Why I’m Considering Switching to Fidelity After Years with Vanguard

While Reddit might be both the front door of the internet and the Wild West of the internet, it’s hard to deny that it can be highly beneficial to learn about different topics when appropriately used. This is the exact case around personal finance, as you can rely on other Redditors to help you learn everything you need to know about money. 

This is precisely the case with one post in r/Bogleheads, a subreddit dedicated to investors who are fans of Jack Bogle and his low-cost index fund investment strategy. As the founder of Vanguard, the original poster felt this was the right place to ask why Fidelity might be better in their specific case. 

There is no question that this is a great post and one that anyone considering making a financial shift should know. Where you invest is a big decision, and you hope it will result in you making enough money to retire comfortably. 

The Fidelity Question

The original poster in this particular case is a new Redditor who recently discovered there was a dedicated subreddit for Jack Bogle and Vanguard. In their 50s, they have various accounts spread out between various financial organizations, but Fidelity isn’t one of them. 

However, as this individual likes to invest in passive index funds and spend time looking at expense ratios and fees, they have been a DIY investor. Still, they are now starting to question whether Fidelity is worth exploring. 

This question stems partially from the fact that they are used to seeing people love Fidelity while cursing out Vanguard, but they aren’t clear as to why. They are also used to seeing YouTube personalities like Rob Berger and Joe Kuhn “sing the praises” of Fidelity, but again, they don’t exactly understand why. 

So, the question is whether they are missing out on something, even if they are comfortable with their current investments.

Why Fidelity Is Great

Right from the jump, there is caution in the Reddit comment section that choosing a brokerage isn’t something to consider lightly or to expect it to love you back. This said, there is a pretty clear amount of praise for Fidelity around its customer support being among the best in the brokerage business. 

The last thing you want is to have an issue with your account and then experience frustrating customer service, so bonus points undoubtedly fall to Fidelity for caring about its customer support levels. In some cases, people choose Fidelity because it’s what their employer uses, so there is a familiarity in place that helps make the transition toward using it for personal use even easier. 

However, one Redditor indicates that Fidelity’s Health Savings Account is best-in-class, and the same goes for its Cash Management Account. This Redditor also emphasizes that the one time they needed Fidelity’s customer experience, it was a great call, and it made troubleshooting their account painless. 

Diving deeper into the pros of Fidelity, it also has a more robust platform for trading ETFs, stocks, options, and even cryptocurrency. Additionally, it has one of the easiest-to-use platforms available today, which is especially important for passive investors who just want to log on and see their investments laid out in a manageable and easily digestible way. 

Alternatively, Vanguard has a worse mobile app and offers fewer asset classes, and opening a Vanguard account can be somewhat of a frustration, taking days to accomplish. 

Should You Switch? 

When it comes down to brass tax and whether or not you should actually make the switch, one of the Redditor’s biggest takeaways from this post is all about customer service. The bottom line is that if customer service is of the utmost importance, then Fidelity is the definitive way to go, almost without exception. 

If you total up the sum of the comments inside this Reddit post, there are a few clear takeaways in favor of Fidelity beyond customer service. First up is a reminder to not make a switch hoping one company will “love” you more than another, but to make an educated decision based on goals. 

However, considering things like an online user interface, automatic investing, low-cost trading, and feeling like you are more than just a faceless customer, Fidelity is well worth making the switch, regardless of your investing strategy and portfolio size.

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