Why Did/Would You Choose Schwab Over Fidelity?

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skeptical1
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by skeptical1 »

exigent wrote: Wed Aug 04, 2021 6:48 pm If you value a local office, see which one (either? both?) has a nearby office.
7 minutes from both.
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anon_investor
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by anon_investor »

skeptical1 wrote: Wed Aug 04, 2021 6:58 pm
exigent wrote: Wed Aug 04, 2021 6:48 pm If you value a local office, see which one (either? both?) has a nearby office.
7 minutes from both.
Who offers the better bonus? Use them.
UpperNwGuy
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by UpperNwGuy »

fwellimort wrote: Wed Aug 04, 2021 6:47 pm
skeptical1 wrote: Wed Aug 04, 2021 4:56 pm Can someone remind me why it's advantageous to convert my VG mutual funds to ETFs prior to changing to another brokerage?
Portability. It's future proof. That's the main reason (and much easier to manage than having ETFs in 1 brokerage, mutual funds in another, etc.).

Really nice once you want to move around for signing bonuses and all or you suddenly dislike the customer service you are receiving from your brokerage over time.

The convenience of being able to move in and out to any brokerage is a huge benefit to most people here.
That and the ease of tax loss harvesting. :sharebeer

Moving something like VTSAX or FSKAX or SWTSX can be quite inconvenient at some brokerages.
Another reason is that you may have a per-transaction fee if you try to add to your Vanguard mutual funds held at another brokerage. I hear it is $75 per transaction at Fidelity.
exigent
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by exigent »

UpperNwGuy wrote: Wed Aug 04, 2021 7:04 pm
fwellimort wrote: Wed Aug 04, 2021 6:47 pm
skeptical1 wrote: Wed Aug 04, 2021 4:56 pm Can someone remind me why it's advantageous to convert my VG mutual funds to ETFs prior to changing to another brokerage?
Portability. It's future proof. That's the main reason (and much easier to manage than having ETFs in 1 brokerage, mutual funds in another, etc.).

Really nice once you want to move around for signing bonuses and all or you suddenly dislike the customer service you are receiving from your brokerage over time.

The convenience of being able to move in and out to any brokerage is a huge benefit to most people here.
That and the ease of tax loss harvesting. :sharebeer

Moving something like VTSAX or FSKAX or SWTSX can be quite inconvenient at some brokerages.
Another reason is that you may have a per-transaction fee if you try to add to your Vanguard mutual funds held at another brokerage. I hear it is $75 per transaction at Fidelity.
Schwab says it’s “up to $49.95” for “other mutual funds.” I wouldn’t pay a fee to add to my Vanguard positions at either place, regardless of price.
exigent
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by exigent »

The main driver for us in consolidating at Fidelity was that I already had an HSA there, and I have a 401(a), 403(b), and 457(b) through work there, as well. So it made sense to just put everything in the same place. You are in a similar boat. I recommend this course of action.

My son, who recently graduated from college, is using Schwab — mainly b/c his significant other already had accounts there.

There is very little practical difference between the two, just pick one and move on. :beer

Since you’re already a Vanguard customer, I would convert my funds to ETFs (at least in taxable) before leaving such that you can maintain and add to the same positions without incurring fees. And ETFs will facilitate switching from one to the other if you change your mind and want to chase a bonus in the future.

The only complication for us was a position in VWIUX (intermediate tax exempt) which doesn’t have an ETF equivalent. Thus, we had to move those shares as-is and just left them dormant. More recently, however, we parked that position at Merrill Edge (w/free dividend reinvestment) to qualify for the highest tier of BofA’s Preferred Rewards.
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illumination
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by illumination »

I prefer the platform and user interface of Schwab. It seems to me Schwab is just a bit better at the "tech" side of things.
Lots of local offices nearby and my assigned rep has been amazing. Just always impressed with Schwab's customer service. They had a mortgage discount program based on the assets you have there , it was lower than anything else I could find.

