Fidelity vs SoFi Invest vs Vanguard Comparison: Which Brokerage Account to Open?

Since many financial institutions and brokers now have mobile applications that allow investors access to their portfolios from the palm of their hands, getting started with online investing has never been easier. Choosing an investment service for a novice or inexperienced investor can be a challenge. With companies like E*TRADE and TD Ameritrade, signing up for an investment account used to require quite a few hoops to jump through and hefty fees for trading stocks. In today’s investing world, brokerage services like Vanguard, SoFi, and Fidelity all offer brokerage services with low or no transaction fees to their customers. Fidelity vs SoFi Invest come in very close to each other, for example, in services offered. So which service should you choose? Most of the time, the best service for the newbie investor will depend on what additional features you need.

Getting Started

Stock trading fees are low or free in all three companies reviewed here, with mobile apps for easy access and simple sign-up options. Find out which one is best by reading on.

Vanguard

Vanguard is a US-based stockbroker that is regulated by FINRA and the SEC. Experts consider it to be a good choice for long-term investors who want to focus on ETFs and mutual funds. The service is $20 per year in maintenance fees, but the company provides technical support during business hours and offers a free trial version. No webinars or live online training are available, but there is educational documentation. For new investors, Vanguard is among the oldest investment options available, offering access to ETFs, stocks, fractional shares, mutual funds, and options.

SoFi Invest

If you’re looking for a more hands-on approach to managing your money, SoFi is the platform for you! Despite the fact that it doesn’t offer 24/7 live support, it does provide support during business hours and online. Besides the initial $1 transfer required to initialize the account, there is no minimum amount to open and trade with an account. It was established in 2011 in the United States and provides educational documentation but no webinars. Unlike Vanguard, it offers a credit card and a high-yield checking account, and clients have access to fractional shares, ETFs, and mutual funds.

Fidelity

Fidelity Investments is a well-known American-based brokerage company founded in 1946, which also offers technical support during business hours, along with educational documentation and some live online training. Fidelity is best for beginning investors and frequent traders, especially day traders, as it does not require an account minimum or charge commission on stock trades. Investors can trade in stocks, fractional shares, mutual funds, ETFs, options, and bonds. There are some crypto products available, but not cryptocurrency itself. The research data that is available to account holders is free and fairly extensive.

Summary

As we can see here, the three services reviewed all offer basic and commission-free trading of traditional assets such as stocks and bonds, as well as mutual funds in some cases. Not all of them offer access to cryptocurrency, and a beginning trader might choose a service based on the number of educational materials available, as well as live support and convenient business hours. Between the three, Vanguard is the major performer for those looking for a wide range of options but might not require a great deal of educational research or monitoring technology. On the other hand, Fidelity has the advantage of being around for a long time, offering a wide range of things to invest in, as well as price alerts and market research tones. This Fidelity vs SoFi Invest and SoFi Invest vs Vanguard comparison will hopefully help the new investor choose the right service to begin the investment journey.

FAQ

1. What do I need to get started with these services?

All three of these brokers require a state-issued ID as proof of identity, a paycheck stub, a social security number, and bank account routing information to open an account.

2. Which of these three companies offers special features for investors?

All three applications offer watch lists, stock price alerts, and some monitoring services. Second-level stock quotes are available through Fidelity for a monthly subscription.

3. Which services offer credit and debit cards?

SoFi and Fidelity offer cards on their accounts; Vanguard does not.