Vanguard vs. Fidelity: Which Broker Offers the Best Value?

stevecoleimages / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

When it comes to investing, Vanguard and Fidelity are two of the biggest names in the game. Both offer low-cost funds, retirement accounts and robo-advisors to help you grow your wealth without the hassle of hands-on investing.

But if you’re trying to choose between Vanguard Digital Advisor and Fidelity Go, which one is the better fit for your financial goals? In this guide, we’ll break down fees, investment strategies, features and more to help you decide.

Keep reading to learn how Vanguard vs. Fidelity stacks up in terms of their respective robo-advisor platforms.

Vanguard vs. Fidelity: Overview of Services

Before diving into the details, let’s compare Vanguard vs. Fidelity’s offering at a glance:

Vanguard got its start as a direct-to-consumer mutual fund company but has since evolved into a full-fledged brokerage firm, offering everything from stocks and bonds to options, mutual funds, exchange-traded funds and more. Vanguard also offers a robo-advisory platform known as Vanguard Digital Advisor. Customers pay $0 commission on their online stock, ETF and options trades.

Fidelity has always been a low-price leader when it comes to stock trading, and its commissions for online stock, ETF and option trades are also $0. Fidelity also has a well-regarded mutual fund family, certificates of deposit and a robo-advisory platform dubbed Fidelity Go.

Vanguard’s mutual funds are award-winning because of their low-fee structure and solid performance over time. Whether you choose a full brokerage product or the low-cost Vanguard Digital Advisor, you’ll likely make a good choice. On the other hand, Fidelity has broader investment options. You can even purchase Vanguard funds through Fidelity. Unlike Vanguard, you can get started with less than $3,000, although fees are higher than Vanguard’s.

Vanguard Digital Advisor is better for passive, long-term investors, while Fidelity Go is ideal for beginners looking for low-cost, managed accounts.

Take a closer look at how Vanguard and Fidelity compare:

How Vanguard and Fidelity Robo-Advisors Work

Both Vanguard and Fidelity offer robo-advisors, meaning they automatically invest your money based on your goals and risk tolerance. However, their strategies differ:

Vanguard Digital Advisor

• Uses Vanguard ETFs with ultra-low fees
• Focuses on long-term, index-based investing
• No human advisors, just automated management

Fidelity Go

• Actively managed by Fidelity investment professionals
• Includes human oversight (not just an algorithm)
• A simpler setup with no fund selection required

If you prefer low-cost, passive investing, Vanguard is the better option. If you want human oversight but keep costs low, Fidelity Go is the way to go.

Pros and Cons of Vanguard vs. Fidelity Robo-Advisors

Vanguard is better for cost-conscious, passive investors, while Fidelity Go is ideal for small accounts and hands-off investors.

Vanguard vs. Fidelity Costs and Fees: Which Saves You More?

Overall, Vanguard and Fidelity each have inexpensive, well-run robo-advisor platforms. Both Vanguard and Fidelity have straightforward pricing on their robo-advisor products.

Fidelity advisor fees vary depending on balance and range from $0 to .35% per year, while Vanguard fees are .20% annually. If you desire direct human interaction in the form of a personal financial advisor, Fidelity offers access through the robo-advisor platform if your balance is at least $25,000.

The cost for Vanguard Personal Advisor Services¹ is .30% per year, or $3 for every $1,000 invested. There’s a $50,000 minimum for this service.

Fidelity Personalized Planning and Advice works in conjunction with the Fidelity Go robo-advisor for a .50% annual fee and a $25,000 account minimum.

Neither brokerage charges a commission for most commonly traded investments. Vanguard’s annual brokerage account fee of $20 is easy to waive if you’re structured as a trust, hold at least $1 million or opt for paperless communication.

Fidelity Go has no fees for accounts under $25,000, making it a great choice for small investors. However, Vanguard has lower costs for larger portfolios, especially if you plan to hold your money for decades.

Vanguard vs. Fidelity Investment Options

Compare the account types and features available on each brokerage’s robo-advisor platform.

Both robo-advisors invest exclusively in ETFs, meaning you won’t have access to individual stocks, bonds or options trading.

Here’s a more in-depth look at how the Vanguard Digital Advisor and Fidelity Go platforms compare in terms of certain key features:

Opening an Account

Fidelity Go gets the nod over Vanguard Digital Advisor when it comes to the ease of opening an account.

For Fidelity Go, you can simply log on to the website, answer a few questions regarding your investment objectives, risk tolerance and the amount you can invest, and provide basic identifying information, such as your age. At that point, you’ll be presented with a sample portfolio based on your responses.

