Fidelity vs Vanguard (2026)
Fidelity and Vanguard both charge $0 for online stock and ETF trades and hold idle cash in money market funds. Vanguard reports no payment for order flow but charges $1 per options contract, $100 per account to close or fully transfer out and $25 a year per account without e-delivery; Fidelity charges $0.65 a contract and $0 to transfer out, and offers fractional shares of individual stocks.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Fidelity | Vanguard |
|---|---|---|
| Type | Full-service | Discount |
| Stock/ETF commission | $0 | $0 |
| Options per contract | $0.65/contract | $1.00/contract |
| 10-contract options trade, open + close | $13 ($312 a year at 2 a month) | $20 ($480 a year at 2 a month) |
| Rate on uninvested cash | 3.48% 7-day yield if you pick SPAXX (no default named) | 3.82% 7-day yield (Vanguard Federal Money Market Fund (VMFXX), the settlement fund) |
| Margin rate on $10,000 | 12.075% | 12.25% |
| Transfer out (full account) | $0 | $100 |
| Paid tier | None | None |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Account types | IRA, Roth, SEP, SIMPLE, solo 401(k), HSA, 529, youth | Taxable, IRA |
| Platforms | Web, iOS, Android, Desktop | Web, iOS, Android |
Options, cash and margin rows are our arithmetic from each broker's published commissions, default cash rate and margin rates (commissions only, before small regulatory and exchange fees). Rates change with the Federal Reserve's rate.
Key differences
For a fund investor, the question is whose funds you buy. Vanguard mutual funds trade online for $0, and Vanguard ETFs and mutual funds can be bought by dollar amount from $1, but individual stocks and other companies' ETFs trade only in whole shares there. Fidelity sells fractional shares of NYSE and Nasdaq-listed stocks and ETFs from $1. For outside funds, transaction-fee funds cost $20 online at Vanguard under $1 million in Qualifying Assets and $49.95 per purchase at Fidelity (some up to $100). Selling a non-Vanguard fund within 60 days at Vanguard costs a $50 early redemption fee; selling a Fidelity no-transaction-fee fund within 60 days costs $49.95.
Vanguard's fees are charged per account, which adds up for a household with several. Hypothetically, an investor with a taxable account, a traditional IRA and a Roth IRA who keeps paper statements pays 3 x $25 = $75 a year at Vanguard; e-delivery makes it $0. Moving all three to another broker later costs 3 x $100 = $300 at Vanguard, unless Qualifying Assets reach $5 million. Fidelity lists $0 to transfer assets out, $0 to close an IRA and a $0 annual IRA fee, which matters if you park a 401(k) rollover you may move again.
Both put idle cash in money market funds, set up differently: Vanguard uses VMFXX as the default settlement fund (3.82% 7-day SEC yield on October 16, 2026), while Fidelity's taxable accounts have you choose a core position and name no default. Vanguard says it received no payment for order flow in its Q2 2026 Rule 606 report; Fidelity's report shows payments on options and equity orders. Both have regulatory records: the SEC announced in January 2025 that The Vanguard Group would pay $106.41 million over Target Retirement Fund disclosures, and Massachusetts fined Fidelity $1,250,000 in April 2026 over a cybersecurity lapse that exposed customer document images.
Where Fidelity wins
- $0 to transfer out, close an IRA or send a domestic wire
- Money market core positions in taxable accounts, with SPAXX at 3.48% (7-day yield, September 30, 2026)
- Fractional shares in NYSE and Nasdaq-listed stocks and ETFs from $1
- Online trading in 25 countries and 16 currencies
- Excess of SIPC coverage with a $1.9 million per-customer cash limit
Where Vanguard wins
- Default settlement fund is a money market fund (VMFXX)
- Reports no payment for order flow
- Dollar-based buys of Vanguard ETFs and funds from $1
- Fees fall at $1 million and $5 million in Qualifying Assets
- Vanguard mutual funds trade online for $0
Which should you choose?
Pick Fidelity if
- You hold funds or ETFs for the long run and want $0 transfer-out, IRA closing and annual IRA fees.
- You want a money market fund as the core position for idle cash rather than a bank sweep.
- You want branches: Fidelity says it has 215 Investor Centers.
- You buy foreign shares on their home exchange in a taxable account (25 countries).
Pick Vanguard if
- You buy Vanguard ETFs or mutual funds and want to invest set dollar amounts from $1.
- You want uninvested cash in a money market fund without picking one.
- You want a broker that reports no payment for order flow.
- You have $1 million or more at Vanguard, where options trades, wire and annual fees start to be waived.
Fidelity vs Vanguard: FAQ
Is Fidelity cheaper than Vanguard for options?
Under $1 million in Vanguard Qualifying Assets, yes on the published schedules: Fidelity charges $0.65 a contract online and Vanguard $1 a contract. A hypothetical 10-contract round trip is 20 x $0.65 = $13 at Fidelity and 20 x $1 = $20 at Vanguard. Vanguard waives the first 25 options trades a year from $1 million to $4.99 million, and the first 100 at $5 million and up. Exercises and assignments are $0 at both.
Which pays more on cash, Fidelity or Vanguard?
The figures we have are from different dates. Vanguard's default settlement fund, VMFXX, had a 3.82% 7-day SEC yield on October 16, 2026. Fidelity's SPAXX had a 3.48% 7-day yield and FZFXX 3.52% on September 30, 2026, and FCASH paid 1.94%. Yields change daily, so check both on the same day. See our money market fund comparison.
Can I move from Vanguard to Fidelity for free?
You start the transfer at Fidelity. Vanguard may charge a $100 processing fee for each account you close or fully transfer, unless you have $5 million in Qualifying Assets or an advisory account; bank transfers of cash are not charged this fee. If you later leave Fidelity, it charges $0 to transfer assets out or close an IRA.
Compare these against every option in our online brokers comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both brokers, each checked against the broker's own fee schedule, rate and disclosure pages on October 19, 2026 with every source listed. Some outbound links may be affiliate links. That never affects our comparisons. Nothing here is investment advice.