What's wrong with Schwab?

[DenverCraig]

Hi There,

I have the majority of my portfolio in Schwab, mostly because my company's 401K and stock administration is through them. I also have a bit of money in Fidelity from an old 401K that turned into a rollover IRA that I never moved. My company is in the process of being acquired and the new company uses Fidelity so we're going to be moving the work stuff to Fidelity.

Anyway, following the posts on this forum for the past few years, I never see anyone say hardly anything about Schwab, people are indifferent-to-hostile to Fidelity, and Vanguard seems to be a favorite (very unscientific, but that's my take).

I've had zero issues with Schwab. Their customer service has been great and their website is pretty easy to use, there's a branch near my house where I can get a free cup of coffee from time to time. On the other hand, the few times I've needed support from Fidelity, it's really been sub-par, though their local office also has free coffee.

I've never used Vanguard (and they don't have a local office).

So what does Vanguard do better than Schwab? Since things are going to be in turmoil for me with the acquistion, I'm interested to know if there's a compelling reason to move my non work stuff to Vanguard.

Thanks!

DC

 

[Happyras]

I found Vanguard to be difficult and slow to move assets in or out. Schwab and Fido are both easy to work with in this case. I preferred Fido and moved all from Vanguard and Schwab for both convenience, and overall ease of access. Schwab was always trying to educate me toward their outside advisors or funds. Fido has tried a few times, but not pushy. I am OK with the website at Fido, and features provided for credit cards, trust accounts, and other accounts for flexible transfers between accounts without need to contact them. They always step up and provide immediate wire transfer support over the phone without the need to go in to sign. Overall, either Schwab or Fido is good for most investors needs, but I like Fido more for the overall ability to manage all our major financial moves.

The only downside to Fido is there small fee to trade Vanguard funds, but you can hold all of the them there even Admiral shares now.

 

[Dash man]

Hi There,



I have the majority of my portfolio in Schwab, mostly because my company's 401K and stock administration is through them. I also have a bit of money in Fidelity from an old 401K that turned into a rollover IRA that I never moved. My company is in the process of being acquired and the new company uses Fidelity so we're going to be moving the work stuff to Fidelity.



Anyway, following the posts on this forum for the past few years, I never see anyone say hardly anything about Schwab, people are indifferent-to-hostile to Fidelity, and Vanguard seems to be a favorite (very unscientific, but that's my take).



I've had zero issues with Schwab. Their customer service has been great and their website is pretty easy to use, there's a branch near my house where I can get a free cup of coffee from time to time. On the other hand, the few times I've needed support from Fidelity, it's really been sub-par, though their local office also has free coffee.



I've never used Vanguard (and they don't have a local office).



So what does Vanguard do better than Schwab? Since things are going to be in turmoil for me with the acquistion, I'm interested to know if there's a compelling reason to move my non work stuff to Vanguard.



Thanks!



DC

We have a large chunk of our assets with Schwab and my wife has her 401k and a Roth with Fidelity. We have a few Vanguard ETFs. I personally don’t use Vanguard because I live too close to their campus and know some folks there. Just don’t want them knowing my business.
I like Schwab and have no desire to move. I like getting invites to Webinars and market updates. My contact at Schwab is the same guy I had for years at USAA before they sold their investment business to Schwab. We have talked with some folks at Fidelity, but haven’t been as impressed. They are all competitive with fees, but Schwab and Fidelity have better websites. Schwab will also be integrating TD Ameritrade in their company and will bring in some new things when that completes.

 

[Andre1969]

My current 401k, as well as a 401k that rolled over into an IRA with a previous employer, are at Schwab. No complaints so far, although I haven't had to do anything complicated yet. I've just been contributing, and rebalancing every once in awhile.

I have another IRA, that was rolled over from a 401k, with Fidelity. And, once again, no complaints. I also have two inherited IRAs with Fidelity. When I inherited the first one, my first choice was with Janus. I have a good deal of mutual funds with them, both in a regular account and a Roth. But, when I tried to do set up the Inherited IRA, the representatives I talked to said they didn't know how to do that! Apparently, Janus isn't too strong, in that department. So, I tried Fidelity. No problems so far. And, when I inherited the second one, I just went with Fidelity again, because the first one was fairly easy.

 

[braumeister]

Anyway, following the posts on this forum for the past few years, I never see anyone say hardly anything about Schwab, people are indifferent-to-hostile to Fidelity, and Vanguard seems to be a favorite (very unscientific, but that's my take).

I think you may have seen a very limited sample of posts here.

We have a great many members who are very happy with all three brokerages, and I think I've seen at least as many positive comments about all of them as negative ones.

