Short answer: for a US investor who wants to buy a total-market index fund and leave it alone, Fidelity, Vanguard and Schwab are all low-cost homes, and the gaps between them are small. On the five-point rubric below, Fidelity comes out ahead: its total-market fund has the lowest expense ratio of the three and no minimum, and its fee schedule lists no annual or transfer-out fee. Schwab is close behind. Vanguard loses points for a $3,000 fund minimum, a $25 annual fee you avoid by choosing e-delivery, and a $100 fee to move your account elsewhere.
How we compared: we read each firm’s own documents (fund prospectuses filed with the SEC, fee schedules and account agreements) and checked every figure on October 29, 2026. We did not open or fund accounts, so this compares published costs and rules, not customer service, apps or trade execution. Sources are listed at the end.
Bottom line up front · editorial score
Verdict: Fidelity has the fewest costs and frictions for a hands-off index investor
5.0 out of 5
Pros
- Total-market index fund (FSKAX) at 0.015% a year, with no purchase minimum
- No annual account fee, transfer-out fee or Roth conversion fee on its fee page
- Cash can sit in a government money market fund as the account’s core position
Cons
- The cost edge over Schwab and Vanguard is a few dollars a year per $10,000
- Other firms’ mutual funds can cost $49.95 per purchase
- The score covers published costs and rules only, not service or apps
Affiliate link: we may earn a commission at no cost to you. It doesn’t change the score, which comes from the rubric below. How we make money
The three side by side
Each firm’s own total-market index mutual fund, plus the account costs a long-term investor actually runs into. Online trades of US stocks and ETFs cost $0 at all three.
| Cost or rule | Fidelity | Vanguard | Schwab |
|---|---|---|---|
| Total-market index fund | FSKAX | VTSAX (Admiral) | SWTSX |
| Expense ratio | 0.015% | 0.04% | 0.03% |
| Fund minimum | None | $3,000 (generally) | None |
| Online US stock and ETF trades | $0 | $0 | $0 |
| Annual account fee | None listed | $25, waived with e-delivery | None found |
| Moving the whole account to another firm | $0 | $100 | $50 |
| Other firms’ transaction-fee funds, online | $49.95 per purchase | $20 per trade | Up to $49.95 or $74.95 per purchase |
| Where uninvested cash goes | Core position you choose, including a government money market fund | Money market fund by default | Bank sweep or interest on the cash balance |
One naming note: Vanguard’s site now lists VTSAX as Vanguard Morningstar Total Stock Market Index Fund. The expense ratio and minimum above come from its April 28, 2026 summary prospectus.
What the fund-cost gap is worth
An expense ratio is charged on your balance every year. On a $250,000 portfolio held in each firm’s total-market fund, the annual cost is:
| Fund | Expense ratio | Cost per year on $250,000 |
|---|---|---|
| Fidelity FSKAX | 0.015% | $37.50 |
| Schwab SWTSX | 0.03% | $75 |
| Vanguard VTSAX | 0.04% | $100 |
That gap is real but small. Compared with a typical actively managed fund or an adviser charging 1% a year, all three are cheap; our fees guide shows how a 1% fee changes a FIRE date. If you already hold one of these funds in a taxable account, selling it to move can trigger capital gains tax that costs far more than the fee difference saves.
Account fees and the cost of leaving
- Fidelity says there are no minimums to open an account, and its fee page lists $0 for statements, IRA closeouts, Roth IRA conversions and transfers of assets.
- Vanguard may charge a $25 annual account service fee. It’s waived if you choose e-delivery of statements, confirmations and other documents, and in a few other cases, such as having at least $1 million at Vanguard. Closing the account or transferring all of it to another firm can cost $100 unless you have $5 million or more there.
- Schwab lists a $0 minimum deposit for its brokerage account and IRAs, and we found no annual account fee in its April 2026 pricing guide. A full transfer of an account to another firm is $50; a partial transfer is $0.
Where your uninvested cash sits
FIRE savers often have cash waiting to be invested, or a cash buffer in retirement. What it earns depends on where the broker puts it.