Fidelity has been good also, I just prefer Schwab. Both are way better than Vanguard imo.
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LiveSimple
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by LiveSimple »

skeptical1 wrote: Wed Aug 04, 2021 6:58 pm
exigent wrote: Wed Aug 04, 2021 6:48 pm If you value a local office, see which one (either? both?) has a nearby office.
7 minutes from both.
Who has the best coffee.
Invest when you have the money, sell when you need the money, for real life expenses...
BabaWawa
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by BabaWawa »

nalor511 wrote: Wed Aug 04, 2021 3:43 pm
BabaWawa wrote: Wed Aug 04, 2021 3:36 pm
nalor511 wrote: Tue Aug 03, 2021 10:53 pm Fido will not match bonuses. Schwab no free Turbo tax. Fido no transfer out fee. Schwab no partial ETF shares
That was not true for me. This year a representative at Fidelity got approval for a very competitive transfer bonus that others could not match. Made me an offer I couldn't refuse even though Fido had no advertised offers at the time.
It is true.

Fidelity will give you a bonus, maybe even a good bonus, maybe even the best bonus. They will not MATCH bonuses, which Schwab will do.
Well, I gave Fidelity my best transfer bonus offer from a competing firm and they topped it by another $2500. So technically you're correct, they didn't match it.
Last edited by BabaWawa on Thu Aug 05, 2021 1:22 pm, edited 1 time in total.
jfave33
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by jfave33 »

They both have the edge in certain areas. I think schwab is a bit better with customer service and availability eg they used to have 24/7 chat (not sure if that is still the case). You feel like you are getting a more personal touch but without being pushy.

Fidelity is better with their fund selection and website. And their credit card.

Schwab is better with the extras like their robo advisor, their debit card is backed by their own bank, posted sign up bonuses etc. They are also more likely to go the extra mile for you like I've heard you can ask them to waive transaction costs for a fund family once you have enough assets with them eg vanguard mutual funds. But sounds like fidelity can do things too if you ask

Also look at etrade. They have some of their own advantages and disadvantages. Like being able to trade most vanguard mutual funds for free. Ability to take loans with their solo 401k etc.
jfave33
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by jfave33 »

UpperNwGuy wrote: Wed Aug 04, 2021 7:04 pm
fwellimort wrote: Wed Aug 04, 2021 6:47 pm
skeptical1 wrote: Wed Aug 04, 2021 4:56 pm Can someone remind me why it's advantageous to convert my VG mutual funds to ETFs prior to changing to another brokerage?
Portability. It's future proof. That's the main reason (and much easier to manage than having ETFs in 1 brokerage, mutual funds in another, etc.).

Really nice once you want to move around for signing bonuses and all or you suddenly dislike the customer service you are receiving from your brokerage over time.

The convenience of being able to move in and out to any brokerage is a huge benefit to most people here.
That and the ease of tax loss harvesting. :sharebeer

Moving something like VTSAX or FSKAX or SWTSX can be quite inconvenient at some brokerages.
Another reason is that you may have a per-transaction fee if you try to add to your Vanguard mutual funds held at another brokerage. I hear it is $75 per transaction at Fidelity.
Fidelity is free to sell and you can do automatic purchases for $5 a go to get around the large fee.

Schwab may waive fees for a fund family if you ask and have enough assets.

But if you have admiral shares they often can't be transferred so you'd still need to convert to etfs. Portability is still the main benefit.
Bama12
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Bama12 »

I choose Vanguard best move I made 25 years ago. I'm still very happy with them....

I like Schwab but I hate them holding my cash 4 or 5 days. Really they are a bank with some good funds.

Fidelity nothing really wrong with them but just too many moving parts for me.
bacon4retirement
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by bacon4retirement »

At Schwab it has been hard to track in-progress transactions. Fido and Vanguard make it much easier to see pending transactions.
hi_there
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by hi_there »

OP, why are you moving from Vanguard? Is there something in particular that Schwab or Fidelity could do better? I am asking because these two brokerages, to me, are so similar that you would need a very specific reason to non-trivially prefer one over the other.
n00b
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by n00b »

lazynovice wrote: Tue Aug 03, 2021 11:50 pm You can sell specific ID shares of mutual funds without having to call or email anyone at Fidelity unlike Schwab. This makes TLH much easier with mutual funds.
This does not match my experience. Schwab allows me to sell by lot. When I first tried Fidelity it took me several calls trying to enable spec-id on my taxable account before I found the answer myself. That's been my general experience with Fidelity customer support also. Long wait times, transfers to departments that are currently unavailable etc. Schwab has been, in my experience, MUCH better at customer service.

