fidelity or vanguard

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user199
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Joined: Sat Aug 29, 2015 6:24 pm

fidelity or vanguard

Post by user199 »

I have a beginner's question. looking to invest in vanguard 3 index funds as recommended here.
Also I am non-resident working professionally here and want to be able to access and operate the account in case I have to move out of the country.
it seems fidelity provides more flexibility in terms of being able to operate your account even when out of the country.
my question is do I have to open an account with vanguard or can I use my existing fidelity brokerage account for this?
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whodidntante
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Re: fidelity or vanguard

Post by whodidntante »

Occasional usage overseas should not be a problem. But both are known to be hostile to someone living overseas. Interactive Brokers is friendly to non-US investors, and Schwab and TDA may also be an option for you.

For me, I wouldn't establish at a place that would just cut me off once I move.
Last edited by whodidntante on Tue Jul 07, 2020 2:24 pm, edited 1 time in total.
sixtoeight
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Re: fidelity or vanguard

Post by sixtoeight »

If you want to invest in Vanguard's 3-index funds, then go with Vanguard. Although I prefer Fidelity's website and customers service, every time you buy a Vanguard fund, you have to pay a small Commission. If you do this in Vanguard, it's free. However, be mindful that Fidelity and Charles Schwab offer similar 3-index funds as Vanguard.
mervinj7
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Re: fidelity or vanguard

Post by mervinj7 »

sixtoeight wrote: Tue Jul 07, 2020 2:23 pm If you want to invest in Vanguard's 3-index funds, then go with Vanguard. Although I prefer Fidelity's website and customers service, every time you buy a Vanguard fund, you have to pay a small Commission. If you do this in Vanguard, it's free. However, be mindful that Fidelity and Charles Schwab offer similar 3-index funds as Vanguard.
Fees depend on whether you mean Vanguard mutual funds or Vanguard ETFs. Personally, I hold all of my investments at Fidelity but my taxable account is all Vanguard or iShares ETFs which have no commissions.
Topic Author
user199
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Joined: Sat Aug 29, 2015 6:24 pm

Re: fidelity or vanguard

Post by user199 »

fidelity and investing in vanguard ETFs sounds good.
another naive question but are there any differences in investing in ETFs than funds?
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Chrono Triggered
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Re: fidelity or vanguard

Post by Chrono Triggered »

user199 wrote: Tue Jul 07, 2020 2:49 pm another naive question but are there any differences in investing in ETFs than funds?
Funds? Do you mean mutual funds? If so, then yes, there is a difference: https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds
marcopolo
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Re: fidelity or vanguard

Post by marcopolo »

Are you sure you can continue to properly access your Fidelity account from a foreign country. That was not the experience a relative of mine had last year.

But, I think it may depend on the specific country, which may change over time as geo-political issues change.

At least double check with your candidate brokerage that your specific country will be OK.
Once in a while you get shown the light, in the strangest of places if you look at it right.
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dollar_elbow
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Re: fidelity or vanguard

Post by dollar_elbow »

I'm more of a fan of Fidelity where I purchase Vanguard ETFs. I think the service and features are better overall than with Vanguard.

You can purchase fractional ETFs at Fidelity so you can invest exact dollar amounts as you would with a mututal fund, so there is not a compelling reason to use Vanguard's brokerage service, unless you want a specific fund for which there is no ETF equivalent.
theTRA
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Re: fidelity or vanguard

Post by theTRA »

You will not be able to buy Mutual Funds through Fidelity while you are abroad. Only liquidating them.

I have read that Schwab is the way to go if you are looking to have a brokerage that does not have barriers to trading while abroad.
bck63
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Re: fidelity or vanguard

Post by bck63 »

Yes to both. I've been with Vanguard for decades, but use Fidelity also. Love Fidelity's cash management account and 2% back credit card. Great index funds too, and ishares ETFs are commission free. Something for everybody.
Bama12
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Re: fidelity or vanguard

Post by Bama12 »

bck63 wrote: Tue Jul 07, 2020 8:33 pm Yes to both. I've been with Vanguard for decades, but use Fidelity also. Love Fidelity's cash management account and 2% back credit card. Great index funds too, and ishares ETFs are commission free. Something for everybody.
I have been with Vanguard for years and love them.

I tired Fidelity and was unhappy.

Just tired them again last week moved 300 dollars for my bank to my cash management account. It's been 6 days and still can not use my card.
They said the money would be usable on the 9th.

To slow for me....
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TheTimeLord
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Re: fidelity or vanguard

Post by TheTimeLord »

sixtoeight wrote: Tue Jul 07, 2020 2:23 pm If you want to invest in Vanguard's 3-index funds, then go with Vanguard. Although I prefer Fidelity's website and customers service, every time you buy a Vanguard fund, you have to pay a small Commission. If you do this in Vanguard, it's free. However, be mindful that Fidelity and Charles Schwab offer similar 3-index funds as Vanguard.
I don't think Fidelity charges any commissions on ETFs so you could use Fidelity and buy Vanguard ETFs if that is your preference.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]
Jason95357
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Re: fidelity or vanguard

Post by Jason95357 »

Just a thought, but what stops someone from funding via US-based banks and buying while abroad? I've never had them ask where I am when I make a contribution or purchase.

If it's by IP Address, just get a VPN service that has exit gateways in the US. Block/don't allow geolocation services when you connect and/or get a GPS faker app installed.

IANAL and I sure don't know tax laws.
confusedinvestor
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Re: fidelity or vanguard

Post by confusedinvestor »

whodidntante wrote: Tue Jul 07, 2020 2:23 pm Occasional usage overseas should not be a problem. But both are known to be hostile to someone living overseas. Interactive Brokers is friendly to non-US investors, and Schwab and TDA may also be an option for you.

For me, I wouldn't establish at a place that would just cut me off once I move.
+1

IBR or Schwab.

I'm glad you are investing while you are working here. 22 years back, I was in a similar situation and I didn't invest as I was worried about accessing my money if I've to move back. Dont make that mistake I did. If you choose Fidelity, ensure you call Fidelity to ask questions how to access your account overseas
deserat
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Re: fidelity or vanguard

Post by deserat »

I live overseas and am able to use the Vanguard website - I do have a VPN but sometimes I don't have it on. Has not affected my ability to get to Vanguard.

I did have to call them to tell them to turn off 2FA due to my foreign cell number. I don't know if VG has implemented 2FA using email yet. If so, I should probably turn that back on.

I have US based banks and have set up the e-connections and means for money transfer to/from VG. That may be the difficult part for OP as I don't know how VG handles the use of foreign based banks. FATCA has truly restricted many banking issues especially for ex-pats. Fortunately I am eligible for and have a credit union account that is a US based bank but also has an IBAN number, so I can use it for US and EU based transactions.

Interestingly, it has been a bit difficult to do some financial transactions in UK - they like people to have banking and credit card 'homes' in the UK.

In any case, if the OP can establish a US bank account, the VG part of it shouldn't be too difficult. The only other issue might be a US based address, and that can be handled through a virtual address and/or use of a friend's/relative's home. Then set up all notifications via email, and that solves the notification/information transfer requirements.

I don't know about Fidelity, but they're probably similar to VG.
lostdog
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Re: fidelity or vanguard

Post by lostdog »

Use Schwab and buy Vanguard ETF's.
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