Vanguard vs. Fidelity: Which Investment Giant is Actually Better in 2025?

Are you torn between Vanguard and Fidelity for your investment needs? You’re not alone. As two of the largest financial services companies in the world, both offer impressive platforms, but they serve different types of investors. I’ve spent countless hours researching both platforms to help you figure out which one might be the better fit for your financial goals.

The Quick Answer

For passive long-term investors Vanguard edges ahead with its ultra-low-cost index funds and ETFs.For active traders and those wanting more options Fidelity wins with its robust trading platform and wider range of investment choices.

But honestly, the devil’s in the details Let’s dive deeper to see which might work better for YOUR specific situation.

Assets Under Management: The Big Players

Both companies are absolute giants in the investment world:

• Fidelity manages about $16.4 trillion in assets
• Vanguard manages around $11 trillion in assets

These massive numbers reflect the trust millions of investors place in these companies. But size isn’t everything—let’s look at what actually matters to you as an investor.

Account Features: Head-to-Head Comparison

Who Should Choose Vanguard?

Vanguard really shines for a specific type of investor. Here’s why you might prefer them:

1. You’re a Passive, Long-Term Investor

If you’re the type who wants to set and forget your investments, Vanguard’s philosophy aligns perfectly with your goals. The company was literally founded on the principle of passive investing through index funds.

2. You’re Cost-Conscious About Expense Ratios

Vanguard’s claim to fame is having some of the lowest expense ratios in the industry. This matters A LOT for long-term investors because even a small difference in fees can add up to tens of thousands of dollars over decades.

3. You Value Simplicity Over Bells and Whistles

The Vanguard interface isn’t the fanciest, but it gets the job done without overwhelming you with options you’ll never use.

One investor I know, Tom, told me: “I tried both and went with Vanguard because I just need to make my monthly contributions to my retirement accounts and check in a couple times a year. I don’t need all the extra stuff.”

Who Should Choose Fidelity?

Fidelity offers a more comprehensive platform that caters to a wider variety of investor needs:

1. You Want to Be an Active Trader

Fidelity’s Active Trader Pro platform blows Vanguard out of the water for anyone who wants to actively manage their investments. With advanced charting, screeners, and real-time data, it’s simply more suited to active trading.

2. You Need More Investment Options

Fidelity offers a broader range of investment types, including cryptocurrency, forex, and precious metals, which aren’t available through Vanguard.

3. You Value Better Digital Tools and 24/7 Support

Fidelity’s website and mobile app are more user-friendly and feature-rich. Plus, their round-the-clock customer support means you can get help whenever you need it.

My colleague Sarah switched to Fidelity last year and told me, “Having access to their research tools and being able to call support at 11 PM when I was freaking out about a market dip was worth its weight in gold.”

Trading Experience: Desktop and Mobile

Desktop Experience

• Fidelity: Offers the robust Active Trader Pro platform with real-time data, advanced charting, technical indicators, and customizable dashboards
• Vanguard: Basic trading tools focused on simplicity rather than advanced features

Mobile Experience

• Fidelity: Higher rated app (4.8/5) with more robust features, synchronized watchlists, and better navigation
• Vanguard: Functional but dated app (4.7/5) with delayed quotes and limited features

One thing I noticed when testing both platforms is that Vanguard’s app feels like it was designed for occasional check-ins, while Fidelity’s feels like you could actually manage your entire portfolio from your phone if needed.

Costs and Fees: Breaking It Down

Both platforms offer commission-free trading for stocks and ETFs, which is awesome. But there are some differences worth noting:

Account Fees

• Fidelity: $0 account maintenance fees
• Vanguard: $25 annual account fee (waivable if you opt for e-statements)

Options Trading

• Fidelity: $0.65 per contract
• Vanguard: $1 per contract

Managed Portfolio Fees

• Fidelity: 0% to 1.50% depending on service level
• Vanguard: 0.15% to 0.31%

Broker-Assisted Trades

• Fidelity: $32.95
• Vanguard: $25

It’s worth noting that if you’re primarily investing in mutual funds, Vanguard might save you money in the long run through their lower expense ratios, especially for their own funds.

Research and Educational Resources

Both companies offer solid educational content, but there are some notable differences:

Vanguard’s Approach

• Market commentary
• Research papers
• Video recordings
• Focus on long-term investing principles

Fidelity’s Approach

• More comprehensive Learning Center
• Webinars and online coaching
• Infographics and interactive tools
• Coverage of both basic and advanced topics

I personally found Fidelity’s educational resources easier to digest and more practical, especially for newer investors.

Customer Service Experience

This is an area where Fidelity clearly pulls ahead:

• Fidelity: 24/7 phone support, online chat, and secure email
• Vanguard: Phone service during business hours only (12-hour window on weekdays)

When I had questions about a rollover IRA, I was able to get help from Fidelity at 9 PM on a Sunday, which was super convenient. With Vanguard, I would’ve had to wait until Monday morning.

Special Features Worth Considering

Fidelity’s Standout Features

• Crypto Trading: Access to Bitcoin, Ethereum, and Litecoin
• Full View: Allows linking external accounts for a complete financial picture
• Youth Accounts: Special accounts for teens aged 13-17
• Health Savings Accounts (HSAs): Not available at Vanguard

Vanguard’s Standout Features

• Superior Price Improvement: Averages $25.59 per 1000 shares vs. Fidelity’s $24.34
• Stronger Portfolio Rebalancing Tools: Better for maintaining your desired asset allocation
• Lower Advisory Fees: If you need professional management, Vanguard’s fees are generally lower

The Bottom Line: Which is Better in 2025?

In 2025, both Vanguard and Fidelity continue to be excellent choices, but they serve different investor profiles.

Choose Vanguard if:

• You’re primarily a passive, buy-and-hold investor
• You value the absolute lowest expense ratios for long-term growth
• You don’t need fancy trading tools or 24/7 support
• You prefer a company focused almost exclusively on low-cost investing

Choose Fidelity if:

• You want a more versatile platform that can grow with your investing journey
• You value robust research tools and better technology
• You might want to explore active trading or alternative investments
• You want 24/7 customer support and more account type options

In my experience working with different types of investors, I’ve noticed that beginners and tech-savvy investors tend to prefer Fidelity’s more intuitive interface, while finance purists and long-term retirement savers often gravitate towards Vanguard.

My Personal Take

If I had to choose just one, I’d probably go with Fidelity for the flexibility it offers. While Vanguard is amazing for index fund investing (and that’s what I recommend for most of my retirement savings), Fidelity gives you room to grow and experiment as your investing knowledge expands.

That said, there’s no rule saying you can’t use both! Many investors I know maintain accounts at multiple brokerages to take advantage of the strengths of each.

What’s your experience been with either platform? Are there specific features that have won you over? I’d love to hear your thoughts!