Who to use? Fidelity, Schwab, Vanguard?

[Niuatoputapu]

Have our investments split between five vendors:

Fidelity - good web site, good service, do most everything online.
T Rowe Price - good web site, best newsletter and financial analysis, free M*
Schwab - good web site, good service, meet FA once a year for free
TIAA - poor web site. Only keep them for a 403(b) Stable Value fund and their direct RE account. Free FA, but not useful for me
Vanguard - clunky, but no problems, and great index funds

Recommend Fidelity, Schwab, and/or Vanguard depending on which one grabs you.

 

[LOL!]

Here is the first summary/review I came across re Wellstrade. https://www.brokerage-review.com/online-broker-reviews/wellstrade-review.aspx
Entire fee structure is above Fido and Schwab unless you have a Wells Fargo account. And if you do happen to still be with WF, the charges for other services do not strike me as "great deals"
Frankly, given the many many ethical behavior issues Wells Fargo has admitted to, I would seriously wonder not if, but when comparable misbehaviors will be revealed for this part of WFargo.
YMMV

I didn't expect anybody to seriously consider WellsTrade, but I was asked who I would recommend. My response was who I used with no particular recommendation.

As I noted, I don't pay any commissions nor fees at WellsTrade. I did read the review which discussed a bunch of things that probably don't matter to anybody, so thanks for posting the link. But quite a few things are wrong in the review. For example, I don't pay any fees for a WellsFargo checking account. I don't even know what a "command account" is, but I suspect something that got transferred over when WF bought Wachovia.

Also I'm laughing at the "Mutual funds" section because the review suggests that having 9,232 mutual funds available was a plus. That's just stupid. There are only about 10 mutual funds that anybody should want to own and so one's broker should offer them without a transaction fee. One shouldn't care about the other 9000+ funds at all.

For the ETF section, I am not charged a commission on ETF transactions and I don't have to hold them for a minimum number of days to avoid a transaction fee like happens at other brokers. So the review does not describe my situation.

For the customer support, I don't need a chat session or an AI robochatter. I want to talk to a real human being which I rarely do, but as noted in the review, a real human being is available 24/7.

For the investment advice section, I don't think anybody should get investment advice from their broker. Ever.

It is true that traders will pass up WellsTrade, but are there really any traders reading this forum?

So I guess my bottom line is that my relationships with my brokerages appear to be different than published reviews and will be different from anybody else's situation. One has to "Know Thyself" I suppose and try out some brokerages to see what they can do for you. If there was a "best brokerage", then all the other brokerages would go out of business. Not.

I would guess the major brokerages are Fidelity, Schwab, TDAmeritrade.

There are also offerings from Merrill Edge (not Merrill Lynch), JPMorgan Chase (discount brokerage, not the human-backed brokerage), WellsTrade.

And Vanguard is special and in a category by itself still.

 

[kevdude]

We use Merrill Edge, Vanguard and Fidelity. I have individual stocks with ME and mutual funds with Vanguard and Fidelity, but to be honest we just started using Fidelity within the last couple of weeks.

We have enough with ME to be considered Premium Something or Other, which seems like it means we get prioritized service. This also qualifies us for BofA's top service level which gives us their Preferred Rewards Visa, which has great benefits. (Incidentally we've banked with BofA for 25+ years and have always had great service with them.). Someone reaches out to us about once per month from ME, but I usually ignore the call. When I call in, they are very responsive. Their website is very good as well. All of our accounts with BofA and ME are on the same interface and we can switch between them pretty easily.

We've been with Vanguard for quite some time and I've never really had any issues with them, although the last two times I called in the customer service person seemed a bit disinterested in the call. We're only Voyager level, so not too important to them. But, again, no real issues. Their Prime Money Market pays a nice rate on cash (currently 2.08%) and obviously access to all of their funds, including Admiral shares.

I can't really figure out Fidelity. We just rolled over my wife's old 401k from their employee benefit side to the brokerage side. It's in her name and she gave me their highest authorization, short of a Power of Attorney. I've talked to them a few times and it's like pulling teeth to get an answer. The amount is $250k, so not a huge amount, but also not insignificant. Maybe I should have an advisor assigned and they may provide a little better service. Their website is fine and their investment options are also pretty great, including a number of funds cheaper than Vanguard.

We'll probably sell a property shortly and will be looking to put about $400k with one of the above as well. Initially I thought I would go with Vanguard (and may still) but it seems many people have had issues with them lately (although I haven't seen that). As I mentioned above, I can't figure out Fidelity, even though it's been a relatively short term experience with them. I am surprised that they seem uninterested in us though.

