Vanguard Review

Long-term fund and ETF investors

FINRA

Founded 1975

Why investors choose this broker

$0 online commissions for stocks, ETFs and Vanguard mutual funds
$1 minimum for Vanguard ETFs through fractional shares
$0 Cash Plus minimum balance and no service fee with e-delivery
Digital Advisor starts at $100 with no advisory fee for 90 days

Review summary

Vanguard offers funds, ETFs, stocks, bonds, margin, options, Cash Plus and advice services, with $0 online commissions on major listed products.

Pros

$0 online commissions for stocks, ETFs and Vanguard mutual funds
$1 minimum for Vanguard ETFs through fractional shares
$0 Cash Plus minimum balance and no service fee with e-delivery
Digital Advisor starts at $100 with no advisory fee for 90 days
SIPC coverage up to $500,000 for eligible brokerage securities
Free dividend reinvestment with no commission

Cons

$25 annual account service fee unless e-delivery is selected
Most Vanguard mutual funds require a $3,000 minimum
Individual bonds require a $1,000 minimum investment
Personal Advisor requires a $50,000 minimum
Cash Plus has no issued checks or ATM card
Cash Plus transactions may face 7-day or 60-day holding periods

Company background

Vanguard is an investment provider with a history that dates back to 1975. Its website presents a broad investing offer that includes mutual funds, ETFs, money market funds, stocks, CDs, bonds, advice services and a Cash Plus account. Vanguard also offers Digital Advisor, an automated investing service, alongside human advisor services for larger account balances.

Fees and pricing

Vanguard emphasizes low-cost investing. Online trades in stocks, ETFs and Vanguard mutual funds have $0 commissions, and Vanguard ETFs can be bought with as little as $1 through its fractional share program. Most Vanguard mutual funds require a $3,000 minimum investment, while Vanguard Target Retirement Funds and Vanguard STAR Fund can start at $1,000. A $25 annual account service fee applies to brokerage accounts, but it can be avoided with e-delivery.

Advisory pricing depends on the service. Digital Advisor has a $100 minimum and charges 0.20% for all-index options or 0.25% for an active/index mix, with no advisory fees for the first 90 days. Personal Advisor requires $50,000 and charges 0.35%, while Personal Advisor Select and Wealth Management have tiered pricing capped at 0.30%.

Regulation and safety

Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, a registered broker-dealer and member FINRA and SIPC. Securities in a Vanguard Brokerage Account are eligible for SIPC coverage up to $500,000. Cash Plus bank sweep balances are held at program banks and may be eligible for FDIC coverage up to $1.25 million for individual, trust and organizational accounts, or $2.5 million for joint accounts.

Platform experience

Vanguard accounts can be managed online and through the Vanguard mobile app. The Cash Plus account supports routing and account numbers, next-day bank transfers, mobile check deposit, bill pay, direct deposit and daily transactions up to $100,000, subject to restrictions and holding periods.

Pros and cons

Vanguard is strongest for investors who value low online commissions, fund access and long-term portfolio tools. Its limitations are mainly minimums and account rules: many mutual funds need $3,000, individual bonds need $1,000, and some Cash Plus transactions can be subject to 7-day or 60-day holding periods.

Ready to open an account at Vanguard?

Open an account directly with the broker. Confirm current fees and account eligibility on the broker's website before depositing.

Open Account

Your capital is at risk. Other fees apply.

Trading fees & commissions

Vanguard charges $0 commissions for online stock, ETF and Vanguard mutual fund trades. A $25 annual account service fee applies to brokerage accounts but can be waived with e-delivery. Advisory services have separate fees and minimums, including Digital Advisor at 0.20% to 0.25% with a $100 minimum.

Fees

Item	Fee
Funds	$0 commission to buy or sell Vanguard mutual funds online; most Vanguard mutual funds require $3,000
Account	$25 annual account service fee; waived with e-delivery
Advisory	Digital Advisor 0.20% all-index and 0.25% active/index mix; Personal Advisor 0.35%; Personal Advisor Select and Wealth Management maximum 0.30%
Cash Plus	$0 minimum balance; $0 account service fees when you sign up for e-delivery
Withdrawal	$0 to transfer money to banks and payment apps through EBT and ACH
Min Deposit	$0 to open an account
Wire Transfers	Low fees may apply to outgoing wire transfers
Money Market Funds	0.07%-0.12% annual expense ratios; $3,000 minimum initial investment

Trading platform & features

Platforms

Web app
iOS app
Android app

Regulation and investor protection

Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, a registered broker-dealer and member FINRA and SIPC. Eligible brokerage securities are protected by SIPC up to $500,000, while Cash Plus bank sweep balances may be eligible for FDIC coverage subject to limits.

