suit a long-term index investor, so the choice depends on three things: your first deposit, how often you trade options, and whether you want a robo advisor on a large balance. If Charles Schwab is also on your list, Schwab vs Fidelityand Vanguard vs Schwab cover those pairings.
Choose Vanguard if
- You want Vanguard's own funds and already have $3,000 for an Admiral Shares index fund
- You want a robo portfolio on a balance above $25,000 at a gross fee below Fidelity Go's
- You want a spousal IRA for a partner with little or no income
Choose Fidelity if
- You're starting with less than $3,000 and want index funds with no minimum
- You trade options, where Fidelity charges $0.65 a contract
- You want leaving later to cost $0, not the $100 Vanguard charges to close or fully transfer out
Price your own year before you pick a fund family
Your first deposit and your balance decide which broker costs less, not the brand. Price your year with the three examples above, then run theTweed retirement calculator to see what a fee gap of a few hundred dollars a year compounds to by the time you retire. A fee you pay every year for decades costs far more than it looks on the day you open the account. Thebest IRA accounts roundup compares both firms with other IRA providers.
Frequently asked questions about Vanguard vs Fidelity
Can I have a Roth IRA at both Vanguard and Fidelity?
Yes, you can have a Roth IRA at both Vanguard and Fidelity, but every IRA you own shares one IRS limit. For 2026 that's $7,500 in total, or $8,600 at 50 and older, split however you like. Contributions above the limit owe a 6% excise tax for each year the excess stays uncorrected.
Does Vanguard charge a fee to buy other companies' funds?
Yes, Vanguard charges $20 per online trade on non-Vanguard transaction-fee mutual funds, under its fee schedule effective July 10, 2026. If you sell one within 60 days, a $50 early redemption fee also applies. Fidelity charges $49.95 per purchase on transaction-fee funds from other companies. Outside funds cost extra at both firms.
What is Fidelity's margin rate?
Fidelity's margin rate depends on how much you borrow. A loan under $25,000 pays 12.075%, which is more than the advertised base rate of 10.825%, effective September 18, 2026. Loans above $1,000,000 pay as little as 7.75%.
Can I roll a 401(k) into Vanguard or Fidelity?
Yes, you can roll a 401(k) into either firm, because both offer rollover IRAs. Neither pays a rollover match. The rollover doesn't count against the annual IRA limit. Moving pre-tax 401(k) dollars into a Roth IRA is a taxable conversion, so most people roll pre-tax money into a traditional or rollover IRA.
How trustworthy is Vanguard?
Vanguard is trustworthy if the broker fails, because its brokerage accounts are held at a SIPC member. SIPC protects up to $500,000 per customer, including $250,000 for cash. SIPC doesn't cover market losses, so what you own can still fall in value. Fidelity's brokerage is a SIPC member too.
Is Vanguard or Fidelity better for a money market fund?
Vanguard vs Fidelity on money market funds can't be settled from confirmed figures alone. Fidelity's SPAXX showed a 3.49% seven-day yield as of October 5, 2026, while Vanguard's settlement fund yield wasn't confirmed on its own pages for this update. Compare both firms' current yields before moving cash, because yields change daily.
What are the top 3 brokerage firms?
There is no official list of the top 3 brokerage firms. Rankings for long-term investors usually name Vanguard, Fidelity, and Charles Schwab. Schwab alone reported $13.41 trillion in client assets at the end of August 2026. A firm's size suggests it will last, but not that it's cheaper for what you hold.
Sources
- https://www.ici.org/statistical-report/ret_26_q2
- https://investor.vanguard.com/client-benefits/investment-fees
- https://www.fidelity.com/mutual-funds/investing-ideas/index-funds
- https://investor.vanguard.com/investment-products/mutual-funds/fees
- https://www.fidelity.com/why-fidelity/pricing-fees
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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