The 2025 Showdown: Which Brokerage Wins Your Rollover?
Fidelity, Vanguard, and Schwab are the three giants of low-cost investing. Each has changed significantly over the years, and the differences that mattered five years ago may not matter now. Here’s where things stand for IRA rollovers in 2025.
Cost Comparison: The Race to Zero
All three now offer commission-free stock and ETF trades. The real cost differences show up in fund expense ratios and account services.
Lowest-cost total market funds:
- Fidelity ZERO Total Market (FZROX): 0.00%
- Vanguard Total Stock Market (VTSAX): 0.04%
- Schwab Total Stock Market (SWTSX): 0.03%
Lowest-cost S&P 500 funds:
- Fidelity ZERO Large Cap (FNILX): 0.00%
- Vanguard 500 Index (VFIAX): 0.04%
- Schwab S&P 500 (SWPPX): 0.02%
Winner on pure cost: Fidelity, with those zero-expense-ratio funds. But the difference between 0.00% and 0.04% on a $500,000 portfolio is $200 per year. Meaningful, but not life-changing.
Investment Selection in 2025
Fidelity: Widest selection. Access to pretty much every mutual fund out there, including competitor funds. Solid options trading platform. Crypto available through linked accounts. Fractional share trading is standard.
Vanguard: Focused on Vanguard funds, which cover most investor needs. They’ve added brokerage capabilities over time but it’s still not as seamless for non-Vanguard products. Limited options trading.
Schwab: After the TD Ameritrade merger, they now have the thinkorswim platform for advanced trading. Great ETF screeners. Strong international investing options.
Winner on selection: Fidelity for breadth, Schwab for advanced trading tools, Vanguard for pure index investing simplicity.
Customer Service: The Intangible Factor
Fidelity: Consistently ranks highest in customer satisfaction surveys. Over 200 investor centers for face-to-face meetings. 24/7 phone support with minimal wait times. Solid chat and digital support too.
Schwab: More than 300 branches after the TD Ameritrade integration. Full-service banking integration (checking, bill pay, ATM rebates). 24/7 phone support. Service quality varies by location.
Vanguard: No physical locations. Phone support during business hours, often with longer wait times. They’ve improved the digital experience but still lag behind competitors. The trade-off for Jack Bogle’s “at-cost” structure.
Winner on service: Fidelity, with Schwab close behind. Vanguard trails by a noticeable margin.
Account Features That Matter for Rollovers
Rollover process simplicity:
- Fidelity: Excellent. Dedicated rollover specialists who will contact your old 401(k) provider on your behalf.
- Schwab: Good. Streamlined online process with phone support available.
- Vanguard: Adequate. More self-service oriented. May require more paperwork.
Automatic investing:
All three offer automatic investment plans. Fidelity and Schwab allow fractional share purchases; Vanguard is catching up.
Cash sweep options:
- Fidelity: SPAXX money market (4.96% yield as of early 2025)
- Schwab: Schwab Bank sweep (lower yield, but FDIC insured)
- Vanguard: Federal money market (competitive yield)
Who Should Choose Each
Go with Fidelity if you:
- Want the absolute lowest costs (zero funds)
- Value excellent customer service
- Need access to the widest range of investments
- Want in-person support as an option
Go with Schwab if you:
- Want integrated banking (checking account, bill pay)
- Use advanced trading tools (thinkorswim)
- Value the largest branch network
- Need brokerage and banking in one place
Go with Vanguard if you:
- Are a committed index fund investor
- Want the company that pioneered low-cost investing
- Don’t need hand-holding or in-person service
- Appreciate Vanguard’s unique mutual ownership structure
The 2025 Verdict
For most IRA rollovers in 2025, Fidelity offers the best combination of low costs, service quality, and investment options. Schwab is a strong alternative if banking integration matters to you. Vanguard remains excellent for purist index investors who don’t need much customer support.
The honest truth: all three are excellent choices. Any of them will serve a long-term investor far better than a high-cost 401(k). Pick one, complete the rollover, invest in low-cost diversified funds, and focus on what actually matters: saving consistently and staying invested through market cycles.
