It’s no secret that Vanguard, Merrill and Schwab could be considered some of the most popular and well-known brokerage firms. Each offers a wide range of products and services, from banking and investment products to financial advisors and financial planning services.
However, there are some important differences, from fees to financial services to research resources, each of which could impact your customer experience.
If you’re interested in getting financial advice, consulting a fiduciary financial advisor can be a great first step. That’s why we created a free tool to help match you with up to three financial advisors.
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While your advisor matches may not necessarily be associated with the above institutions, research suggests people who work with a financial advisor feel more at ease about their finances and could end up with about 15% more money to spend in retirement.1
A 2022 Northwestern Mutual study found that 62% of U.S. adults admit their financial planning needs improvement. However, only 35% of Americans work with a financial advisor.2
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Overview of Vanguard vs. Merrill vs. Schwab
Vanguard, Merrill and Schwab are some three of the biggest players in the brokerage space, offering a wide range of investment and banking products. In fact, you can open a variety of account types at these institutions. But they stack up slightly differently when it comes to fees and their specific suite of services.
Vanguard made a name for itself by creating and offering low-fee investment products such as mutual funds and exchange-traded funds (ETFs). It still does this, and even non-Vanguard clients can buy Vanguard funds via a brokerage account. The firm has grown to now offer non-proprietary investment products and funds.
Merrill is an investing service operating under Bank of America’s ownership. Merrill has human financial advisors that directly interact with clients for a fee. While they don’t offer robo-advised investment accounts, they offer hybrid accounts that blend automated investing tools and oversight from investment professionals.
While not known for its specific funds like Vanguard, Schwab has a number of passively and actively managed funds that you can invest your money into. You also have the option to trade individual equities. It also offers free robo-advisor services, and those who want to work with a real advisor will have that option as well.
Vanguard vs. Merrill vs. Schwab: Fees
Many brokerage platforms have gotten rid of transaction fees over the past couple years, and Vanguard, Merrill and Schwab are no exception. Brokerage account holders at each of the three institutions won’t have to pay any commissions or trading fees for trading stocks, depending on account type. Trading mutual funds may trigger fees at all three institutions.
The one place you’ll incur consistent transaction costs is when it comes to options trading. However, transaction costs for options at each institution are comparably quite low. Keep in mind that these are contract fees, not commissions.
Options Fees
- Vanguard: $14
- Merrill: $0.653
- Schwab: $0.655
While some, more specific transactions may incur additional fees, the experience using each of these three institutions can be low cost especially if you only invest in individual equities and in-house funds, among other investments. Other investments may cost you. For example, typically, broker-assisted trades cost $19.95 to $29.95, depending on the asset type with Merrill.
It’s worth noting that these fee schedules don’t include the charges you’ll incur for owning shares of certain funds. Vanguard and Schwab have average expense ratios that are a lot lower than the industry standard.
Vanguard vs. Merrill vs. Schwab: Services and Features
When it comes to investments and brokerage accounts, Vanguard, Merrill and Schwab each offer a relatively similar suite of services.
Each of the three institutions have $0 investment minimums for most accounts. However, Vanguard does have minimums for investing in some of its mutual funds, typically ranging from $1,000 to $3,000. However, certain funds have even higher minimums.
Who Should Use Vanguard, Merrill and Schwab?
As mentioned, Vanguard, Merrill and Schwab boast many of the same important features. Each allows you to invest in a variety of securities. They all have low to non-existent expense ratios for funds. And each is a capable online trading and account management platform that you can take advantage of.
Vanguard, Merrill and Schwab are some of the most robust, well-known and popular brokerage firms in the country. They each cover the basics and much more. We feel this could make them valuable and useful platforms for all investors, from beginners to advanced traders.
We feel Vanguard, Merrill and Schwab are three solid options for anyone looking to take their money and invest in for the future in the way they see fit.
How to Speak With a Financial Advisor
Getting professional financial advice can be a critical step in setting up and executing an investment or retirement plan. That’s why we recommend speaking with a fiduciary financial advisor. Fiduciaries are obligated by law to act in your best interest as they manage your assets or money, and any potential conflicts of interest must be disclosed.
Yet knowing how to find a vetted fiduciary advisor is, for many, the most confusing task of all. Common Google searches related to the topic reveal a desperate search for direction. “Fiduciary financial advisors near me,” “best fiduciary financial advisor,” and “financial investment advisors near me” are searched for hundreds of times per day.
Finding a fiduciary shouldn’t be that hard. Thankfully, now it isn’t.
Our free matching quiz helps Americans get matched with up to three fiduciary advisors who serve their area so they can compare and decide which advisor to work with. All advisors on the matching platform have been rigorously vetted through our proprietary due diligence process. The quiz takes just a few minutes, and in many cases you can be connected instantly with an advisor for an introduction.