Also, since satisfied customers are much less likely to post than those who have experienced a problem, there is a kind of built-in bias. I think the majority here would say you're likely to be happy with any of the three.

Personally, I have accounts at both Fidelity and Schwab, and I'm very happy with both. I used to have accounts at Vanguard but my reasons for moving them were simply that I could get better service at the others -- no particular grievance.

 

[jazz4cash]

My take is very different. Vanguard is the leader in DIY low cost mutual fund investing but many believe their frugal ways mean they are lacking in some ways wrt customer service. Vanguard has done a huge favor to individual investors. They don’t have any local branches., though. We have a VG account and it is just fine. Mostly I use Fidelity since my 401k is there. They have a lot of resources plus local branches are handy when you need one. I have no experience with Schwab but my impression is they are very comparable to VG and Fido. They also seem to be focused on individuals and they also offer local branches. I can’t recall many complaints from Schwab clients so my impression is very favorable

 

[DenverCraig]

Thanks for the quick feedback. The point "you may not hear much about Schwab because people are more likely to post a complaint not a compliment" is well-taken. Good to know I'm not really missing anything, short of people don't dislike Fidelity as much as I was inferring.

Gonna just stay put with my non-work portfolio. It ain't broke.

 

[nwsteve]

The only downside to Fido is there small fee to trade Vanguard funds, but you can hold all of the them there even Admiral shares now.

We consolidated at Fido several years after enduring multiple indifferent customer services experiences. Fido has its blemishes but unlike Vanguard, when you seek help, our Fido contacts have always proved competent and capable of getting it right the first time. For Vanguard, our experience was if there wasn't an answer in their script, the csr pretty much punted.

If you are an ETF investor, note there is NO cost for buying or selling any Vanguard ETF.

 

[CyclingInvestor]

I have been with Schwab since 1979. No complaints, excellent service the few times I have needed it.

 

[Markola]

I’ve been with all three and have been mostly happy with all three. One question you might ask yourself is, “Which company is in best alignment with my investing style?” In my case, I only want index funds, so I am now a Vanguard partisan.

I once had the bulk of our assets at Schwab, where I owned Vanguard index funds. One day, I got a call from a Schwab financial planner, who told me I’d always have subpar results with index funds and that he could do better. I was insulted, feeling it revealed Schwab’s true actively-managed fund orientation. I decided I’d rather have my money in the company that invented index funds.

I made the move to Vanguard and have been very happy ever since. I have enough there that I have an assigned advisor, Michael _____, and I get terrific customer service every time. I’ve never met Michael, because he’s in Scottsdale. Vanguard does not have fancy, expensive downtown storefronts. It’s a co-op with the lowest fees in the industry, so I feel Vanguard is aligned best with my interests. They aren’t trying to satisfy Wall Street shareholders or family owners.

I have had retirement plans at Fidelity and always received excellent customer service there. However, Fidelity is out of alignment with my unshakeable commitment to index funds and low fee everything, except for a few loss-leader index funds that are designed to get people in the door so that higher fee funds and products can be sold to them.

All that said, all three companies are the relative white hats in the industry and one can’t go too far wrong at any of them.

 

[pb4uski]

Thanks for the quick feedback. The point "you may not hear much about Schwab because people are more likely to post a complaint not a compliment" is well-taken. Good to know I'm not really missing anything, short of people don't dislike Fidelity as much as I was inferring.

Gonna just stay put with my non-work portfolio. It ain't broke.

Good decision. I have all three and they are all ok, but some days they suck. I've only had a relationship with Schwab or month or two but so far I think they're pretty good.

 

[RetireeRobert]

Nothing is wrong with Schwab.

Got my various tIRA and Roth accounts there. Got all my kids set up with Roth accounts there.

Local office to drop off stuff I don't want to get lost/slowed in the US mail.

Regional office with rep to talk me through/facilitate occasional pieces of business I have questions about.

Schwab has done me well.

 

[MRG]

Thanks for the quick feedback. The point "you may not hear much about Schwab because people are more likely to post a complaint not a compliment" is well-taken. Good to know I'm not really missing anything, short of people don't dislike Fidelity as much as I was inferring.

Gonna just stay put with my non-work portfolio. It ain't broke.

There's nothing wrong with Schwab or any of the other two. I prefer to have assets distributed across a couple systems of record. Sometimes things go wrong internally or externally and it's great to have a backup.

 

[steelyman]

I manage accounts at Fidelity, Vanguard, Schwab & T. Rowe Price. TRP is the most cumbersome but it’s a 457 that stays there. The others are fine once you get used to them (website and mobile apps).

