Fidelity vs Vanguard
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Anonymous
| I am brand new at the stocks game, IRA, etc. I would appreciate any insight which investing company would be better for someone with limited funds to pay investing expenses. |
Anonymous
| I use Vanguard, but just heard a financial advisor say that all the discount brokerages are essentially interchangeable and she didn't have a preference among them. |
Anonymous
| I agree. Personally, I use T. Rowe Price because I found them to have the lowest minimums to open an account. I pay $20 a year for my IRA. |
Anonymous
|
I've got big accounts at both. Agree that they are basically interchangeable. Because of the nature of the accounts I am on Fidelity's website more. It is pretty good. You might want to compare websites if that will be your primary interaction.
Are you doing individual stocks or mutual funds? |
Anonymous
There is a difference between a discount brokerage-- which lets you trade stocks cheaply-- and a mutual fund company. Likewise there is a difference between the fees for having an account set up and the fees your mutual fund charges. Fidelity is known for its managed funds, meaning they have people whose job it is to pick stocks and try and beat the market. Vanguard is known for having index funds-- they pick a wide set of stocks and leave them alone. Generally it is slightly more expensive (say .5-1% more each year) to invest in managed funds, and there are a lot of people who say in the long run you are better off with low cost index funds. I'd suggest poking around the bogleheads forums (which will heavily favor Vanguard) or the CNN/Money personal finance site (Money 101). |
Anonymous
|
Either is perfectly good. Vanguard has a very broad array of low-cost index funds, which is probably the way you will want to go. Fidelity now also has a good selection of low-cost index funds that are compettive with Vanguard's. Perhaps there's a slight edge to Vanguard's fund offerings in this respect though.
Fidelity does have physical office locations in DC with in-house financial planners who will meet with you to discuss your finances and goals, which I have found to be helpful. I don't believe Vanguard has this service. So if that's something you may find useful, I'd go with Fidelity. |
Anonymous
| 11:40 again. Fidelity and Vanguard are best for buying mutual funds -- either actively managed or passive/index funds (note passive/index have lower fees). You can buy/sell some stocks, but if you are looking to ACTIVELY buy/sell stocks and don't have a large amount to invest yet, you may look into a discount brokerage account, such as through e-trade or some similar company. |
Anonymous
Would e-trade be good for buying a share or two of stocks for anyone with very little money. |
Anonymous
PP here, I wasn't sure and was curious since I have a Fidelity account. turns out they have $7.95 stock trades: https://login.fidelity.com/ftgw/Fidelity/RtlCust/Login/Init/df.chf.ra/Trade?AuthRedUrl=https://oltx.fidelity.com/ftgw/fbc/ofsummary/defaultPage&AuthOrigUrl=https://scs.fidelity.com/customeronly/trade.shtml But note you usually need at least $2,500 in an account at Fidelity. Here's a Smart Money article about discount brokers: http://www.smartmoney.com/invest/markets/smartmoneys-annual-broker-survey-23119/ |