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Vanguard vs Charles Schwab Comparison Review

We created this Vanguard vs Charles Schwab comparison so we can review and easily let our visitors decide which broker should they choose for their investing journey.

Be sure to check out all the stats we have provided and make an informed choice.

Vanguard vs Charles Schwab: Popularity

QueryVanguardCharles Schwab
Number of users (approximate)30m+14.2m
Website traffic (estimated)23.3m38.3m
# results on web112m30.7m
Search volume Google1.22m550K
Twitter followers302K103.3K
FB followers224K252K
How popular on mainstream media?HighHigh
Negative media?Very lowMedium
Notable awards2019 U.S. Morningstar Award for Investing Excellence for Exemplary Stewardship, Best New U.S. Equity ETF, Best New International/Global Fixed Income ETF, Best New Active ETF2020 Highest in Investor Satisfaction with DIY Self-Directed Services Recognition

Both award-winning companies have good brand recognition in the market. That being said, Vanguard has the upper hand in terms of existing customers, doubling the numbers available online for Charles Schwab.

Vanguard vs Charles Schwab: User Rating

QueryVanguardCharles Schwab
# users rated on user platforms45 on SiteJabber21 on TrustPilot, 8 on SiteJabber
Percentage of positive reviews out of user reviews91%62%
Common complimentsGood investment platform, low feesDiverse services, trusted and reliable
Common complaintsSometimes poor customer serviceFrequently undergoing maintenance, not great for options
Positive feedback on Twitter?Great information and analysisHelpful customer support
Negative feedback on Twitter?Hard to receive help from supportMobile app is constantly going down
App rating (summary)Almost 5K reviews with an average rating of 3.1 / 5344K+ reviews with an average 4.5 / 5 rating

Both brokers have a lot of positive reviews online on the feedback sites, with ratings better than a lot of their competitors. Not the highest number of reviews but great ratings overall.

Vanguard vs Charles Schwab: Background Information

QueryVanguardCharles Schwab
Company public/privatePrivatePublic
Revenue Data$48.5 billion in Q1 of 2020$2.45 billion in Q2 2020
CEO and bioMortimer J. Buckley – earned a BA degree in economics in 1991 from Harvard College and an MBA degree in 1996 from Harvard Business SchoolWalter W. Bettinger II – Is the CEO since October 2008 and is credited with leading Schwab through the financial crisis.
Number of employees17,60019,500
Notable investors (private companies)NoneNone

Similar in the number of employees, the brokers are very much different in two key aspects:

  1. Vanguard is a private company and Charles Schwab is public.
  2. The revenue data for Vanguard is clearly outperforming the ones for Charles Schwab. The difference is big.

Vanguard vs Charles Schwab: Security

QueryVanguardCharles Schwab
HTTPS CertificateYesYes
2FA ?YesYes
Device monitoring?YesYes
New device extra security?YesYes

Vanguard vs Charles Schwab: Fees & Offering

QueryVanguardCharles Schwab
Account minimum$20None
Account fixed fees$20None
Fractional shares?NoYes
Margin costsVariesVaries
ETF buying feesNoneNone
Stock buying feesNoneNone
Option buying fees$0 + $1-per-contract feeNone
Short selling feesNoneVaries
Futures buying feesNot available$1.5 per contract
Future options buying feesNot available$0 base + $0.65 per options contract
Cryptocurrency feesNot availableNot available
Fixed income feesNoneNone
Mutual funds feesNoneNone

Charles Schwab seems to have the advantage when it comes to the fee structure and the tools provided. The main benefits being that they don’t have account minimums and no account fixed fees, but they also allow for fractional share buying.

Vanguard vs Charles Schwab: Trading App

QueryVanguardCharles Schwab
Android app # installs1m+1m+
Android app # reviews475617K
iPhone app # reviews29327K
Android app rating2.1 / 54.2 / 5
iPhone app rating4.1 / 54.8 / 5
Common compliments on appEasy to use and navigate once you get used to it.Good research tools and readily available information
Common complaints on appNo fingerprint support, the app feels dated.Clunky and consistent problems with the login process
Weighted average app rating3.1 / 54.5 / 5

The Charles Schwab mobile app is clearly better than the one from Vanguard having a better average rating but also a lot more reviews overall.

Final conclusions:

Charles Schwab seems to be the better choice for the beginner investor for which every dollar counts. No fixed fees and fractional buying, accompanied by a great app, seems to be the better target for the younger generation of investors.

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