The reason I left Schwab, which I have not seen mentioned up-thread, is that they no longer support a direct OFX interface for finance software downloads. Instead they provided non-standard API to partners like Quicken but I prefer OFX (and standards).
Mike Scott
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Mike Scott »

You don't have to choose just one. You can use both for the different features you prefer.
lazynovice
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by lazynovice »

n00b wrote: Thu Aug 05, 2021 11:31 am
lazynovice wrote: Tue Aug 03, 2021 11:50 pm You can sell specific ID shares of mutual funds without having to call or email anyone at Fidelity unlike Schwab. This makes TLH much easier with mutual funds.
This does not match my experience. Schwab allows me to sell by lot. When I first tried Fidelity it took me several calls trying to enable spec-id on my taxable account before I found the answer myself. That's been my general experience with Fidelity customer support also. Long wait times, transfers to departments that are currently unavailable etc. Schwab has been, in my experience, MUCH better at customer service.

The reason I left Schwab, which I have not seen mentioned up-thread, is that they no longer support a direct OFX interface for finance software downloads. Instead they provided non-standard API to partners like Quicken but I prefer OFX (and standards).
Every time someone tells me they can sell by lot at Schwab, they are talking about ETFs. I am being specific here- you cannot sell specific lots of mutual funds at Schwab without their intervention- unless that has changed in the last month.

I don’t know how long ago you were at Fidelity, but it is pretty simple to find. Account Features/Brokerage and Trading (which as a note that it includes Cost Basis Information Tracking within that) and then click cost basis tracking. Not sure they could do that in less clicks.

If you type “how do I change cost basis” into the virtual assistant, the fourth option is how to change your default option.
fwellimort
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by fwellimort »

I feel like the biggest difference between Schwab vs Fidelity goes with...
are you planning to do debit card purchases abroad or not.
and do you want a more bank like experience or a brokerage like experience.

Both Fidelity and Schwab refunds all ATM fees (both domestic and international).
However, Fidelity debit card charges foreign transaction fee on purchases while Schwab debit card does not charge foreign transaction fee.
At the same time, Fidelity credit card has a 1% fee for foreign transaction on a 2% cashback.
In other words, there's really no reason to use the credit card over the debit card at Fidelity. (and there are much better credit cards for foreign transactions anyway in the market)

Schwab is a full bank. The website feels like a great banking experience; it's beautiful and looks like you are part of the 'upper class'. And there's loans and all AND the bank feels like it was designed for international investors.
Fidelity is more like a full brokerage. The website feels very direct and you instantly see stuffs like 'this is my wealth. I have this much equities/bonds, etc.'. Partial shares extend to ETFs making investing in ITOT or VTI or SCHB or SPTM very easy. And it's very easy to move around assets/money from one place to another quite instantly. All transfers have 0 fees at Fidelity. You can keep moving money around your other banks and brokerages without a problem.

Other than that, I feel the other aspects are all similar. Both are great brokerages.
Do you prefer the color blue or the color green?
(To me, the partial shares on ETFs are a major reason I stick to Fidelity. That and the free TurboTax Premier.)
huzaing
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by huzaing »

sfnerd wrote: Tue Aug 03, 2021 11:57 pm With Fidelity, they actively monitor where you are logging in from, and if you are logging in from an international location frequently they may lock your account for new contributions, transactions, etc. This is because they don't want to have to comply with regulations that cover non-US residents.

Schwab is far more understanding of international investors, and even has an international division to support non-US-based investors. Additionally they refund ATM fees globally. Their ATM/debit card has worked flawlessly for me abroad.

In practice, what this means is that for my Fidelity account I do not add new money, and when I access it abroad I use a VPN that makes it look like I'm in the US.

For Schwab, I just use the app and website without a VPN, and no problems in 5+ years of living abroad. I've even had replacement ATM cards sent to me in different countries. [PSA - never tell your brokerages that you live abroad... even Schwab.]
Thanks for adding detail.

