Fidelity vs Vanguard vs Schwab.
Where each wins, where each falls short.

Section 1 · The short answer for each

Fidelity

• Best for: most people starting out.
• Strengths: FZROX/FZILX zero-expense index funds verify×DON'T TRUST, VERIFYClaim: Fidelity offers FZROX, FZILX, FNILX, and FZIPX at 0.00% expense ratio.Verify at: Fidelity index fund screener ↗ Source 1 in the list belowFirst-of-kind product since 2018; competitors have not matched., excellent Cash Management Account (checking replacement), no minimums, best mobile app, strong customer service.
• Weakness: some ETFsExchange-Traded Fund (ETF)A basket of investments (stocks, bonds, or Bitcoin) that trades on a stock exchange like a single share. do not support fractional shares (FZROX/FZILX are mutual funds, so they support fractional dollar amounts).

Vanguard

• Best for: dedicated Bogleheads who want the flagship VTI/VXUS/BND at source.
• Strengths: launched the first retail index fund; unique ownership structure (the funds are owned by the investors); excellent ETF lineup.
• Weakness: slower interface, no checking-account equivalent, customer service historically slower than Fidelity.

Schwab

• Best for: active traders who also want long-term investing, or people who travel internationally (excellent debit card with unlimited ATM rebates globally).
• Strengths: Schwab Bank integration; SCHB/SCHF/SCHZ ETF lineup comparable to Vanguard.
• Weakness: no zero-expense-ratio index funds equivalent to FZROX (lowest is approximately 0.03%).

Section 2 · The key differences

Expense ratios on index funds

• FZROX: 0.00%
• VTI (Vanguard): 0.03%
• SCHB (Schwab): 0.03%

Checking and cash management

• Fidelity CMA: free, ATM reimbursement, SPAXX core-position option.
• Schwab Bank checking: free, unlimited global ATM rebates.
• Vanguard: no checking equivalent.

For someone wanting a single-institution solution: Fidelity or Schwab.

Customer service

• Fidelity: consistently ranked among the best on phone and online.
• Schwab: strong.
• Vanguard: historically slower; improving but still behind the other two.

Section 3 · What to do with multiple brokerages

If you have accounts at multiple institutions from old jobs and old decisions, consolidating simplifies:

• One tax document set (Form 1099).
• One beneficiarybeneficiaryThe person or entity you name to receive an account or insurance policy when you die. designation to keep current.
• One login to monitor.
• One place to check allocation.

Consolidating does not eliminate any benefit. You can hold VTI at Fidelity just as easily as at Vanguard. The ETFs are the same regardless of brokerage.

Exception: if an old 401(k) holds employer stock with Net Unrealized Appreciation (NUANet Unrealized Appreciation (NUA)The growth on your employer stock held inside a 401k. A special rule lets that growth be taxed at lower investment-profit rates instead of higher regular-income rates when you take it out.Full definition) benefits, consult a CPA before rolling over. NUA can convert ordinary-income tax to long-term capital gainscapital gainsThe profit from selling an asset for more than you paid for it. Taxed differently depending on how long you held the asset. tax on the company-stock portion. See Tax Strategy: What Wealthy Clients Pay CPAs For.