- Fidelity keeps cash in a “core position”. For non-retirement accounts the options include Fidelity Government Money Market Fund (SPAXX), Fidelity Treasury Fund (FZFXX) and an interest-bearing cash option.
- Vanguard’s default sweep moves cash in your settlement fund into a money market fund. You can choose a bank sweep (Vanguard Cash Deposit) instead.
- Schwab says most accounts are eligible only for its bank sweep or Schwab One Interest, and that yields on those cash features can be lower than similar options outside its cash program. To earn a money market rate, you buy a money market fund yourself.
Money market funds aren’t bank deposits and aren’t FDIC-insured; bank sweep balances can be, up to the limits explained in our savings account guide. Rates on all of these change often, so we don’t quote them here.
Investing every paycheck
A FIRE plan usually means investing a set amount every payday. With a mutual fund that has no minimum, you can buy any dollar amount: that works at Fidelity (FSKAX) and Schwab (SWTSX) from the first dollar, and at Vanguard once you meet VTSAX’s $3,000 minimum. Schwab’s pricing guide lists its Automatic Investment Plan at $0 for no-transaction-fee funds, and Vanguard’s brokerage agreement covers dollar-based and recurring transactions.
If you prefer ETFs, fractional shares let you invest exact dollar amounts. Fidelity sells fractional shares of US stocks and ETFs listed on the NYSE or Nasdaq from $1, and supports recurring investments into them. Schwab’s pages didn’t load for our checks, so we couldn’t confirm from its own documents which securities its fractional-share program covers; check in your account before relying on it.
How the score works
The score is an editorial rating from published facts, not customer reviews. Each firm earns up to one point on each of five criteria that matter to a buy-and-hold index investor; half a point means the cost exists but is small or avoidable.
| Criterion (1 point each) | Fidelity | Vanguard | Schwab |
|---|---|---|---|
| Total-market fund at 0.03% or less (½ point up to 0.05%) | 1 | ½ | 1 |
| No minimum to buy that fund (½ point for $3,000 or less) | 1 | ½ | 1 |
| No annual account fee (½ point if avoidable) | 1 | ½ | 1 |
| No fee to transfer the whole account out (½ point up to $100) | 1 | ½ | ½ |
| Cash can sit in a money market fund without extra trades (½ point otherwise) | 1 | 1 | ½ |
| Score out of 5 | 5.0 | 3.0 | 4.0 |
What the rubric leaves out: customer service, app and website quality, research tools, trade execution and tax-reporting tools. We didn’t test those, so they don’t count either way. If one of them matters most to you, weigh it yourself.
Which one fits you
- Starting from zero: Fidelity or Schwab, because their total-market funds have no minimum, so the first paycheck can go straight in.
- Already at Vanguard: staying usually makes sense. Turn on e-delivery to avoid the $25 fee; the expense-ratio gap is about $2.50 a year per $10,000 against Fidelity, and moving costs $100 plus any tax on selling in a taxable account.
- Holding a lot of cash: check where each firm sweeps it. At Fidelity and Vanguard a money market fund is the default or one setting away; at Schwab you buy one yourself.
- Living outside the US: this comparison assumes a US resident. Account eligibility and tax treatment differ for non-residents, so check with the provider directly.
Whichever you choose, the bigger levers are your savings rate and keeping fees low across everything you own. The three-fund portfolio guide shows what to buy once the account is open.
Sources
- Fidelity Total Market Index Fund (FSKAX), summary prospectus dated April 29, 2026 (SEC EDGAR).
- Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), summary prospectus dated April 28, 2026 (SEC EDGAR).
- Schwab Total Stock Market Index Fund (SWTSX), summary prospectus dated February 26, 2026 (SEC EDGAR).
- Fidelity, Commissions and fees, Fractional shares and Trading FAQs: about your account (core position), viewed October 29, 2026.
- Vanguard Brokerage Services, commission and fee schedules, effective July 10, 2026, and Vanguard Brokerage Account Agreement, effective October 1, 2026.
- Charles Schwab, Pricing Guide for Individual Investors, April 2026, and Cash Features Program Disclosure Statement, October 2026.