VPNs are a little tricky. Some firms will lock your account precisely for using a VPN (they can know if you are connecting through VPN, and can choose to act on that or ignore), but will readily allow you to log-in from an international location without a VPN.

Thoughts?
Last edited by huzaing on Thu Aug 05, 2021 1:24 pm, edited 2 times in total.
huzaing
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by huzaing »

okwriter wrote: Wed Aug 04, 2021 12:53 am Schwab has a great debit card, maybe the best (?). No foreign transaction fee and they refund all ATM fees.
I believe Fidelity's debit card does all that as well. Any other way in which you found Schwab's debit card better?
Thanks.
BabaWawa
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by BabaWawa »

LiveSimple wrote: Wed Aug 04, 2021 8:26 pm
skeptical1 wrote: Wed Aug 04, 2021 6:58 pm
exigent wrote: Wed Aug 04, 2021 6:48 pm If you value a local office, see which one (either? both?) has a nearby office.
7 minutes from both.
Who has the best coffee.
Best answer. They're both so good, it really could come down to that. :sharebeer
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anon_investor
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by anon_investor »

huzaing wrote: Thu Aug 05, 2021 1:16 pm
okwriter wrote: Wed Aug 04, 2021 12:53 am Schwab has a great debit card, maybe the best (?). No foreign transaction fee and they refund all ATM fees.
I believe Fidelity's debit card does all that as well. Any other way in which you found Schwab's debit card better?
Thanks.
Can either of Fidelity or Schwab's debit cards be temporarily locked/unlocked via their mobile app or website?
huzaing
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by huzaing »

anon_investor wrote: Thu Aug 05, 2021 1:27 pm
huzaing wrote: Thu Aug 05, 2021 1:16 pm
okwriter wrote: Wed Aug 04, 2021 12:53 am Schwab has a great debit card, maybe the best (?). No foreign transaction fee and they refund all ATM fees.
I believe Fidelity's debit card does all that as well. Any other way in which you found Schwab's debit card better?
Thanks.
Can either of Fidelity or Schwab's debit cards be temporarily locked/unlocked via their mobile app or website?
Fidelity, yes. Schwab, I don't know; maybe someone can answer.
huzaing
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by huzaing »

fwellimort wrote: Thu Aug 05, 2021 12:23 pm Both Fidelity and Schwab refunds all ATM fees (both domestic and international).
However, Fidelity debit card charges foreign transaction fee on purchases while Schwab debit card does not charge foreign transaction fee.
FYI, this needs to be clarified a bit. The fidelity 1% FTF is not for ATM withdrawals, only purchases. (Debit cards aren't preferred for purchases any way).
nalor511
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by nalor511 »

huzaing wrote: Thu Aug 05, 2021 1:38 pm
anon_investor wrote: Thu Aug 05, 2021 1:27 pm
huzaing wrote: Thu Aug 05, 2021 1:16 pm
okwriter wrote: Wed Aug 04, 2021 12:53 am Schwab has a great debit card, maybe the best (?). No foreign transaction fee and they refund all ATM fees.
I believe Fidelity's debit card does all that as well. Any other way in which you found Schwab's debit card better?
Thanks.
Can either of Fidelity or Schwab's debit cards be temporarily locked/unlocked via their mobile app or website?
Fidelity, yes. Schwab, I don't know; maybe someone can answer.
Yes to schwab as well
okwriter
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by okwriter »

huzaing wrote: Thu Aug 05, 2021 1:16 pm
okwriter wrote: Wed Aug 04, 2021 12:53 am Schwab has a great debit card, maybe the best (?). No foreign transaction fee and they refund all ATM fees.
I believe Fidelity's debit card does all that as well. Any other way in which you found Schwab's debit card better?
Thanks.
Fidelity's has a foreign transaction fee, and according to Credit Karma, it applies to ATM transactions as well.
sfnerd
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by sfnerd »

huzaing wrote: Thu Aug 05, 2021 1:13 pm
sfnerd wrote: Tue Aug 03, 2021 11:57 pm With Fidelity, they actively monitor where you are logging in from, and if you are logging in from an international location frequently they may lock your account for new contributions, transactions, etc. This is because they don't want to have to comply with regulations that cover non-US residents.