For Vanguard Digital Advisor, the same overall principle applies in terms of getting a portfolio. However, before you can begin the process, you’ll have to sign up for a generic Vanguard account. The $3,000 required to open a Vanguard Digital Advisor account must first be invested in the Vanguard Federal Money Market Fund.

Which Robo-Advisor Offers Better Portfolio Management?

Both platforms automatically adjust your portfolio based on market changes and risk levels. Here’s how they manage your money:

Vanguard Digital Advisor

• Uses Vanguard ETFs to track stock and bond indexes
• Adjusts allocations to keep your investments aligned with goals
• Focuses on low-cost, passive growth

Fidelity Go

• Invests in Fidelity-managed ETFs
• Human professionals oversee the portfolio
• More active adjustments compared to Vanguard

If you prefer index investing, Vanguard is better. If you want some active management, Fidelity Go is a smarter pick.

Goal Setting

You’re completely in charge of the investment goals you want to save for when you use the Fidelity and Vanguard robo-advisory platforms. For both, when you open an account, you’re required to complete a questionnaire that asks for information such as your age, risk tolerance and investment objectives. Your portfolio is then customized according to the specific goals you have outlined.

Tax-Advantaged Investing

Fidelity Go offers access to tax-advantaged investing through its Fidelity Flex Municipal Income Fund and its Fidelity Flex Conservative Income Municipal Bond Fund. Regardless of whether you want any tax-advantaged investments or not, you can contact Fidelity and specify your investment parameters in terms of tax management.

Vanguard only offers four ETFs in its robo-advisor platform, none of which are dedicated to tax-free investing.

Customer Support and User Experience

Both Vanguard and Fidelity have solid customer service, but Fidelity has the edge in accessibility.

Fidelity Go provides better customer service and a more user-friendly mobile app than Vanguard.

Although both brokerages have mobile apps and an online platform, Fidelity’s is more robust. Keep in mind that you may not need all that functionality if you’re simply checking in on how your automatic investments are doing.

Vanguard’s design seems no-frills and doesn’t play well with Android devices. It also lacks the research and functionality more advanced investors would like from their digital experience.

Here’s a more detailed look at how Vanguard vs. Fidelity mobile apps directly compare:

• Vanguard at the App Store: 4.7/5 stars, 170.28K reviews
• Vanguard at Google Play: 3.4/5 stars, 8.1K reviews
• Fidelity at the App Store: 4.8/5 stars, 1.9 million reviews
• Fidelity at Google Play: 4.6/5 stars, 117.4K reviews.

Security

Fidelity’s security offers the type of guarantee designed to make clients rest easy. With the Fidelity Customer Protection Guarantee, the firm promises to reimburse customers for any losses incurred as a result of unauthorized trading in accounts.

Specific security protocols used at Fidelity include two-factor authentication, security text alerts, voice identification, encryption, firewalls and constant system surveillance. 

Vanguard has a similar online fraud policy, offering to reimburse assets taken from your account if you’re a victim of unauthorized transactions. However, the firm does caution that you must follow the steps outlined in the “Your responsibilities” section of the policy to be protected.

Beyond this pledge, Vanguard uses many industry-standard fraud protection policies, ranging from encryption and password protection to SSL certification and security questions.

Customer Service

Fidelity Go offers 24/7 phone-based customer service. It also has an online chat option available Monday through Friday from 8 a.m. to 10 p.m. EST and Saturday and Sunday from 9 a.m. to 4 p.m. EST.

Vanguard’s customer service is a bit more limited, offering phone hours from 8 a.m. to 8 p.m. EST Monday through Friday only, with no live chat option available.

Which Platform Is Best for You?

Choose Vanguard Digital Advisor if:

• You want the lowest possible fees
• You prefer passive index investing
• You have at least $3,000 to invest

Choose Fidelity Go if:

• You have less than $25,000 and want zero fees
• You want a robo-advisor with some human oversight
• You prioritize customer service and accessibility

Final Thoughts to GO: Vanguard vs. Fidelity Robo-Advisors

Both Vanguard Digital Advisor and Fidelity Go offer affordable, automated investing solutions, but they cater to different needs:

• Vanguard is best for passive, long-term investors who want the lowest-cost index funds.
• Fidelity Go is better for beginners who want professional oversight with minimal fees for small accounts.

Which one is right for you? That depends on your investment size, strategy, and how hands-off you want to be. Whether you choose Vanguard or Fidelity, both robo-advisors offer solid investment strategies. Pick the one that best aligns with your budget, risk tolerance, and long-term goals.

Cynthia Bowman, Cynthia Measom and Daria Uhlig contributed to the reporting for this article.

Information is accurate as of Feb. 20, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

¹Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.

Share This Article: