Vanguard is a popular, low-cost brokerage offering thousands of competitively priced mutual funds and ETFs focusing on long-term investing strategies. It is one of the best online brokerages. You can benefit from a Vanguard investment account whether you're an active, passive, or retirement-focused investor. However, Vanguard doesn't offer cryptocurrencies or fractional shares for stocks.
Business Insider's personal finance team compared it to similar brokerages and named it to our lists of the top online brokerages, custodial accounts, and robo-advisors.
Pros and Cons
Vanguard Pros
- Commission-free stocks, options, and ETFs
- Low-cost mutual funds and low-expense ratio ETFs
- Huge selection of retirement trading tools
Vanguard Cons
- High mutual fund minimum
- Higher options trading fees than competitors
- Doesn't offer a separate trading platform for advanced trading
- No cryptocurrencies or fractional shares for stocks
- Multiple lawsuits filed against the business
Open an Account
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor)
0% (0.20% to 0.30% for professionally managed portfolios)
- Commission-free stocks, ETFs, and options
- Brokerage, automated, and advisor-managed accounts available
- Thousands of low-cost mutual funds
- Multiple resources with expert analysis and market insights
- Several retirement accounts and services for retirement plan participants
- Higher options contract fee than other discount brokerages (Vanguard charges $1 per options contract)
- No separate trading platforms for advanced traders; no fractional shares
- No cryptocurrencies
Vanguard is a reasonable low-cost option for all types of investors. Whether you're an active trader, passive investor, or retirement-focused individual, you should be able to find what you're looking for.
- Promotion: None at this time.
- App store rating: 4.7 iOS/ 1.8 Android
- Consider it if: You're a long-term focused investor looking for access to a variety of account types and investment choices.
- Awards: Morningstar gave Vanguard a 'High' assessment in its 2022 Robo-advisor Landscape report, listing it as the #1 platform out of 16 robo-advisors
Compare Vanguard
Overview
Vanguard is an industry-leading brokerage with over $8.6 trillion in assets under management. Vanguard is part of the "big three" largest brokerage firms alongside Charles Schwab and Fidelity.
Vanguard's brokerage platform stands out for its client-owned structure benefits, advisor services, low expense ratios, and expert-crafted target date retirement funds. However, research and data are limited, so active traders seeking more advanced trading tools and charting features are better off with a more sophisticated trading platform.
Beginners and passive investors can benefit from Vanguard's robo-advisor, Vanguard Digital Advisor, and invest in a diversified portfolio of competitively priced ETFs and mutual funds. Or you can open a DIY investing account for $0 and hand-pick stocks, bonds, and money market funds.
Vanguard doesn't offer fractional shares of stocks, only ETFs. You also can't invest in cryptocurrencies.
If you're solely focused on retirement, Vanguard offers an expansive mutual fund selection, holistic wealth management, and personalized financial planning. Several retirement tools are also available, including a retirement income calculator, expenses worksheets, and an inherited RMD calculator.
Experienced investors who want access to fiduciary advice for account guidance and management should consider a Vanguard Personal Advisor account.
Vanguard's customer support team is available Monday through Friday from 8 a.m. to 8 p.m. ET. Hours for retirement plan participants, institutional investors, nonprofits, and financial advisors vary slightly. Users frequently complain of poor customer support and difficulties getting ahold of an actual person.
Ways to Invest
Let's explore the different ways to invest with Vanguard.
Vanguard Self-Directed Brokerage Account
Vanguard self-directed brokerage accounts are best for active traders who want direct control over their investments. Available as individual or joint brokerage accounts, this option gives you various investment choices, including:
- Stocks
- ETFs
- Options
- Bonds
- Mutual funds
- CDs
You can buy Vanguard's mutual fund in two ways: as investor or admiral shares. Admiral shares are more affordable compared to regular investor shares. Here's how they compare:
| Investor Shares | Admiral Shares |
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Vanguard mutual funds include index, actively managed, target retirement, and ESG funds.
Educational resources for Vanguard investors help users make online trades and manage portfolios. Vanguard also has a "News & Perspectives" hub that informs users of the latest investing trends.
