Vanguard, Fidelity or Schwab?

[almost there]

Was with Vanguard 25yrs/ customer service agents seemed knowledgeable.
Until they were not. Found this out during several large transactions at retirement. During that time also had E-trade, and other trading brokerages.
Left VG about 10 yrs ago in frustration due to their un knowledgeable phone cust service and stogy dated website. . Now just with Ch Schwab (past 10 yrs) And credit unions . I am happy I made the change. I understand Fidelity is about the same as Schwab. Both have offices close to home. And I don't see one having an advantage over the other. I just remember how happy I was to get out of VG.
With CH SCH cash funds like SWVXX paying 5.18%. I see no reason to leave. Easy transfers, knowledgeable staff. Decent website.

 

[Texas Proud]

Another benefit of Fido is their CC... 2% on everything with cash going into your broker account...

 

[jollystomper]

Why can't you just ACATS transfer the American Century holdings to either Fidelity or Vanguard?

The funds held there are proprietary, you cannot transfer proprietary funds. They must be liquidated and the proceeds transferred.

 

[JOBO]

ACAT fraud

One of the reasons I chose to consolidate VG and WFT with Fidelity is that its the only brokerage that can prevent ACATs fraud before it happens and with proper setup they can minimize the exposure to ACH fraud.

 

[ERhoosier]

Schwab is my 1st choice hands down due to quality, costs, and variety of services offered. Been with all 3, and currently have Schwab and Vanguard accounts. I consider my VG account (30+ yrs old) as a 'legacy account' (waiting to liquidate VG funds for tax considerations).

 

[ERhoosier]

We had almost everything at Schwab for years, recently have moved a huge chunk to Fidelity. Wanted to simplify cash management and Schwab sweep funds are poor, Fidelity sweeps are around 4.9% right now. Got tired of moving cash in and out of Schwab MMF to get a decent rate, now it's automatic at Fido. Also can use Fidelity cash balance to write checks and pay bills, all while it's earning decent rates.
The final straw was that Schwab started requiring me to call in and verify each external transfer to "online only" banks (their term). I guess as has been reported in the news lately, they are trying to stem cash movement out. Maybe they should just pay a decent rate on cash, eh?

Schwab's taxable MM fund (SVWXX) is 5.2% (today's 7d yield). No cash sweep I know of (inc. Fidelity) pays that high, and my Schwab broker has been 110% upfront and helpful about using their MM effectively vs a "sweep" ('pay for convenience') account. In practice, when I buy a bond or stock and I sell an equal value of SVWXX (1 day settlement) at same time. Easy peazy. FWIW- I have no desire to link my brokerage account with check writing or bill paying (due to risk of external fraud or even merchant 'accounting mistakes' I've been victim of). I have not had Schwab call me for any external transfers to any account I have previously verified with them. I would not want ANY broker to automatically transfer funds without such verification with me.
FWIW- I have NO financial connection with Schwab other than being a long time (30+ years) satisfied customer.

 

[Out-to-Lunch]

Schwab's taxable MM fund (SVWXX) is 5.2% (today's 7d yield). No cash sweep I know of (inc. Fidelity) pays that high,

Today's 7-day SEC yield for Vanguard's VMFXX sweep is 5.25%.

 

[FREE866]

Another benefit of Fido is their CC... 2% on everything with cash going into your broker account...

Thats really good....didn't know that..... is it EVERY dollar spent though?




I'm a big fan of Schwab....I don't have much interaction , but when I have questions I have a personal rep....their 24/7 chat service is great too

 

[Texas Proud]

Thats really good....didn't know that..... is it EVERY dollar spent though?




I'm a big fan of Schwab....I don't have much interaction , but when I have questions I have a personal rep....their 24/7 chat service is great too

Yes, all purchases... you can have a personal rep at Fido... it is VG who has gotten rid of them...

 

[FREE866]

Yes, all purchases... you can have a personal rep at Fido... it is VG who has gotten rid of them...

that is impressive that it applies to all purchases. it's not enough for me to switch as I'm very please with my AMEX card and protections, but it's nice to know. I have myself and numerous family members all entrenched with Schwab, but who knows what the future holds.

 

[Texas Proud]

that is impressive that it applies to all purchases. it's not enough for me to switch as I'm very please with my AMEX card and protections, but it's nice to know. I have myself and numerous family members all entrenched with Schwab, but who knows what the future holds.

You can always just open a small account and get the CC... that is what one of my sisters did...

 

[teej1985]

that is impressive that it applies to all purchases. it's not enough for me to switch as I'm very please with my AMEX card and protections, but it's nice to know. I have myself and numerous family members all entrenched with Schwab, but who knows what the future holds.

2% cashback is not all that unusual - lots of cards offer that.


The "better" ones are Alliant Credit Union at 2.5% cashback - must keep $1k in checking account and have a direct deposit, and Bank of America Premiums with Preferred Platninum Honors -2.625% cashback which requires $100k cashin BofA or investments in Merrill Edge.

 

[FREE866]

2% cashback is not all that unusual - lots of cards offer that.


The "better" ones are Alliant Credit Union at 2.5% cashback - must keep $1k in checking account and have a direct deposit, and Bank of America Premiums with Preferred Platninum Honors -2.625% cashback which requires $100k cashin BofA or investments in Merrill Edge.

Whenever I've looked into it, although I haven't for years now I guess, it was 2% back on "approved" purchases, not a blanket for all. Good to know.