Schwab is far more understanding of international investors, and even has an international division to support non-US-based investors. Additionally they refund ATM fees globally. Their ATM/debit card has worked flawlessly for me abroad.

In practice, what this means is that for my Fidelity account I do not add new money, and when I access it abroad I use a VPN that makes it look like I'm in the US.

For Schwab, I just use the app and website without a VPN, and no problems in 5+ years of living abroad. I've even had replacement ATM cards sent to me in different countries. [PSA - never tell your brokerages that you live abroad... even Schwab.]
Thanks for adding detail.

VPNs are a little tricky. Some firms will lock your account precisely for using a VPN (they can know if you are connecting through VPN, and can choose to act on that or ignore), but will readily allow you to log-in from an international location without a VPN.

Thoughts?
With Fidelity it's never been a problem, and they tell you if you're connecting from outside the US before you log in, so if you see that message it will remind you to connect to a US VPN. For Schwab like I mentioned I usually skip the VPN unless I'm already connected.

Most of the good brokers allow VPNs, and some encourage them. Also, VPN detection is error prone, so it would be challenging for them to block you for using one without introducing false positives.
DetroitRick
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by DetroitRick »

Originally, way back in time - I chose Schwab over Fidelity because of office proximity to work and home (web was just getting started back in those olden days) and favorable fees/commissions on types of investments that I wanted. Also had more friends with Schwab accounts that were happy there. I was DIY from the start and wanting to avoid high-pressure brokers, which really limited my decision to Schwab/Fidelity/Vanguard back then.

Now, it would be a coin flip. But it would be a small hassle to switch (including poa's and more), so I would need a substantive reason. Last time I looked closely, about 5 years ago, I couldn't find one.

What I like about Schwab right now: product selection, fee structure, web interface, trading software quality, availability (office, chat, email, online), portfolio analysis tools, accuracy in handling complex issues, accuracy in tracking and tax documents, seminars/training etc. Probably all true at Fidelity as well.

What I don't like: higher margin rates (same at Fidelity in my intended borrowing brackets).

Frankly if I was choosing today, either would be fine.
Barkingsparrow
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Barkingsparrow »

I'm giving some consideration to moving to Schwab from Vanguard. I'm all mutual funds via Trad/Roth IRAs, and the bulk would transfer over, except for Wellesley. That said, what is it like visiting a Schwab branch? High pressure sales tactics to move to utilize funds? There's a branch fairly close by to me.
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galawdawg
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by galawdawg »

Bama12 wrote: Thu Aug 05, 2021 12:02 am I like Schwab but I hate them holding my cash 4 or 5 days. Really they are a bank with some good funds.
If you deposit or transfer the funds into your Schwab brokerage account, you can invest those on the same day in almost all cases. 1

From https://www.schwab.com/faqs
When are deposited funds available for trading?

Schwab Brokerage Accounts—Generally, electronic deposits and incoming wires to your Schwab brokerage account are available for same day trading.
And I'd say Schwab is a great brokerage with a really good bank!


1If you deposit or transfer the funds into your Schwab bank account, their normal fund availability policy applies, which can delay being able to transfer the funds out of your Schwab bank account either to invest or for other purposes.
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galawdawg
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by galawdawg »

Barkingsparrow wrote: Fri Aug 06, 2021 1:40 pm I'm giving some consideration to moving to Schwab from Vanguard. I'm all mutual funds via Trad/Roth IRAs, and the bulk would transfer over, except for Wellesley. That said, what is it like visiting a Schwab branch? High pressure sales tactics to move to utilize funds? There's a branch fairly close by to me.
You may want to look at this thread on Schwab where I put information that I hope is helpful: viewtopic.php?f=10&t=355173

Wellesley should transfer over without a problem. If they are Admiral shares, you cannot purchase additional shares as those are limited to institutional clients only. Investor shares can be purchased by any client.

I have not received any sales pitches from Schwab. My financial consultant knows that I am a self-directed Boglehead investor. Schwab financial consultants do receive a higher level of compensation for portfolios that are managed by Schwab, but their compensation structure is such that they are still compensated for bringing in a new client and serving you even if you are a three-fund Boglehead! Just let your consultant know up front about your investing philosophy.

