Reviewed by
Stang Gappa
Reviewed by
Stang Gappa
Updated on May 30, 2024
Learn about our Editorial Process
Charles Schwab offers a self-directed IRA with an easy-to-use, low-cost trading account from the broker that pioneered low-commission trades.
Vanguard offers an IRA comprised mainly of exchange-traded funds (ETFs) with low fees and great educational resources.
Vanguard’s platform is built on trading low-cost mutual funds, index funds, and ETFs. As an investor, you’ll get access to Vanguard’s research, easy-to-read fund performance analyses, and helpful retirement planning tools. These perks, as well as Vanguard’s low-cost philosophy, make them a good choice for buy-and-hold investors planning for long-term goals like retirement. Vanguard’s low fees and earnest investment philosophy continue to attract new customers, the company’s assets under management (AUM) recently hit $6.2 trillion.
Because it’s one of the biggest names in the business, Schwab investors can benefit from tech giant’s host of other features, including checking and savings accounts, insurance products, trust and estate services, and even Charles Schwab credit cards. Though you may pay an annual fee of up to $695, you can get a host of travel benefits, including no foreign transaction fee. Schwab also has a credit card with no annual fee.
Vanguard offers a wide selection of investment account types, including standard brokerage accounts and goal-oriented investments like education savings plans. If you’re saving for several different goals in addition to retirement, Vanguard’s platform will allow you to manage it all from one online dashboard.
Vanguard offers customers the ability to work directly with a financial advisor, though you’ll need at least $50,000 to invest. Until then, you can take advantage of their free research and planning tools to help you invest wisely.
For those interested in getting their investment journey started without playing a single transaction fee or being beholden to a minimum deposit, Charles Schwab stands out among trading platforms. Although many brokerages offer free ETFs, not every trading platform can boast accounts with no fees or account minimums, along with $0 commission fees and no-fee mutual funds.
If you’re a buy-and-hold investor looking for low fees, Vanguard may be the place for you. However, if you’re looking for access to a wide variety of investment choices and a high-tech platform, you’ll likely get frustrated by Vanguard’s narrow investment selection and simplistic trading platform.