 

[audreyh1]

I've read (maybe on Bogleheads.org?) that some have been able to transfer Admiral shares to Fidelity.

Not sure if you know this, or if it applies, but don't sell funds in a taxable account. You could possibly be hit with a tax bill. You can have Vanguard switch your admiral shares to a lower class of fund with no tax consequences. Or you can convert to ETF's if you prefer, before moving assets to Fidelity.

Admiral managed funds won’t transfer, index funds will.

I believe Vanguard dropped the Admiral designation on their index funds and moved everyone to what had been the Admiral version. So the index funds that were traditionally Admiral do transfer.

 

[teej1985]

I believe Vanguard dropped the Admiral designation on their index funds and moved everyone to what had been the Admiral version. So the index funds that were traditionally Admiral do transfer.

They didn't merge the funds. Admiral shares still exist. The LifeStrategy and Target Date funds are still invested in the Investor share class as far as I know.

 

[km4hr]

Since Vanguard doesn't invest in local offices they better have reliable telephone support and that used to be the case. But about the time covid hit Vanguard's telephone support went down the tubes and never recovered. Now when I call they take my number to call me back later. But I don't want to wait by the phone for hour. After 30 years of investing with them I switched mostly to Fidelity. Not only is the telephone support much better but I have a representative that really seems to work for me. They also have a local office not too far away. I haven't noticed much difference in fee's.

 

[Texas Proud]

OK... interesting info...



I had posted that I had a problem with Fidelity because I could not easily buy a variable preferred share without calling them.. I had been trading these in Vanguard to pick up some coin on dividends....



Now I am having a problem buying a bond at Schwab... it says because of blue laws that I am restricted from buying 'at my address'... I was gong to call but decided to try Fido and guess what... I could buy without any problem...


BTW, I can trade variable preferred at Schwab all day long...


It seems to be that having two companies is the best way to go...

 

[youbet]

I believe Vanguard dropped the Admiral designation on their index funds and moved everyone to what had been the Admiral version. So the index funds that were traditionally Admiral do transfer.

In my case, I held a position of Vanguard TSM Investor Class shares at Schwab. At the time, Vanguard did not allow other brokerages to hold Admiral Class shares. Then several years ago, my Investor Class shares were changed to Admiral Class (VTSAX) automatically. The Investor Class shares are now no longer available for purchase.

 

[Texas Proud]

WOW.... will have to check for Schwab if this is the same...


I tried to buy a bond in my Fido account and it was not filled... went to look at the order and.... nothing... zilch... not there...


I tried to get info with chat but it was a computer answering me so no help... called and had to go through their questions and got connected to the bond desk... again no help as he does not know the website...

Called again and just ask for website help and got someone that could help... but was told that they do NOT keep track of any orders not filled, both stock and bonds...

It has been awhile but IIRC E-Trade kept track of all orders, filled or not...

Makes me wonder about VG also...


My search for a broker goes on... Fido might lose out on this...


Edit.... it seems that none of these three keep track of failed orders... anybody have any info on this? I put in an order that will fail at Schwab to check...

 

[jazz4cash]

2% cashback is not all that unusual - lots of cards offer that.





The "better" ones are Alliant Credit Union at 2.5% cashback - must keep $1k in checking account and have a direct deposit, and Bank of America Premiums with Preferred Platninum Honors -2.625% cashback which requires $100k cashin BofA or investments in Merrill Edge.

I think 2% cashback on all purchases with no deposit requirements, credited automatically on a monthly basis is a pretty good deal

 

[ERhoosier]

Today's 7-day SEC yield for Vanguard's VMFXX sweep is 5.25%.

I should have recalled that VG's does approximate Schwab's, for sure. I still have a VG account with VMFXX assets. I forgot about it since it is a legacy account for me (winding it down in tax efficient steps).

 

[Texas Proud]

OK, so placed orders that would not be filled to check the three...


So far Schwab and VG shows the orders as not being filled or were cancelled...


Fidelity has NOTHING... zip, nada, no trace that I even placed an order at all... unless it is filled I get nothing...


And Schwab sends me an email on the trade showing that info... so I can keep it for as long as I want...


Will check back to see how long the two keep that info on their site... maybe only a short time...


I cannot believe that a broker would not show entered trades that did not go through...

 

[Texas Proud]

OK... my VG failed trade no longer is showing...


Fidelity never did after the day it failed....


Schwab still has it showing and a link to reenter it if I want...


Since I did not look (or maybe pay attention) I do not know how long VG kept in online...


IIRC when I was with E-Trade they kept all trades entered.... always... but I could be just making this up in my mind... any E-Trade accounts know for sure?

 

[Landolink]

I’m switching to Schwab after nearly 40 years at Vanguard. I had an issue with ETrade for my parents accounts that to say the least was a nightmare.

I would never subject my wife and kids to dealing with a 1 800 # if I was hit by a Bus. Likewise I if something were to happen to my wife there is no way I would want to deal with a call center. I found a good guy at Schwab. My investments changed very little. I just have to proactively manage the cash.

 

[Koolau]

I’m switching to Schwab after nearly 40 years at Vanguard. I had an issue with ETrade for my parents accounts that to say the least was a nightmare.

I would never subject my wife and kids to dealing with a 1 800 # if I was hit by a Bus. Likewise I if something were to happen to my wife there is no way I would want to deal with a call center. I found a good guy at Schwab. My investments changed very little. I just have to proactively manage the cash.

I sense that Vanguard has problems with things that are relatively new to them. Clients being hit by a bus is not one of those things though YMMV.