Fidelity vs Vanguard vs Schwab. Which IRA Wins in 2025?

The 2025 Showdown: Which Brokerage Wins Your Rollover?

Fidelity, Vanguard, and Schwab are the titans of low-cost investing. Each has evolved significantly, and the differences that mattered five years ago may no longer apply. Here’s the current state of play 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 are 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 its 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 transformational.

Investment Selection in 2025

Fidelity: Widest selection. Access to virtually every mutual fund, including competitor funds. Strong options trading platform. Crypto available through linked accounts. Fractional share trading standard.

Vanguard: Focused on Vanguard funds, which cover most investor needs. Added brokerage capabilities over time but still not as seamless for non-Vanguard products. Limited options trading capabilities.

Schwab: Post-TD Ameritrade merger, now has thinkorswim platform for advanced trading. Excellent 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. 200+ investor centers for face-to-face meetings. 24/7 phone support with minimal wait times. Robust chat and digital support.

Schwab: 300+ branches after TD Ameritrade integration. Full-service banking integration (checking, bill pay, ATM rebates). 24/7 phone support. Service quality varies by branch.

Vanguard: No physical locations. Phone support during business hours with longer wait times. Improved digital experience but still behind competitors. The trade-off for founder Jack Bogle’s “at-cost” structure.

Winner on service: Fidelity, followed closely by Schwab. Vanguard trails significantly.

Account Features That Matter for Rollovers

Rollover process simplicity:

• Fidelity: Excellent. Dedicated rollover specialists. 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

Choose 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

Choose Schwab if you:

• Want integrated banking (checking account, bill pay)
• Use advanced trading tools (thinkorswim)
• Value the largest branch network
• Need both brokerage and banking in one place

Choose 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. Vanguard remains excellent for purist index investors who don’t need extensive 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). Choose one, complete the rollover, invest in low-cost diversified funds, and focus on what really matters—saving consistently and staying invested through market cycles.