I'm not sure if this helps, or muddies the water more.

 

[Brat]

I am considering going back to Fidelity from Vanguard. It took them 4 days to transfer money to my bank account. Think I will visit their office this week to review what they offer.

 

[gayl]

I'm with Schwab. Mom was with Fidelity and I had 1 account there until they tried to sell an 86yo an annuity. Yeah, not happening

Schwab did try to put me with a rep based on my account balance but we clashed so I downgraded to a newbie. Apparently when you cross a certain threshold you get a seasoned rep ... but the new guy is better at listening. Still get invited to their events & I am cordial to her but not interested in her input.

Positives with (I guess any): free ETFs, low cost ratios (under .04), $4.95 stock trades, easy transfers between account (cash, stocks, combo), I set how much to withhold and can change each IRA withdrawal (currently set at 22% but next will be 24%), rep is there for annual review

 

[Larrystauf]

advisor

I found Century, a fee-only fidutiary through Fidelity. They tradethrough theFidelity platform, butmake NO money from any trades, so we havethe independence of a fidutiary andthe convenience of still being in the Fidelity system

 

[Threepeaks]

Vanguard not good for advice

Between the 3 being discussed, we went with Vanguard as they seemed to have the cheapest expenses (and I was handling the picks myself). I am looking for a sanity check as to my investments in current times. Called Vanguard line as was told to use their automated "question and answer" driven format to get standard recommendations. I then contacted their "business" center to see if I could arrange a fee based "appointment" to discuss. Was told they don't do that but could be assigned a financial advisor continually monitor at the standard fee.
How does it work at Fidelity or Schwab? Is there another more independent element that you can get a one time consultation from? Many thanks for any input.

 

[gayl]

It is true that traders will pass up WellsTrade, but are there really any traders reading this forum?

I only actively trade 10-15% of my portfolio and that's why I like Schwab's $4.95 stock trade fee

 

[brokrken]

Between the 3 being discussed, we went with Vanguard as they seemed to have the cheapest expenses (and I was handling the picks myself). I am looking for a sanity check as to my investments in current times. Called Vanguard line as was told to use their automated "question and answer" driven format to get standard recommendations. I then contacted their "business" center to see if I could arrange a fee based "appointment" to discuss. Was told they don't do that but could be assigned a financial advisor continually monitor at the standard fee.
How does it work at Fidelity or Schwab? Is there another more independent element that you can get a one time consultation from? Many thanks for any input.

Threepeaks, I think both Schwab and Fidelity will be fine at general advice on asset allocation, planning strategies, risk tolerance, etc. from a dedicated advisor and these services are free if your account size is large enough (I think 1 mln is the magic number). However, if you are looking for more specific advice, like what stock or bond to buy, I think you will need one of the full service firms, which are very expensive and the quality of that advice is all over the board. So, in my opinion, not worth it.

I am the OP on this thread and still haven't made my decision on where to move my money because I am still waiting for some info from them.

 

[VanWinkle]

I currently have 90% of my investments with Vanguard and 10% with Merrill Lynch through a Trust that will pay out and dissolve in 2019. I will likely invest the Merrill Lynch account distribution into Fidelity to try out the "zero" expense ratio index funds. I am 100% satisfied with Vanguard, my asset allocation, and my spouse. Do you see a trend here?

VW

 

[Dtail]

Between the 3 being discussed, we went with Vanguard as they seemed to have the cheapest expenses (and I was handling the picks myself). I am looking for a sanity check as to my investments in current times. Called Vanguard line as was told to use their automated "question and answer" driven format to get standard recommendations. I then contacted their "business" center to see if I could arrange a fee based "appointment" to discuss. Was told they don't do that but could be assigned a financial advisor continually monitor at the standard fee.
How does it work at Fidelity or Schwab? Is there another more independent element that you can get a one time consultation from? Many thanks for any input.

As part of the Private Client designation at Fidelity (over 1m), I am assigned a financial advisor with whom I can ask for any advice for free, as he knows I am a DIY investor. Thus there are no management fees for me. In addition, I can call anyone else on the generic line for free advice.
Not 100% sure if there would be a charge for a one time consultation.

