Hi I’m new to FI and just started! Yeah! Question as the title. I do have Schwab account. Any input would be appreciated! Thank you!
New to Investing?
Read our Complete Investing Guide →Index funds, Vanguard or Schwab?
trompettejoe
62 XP
·
·
23 replies
Replies (23)
Kyle Vincent
4 days ago
The most important thing is to compare the commissions for the necessary tools, and choose favorable conditions for yourself. I like both of them. But I prefer to select individual stocks, but it's hard to do. Therefore, for a beginner, it is best to use an index.
Sierra Larsen
82 XP1 week ago
Schwab is fine, I also have them. I know many people prefer others but I think the key is finding those low fee index funds and Schwab has some too.
trompettejoe
62 XP1 week ago
I bought the SWTSX, .03%. Let it ride! Thanks!
Gil W
467 XP1 week ago
My brokerage is Fidelity but I buy Vanguard index funds. Fidelity has zero funds but they trade as mutual funds.
trompettejoe
62 XP1 week ago
I bought SCHWAB TOTAL STOCK MARKET INDEX in Schwab, I'm pretty sure it's the equivalent that Vanguard offers.
unplug2022
35 XP1 week ago
I am the same. Vanguard ETFs are also transferable with no tax (on full shares) to other brokerages. I like fidelity because their interface is easy and they automatically invest all cash into money market so I don't have to worry about quickly withdrawing my dividends to my HYSA.
Ava
243 XP1 week ago
Please make sure you're buying the ETF version, and not playing hefty fees for purchasing another brokerage's mutual fund (ex buying VTI instead of VTSAX). Firms might charge $50-75 PER TRANSACTION if you buy the mutual fund of another firm on their platform.
favoritenephew
213 XP1 week ago
I've used all three and I still prefer Vanguard, mostly because of their ownership structure. Unlike Fidelity (privately owned) or Schwab (publicly traded), Vanguard is owned by its own funds. Their incentives are the most aligned with their customers, and we all know what Charlie Munger said about incentives…
I realize this is probably out of scope for your question, but if you want to listen to a [four hour] podcast about the history of Vanguard, this Acquired episode is a great listen.
trompettejoe
62 XP1 week ago
Thanks for your advice. I haven't experimented with Vanguard before, and honestly, I'm not sure if I should try it if Schwab offers the same thing. I bought SCHWAB TOTAL STOCK MARKET INDEX, and I think that's the right one.
favoritenephew
213 XP1 week ago
I think you'll be fine; just picking a low-cost index fund and buying it on a schedule is 95% of the work.
trompettejoe
62 XP1 week ago
Yes! SWTSX is the one, and I’m buying it every week. Thanks!
Max
303 XP2 weeks ago
I had a good experience with Schwab, Vanguard and Fidelity. I never had an issue with vanguards UI, but they did just change it.
My decision would be based on what type of accounts do you need and who offers them. Fidelity does HSA's, I know Schwab's banking is well regarded for international atm fees. I personally like vanguard but within these 3 you aren't going to go wrong.
OldSchoolFI
661 XP2 weeks ago
Schwab now offers fractional shares of ETFs, so you can buy an exact dollar amount of any Vanguard ETF (VTI, VT, VOO, VXUS, BND, etc.). The only issue I have with Schwab is that they haven't yet adopted an easy way to lock your accounts to protect from ACAT fraud, whereas Fidelity and Vanguard make it pretty easy.
trompettejoe
62 XP2 weeks ago
Thank you for the info! Security is a big thing.
roberto -
3,694 XP2 weeks ago
The other negative with Schwab is that their authentication only supports verification codes via phone/SMS/email. How, in 2026, they don't have the option for authenticator app, passkeys, and/or FIDO2 is truly astounding. That is one good thing about Vanguard (they support FIDO2, so things like YubiKeys).
BostonFI
6,138 XP2 weeks ago
Passkey support is the one thing Vanguard beat out Fidelity and Schwab on. They're usually the stragglers.
trompettejoe
62 XP2 weeks ago
I agree! I’m using monarch and it always asks me for the code. It’s so annoying
BostonFI
6,138 XP2 weeks ago
Whose fund it is doesn't matter if you're buying an ETF. If you're buying a mutual fund, you want to buy only your brokerage's own mutual fund because buying another brokerage's mutual fund will come with a hefty trading fee. This isn't the case with ETFs. ETFs trade just like individual stocks.
If you're buying inside your Schwab account and would like to buy a Total US Stock Market index fund for example, you can choose among:
- Schwab's ETF SCHB, expense ratio 0.03%
- Schwab's mutual fund SWTSX, expense ratio 0.03%
- Vanguard's VTI, expense ratio 0.03%
There are other ETFs from companies like iShares. You wouldn't want to buy Vanguard's VTSAX or Fidelity's FSKAX at Schwab because these are both mutual funds.
trompettejoe
62 XP2 weeks ago
Thank you! That’s really good to know! I was looking in the SWTSX.
Charlotte
1,437 XP2 weeks ago
They'll both get you there but if I had it to do over, I'd start with Schwab. Curious to hear what others think also. (Vanguard's user experience is meh)
trompettejoe
62 XP2 weeks ago
Thank you for that information!
roberto -
3,694 XP2 weeks ago
I originally had a few things at Schwab (Roth IRA and and employer plan account) for a long time. The Roth started somewhere else and that entity was eventually acquired by Schwab, but even that was quite a long time ago. When I really got moving with FI stuff, I opened a brokerage account at Vanguard, and an IRA, as well as a SEP-IRA for a while, that I eventually closed in favor of a Solo 401(k). I agree that their user experience is meh.
I also had some experience with Fidelity several years ago as a result of a different employer using Fidelity as their 401(k) administrator. However, I don't recall interacting with the platform enough to form an opinion about its usability.
A couple of years ago Vanguard announced that they were going to sell their small business retirement accounts line of business to another company. At that point I had enough experience with both Schwab and Vanguard to know that I preferred Schwab's UI and a few other of their features (like easier to do transfers, easier to handle things like beneficiaries, etc). So, I consolidated everything over to Schwab (including a couple of other accounts I had at yet another place because Vanguard didn't support that particular account type). I've been very pleased with it, and I wouldn't really consider switching.
trompettejoe
62 XP2 weeks ago
Thank you for your thoughtful reply. I honestly don’t wanna open up another account if what I have already does the same thing.