Charles Schwab and Vanguard are counted as two famous brokerages thanks to their low costs, ETF, and mutual fund availability, and research qualities. Which one is the best? To help you finding out the best one, here is the comparison of Charles Schwab vs. Vanguard. The world of investing is always changing. Some people might know Charles Schwab and Vanguard as the asset managers. However, both companies are also brokers to process millions of trades for their customers around the clock. If you have an intention to open the new brokerage account, either the two could be a very good option for you. Here is the basis of commissions, research, and other important criteria for the long term investors.
The first to compare is Charles Schwab fees vs. Vanguard. For Charles Schwab, the stocks and the options are $8.95 per trade + $0.75 per options contract, the ETFs are $8.95 per trade, and the mutual funds are $76 per purchase. For Vanguard, the stocks are $7 per trade, the options are $20 + $1 per contract, the ETFs are $7 per trade, and the mutual funds are $35 per purchase. The different in commission fees amounts to just the couple of dollar in either direction with mutual funds and options as the exception. In the term of commission free ETFs and NTF Funds, you will be pleased to know that both brokers offer thousands of commission-fee that you can trade free of any transaction fees.
The second one to compare is account minimums. It said that it takes money to make money. Fortunately, it does not take much to get started. Both Charles Schwab and Vanguard have no minimum account requirements.
The third one is trading platform. For the investors who have the long term plan, Charles Schwab and Vanguard can be suitable for their needs. To tell the truth, the preference for any term is usually subjective personal option. Therefore, it is your choice to choose one.
The fourth one is international stocks and ADRs. It is such an fortunate thing for the customers worldwide that both Charles Schwab and Vanguard can trade ADRs from their online accounts. However, if you are interested in investing in stocks that do not have the listing in the US, your options are a little more limited. The fifth one is research quality and tools. For your information, both brokers have a lot of research material and tools such as stock and fund screeners, news sourced direct from the wires, and the proprietary features for their customers.
So, which one is the better broker? Charles Schwab or Vanguard? It can be said that it is a tie. In fact, both of brokers are suitable for the long term investor, depending on someone’s need. Charles Schwab offers more commission free ETFs, while Vanguard offers more access to foreign stocks. In this case, the better brokerage depends on how you invest. Please consider everything before making a decision. Once again, the choice is in your hand.