 

[Brat]

One factor that hasn't been addressed is how to access services late in retirement. I have noticed that my 80 yo DH gets easily frustrated when managing accounts online or by phone. This frustration includes credit cards, banking and (as a result of being a victim of an errant driver) car and injury claims. I am the point person when managing our Vanguard accounts but I need to consider his needs too going forward. Fidelity has two offices in my metro area. If he has a need he can always go to one of those offices to resolve any question.

 

[24601NoMore]

Between the 3 being discussed, we went with Vanguard as they seemed to have the cheapest expenses (and I was handling the picks myself). I am looking for a sanity check as to my investments in current times. Called Vanguard line as was told to use their automated "question and answer" driven format to get standard recommendations. I then contacted their "business" center to see if I could arrange a fee based "appointment" to discuss. Was told they don't do that but could be assigned a financial advisor continually monitor at the standard fee.
How does it work at Fidelity or Schwab? Is there another more independent element that you can get a one time consultation from? Many thanks for any input.

We did a plan through Vanguard - was not impressed. It was very "cookie cutter" - basically, buy a combo of VG Total Market and VG Total Bond. Yawn.

You can easily do better yourself IMHO.

 

[Breedlove]

We have Fido , Vanguard and a little with ML
Fido has been great , they have offices on every corner . Every six months they call me from Dallas to discuss my investments . Every 6 months we meet with our account rep . in person to discuss what we are up to .


Vanguard is good , not much help though
ML Edge , lets just say we are leaving them . They were good before they were bought by a bank.

 

[jazz4cash]

We have Fido and VG. I was a VG guy but Megacorp chose FIdo for 401k and I’ve always been very happy with the service, website, and tools. I ended up with a 2nd Fido 401 k and then added 2 IRAs and a brokerage account. They treat me very well when I call but I’m not at any preferred customer level. I just did an in kind xfer of 25k which I could not do myself online but they filled out the forms and sent them to be signed. I discovered there is another branch in the area that is more convenient than the others so I dropped the forms of in person. I get the impression that I get great service due to the number of accounts I have more so than my total assets. They said they would absorb any fees for the xfer and sure enough the other broker charged $150 but I had to remind them to credit the fee. They only call me about 2x per year but sometimes I do get shuffled from the workplace savings reps to other departments.

 

[SecondCor521]

I have accounts at Vanguard and POA for my Dad's Vanguard accounts. My three kids each have Roth IRAs at Schwab and I and my oldest have a taxable Schwab account. My 401(k)'s and options from two companies I worked for were at Fidelity.

All three are fine for someone like me who is a LTBH indexer.

Five years ago Schwab was better at welcoming small accounts than Vanguard. That is how my kids' Roth IRAs ended up there. I like having the local office, although the broker there the last time I was in was worthless.

Vanguard is cheap cheap cheap for me and my Dad...basically free. But again we don't do much. We own no individual bonds. I never and he very very rarely trades stocks. We have a rep that we call, between us, maybe a few times a year for this or that. I think their tax forms are easy to read and understand. On the negative side, there are a lot of things that really should be doable through their website but require a paper form to be printed, filled out, possibly notarized, and then mailed in; this is an inconvenience sometimes.

My last experience with Fidelity is as of a few years ago. They did fine, although their end-of-year tax statements for my non-qualified stock option exercises were pretty difficult to understand and correctly enter into tax software.

Personally I wouldn't mind if my money were at any of the three. I haven't had any issue that I would describe as even rising to the level of calling and complaining to someone about. But then again, I mostly follow the dictum of "Don't just do something, hurry up and stand there!"

 

[target2019]

But, I would also like any insight on ease of use of the site, research availability (which is top notch at both Dad and Sister's firms), availability of bond offerings and ease of use of the bond desk, the amount of ongoing hassle (I don't want a guy calling me all the time with ideas or I don't want to have to deal with a compliance person every time I write a covered call option, for instance). Anyway, quite the ramble, but your thoughts and experiences are appreciated.

I have not used the bond desk at Schwab, so have no specifics for you. Vanguard has been our primary investment company, and I would rank them in 3rd place for site. If you're near a Schwab or Fidelity office, that can be really useful in setting up an account. I did this for our account, and then with daughter for hers. Very painless. We were both gifted stock, and everything played out correctly. The lots are correct, cost basis, etc.

I have no recent experience with Fidelity, but I'm sure they are just as good for your purpose. My guess is that Vanguard will not be right for you in this specific instance.