Here is a disclosure from Schwab on exactly how their financial consultants (and other investment professionals) are compensated: https://www.schwab.com/public/file/P-6560610 1

If you have a portfolio of $250k or more, you qualify for a dedicated financial consultant. Take a look at my Schwab information thread linked above to see how to find one. If you qualify, I'd recommend you select one in the office near you that you believe would be the best fit for you and contact them to schedule an appointment.



1You won't find any disclosures like that from Vanguard! :shock:
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ruralavalon
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ruralavalon »

LiveSimple wrote: Wed Aug 04, 2021 8:26 pm
skeptical1 wrote: Wed Aug 04, 2021 6:58 pm
exigent wrote: Wed Aug 04, 2021 6:48 pm If you value a local office, see which one (either? both?) has a nearby office.
7 minutes from both.
Who has the best coffee.
It is nice to have two good choices readily available.

Fidelity offers a total international stock index and a small-cap value index fund, Schwab does not offer either.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

hi_there wrote: Thu Aug 05, 2021 1:06 am OP, why are you moving from Vanguard? Is there something in particular that Schwab or Fidelity could do better? I am asking because these two brokerages, to me, are so similar that you would need a very specific reason to non-trivially prefer one over the other.
While I like Vanguard for their asset management aspects, I’m more concerned about their ability or intentions of serving as a viable custodian and all that goes with this especially as I shift from my simple accumulation phase to more complicated phases in my life. That, plus concerns for DW in my absence.
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

n00b wrote: Thu Aug 05, 2021 11:31 am
lazynovice wrote: Tue Aug 03, 2021 11:50 pm You can sell specific ID shares of mutual funds without having to call or email anyone at Fidelity unlike Schwab. This makes TLH much easier with mutual funds.
This does not match my experience. Schwab allows me to sell by lot. When I first tried Fidelity it took me several calls trying to enable spec-id on my taxable account before I found the answer myself. That's been my general experience with Fidelity customer support also. Long wait times, transfers to departments that are currently unavailable etc. Schwab has been, in my experience, MUCH better at customer service.

The reason I left Schwab, which I have not seen mentioned up-thread, is that they no longer support a direct OFX interface for finance software downloads. Instead they provided non-standard API to partners like Quicken but I prefer OFX (and standards).
Being a Quicken user you raise an interesting point. Will Schwab not mix well with Quicken for automatic updates? What about Fido? My Fido 401k works fine.
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

galawdawg wrote: Sat Aug 07, 2021 7:10 am
Barkingsparrow wrote: Fri Aug 06, 2021 1:40 pm I'm giving some consideration to moving to Schwab from Vanguard. I'm all mutual funds via Trad/Roth IRAs, and the bulk would transfer over, except for Wellesley. That said, what is it like visiting a Schwab branch? High pressure sales tactics to move to utilize funds? There's a branch fairly close by to me.
You may want to look at this thread on Schwab where I put information that I hope is helpful: viewtopic.php?f=10&t=355173


I have not received any sales pitches from Schwab. My financial consultant knows that I am a self-directed Boglehead investor. Schwab financial consultants do receive a higher level of compensation for portfolios that are managed by Schwab, but their compensation structure is such that they are still compensated for bringing in a new client and serving you even if you are a three-fund Boglehead! Just let your consultant know up front about your investing philosophy.

Here is a disclosure from Schwab on exactly how their financial consultants (and other investment professionals) are compensated: https://www.schwab.com/public/file/P-6560610 1

If you have a portfolio of $250k or more, you qualify for a dedicated financial consultant. Take a look at my Schwab information thread linked above to see how to find one. If you qualify, I'd recommend you select one in the office near you that you believe would be the best fit for you and contact them to schedule an appointment.



1You won't find any disclosures like that from Vanguard! :shock:
I haven’t seen this same level of transparency of advisors on the Fido site. Am I just overlooking?
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

I keep hearing about a cash drag with Schwab’s robo offering which I interpret mean they force an unreasonable amount of the assets to remain on low yielding cash options. Is that a correct understanding?

