Choosing the right brokerage account can save you thousands in fees over a lifetime of investing. The good news: competition has driven most major brokerages to offer $0 commissions and no minimums.
Top Brokerage Accounts Compared
| Feature | Fidelity | Charles Schwab | Vanguard | E*TRADE | Interactive Brokers |
|---|---|---|---|---|---|
| Stock/ETF commissions | $0 | $0 | $0 | $0 | $0 |
| Account minimum | $0 | $0 | $0 | $0 | $0 |
| Mutual fund selection | 10,000+ (3,400+ no-load, no-fee) | 4,200+ no-load, no-fee | 200+ Vanguard + others | 4,400+ no-fee | 40,000+ |
| Fractional shares | Yes (stocks + ETFs) | Yes (Schwab Stock Slices) | No | No | Yes |
| Options (per contract) | $0.65 | $0.65 | $1.00 | $0.50-$0.65 | $0.65 |
| Research/tools | Excellent | Excellent | Basic | Good | Advanced |
| Mobile app | Excellent | Good | Basic-Good | Good | Complex |
| Banking services | Yes (cash management) | Yes (checking, savings) | Limited | Limited | Limited |
| Customer service | Excellent | Excellent | Good | Good | Limited |
| Best for | Most investors | Banking + investing | Long-term index investing | Options traders | Advanced/international |
Fee Comparison: What You Actually Pay
| Fee Type | Fidelity | Schwab | Vanguard |
|---|---|---|---|
| Stock/ETF trades | $0 | $0 | $0 |
| Mutual fund trades (non-NTF) | $49.95 | $49.95 | $0-$20 |
| Options base | $0 | $0 | $0 |
| Options per contract | $0.65 | $0.65 | $1.00 |
| Account transfer (ACAT) | $0 | $0 | $0 |
| Wire transfer | $0-$10 | $0-$25 | $0-$10 |
| Paper statements | $0 | $0 | $0 |
| Annual fee | $0 | $0 | $0 ($20/fund if under $50K for some) |
Lowest-Cost Index Funds by Brokerage
| Index | Fidelity Fund (Expense Ratio) | Schwab Fund | Vanguard Fund |
|---|---|---|---|
| S&P 500 | FXAIX (0.015%) | SWPPX (0.02%) | VFIAX (0.04%) |
| Total US Stock Market | FSKAX (0.015%) | SWTSX (0.03%) | VTSAX (0.04%) |
| International Stock | FTIHX (0.06%) | SWISX (0.06%) | VTIAX (0.12%) |
| US Bond Market | FXNAX (0.025%) | SWAGX (0.04%) | VBTLX (0.05%) |
| S&P 500 ETF | — | SCHB (0.03%) | VOO (0.03%) |
Fidelity has a slight edge on expense ratios for index funds, but the differences are negligible at these levels.
Choosing the Right Brokerage
| Your Priority | Best Choice | Why |
|---|---|---|
| All-around best | Fidelity | Best research, fractional shares, lowest index fund fees |
| Banking + investing | Schwab | Best checking account, ATM fee reimbursement |
| Simple index investing | Vanguard | Investor-owned, invented index funds |
| Options trading | E*TRADE or Interactive Brokers | Better options tools and pricing |
| International investing | Interactive Brokers | Best international market access |
| Beginner investor | Fidelity | Simple interface, fractional shares, no minimums |
| Retirement accounts | All three are excellent | Any of the big three work great for IRAs/401k rollovers |
Account Types Available
| Account Type | Fidelity | Schwab | Vanguard |
|---|---|---|---|
| Individual taxable | Yes | Yes | Yes |
| Joint taxable | Yes | Yes | Yes |
| Traditional IRA | Yes | Yes | Yes |
| Roth IRA | Yes | Yes | Yes |
| SEP IRA | Yes | Yes | Yes |
| 529 Plan | Yes | Yes (certain states) | Yes |
| HSA | Yes | Yes | No (indirectly) |
| Trust account | Yes | Yes | Yes |
| Custodial (UTMA/UGMA) | Yes | Yes | Yes |
| Solo 401(k) | Yes | Yes | Yes (limited) |
The Bottom Line
Fidelity, Schwab, and Vanguard are all excellent choices—you can’t go wrong with any of them. Fidelity edges ahead for most people with its combination of zero-expense-ratio funds, fractional shares, excellent research tools, and strong customer service. Schwab wins if you want integrated banking. Vanguard is ideal for buy-and-hold index investors who want the simplest approach. The most important decision isn’t which brokerage to pick—it’s starting to invest.