Charles Schwab vs Vanguard (2026)
Schwab and Vanguard both charge $0 for online stock and ETF trades and have no account minimum. Vanguard sends idle cash to a money market settlement fund and reports no payment for order flow; Schwab pays 0.01% APY on uninvested cash, charges $0.65 an options contract against Vanguard's $1, and offers futures, fractional shares of most US-listed stocks and branches.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Charles Schwab | 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 | 0.01% APY (Uninvested cash in the brokerage account) | 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) | $50 | $100 |
| Paid tier | None | None |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Account types | IRA, Roth, SEP, SIMPLE, solo 401(k), custodial, 529 | 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
Cash is the clearest split. At Vanguard, uninvested cash goes to Vanguard Federal Money Market Fund (VMFXX) by default, which had a 3.82% 7-day SEC yield on October 16, 2026. At Schwab, uninvested brokerage cash earned 0.01% APY on October 19, 2026 unless you buy a money fund such as SWVXX (3.71% 7-day yield on October 16, 2026). Hypothetically, $10,000 left untouched for a year earns $10,000 x 3.82% = $382 at the VMFXX yield if it held, against $10,000 x 0.01% = $1 at Schwab's rate. A Schwab investor who buys SWVXX closes much of that gap.
For traders, Schwab has more on the menu. It offers futures at $2.25 a contract per side, 24/5 trading in over 1,300 stocks and ETFs, thinkorswim on desktop, web and mobile, and a Global Account for 12 foreign markets. Options cost $0.65 a contract at Schwab and $1 at Vanguard under $1 million in Qualifying Assets. Vanguard sells fractional amounts only of Vanguard ETFs and mutual funds; Schwab Stock Slices cover most US-listed stocks and ETFs from $1. Schwab takes payment for order flow, up to $0.67 a contract on marketable options orders in Q2 2026; Vanguard reports none.
Both charge to leave, at different levels: $50 for a full transfer out at Schwab ($0 for a partial one) and $100 per account closure or full transfer at Vanguard, waived at $5 million in Qualifying Assets. Vanguard also charges $25 a year per account unless you choose e-delivery. Schwab reported more than 380 branches at the end of 2025. On the regulatory record, the SEC fined Schwab $10,000,000 in January 2025 over off-channel business communications, and the SEC announced the same month that The Vanguard Group would pay $106.41 million over Target Retirement Fund disclosures.
Where Charles Schwab wins
- Futures at $2.25 a contract, plus options, bonds and funds in one firm
- 24/5 trading in over 1,300 stocks and ETFs
- More than 380 branches in 48 states and DC
- Satisfaction Guarantee refunds eligible fees if asked within 90 days
- Online trading on 12 foreign markets through the Global Account
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 Charles Schwab if
- You want thinkorswim on desktop, web and mobile with 24/5 trading in over 1,300 stocks and ETFs.
- You trade futures and want them in the same firm as your IRA.
- You want a branch nearby: Schwab reported more than 380 in 48 states and DC at the end of 2025.
- You want fractional shares in most US-listed stocks and ETFs from $1.
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.
Charles Schwab vs Vanguard: FAQ
Is Schwab cheaper than Vanguard for options?
Under $1 million in Vanguard Qualifying Assets, yes on the published schedules: Schwab charges $0.65 a contract online and Vanguard $1. A hypothetical 10-contract round trip is 20 x $0.65 = $13 at Schwab and 20 x $1 = $20 at Vanguard. Vanguard waives the first 25 options trades a year from $1 million to $4.99 million. See our options platform guide.
Which pays more on cash, Schwab or Vanguard?
On money left untouched, Vanguard: its default settlement fund VMFXX had a 3.82% 7-day SEC yield on October 16, 2026, while Schwab's uninvested brokerage cash earned 0.01% APY on October 19, 2026. Schwab's SWVXX had a 3.71% 7-day yield on October 16, 2026, but you have to buy it.
Can I move from Vanguard to Schwab for free?
You start the transfer at Schwab. Vanguard may charge $100 for each account you close or fully transfer out, unless you have $5 million in Qualifying Assets or an advisory account. Going the other way, Schwab charges $50 for a full transfer and $0 for a partial one, and its fractional shares do not transfer.
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.