Is this an issue with Fido’s robo offering?
Topic Author
ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

Unless I’m missing something, Schwab as a bank doesn’t seem very competitive except for the foreign travel fee waiver aspects. Their “high yield” rates aren’t any better than mega banks. Certainly not true HYSA rates by any means. What the draw?
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ruralavalon
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ruralavalon »

ronin wrote: Sat Aug 07, 2021 2:29 pm
hi_there wrote: Thu Aug 05, 2021 1:06 am OP, why are you moving from Vanguard? Is there something in particular that Schwab or Fidelity could do better? I am asking because these two brokerages, to me, are so similar that you would need a very specific reason to non-trivially prefer one over the other.
While I like Vanguard for their asset management aspects, I’m more concerned about their ability or intentions of serving as a viable custodian and all that goes with this especially as I shift from my simple accumulation phase to more complicated phases in my life. That, plus concerns for DW in my absence.
What concerns you about Vanguard serving as a viable custodian after the accumulation phase?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

Consistency in accessing reliable and timely customer support. I don’t want to feel like spinning the roulette wheel each time wondering what the experience will entail.

As others have stated and observed in other threads, Vanguard’s actions don’t seem to align intentions of committing to strong customer service.
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by lazynovice »

ronin wrote: Sat Aug 07, 2021 2:36 pm
galawdawg wrote: Sat Aug 07, 2021 7:10 am
Barkingsparrow wrote: Fri Aug 06, 2021 1:40 pm I'm giving some consideration to moving to Schwab from Vanguard. I'm all mutual funds via Trad/Roth IRAs, and the bulk would transfer over, except for Wellesley. That said, what is it like visiting a Schwab branch? High pressure sales tactics to move to utilize funds? There's a branch fairly close by to me.
You may want to look at this thread on Schwab where I put information that I hope is helpful: viewtopic.php?f=10&t=355173


I have not received any sales pitches from Schwab. My financial consultant knows that I am a self-directed Boglehead investor. Schwab financial consultants do receive a higher level of compensation for portfolios that are managed by Schwab, but their compensation structure is such that they are still compensated for bringing in a new client and serving you even if you are a three-fund Boglehead! Just let your consultant know up front about your investing philosophy.

Here is a disclosure from Schwab on exactly how their financial consultants (and other investment professionals) are compensated: https://www.schwab.com/public/file/P-6560610 1

If you have a portfolio of $250k or more, you qualify for a dedicated financial consultant. Take a look at my Schwab information thread linked above to see how to find one. If you qualify, I'd recommend you select one in the office near you that you believe would be the best fit for you and contact them to schedule an appointment.



1You won't find any disclosures like that from Vanguard! :shock:
I haven’t seen this same level of transparency of advisors on the Fido site. Am I just overlooking?
https://www.fidelity.com/bin-public/060 ... sation.pdf
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

Great resource- thanks!

I am also interested in Bios for consultants in local offices. schwab seems to offer this nicely. Not seeing this for Fido.
okwriter
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by okwriter »

ruralavalon wrote: Sat Aug 07, 2021 10:17 am Fidelity offers a total international stock index and a small-cap value index fund, Schwab does not offer either.
Agree that total international is a big differentiator. Schwab only has a 1st generation EAFE fund (~1970), while Fidelity and Vanguard offer 4th generation funds (circa 2010).

(Link: Generations of international funds by Allan Roth.)
lazynovice
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by lazynovice »

ronin wrote: Sat Aug 07, 2021 3:19 pm Great resource- thanks!

I am also interested in Bios for consultants in local offices. schwab seems to offer this nicely. Not seeing this for Fido.
https://digital.fidelity.com/prgw/digit ... an-advisor

Put in your net worth, then zip code, then you will se a list of advisors and bios.
BabaWawa
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by BabaWawa »

ronin wrote: Sat Aug 07, 2021 3:19 pm Great resource- thanks!