Vanguard Automated and Advisor-Managed Accounts
Not interested in picking investments on your own? Vanguard offers some options for hands-off investors who prefer automated or advisor-managed accounts. These include the following:
- Vanguard Digital Advisor: This is Vanguard's automated investing account. It creates a personalized portfolio for you that's composed of Vanguard ETFs. The account has a $100 minimum and 0.11% - 0.20% advisory fee.
- Vanguard Personal Advisor: This account merges automated management with one-on-one financial advisor support. Though it has higher fees (a $50,000 account minimum and 0.30% balances under $5 million; those with larger balances pay less annual fee), you get to take advantage of professional advice from a Vanguard fiduciary advisor.
Vanguard Retirement Accounts
Vanguard is also a great resource for those interested in using retirement accounts to build wealth. The brokerage offers several options, including:
- Traditional IRAs
- SEP IRAs
- Roth IRAs
- 401(k) rollovers
- Individual 401(k)s
- SIMPLE IRAs
Investing in Vanguard's retirement accounts gives you access to the investment platform's range of ETFs and Vanguard's All-in-One retirement funds. All Vanguard target retirement funds have at least a $1,000 minimum.
Most retirement savings account options are available through Vanguard's robo-advisor or managed account.
If you have a Vanguard 401(k) account through your employer, you can't open an IRA account online or over the phone. Instead, you must fill out a paper allocation and mail it, with a turnaround time of 7-10 days to open the account once it's received.
Vanguard Education Savings Plans
Low-cost investing with Vanguard Brokerage offers multiple options for investing for a child or dependent. These include its 529 education savings plans, UGMA/UTMA custodial accounts, and trust administration and investment management services.
Vanguard is one of the brokerages used in the best 529 plans, offering its users access to a DIY portfolio or hands-off options. Its individual 529 portfolios (the DIY option) — which let you create your own investment strategy — give you access to several mutual funds and ETFs. These include all-in-one retirement funds, total market ETFs, and environmental, social, and corporate governance (ESG) funds.
Active investors might enjoy its Target Enrollment portfolios that diversify your money across stocks, bonds, and cash investments. Invest toward a maximum of five education goals in the same account. Vanguard handles all of the legwork for you, and you'll just have to select a portfolio based on which year you expect your dependent to start school.
Fees
A self-directed Vanguard brokerage account has a $0 minimum, but some Vanguard mutual funds require you to have a certain minimum investment (usually between $1,000 and $100,000). Target retirement funds and STAR funds are on the lower end, with actively managed mutual funds and sector-specific index funds on the higher end.
All brokerage accounts and IRAs charge a $25 annual account service fee, but you can get this waived if you sign up for statement e-delivery.
Vanguard ETFs start at $1. You must buy all stocks and non-Vanguard ETFs at market share price. Vanguard calculates expense ratios for ETFs and mutual funds by dividing operational expenses by its average net assets.
Options are commission-free but charge a $1 per contract fee. Investors with account balances between $1 million to $5 million have no contract fees for the first 25 trades. Those with $5 million or more have no contract fees for the first 100 trades.
Trustworthiness
The Better Business Bureau has given Vanguard an F rating. BBB ratings typically range from A+ to F and reflect the bureau's opinions of a company's customer complaint history, business practices, and advertising and licensing information. The BBB says multiple complaints filed against Vanguard and several unresolved complaints are the reason for the low rating.
On January 29, 2025, a class action lawsuit was filed against Vanguard for its $100 account closure and full transfer out fee. The suit alleges this is an illegal "junk fee." This case is still pending.
On January 17, 2025, Vanguard agreed to pay over $106.41 million to settle SEC charges around misleading statements related to capital gains distributions and tax consequences for investors who held target-date funds. The settlement amount will be distributed to the impacted investors.
On November 11, 2024, 11 states (including Texas, Alabama, and Arkansas) sued BlackRock, State Street Corporation, and the Vanguard Group. The suit alleges the companies conspired to manipulate energy markets and drive up the cost of electricity across the United States. This case is still pending.
On June 1, 2023, the Financial Industry Authority (FINRA) fined and censured Vanguard for multiple errors found in 8.5 million customer statements. Vanguard paid an $800,000 fine and has since corrected the errors.
On June 10, 2023, a whistleblower lawsuit originally filed back in 2013 began mediation. It alleges that the former Vanguard employee was wrongfully terminated after discovering billions of dollars worth of fraudulent tax behavior by Vanguard. The employee was fired less than a month after filing with the SEC. This case is currently under investigation.
