Fidelity vs Vanguard (2026): Which Is Better for Long-Term Investors?

For most investors with under 1 million in Qualifying Assets, Fidelity costs less on the fees both firms publish. Online stock and ETF trades are free at both, but Fidelity charges $0.65 per options contract against Vanguard's $1, and it has no annual account fee where Vanguard has one. Over a long horizon, the fund you hold will matter more than either broker.

This comparison covers what each firm publishes for trading, options, mutual funds, bonds, accounts, margin and advisory accounts. All figures were checked in October 2026. The scenario numbers are our arithmetic on those published fees, and each section states its assumptions. Vanguard sets most of its fee tiers by what it calls Qualifying Assets, so the 1 million line is Vanguard's. Fidelity's trading, options and bond fees show no balance tiers, but its margin rate does.

Toolradar data: our investment apps ranking, updated October 2026, evaluated 9 tools, and 3 of them offer a free plan. Fidelity's Toolradar listing sits in the same investment apps category, and the full ranking shows the wider field.

Fees side by side

Fees as each firm publishes them. Vanguard's fee schedule is effective July 10, 2026, and Fidelity's margin rates are effective September 18, 2026.

Stocks and ETFs carry no commission at either firm, with exceptions at Fidelity

Both firms charge no commission on online US stock and ETF trades, so commissions cannot separate them for an ordinary buyer. Vanguard states the free rate for clients under 1 million in Qualifying Assets. Fidelity's free rate covers stocks and ETFs, while options carry a per-contract fee. Two exceptions apply at Fidelity: a limited list of ETFs carries a $100 transaction-based service fee, and Professional Equity Traders pay $0.001 per share instead.

An investor who trades a few times a year pays nothing per trade at either firm. An active trader who falls into Fidelity's Professional Equity Trader category should price every trade per share, not at zero. For other venues built for that style, see best day trading platforms. Check Fidelity's ETF list before buying, because the service fee applies only to the ETFs on it. For screening funds and stocks before you commit, see best stock screeners.

Take a $500 monthly plan into one broad ETF. That is $6,000 a year. At either firm the commission on each purchase is zero, unless the ETF is on Fidelity's service-fee list. The cost of owning the ETF therefore sits in the fund's expense ratio and in the account fees in the next section.

Options: Fidelity charges less per contract

Fidelity charges $0.65 per contract on online options, with no base fee. Accounts designated Professional Options Trader pay $0.50 more per contract. Fidelity's page also mentions an Options Regulatory Fee on buys and sells, without giving an amount, so this comparison leaves it out.

Vanguard charges no base fee but a per-contract fee at every asset level. It waives that fee on the first 25 trades a calendar year for clients with 1 million to 4,999,999 in Qualifying Assets, and on the first 100 trades for clients with 5 million or more. Exercises and assignments cost nothing at Vanguard. For other options venues, see best options trading platforms.

Take a trader who buys or sells 10 contracts a month, which is 120 contracts a year. At Fidelity that costs $78. At Vanguard, below its waiver tiers, the same trades cost $120, so Fidelity saves $42 a year before any Options Regulatory Fee. The gap reverses for a client with 1 million or more in Qualifying Assets who places 25 or fewer trades a year, because those trades carry no per-contract fee at Vanguard. Fidelity's commissions page lists one online options rate with no balance tiers, so that rate applies at every account size, before the Options Regulatory Fee.

Account fees: the annual charge at Vanguard

Vanguard charges an annual account service fee of $25. It is waived for Cash Plus accounts, for several other client types, and for clients with at least 1 million in Qualifying Assets. Closing an account or moving it out in full costs $100, except for transfers made by ACH or electronic bank transfer and for clients with 5 million or more. A wire costs $10, waived for retirement accounts and at 1 million or more. Vanguard's fee page lists no inactivity fee.

Fidelity charges nothing to open an account. Its one listed standing charge is a residual balance maintenance fee of up to $5 a quarter. It applies to retail brokerage accounts with balances below $100 that are not invested and have not been used for financial transactions in over a year. The same page notes that some investments and account types, such as managed accounts and certain HSAs, can carry commissions and expenses, but it gives no amounts for them.

Over ten years, the $25 fee comes to $250 at Vanguard before any waiver. Fidelity's stock trading overview lists no annual fee to set against it. The residual fee at Fidelity only matters for an account that stays under $100 and sits idle, which is a narrow case for a long-term investor. For other investing apps, see best investing apps.

Mutual funds and bonds

Vanguard's own funds cost nothing to buy online. Non-Vanguard funds with no transaction fee are also free online below 1 million in Qualifying Assets. Non-Vanguard funds that do charge a transaction fee cost $20 a trade online at that level. Selling a non-Vanguard fund within 60 days of its most recent purchase carries a $50 early redemption fee.

Fidelity says it offers an extensive lineup of funds with no transaction fees, but its commissions material gives no per-trade figure for funds. Check the specific fund's terms before you buy, because the answer for a given fund can differ from the firm-wide claim.