 

[jim584672]

Schwab is good. Vanguard is garbage for many reasons.

 

[RunningBum]

I would go with any three of VG, Fido, and Schwab. The bulk is with VG because they had the best low cost index funds back when that's what I wanted. I also have an HSA and DAF more recently opened with Fidelity because they had the best products for those when I needed them. I have old dormant accounts at TDAmeritrade and Schwab back when I invested in individual stocks.

I've had some issues with VG but not enough to make me move. If I go, I don't know if I'd go with Fido or Schwab. Schwab may have a bit of growing pains from taking in Ameritrade but that's probably temporary. They have an office within our hour, while Fidelity's is 2 hours away. Handier than trusting mail or chasing down a medallion signature if needed.

 

[mpeirce]

As other's have also said, they all are fine really.

We have accounts with all three. Schwab and Fidelity had work 401k/IRA accounts and so have kept the money there. I added Vanguard for most of our taxable money because they have the best low cost MFs - while the others are now pretty competitive, so there you go.

I've done ROTH conversions with all three as well. All worked out fine with no problems.

That said, I'm a pretty low maintenance customer. I use the web sites and they all work just fine.

I actually like having our money spread around. I recall the 2008 panic and I was reassured that if one of them had a hiccup, there was a good chance at least one of the others would still be operating smoothly. For the same reason I keep "cash" in at least two different places in case one has a problem.

Not sure I'm being helpful, but frankly they are all three good companies.

 

[JRon]

I have used all 3 and been equally happy with each.

 

[OldShooter]

We're fine with Schwab serious seven figures. VG is a lower-service, lower-price shop that suits many. Fido is fairly competitive with Schwab, though AFIK Abigail Johnson (CEO) still thinks indexing is some kind of passing fad, a demerit in my mind.

A lot has to do with the individual account rep and his/her empathy with the client. My impression, though without data/just from anecdotes here, is the Fido is a little more hard sell towards annuities and managed accounts. But again, that is the rep more than the company.

@DenverCraig, I would expect that you will be happy using Schwab.

 

[kaudrey]

We have all of our non-401(k) investment accounts at Schwab. Never had any problems.

 

[EastWest Gal]

I have used Schwab since I started investing. Their costs are very competitive with VG.

 

[Dtail]

I only use Fidelity of those 3 brokers and always find their service to be very good.

 

[disneysteve]

I haven't read all the responses but I've had a t-IRA with Schwab for years. I haven't contributed for a long time but I have made trades in that account from time to time including a couple this year. I've never had any trouble with them. The website is good.


The bulk of our portfolio is with Vanguard as I think they excel in the low cost MF department but I have nothing at all negative to say about Schwab.

 

[icono5]

I'm another in a string of echoes by this point, but I have a majority of my financial assets with Schwab, and have been a client since '97. Consistently very good customer service. I had some taxable funds at Vanguard, and consolidated them to Schwab a handful of years ago. Chances are that, after I retire, everything but my I-bonds will be held through Schwab.

 

[kevink]

I've had accounts at both Schwab and Vanguard for many years.

The only advantage Vanguard has nowadays in my view is the ability to invest in Admiral class shares of Wellesley and Wellington without paying a transaction fee. Otherwise their customer service is abysmal regardless of how much you have with them (i.e. Voyager status is meaningless) and their website and tools and laughably awful. As a great admirer of Jack Bogle and Vanguard's pioneering role in index funds and lowering costs I hate to be so harsh but they've really deteriorated in recent years. And bear in mind that with no physical offices to support they have only one job - to be a great online brokerage - and they do a lousy job of it.

The lack of a physical office is something to take seriously if either your or your spouse (or heirs?) aren't savvy about investing. I've known quite a few Vanguard investors who've ended up moving assets to Schwab or Fido specifically to make it easy on their spouse in case they go first.

Schwab Bank offers a debit card that reimburses ATM fees worldwide. That service alone has saved me several thousand dollars during my many years of international travel and living as an expat pre-COVID.

I've never had a sales call from Schwab or been encouraged to sell the Vanguard funds and ETFs that make up most of my portfolio with them. Conversely Vanguard has a steady stream of pop-up ads on their site urging you to switch to their % of assets Personal Advisory Service - a "service" whose very existence runs completely counter to everything Jack Bogle stood for and which is completely unnecessary given their plethora of LifeStrategy and Target Retirement funds.

Honestly the only reason I keep funds at Vanguard is inertia and as way to maintain access to money in the event of a short-term interruption in service due to cybercrime.