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Schwab vs. Vanguard – A Detailed Comparison

Discover our detailed comparison of Schwab and Vanguard to help determine which is best for you. Whether you’re a seasoned trader or just starting out, choosing the right platform can significantly impact your trading experience. 

To make your research easier, we manually found key data for Schwab and Vanguard across the internet and compiled it all in this article. 

Overview of Schwab

Charles Schwab is a well-established brokerage firm known for its wide range of investment products and services. Schwab also provides a user-friendly online platform and mobile app, along with educational resources to help clients make informed investment decisions. Additionally, they offer banking services, retirement accounts, and access to financial advisors.

Overview of Vanguard

Vanguard was founded by the legendary investor John Bogle. Bogle is also credited with creating the first retail index fund, providing retail investors with a low-cost vehicle to invest in the broader stock market. Vanguard is known for offering low-cost mutual funds and ETFs with trillions of AUM.

Key Characteristics of Schwab and Vanguard

FeatureSchwabVanguard
Platform TypeBrokerage PlatformBrokerage Platform
Tradeable AssetsStocks, ETFs, Mutual Funds, Options, Index Options, Futures, Futures Options, BondsStocks, ETFs, Mutual Funds, Options, Bonds
Charting Featuresthinkorswim platformPrice history for Vanguard funds
DataReal-time data with funded accountReal-time data with funded account
Premium PricingNo premium featuresNo premium features

Who is Schwab Best For?

Schwab is a great brokerage for long-term investors and active traders alike. With its recent acquisition of TD Ameritrade and the thinkorswim platform, Schwab is suitable for anybody looking to trade and invest in the stock market.

Who is Vanguard Best For?

Vanguard is best for long-term investors who want a low-cost set-it-and-forget-it investing approach. It is not great for active traders due to its lack of charting and trading tools. While Vanguard is an excellent and well-established brokerage, it is somewhat dated and not suitable for those who want a lot of control over their investments.

Trading Features and Tools

FeatureSchwabVanguard
DRIPYes, no feesYes, no fees
Margin TradingYesYes
InsuranceSIPC/FDIC InsuredSIPC Insured
Mobile AppYesYes

Trading Costs and Commissions Compared

Fee TypeSchwabVanguard
Equity CommissionFreeFree
Option Commission$0.65 per contract$0 + $1-per-contract fee
Futures Commission$2.25 per contractNo futures
Futures Options Commission$2.25 per contractNo futures options
Option Exercise FeeNoneNone

Schwab vs Vanguard – Bottom Line

Choosing between Schwab and Vanguard depends on your specific trading needs, preferred trading tools, and the type of assets you’re interested in. 

Both platforms offer distinct advantages, but by considering the detailed comparison above, you can select the one that aligns best with your trading strategy and goals.

For more detailed reviews and comparisons, continue exploring our other articles on brokerage platform comparisons.

What is the Overall Best Charting Software?

I have reviewed and used nearly every trading platform available, and I believe that TradingView is the best overall charting software available. Here are some reasons why:

  • All of TradingView’s key features are free to use
  • TradingView provides real-time data for free whenever possible
  • You are not tied to a single broker and can use whichever you want while charting on TradingView
  • You can track all markets on a single platform, including stocks, ETFs, crypto, forex, and futures.
  • TradingView has an excellent economic calendar and various screeners

If you sign up for a TradingView account using my affiliate link, you can get a 30-day free trial of its premium features plus a $15 credit toward your subscription. However, signing up for a free trial is not required, and you can use nearly all of its features with a basic free account. You can read my full review of TradingView to learn more. 

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