On bonds, Vanguard charges nothing for new-issue CDs, agency, corporate and Treasury bonds, and Treasuries are free in the secondary market too. Secondary-market CDs, agency, corporate and municipal bonds cost $1 per $1,000 of face value. Fidelity charges a flat fee per online bond and nothing for online Treasuries and CDs. The two rates match at a face value of $1,000. Fidelity is cheaper for bigger bonds, and Vanguard is cheaper for bonds below that size, so the face value of the bond you hold decides which broker is cheaper.

Margin and advisory accounts

Fidelity's base margin rate is 10.825%, effective September 18, 2026. Its lowest tier, for the smallest debit balances, adds 1.25 percentage points, for a rate of 12.075%. Balances from $250,000 to $499,999 pay 10.325%. A $10,000 debit balance held for a year costs $1,207.50 in interest at the lowest tier. Vanguard's lowest published margin rate is 6.00%, but its comparison page says that rate requires at least 5 million in Qualifying Assets. A smaller account should compare against the rate it would actually qualify for.

Fidelity Go charges no advisory fee on balances under $25,000 and 0.35% a year from $25,000. It has no minimum to open an account, and a balance of $10 is enough to start investing. Vanguard's brokerage fee page lists no fee for its Digital Advisor or Personal Advisor services, so this page does not put a number on Vanguard's advisory accounts. For robo advisors across providers, see best robo advisors.

What the comparison leaves out: fund expense ratios

For a buy-and-hold portfolio, the expense ratio of each fund held is often the largest cost, because trades are free at both firms. Neither firm's fee material gives a figure for it. Vanguard's comparison page points readers to each fund's prospectus, and Fidelity points to the prospectus for its fund charges and expenses. This page therefore quotes none.

Before you choose, compare the expense ratio of the exact fund you would buy at each firm, then add the account fees above. To track holdings across accounts, see best portfolio trackers.

Which is better for long-term investors?

Fidelity is the better default for most investors under 1 million in Qualifying Assets, on the fees both firms publish. Vanguard's case rests on its waivers at 1 million and above. Fidelity's commissions page lists no balance tiers for options, so those waivers have no Fidelity equivalent to compare against on the published terms.

How we compared

We read Fidelity's commissions and margin page, its stock trading overview, its options overview and its Fidelity Go page. We also read Vanguard's brokerage fee page, effective July 10, 2026, and its comparison page, which dates its competitor figures to September 21, 2026. We used the comparison page only for Vanguard's own figures. The scenarios are our arithmetic on those published fees, and the assumptions sit with each one. The Toolradar count comes from our investment apps ranking, updated October 2026. Fees change, so check both firms' fee pages before you open an account.

FAQ

Which is cheaper, Fidelity or Vanguard, in 2026?

Fidelity is cheaper for most investors under 1 million in Qualifying Assets. Both charge no commission on online US stock and ETF trades, but Fidelity's per-contract options rate is lower than Vanguard's, and it has no annual account fee. Neither firm quotes fund expense ratios, which are often the larger cost for a long-term portfolio.

Are Fidelity and Vanguard commission-free for stocks and ETFs?

Yes, for online US stock and ETF trades, though Vanguard's free rate covers only clients under 1 million in Qualifying Assets. Fidelity charges a $100 transaction-based service fee on a limited list of ETFs, and $0.001 per share for Professional Equity Traders.

How much does Vanguard charge per options contract?

Vanguard charges $1 per contract at every asset level, with no base fee. It waives the per-contract fee on the first 25 trades a year for clients with 1 million to 4,999,999 in Qualifying Assets, and on the first 100 trades for clients with 5 million or more. Fidelity charges $0.65 per contract, plus $0.50 more for accounts designated Professional Options Trader.

Does Vanguard charge an annual account fee?

Yes. Vanguard charges $25 a year, waived for Cash Plus accounts, for several other client types, and for clients with at least 1 million in Qualifying Assets. Fidelity's stock trading overview lists no annual fee. Its only standing charge is a residual balance fee of up to $5 a quarter, on accounts under $100 that are uninvested and unused for over a year.

How much does Fidelity Go charge?

Fidelity Go charges no advisory fee below $25,000 and 0.35% a year at $25,000 and above. Opening requires no minimum, and $10 is enough to start investing. Vanguard's brokerage fee page lists no fee for its Digital Advisor or Personal Advisor services, so this page does not compare the two advisory fees directly.

Which is better for long-term investors?

For most investors under 1 million, Fidelity costs less on the fees both firms publish. For a buy-and-hold investor, the clearest gap is Vanguard's annual account fee, while for an options trader the per-contract rate matters more. The fund you hold matters more than either broker, because trades are free at both and fund expense ratios are set fund by fund. Compare the funds you would buy, then add the account fees on this page.

This page is general information, not personalized financial advice; confirm current terms with Fidelity and Vanguard before you open an account.

Cite this: Finpresso, "Fidelity vs Vanguard (2026): Which Is Better for Long-Term Investors?", October 2026.

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