Broker FAQs

Is Vanguard safe?

Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, a registered broker-dealer and member FINRA and SIPC. Eligible securities in a Vanguard Brokerage Account are protected by SIPC up to $500,000.

Is Vanguard a scam?

No. Vanguard Brokerage Services is a registered broker-dealer and member FINRA and SIPC, and Vanguard Advisers, Inc. is a registered investment advisor.

Is Vanguard regulated and by whom?

Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, a registered broker-dealer and member FINRA and SIPC. Vanguard Advisers, Inc. is a registered investment advisor, and Vanguard National Trust Company is a federally chartered, limited-purpose trust company.

What happens to my money if Vanguard goes bankrupt?

Eligible securities in a Vanguard Brokerage Account are protected by SIPC up to $500,000. Cash Plus bank sweep balances are moved to program banks and may be eligible for FDIC insurance up to $1.25 million for individual, trust and organizational accounts, or $2.5 million for joint accounts.

Are there hidden fees at Vanguard?

Vanguard advertises $0 online commissions for stocks, ETFs and Vanguard mutual funds. A $25 annual account service fee applies to brokerage accounts, although it can be waived by choosing e-delivery.

What does Vanguard charge for stock trades?

Vanguard charges $0 commissions for online stock trading. The stock page also states that there are no account minimums to buy stocks in a Vanguard Brokerage Account.

Is there a withdrawal fee at Vanguard?

For Cash Plus, Vanguard lists $0 transfers between Vanguard accounts and $0 transfers to banks and payment apps through EBT and ACH. The account page also says low fees may apply for certain transactions such as outgoing wire transfers.

What products does Vanguard offer?

Vanguard lists mutual funds, ETFs, money market funds, stocks, CDs and bonds among its investment products. It also offers margin, options, Cash Plus and several advice services.

Does Vanguard offer ETFs?

Yes. Vanguard offers ETFs, including index and actively managed ETFs. Vanguard ETFs have a $1 investment minimum through the fractional share program.

Does Vanguard offer options?

Yes. Vanguard lists options under stock trading strategies for experienced investors. The page describes options as complex investments involving a high degree of risk.

Can I buy fractional shares on Vanguard?

Vanguard states that the minimum investment for a Vanguard ETF is as little as $1 through its fractional share program. Minimums for non-Vanguard ETFs are the price of one share.

What is the minimum deposit at Vanguard?

Vanguard lists $0 to open a Cash Plus account and no account minimums to buy stocks in a Vanguard Brokerage Account. Product and advice minimums vary, including $3,000 for most Vanguard mutual funds and $100 for Digital Advisor.

How do I open an account at Vanguard?

Vanguard says opening an investing account starts by choosing Open an account and selecting how to fund it. Most investors fund new accounts by transferring money from a bank, using bank account and routing numbers.

Does Vanguard have a mobile app?

Yes. Vanguard says Cash Plus and other Vanguard accounts can be managed online and on its app. The Cash Plus page also links to the Vanguard mobile app through the App Store and Google Play.

How long does it take to withdraw from Vanguard?

For Cash Plus, transactions may be subject to a 7-day holding period and daily transaction limits. New accounts generally face a 60-day holding period for cash and check deposits.

Is Vanguard good for long-term investing?

Vanguard offers mutual funds, ETFs, bonds, money market funds and advice services built around portfolio goals. Its mutual fund and ETF pages emphasize diversification, low costs and long-term investing.

Bottom line

Vanguard suits long-term investors who want low-cost funds, ETFs, brokerage access and optional advice services. It may be less suitable for investors who want very low fund minimums, ATM access through Cash Plus, or fewer account restrictions.

Vanguard

Long-term fund and ETF investors

Open Account

Your capital is at risk. Other fees apply.