Overview

Schwab or Vanguard—which broker delivers the stronger investing experience? Vanguard is known mainly for low-cost fund investing, while Schwab offers a wider trading-platform setup and more tradable products for active investors. For the full breakdown, keep reading.

Commissions and Account Minimums

For Customer Service, Schwab Wins

Schwab has a larger support network and branch presence for investors who prefer in-person assistance. Schwab also offers 24/7 phone and chat trading support, including support during extended and overnight trading sessions on thinkorswim.

Vanguard offers brokerage support and online account access, but its trading-platform lineup is more limited than Schwab’s. Investors who want local branches, more trading platforms, and around-the-clock trading help will usually find more of those services at Schwab.

For Available Investments, Schwab Also Wins

Self-directed investors at both companies can trade these products:

• Stocks
• Options
• Exchange-traded funds
• Mutual funds
• CDs
• Bonds and other fixed-income investments

Schwab adds more trading choices, including futures, futures options, forex, Schwab Stock Slices, and 24/5 trading in more than 1,100 stocks and ETFs on thinkorswim. Schwab also has broader international-trading resources than Vanguard Brokerage.

Promotions

Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.

Vanguard: No promotions right now.

For Stock Research, Schwab Wins Easily

Schwab security profiles include a strong collection of research and analysis features, such as stock ratings, market data, charting, screeners, and third-party research resources.

Vanguard also provides research features and useful educational material, but its brokerage service is aimed more at long-term investing than frequent stock trading.

Stock and ETF traders who want more active-trading tools will find the stronger platform lineup at Schwab because it offers Schwab.com, Schwab Mobile, and thinkorswim web, desktop, and mobile.

For Robo Accounts, It’s Pretty Even

Schwab Intelligent Portfolios has a $5,000 minimum and charges no advisory fee or commissions. Investors still pay ETF operating expenses and other direct and indirect costs, and Schwab receives revenue connected to the program’s cash allocation. The service creates and monitors diversified ETF portfolios.

Vanguard Digital Advisor has a $100 minimum for brokerage-account enrollment. Its gross annual advisory fee is 0.20% for an index portfolio option or 0.25% for an active portfolio option, while the actual net fee can vary after Vanguard credits certain retained revenue. Vanguard says Digital Advisor offers automated investing with both fund- and ETF-based portfolios.

For Website Technology, Schwab Is Way Ahead

Schwab’s website and thinkorswim platform family give investors a deeper collection of trading tools. Schwab customers can use Schwab.com for standard brokerage tasks and thinkorswim web for more advanced trading.





Schwab’s platform lineup includes:

• Schwab.com trading and account tools
• thinkorswim web
• thinkorswim desktop
• thinkorswim mobile
• paperMoney simulated trading
• 24/5 trading in more than 1,100 stocks and ETFs

Vanguard’s website offers brokerage order entry, account-management tools, research, and resources for long-term investors. Vanguard Brokerage supports online trading in stocks, Vanguard and non-Vanguard ETFs, Vanguard mutual funds, non-Vanguard mutual funds, options, CDs, and bonds.





Schwab has the better website and platform lineup for active traders. Vanguard is better suited to investors who mostly want a long-term fund platform.

No Comparison for Mobile Apps

Vanguard’s mobile app lets customers view account details and manage investments, but Vanguard’s brokerage experience is not built around active trading in the same way as Schwab’s thinkorswim platform suite.





Schwab offers both Schwab Mobile and thinkorswim mobile. Together, these apps create a broader mobile trading and account-management experience:

• Mobile trading and account management
• Mobile check deposit
• Options trading
• thinkorswim mobile for active traders
• paperMoney simulated trading
• Tools that sync across thinkorswim desktop, web, and mobile

Schwab has the stronger mobile offering for traders who want more active-trading features and a wider range of account tools.

Schwab Is the Only Option for More Advanced Software

Vanguard customers do not get a thinkorswim-style platform suite that spans browser, mobile, and desktop trading.

Schwab clients can use thinkorswim web, desktop, and mobile. The thinkorswim suite supports stocks, ETFs, options, futures, and forex for eligible customers, and it includes advanced charting, watchlists, screeners, analysis tools, and paperMoney simulated trading.

Schwab’s thinkorswim platform suite also supports 24/5 trading in more than 1,100 stocks and ETFs.

For Mutual Funds, Schwab Is Our Pick

Schwab and Vanguard both manage their own mutual funds. Both firms also provide access to mutual funds from outside fund families. Vanguard Brokerage charges $0 online for Vanguard mutual funds and no-transaction-fee funds, while transaction-fee mutual funds cost $20 per trade for many clients. Schwab charges $0 online for no-transaction-fee funds, while transaction-fee funds can cost up to $74.95 per purchase.

Vanguard is a good fit for investors mainly interested in Vanguard mutual funds and Vanguard ETFs. Schwab is a good fit for investors who want a broader brokerage experience, more trading technology, and a large no-transaction-fee mutual-fund marketplace.

It’s Pretty Even in the Margin Category

Both brokerage firms offer cash and margin accounts. Margin trading requires approval and carries additional risk.

Schwab starts its margin schedule at 11.825%, while Vanguard begins at 12%. Margin rates can change and depend on debit balance.

Investors should review the current margin schedules at both firms before borrowing, because margin tiers and balance requirements can change over time.

Schwab Gets Bonus Points for Going the Extra Mile

Several additional financial services give Schwab an even stronger overall package.

Vanguard now offers the Vanguard Cash Plus Account, which provides bank sweep access, routing and account numbers, direct deposit, and bill-payment support. However, Vanguard says the account does not issue checks or ATM cards. Schwab Bank Investor Checking offers a debit card, checkwriting, no monthly service fee, no foreign transaction fees, and unlimited ATM fee rebates for cash withdrawals worldwide.

Schwab offers pre-market and after-hours trading, along with 24/5 trading in more than 1,100 stocks and ETFs through thinkorswim. Vanguard Brokerage offers an extended-hours session for limit stock orders after the regular trading session.

Schwab offers fractional-share trading for stocks and ETFs, with a $1 minimum per slice. Vanguard offers dollar-based trading in Vanguard ETFs and mutual funds, with Vanguard ETFs available from as little as $1.

Schwab customers can set up automatic investing in eligible mutual funds. Vanguard also supports dollar-based investing and recurring investment features for eligible funds and Vanguard ETFs.

Both brokerage firms offer IRAs and dividend reinvestment service.

Recommendations for Specific Investors

For retirement savers and long-term investors, Schwab has broader brokerage, banking, branch, annuity, and advisory resources. Vanguard remains a strong choice for long-term fund investors who mostly want Vanguard mutual funds and ETFs.

For equity traders, Schwab is the easy choice because it provides thinkorswim, Schwab Stock Slices, and 24/5 trading in many stocks and ETFs.

For beginning investors, either broker’s automated service can be useful. Vanguard Digital Advisor has the lower minimum, while Schwab Intelligent Portfolios has no advisory fee but requires $5,000 to start.

For small self-directed accounts, either broker can work, but Schwab has a wider product and platform lineup. For small robo accounts, Vanguard has the lower minimum investment requirement.

Promotions

Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.

Vanguard: No promotions right now.

Vanguard vs Charles Schwab Judgment

Vanguard remains a strong choice for long-term fund investors, especially those focused on Vanguard mutual funds and ETFs. Schwab delivers the stronger overall brokerage experience for active traders and investors who want thinkorswim, more tradable assets, Schwab Bank features, branch support, Stock Slices, and 24/5 trading in many stocks and ETFs.

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