In 2022, Vanguard paid a $6.25 million settlement with Massachusetts Secretary of State William Galvin for allegedly failing to warn investors of large tax bills after investing in target-date funds.
Alternatives
Here's how Vanguard compares to similar platforms.
SoFi®
$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading
0% for active trading and automated investing
Get up to $1,000 in stock when you fund a new account.
- No account minimum
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners
- IPOs available
- SoFi 1% IRA match
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
- Currently only available to US residents
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Active Invest- Promotion: Get up to $1,000 in stock when you fund a new account.
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
SoFi Active Invest is another popular online brokerage offering both self-directed brokerage accounts and a robo-advisor option.
Both the Vanguard and SoFi platforms offer self-directed brokerage accounts for active traders, automated accounts for passive investors, and IRAs for retirement-focused individuals.
However, unlike Vanguard, SoFi doesn't offer advisor-managed investing accounts. Therefore, investors with more complex investing accounts or large account balances may prefer Vanguard for its continuous account monitoring and professional oversight.
SoFi is a stronger option for beginners as it offers a more simple and straightforward investing experience. When you open a checking or savings account and set up automatic deposits, you can gain complimentary access to certified financial planners.
Fidelity
$0 ($25,000 Fidelity Personalized Planning & Advice)
0% ($0 or 0.35% for robo-advisor)
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.
Fidelity Brokerage- Promotion: None at this time
- App store rating: 4.8 iOS/4.4 Android
- Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
- Consider it if: You're focused on long-term investing and retirement.
Fidelity is one of Vanguard's top competitors, offering top-notch investing, banking, and personal financial services. While Vanguard and Fidelity are mostly neck and neck, their fees differ in some areas.
For instance, when it comes to robo-advice, you'll pay less to start at Fidelity Investments. Fidelity's standard automated investing account, Fidelity Go, has a $0 minimum requirement, and it charges $0, $3/month, or 0.35%/year, depending on your account balance. Vanguard's equivalent account, Vanguard Digital Advisor, has a $3,000 minimum requirement. However, its constant 0.20% annual fee may appeal more to those with higher balances.
In addition, Fidelity Personalized Planning & Advice also has a lower minimum requirement ($25,000) than Vanguard Personal Advisor Services. But Vanguard charges a lower annual fee (0.30% balances under $5 million; those with larger balances pay less) for its account.
Why You Should Trust Us
We use Business Insider's rating methodology for investing platforms to compare and examine pricing for Vanguard's account options, investment availability, and overall customer experience when reviewing investment apps. Each platform receives a rating between 1 and 5.
Online brokerages offer varying assets, financial tools, fees, and other resources. Some brokers are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. Vanguard was evaluated with a focus on how it serves in each category.
Business Insider's Overall Vanguard Rating
| Feature | Rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 4.50 |
| Access | 3.50 |
| Ethics | 1.00 |
| Customer service | 2.50 |
| Overall score | 3.17 |
FAQs
What is a Vanguard Brokerage Account, and what does it offer?
A Vanguard brokerage account includes self-directed, automated, and advisor-managed accounts. As one of the largest investment management companies, Vanguard offers investors a suite of educational features and trading tools for simple portfolio diversification and cost-effective management.
How does Vanguard stand out from other brokerage firms?
Vanguard stands out from other brokerage firms for its low-cost funds, unique client-owned structure benefits, target date retirement funds, and advisor services.
What are the fees associated with a Vanguard Brokerage Account?
The fees associated with a Vanguard brokerage account are generally low, with no minimum balance requirement and no annual fee. Vanguard ETFs start at $1, while non-Vanguard ETFs vary by share price. However, mutual funds begin at $1,000.
Is Vanguard Brokerage Account suitable for beginner investors?
Yes, a Vanguard brokerage account is suitable for beginner investors. Its simple interface, copious educational guides and market research resources, and automated investing accounts make it a suitable choice for those just getting into wealth-building.
What is the downside of Vanguard?
The downside of Vanguard is its limited research and data, so it is not the strongest choice for advanced traders. Multiple lawsuits have been filed against Vanguard, and online reviews criticize the platform for its outdated customer support.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. https://www.sofi.com/invest/clawpromotion/rules.
