Vanguard vs. Charles Schwab: Which Should You Pick?
Review
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The investing world is always changing. Although Vanguard and Charles Schwab might be better known as asset managers (or, in Charles Schwab's case, a bank), both companies also act as brokers to process millions of trades for their customers around the clock. If you plan on opening a brokerage account, either broker could be a very good choice for you.
Here's how these two popular brokerage services compare on the basis of commissions, research, and other important criteria for long-term investors.
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4.5/5
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.
= Best
= Excellent
= Good
= Fair
= Poor |
Rating
4.5/5
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.
= Best
= Excellent
= Good
= Fair
= Poor |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
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While there's more to a brokerage than its trading costs, how much you pay to place a trade is important, especially for people who are more active in the markets. In the cases of Vanguard and Charles Schwab, here are the commissions for online trading of several different investments:
| Broker | Stocks and ETFs | Options | Mutual Funds |
|---|---|---|---|
| Vanguard | $0 per trade | $1 per contract | $0 for Vanguard and no-transaction-fee mutual funds, up to $20 for others |
| Charles Schwab | $0 per trade | $0.65 per contract | $0 for Schwab Mutual Fund OneSource® funds; up to $74.95 per purchase for others |
As you can see, both brokers have joined the $0 commission club for online stock and ETF trading (but there are still commissions for some phone and broker-assisted trades). For mutual funds, Vanguard is significantly cheaper, while options traders would save money with Charles Schwab.
Mutual fund investors should keep in mind that these costs apply only to some funds. Both brokers offer a long list of mutual funds that can be traded with no transaction fee.
If funds play an integral role in your portfolio, you'll be pleased to find that Vanguard and Charles Schwab offer thousands of no-transaction-fee (NTF) mutual funds.
| Broker | NTF Mutual Funds |
|---|---|
| Vanguard | Over 3,000, including all Vanguard funds |
| Charles Schwab | Over 4,000 |
Depending on how you build your portfolio, either broker could be a good fit for fund investors. You could easily construct a diversified portfolio from just the NTF mutual funds available with either brokerage.
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Although it takes money to make money, it doesn't take much money to get started. Vanguard and Charles Schwab have no minimum account requirements.
We'll caution that it may be wise to start with a little more than just pocket change. You'll need to have enough money in your account to buy at least one share of a stock or ETF, or to meet the minimum initial investment for a particular mutual fund (and pay the commission, if applicable).
Both of these brokers have platforms that are more than sufficient for most long-term investors. Charles Schwab's platform offers more features that should appeal to more active investors, including its Charles Schwab Mobile platform (which can be used even on Apple Watch) and its full-featured desktop StreetSmart Edge platform. Both of Charles Schwab's platforms are available to all investors, regardless of account size. On the other hand, Vanguard's trading platform is geared toward long-term investors who simply want to be able to place an occasional buy or sell order.
Long-term investors will find Vanguard and Charles Schwab suitable for their needs, but active investors and frequent traders would probably be better served with Charles Schwab. Truthfully, a preference for any platform is usually rooted in subjective personal opinion, so we'll let you be the judge of which platform feels better to you.
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 |
|---|---|---|---|
4.5/5
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.
= Best
= Excellent
= Good
= Fair
= Poor |
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. |
4.0/5
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.
= Best
= Excellent
= Good
= Fair
= Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
4.5/5
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.
= Best
= Excellent
= Good
= Fair
= Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
Cancel your flight. You don't need to go overseas to invest in foreign companies. Vanguard and Charles Schwab customers can trade American depositary receipts (ADRs) from their online accounts.
If you want to invest in stocks that don't have a listing in the United States, your options are a little more limited. Schwab investors can access more than 30 international markets through Charles Schwab's Global Investing Services desk. The Charles Schwab Global Account™ platform also offers trading in seven local currencies in 12 foreign markets.
Vanguard doesn't offer this same type of global investing capabilities, but it has several international stock and bond mutual funds and ETFs. Charles Schwab and Vanguard both offer international funds that let you invest in a diversified mix of thousands of international stocks and bonds.
More information is generally a good thing. Both brokers have plenty of research material and tools, including stock and fund screeners, news sourced direct from the wires, and proprietary features available only to their customers.
Vanguard provides a wide range of market research, financial news, commentary, and insights to help customers learn about market trends and make better-informed investment decisions. Charles Schwab customers can tap into third-party research from Standard & Poor's, The Economist Intelligence Unit, Morningstar, and Argus Research analysts from their account. Truly, you'll find plenty of easy-to-use research tools at either broker.
You can now make a trade from virtually anywhere around the world thanks to mobile trading apps. Here's how each broker's users and clients rated their mobile capabilities on iOS and Android.
| Broker | Apple App Store | Google Play |
|---|---|---|
| Vanguard | 4.7 stars | 3.5 stars |
| Charles Schwab | 4.8 stars | 2.4 stars |
Can we call it a tie? The truth is that either broker is suitable for a long-term investor, depending on one's needs. Vanguard could be a better choice for passive investors who want index funds; Charles Schwab offers more features that appeal to active investors. Ultimately, the better brokerage is dependent on how you invest.
Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
Charles Schwab offers over 4,000 no-transaction-fee (NTF) mutual funds, while Vanguard offers over 3,000. Both of these brokerages offer a comprehensive range of investment choices that could be a great fit for many investors' financial goals.
But if you want the widest selection of no-fee mutual funds, Charles Schwab exceeds Vanguard's offerings by about 1,000. As long as you use Charles Schwab's Mutual Fund OneSource® service, you won't have to pay any loads or transaction fees.
While Vanguard has some actively managed funds, and you can use Vanguard to buy individual stocks, the main focus of Vanguard is long-term index investing. It's not designed for picking stocks or frequent trading.
If you want a more aggressive, hands-on approach to your investment portfolio, Charles Schwab might be a better fit. Charles Schwab offers advanced features for active investors, like Schwab Trading Powered by Ameritrade™, and free access to the award-winning thinkorswim® platform suite of investment analytics and trading strategy tools.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
