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Vanguard Brokerage Review: The Perfect Choice for Hands-Off Investing

Review Updated
Ryan Wilcox
Author: Ryan Wilcox
Ryan Wilcox
Ryan Wilcox
Full-Time Personal Finance Writer

Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.

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Looking for a simple way to build long-term wealth? Congratulations, you've just found one of the best options out there: Vanguard.

With its low-cost mutual funds and exchange-traded funds (ETFs), Vanguard offers lots of hands-off, inexpensive ways to invest. There's a reason we named Vanguard the "Best Brokerage For Passively Investing in Mutual Funds and ETFs of 2025."

Here's what you need to know about Vanguard and whether it's right for you.

Vanguard
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On Vanguard's Secure Website.

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Vanguard

Vanguard

Our Rating:

4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Vanguard is one of the best brokerages for passive investors who want to buy low-cost index fund ETFs. It also offers thousands of no-transaction-fee mutual funds, and excellent zero-commission options for buying stocks online, with no account minimums for brokerage accounts. Vanguard tries to keep its costs and expense ratios low so investors (like you) can keep more of your returns.

Fees:

$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)

Account Minimum:

$0

Learn More for Vanguard

On Vanguard's Secure Website.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

What I like about Vanguard

Low-cost mutual funds and ETFs

Vanguard has a reputation for keeping costs at a minimum. Its average ETF and mutual fund expense ratio is 84% less than the industry average.

That means more of your returns will stay in your pocket, which can mean thousands in savings over time.

If you're looking for a "set it and forget it" way to grow your money, Vanguard's ETFs and mutual funds are a fantastic way to do it.

No commissions and solid account minimums

With Vanguard, you'll also get commission-free online trades of stock, Vanguard mutual funds and Vanguard ETFs. Plus, you can buy Vanguard ETFs with as little as $1 in your brokerage account, a super low barrier to entry.

In all, it's one of the more affordable and accessible brokerages out there. I'd recommend it if you want to start small on your investing journey.

Downsides you should consider

Trading platform is basic

Vanguard's interface isn't the most advanced. It's a no-frills platform, and that's by design -- Vanguard is aimed at hands-off investors, not active traders.

If you want a platform with tons of in-depth trading tools, you'll want to look elsewhere. I'd suggest something like Robinhood (for more active beginners) or Fidelity (for experienced traders).

High minimums on mutual funds and index funds

Most of Vanguard's mutual funds and index funds have a $3,000 minimum, which is a middle-of-the road number. But it can be a hurdle for beginner investors who want to start small.

If you plan on investing at least that much, you can save a solid amount on expense ratios over time. Otherwise, though, I'd say look for a brokerage with lower minimums for mutual fund and index funds.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.

Broker Best For Commissions Learn More
Logo for SoFi Active Investing
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Managing your finances under one roof $0 for stocks, $0 for options contracts
Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Logo for Charles Schwab
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Low-cost investing with a full-featured platform $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
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On Charles Schwab's Secure Website.

Logo for Fidelity
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Full-service investing at every experience level $0 commission for online U.S. stock and ETFs*. No account fees****.
Learn More for Fidelity

On Fidelity's Secure Website.

Fees and pricing

As mentioned, Vanguard offers commission-free online trades of stock, Vanguard mutual funds, and Vanguard ETFs. Other ETFs and mutual funds will be subject to commission fees.

Also, Vanguard's per-contract options commissions cost just $1. Select fees can be waived for accounts with more than $1 million invested in Vanguard funds.

Product Cost
Stocks $0 online; $25 for broker-assisted trades if you have less than $1 million with Vanguard
ETFs $0 online; $25 for broker-assisted trades if you have less than $1 million with Vanguard
Mutual funds $0 for Vanguard mutual funds and up to $20 for others; Additional fee of up to $25 for broker-assisted trades of non-Vanguard mutual funds
Options $0, plus $1-per-contract fee
Data source: Vanguard.

How to open a Vanguard account

Opening a brokerage account with Vanguard is easy. You'll just need:

  • Info like name, address, Social Security number
  • Bank account details
  • Employer information (if applicable)

Once you fill all that out and fund your account, you should be set.

Per Vanguard, digital transfers take "as little as" five to seven days. That's a bit on the longer side, but once you fund your account you'll be ready to go.

Final thoughts

Vanguard is a great choice for retirement savers and anyone who wants inexpensive, hands-off investing options.

It isn't the best platform for active trading, or investors who can't hit the minimum requirements for mutual funds and ETFs. But for anyone looking to buy and hold for years, Vanguard remains one of the best brokers out there.

I recommend it to anyone looking for long-term growth at a low cost.

Ready to get started? Open a Vanguard account today to enjoy no commissions on trades of stock, Vanguard mutual funds, and Vanguard ETFs.

FAQs

  • Vanguard offers $0 commission on online trades of stocks, Vanguard ETFs, and Vanguard mutual funds. Other products may charge commission fees.

  • Most Vanguard mutual funds and index funds require a $3,000 minimum. Vanguard ETFs can be bought with as little as $1.

  • Vanguard's platform is designed for hands-off, long-term investing. Active traders may prefer platforms with more advanced trading tools.