 

[gayl]

Schwab won't call you when writing options up to the level you're qualified to do .... and their website is quite simple. I'm just a Level 2 trader and I've never dealt with a compliance person. I've dealt (once only) with you the bond desk (different #) as I'm more comfortable in stocks / ETFs / options

 

[Aggie1999]

One knock against Schwab that I just found out is they will not retro-actively change the cost basis method on an account. By default the method is average cost for mutual funds. One can submit a PDF form to change the cost basis method to "by lots" (they call it Tax Lot Optimizer) but it does not apply to previous purchases.

This is kinda annoying. Fidelity and Vanguard let you switch the cost basis method of previous mutual fund purchases without issue. No reason Schwab shouldn't let you also.

Guess moral of the story when dealing with Schwab on this issue is make sure to set the cost basis method to Tax Lot Optimizer at the start.

 

[Huston55]

I have not used the bond desk at Schwab, so have no specifics for you. Vanguard has been our primary investment company, and I would rank them in 3rd place for site. If you're near a Schwab or Fidelity office, that can be really useful in setting up an account. I did this for our account, and then with daughter for hers. Very painless. We were both gifted stock, and everything played out correctly. The lots are correct, cost basis, etc.

I have no recent experience with Fidelity, but I'm sure they are just as good for your purpose. My guess is that Vanguard will not be right for you in this specific instance.

Fidelity’s bond/FI tools are good IMO but, our needs are very simple; just ladders. I have also used Fido’s bond desk, which anyone (Private Client or not) can get via their 800 number & a transfer to the bond desk. They will walk you through the transaction or, just do it for you.

One knock against Schwab that I just found out is they will not retro-actively change the cost basis method on an account. By default the method is average cost for mutual funds. One can submit a PDF form to change the cost basis method to "by lots" (they call it Tax Lot Optimizer) but it does not apply to previous purchases.

This is kinda annoying. Fidelity and Vanguard let you switch the cost basis method of previous mutual fund purchases without issue. No reason Schwab shouldn't let you also.

Guess moral of the story when dealing with Schwab on this issue is make sure to set the cost basis method to Tax Lot Optimizer at the start.

We use “by lots” to sell in our Fido taxable account; it’s extremely easy to select the method on-screen. But, again, the Customer Service desk will walk you through it the first time if you want help. And, although we’ve not changed selling methods, I was told by the Fido CS rep that we could do that for future sales if we wanted to.

Also, we’ve been very happy with Fido; tools, customer service, low cost & excellent FAs (although we had to change from our first Private Client Rep to the current Private Client Rep; you’ll see from other threads that you might have to ‘select’ your FA, or Private Client Rep, until you get one who fits you well). My one regret with Fido is that I cannot buy Admiral shares of Wellesley or Wellington.

 

[audreyh1]

One factor that hasn't been addressed is how to access services late in retirement. I have noticed that my 80 yo DH gets easily frustrated when managing accounts online or by phone. This frustration includes credit cards, banking and (as a result of being a victim of an errant driver) car and injury claims. I am the point person when managing our Vanguard accounts but I need to consider his needs too going forward. Fidelity has two offices in my metro area. If he has a need he can always go to one of those offices to resolve any question.

This is a concern for me as I age. I hope to have simplified considerably by the time I reach 80, and employ some assistance.

 

[explanade]

My parents had accounts with Fidelity PAS and FPP. Great for getting free Turbo Tax but they paid high fees.

Now I'm going to transfer my mother's IRA from managed to their index funds, see if they are truly zero cost.

I had thought about moving it to VG but this is easier.

 

[Brat]

I thought that Fidelity's cash management debit card and/or the Fidelity Visa had no foreign transaction fees. I just learned that isn't true. I did learn that the Fidelity Visa has a 2% cash back and no annual fee.

At the moment I am trying to figure out the value of Fidelity's cash management account. Meeting with Fidelity rep next week.

PenFed's chip Visa has no annual fee, has a pin and no foreign transaction fees.

 

[brokrken]

I thought that Fidelity's cash management debit card and/or the Fidelity Visa had no foreign transaction fees. I just learned that isn't true. I did learn that the Fidelity Visa has a 2% cash back and no annual fee.

At the moment I am trying to figure out the value of Fidelity's cash management account. Meeting with Fidelity rep next week.

PenFed's chip Visa has no annual fee, has a pin and no foreign transaction fees.

Brat, I was told by the rep that their weren't foreign transaction fees. Also think I saw it on their website. How did you confirm this wasn't true?

 

[braumeister]

AFAIK, the Fidelity Visa credit card has a FTF, but the debit card does not.