I am also interested in Bios for consultants in local offices. schwab seems to offer this nicely. Not seeing this for Fido.
Fidelity absolutely has bios for branch consultants including education, license qualification and work experience. All available on their website.
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

Ah yes, thanks to the above two posters. I can see this info. Interesting that the list of advisors changes for my location of choice depending on the amount of money I select on their sliding scale of investable assets. In some ways I guess that makes sense.
Last edited by ronin on Sat Aug 07, 2021 4:40 pm, edited 1 time in total.
nalor511
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by nalor511 »

Fidelity assigned me a CFP. Schwab assigned me a "trading consultant". If certifications are important to you.
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ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

On the topic of advisors, has anyone had experience with Schwab or Fidelity for advisement excluding investment/portfolio management topics such as retirement draw-down, tax, insurance, estate, etc planning topics? If not, is it because you didn’t seek such insight or because you felt other resources more more appropriate?

I’m a three-fund guy and have no need for portfolio management.
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Sandtrap
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Sandtrap »

Am at both Schwab and Fido.
Prefer Fido’s house funds.
Schwab has physical locations and services by not used.

j🌺
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FoolStreet
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by FoolStreet »

galawdawg wrote: Sat Aug 07, 2021 7:10 am
Barkingsparrow wrote: Fri Aug 06, 2021 1:40 pm I'm giving some consideration to moving to Schwab from Vanguard. I'm all mutual funds via Trad/Roth IRAs, and the bulk would transfer over, except for Wellesley. That said, what is it like visiting a Schwab branch? High pressure sales tactics to move to utilize funds? There's a branch fairly close by to me.
You may want to look at this thread on Schwab where I put information that I hope is helpful: viewtopic.php?f=10&t=355173

Wellesley should transfer over without a problem. If they are Admiral shares, you cannot purchase additional shares as those are limited to institutional clients only. Investor shares can be purchased by any client.

I have not received any sales pitches from Schwab. My financial consultant knows that I am a self-directed Boglehead investor. Schwab financial consultants do receive a higher level of compensation for portfolios that are managed by Schwab, but their compensation structure is such that they are still compensated for bringing in a new client and serving you even if you are a three-fund Boglehead! Just let your consultant know up front about your investing philosophy.

Here is a disclosure from Schwab on exactly how their financial consultants (and other investment professionals) are compensated: https://www.schwab.com/public/file/P-6560610 1

If you have a portfolio of $250k or more, you qualify for a dedicated financial consultant. Take a look at my Schwab information thread linked above to see how to find one. If you qualify, I'd recommend you select one in the office near you that you believe would be the best fit for you and contact them to schedule an appointment.



1You won't find any disclosures like that from Vanguard! :shock:
I really appreciate this level of transparency. It is clear this person is paid for "referrals" to various Schwab services. Relatively innocuous and incentives based on finding the right solutions to questions. Nevertheless, for the crowd who drives around the neighborhood to find the cheapest cost for electrons for their electric cars and want to save 8 bsp by buying Admiral funds, over investor class of the same, it highlights that this "customer service" comes at a cost. I will have to check whether Vanguard Admiral funds (for CA Munis) are even available at Schwab.

My VP Financial Advisor has a California license for variable life insurance. That's a big turn-off to me. This person will earn $450 for referring me to purchasing variable / whole / permanent insurance.

They will earn between 8 and 20bps when I transfer money into my account (less for self-directed, more for managed).

I mentioned that I have been looking for a corporate co-trustee. My VP FA set up a call with the Trust department for the interview. For Vanguard, I had to call them via the 800# and leave a message and I don't have to worry about my surviving spouse or heirs being sold variable/whole/permanent life insurance. Honestly, Vanguard is just fine from that POV. No extra points awarded to Schwab for that coordination, since I didn't necessarily need it.

These are some pros/cons. In general, I have been impressed with transfers between my account, DAF and guardian account at Schwab, so there are a few good things about Schwab.
SkyWasYellow
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by SkyWasYellow »

ronin wrote: Sat Aug 07, 2021 2:31 pm

Being a Quicken user you raise an interesting point. Will Schwab not mix well with Quicken for automatic updates? What about Fido? My Fido 401k works fine.
I have multiple Schwab brokerage accounts and their checking account that download to quicken without any issues.
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by galawdawg »

nalor511 wrote: Sat Aug 07, 2021 4:38 pm Fidelity assigned me a CFP. Schwab assigned me a "trading consultant". If certifications are important to you.
That's one reason I suggest that those moving to Schwab with $250k or more choose their own consultant...mine is a CFP.
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