Vanguard alternative: Which is the best for you?

If you’re serious about long-term investing, then Vanguard deserves a hard look. It’s a great choice for people who value simplicity, relatively low fees, and steadiness over flashy trading tools.

That said, Vanguard won’t be a perfect fit for everyone, especially if your investing strategy or banking needs extend outside the US.

In this guide, we’ll walk through how Vanguard works and its costs, as well as highlight the best Vanguard alternatives, each with its own strengths and considerations.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

Learn more 🔎

Table of contents
What is Vanguard and how does it work? 1. Wise 2. Charles Schwab 3. Robinhood 4. Interactive Brokers 5. E*TRADE

What is Vanguard and how does it work?

Vanguard was founded in 1975 by John Bogle, the creator of the first index mutual fund. It’s built on a low-cost, long-term investing model. This means that the company is owned by the funds it manages, and investors own those funds. That structure keeps costs low since profits are returned to investors through reduced fees.

You can open accounts such as individual or joint brokerage accounts, IRAs, 401(k) rollovers, and custodial accounts. Investors can trade stocks, ETFs, and mutual funds, but Vanguard’s strength lies in its broad range of index and mutual funds with some of the lowest expense ratios in the market.

The platform is accessible via desktop and mobile and offers research tools, automated portfolio options, and financial planning services.

Vanguard mainly serves US residents and suits long-term investors who prefer low-cost index investing over active trading or short-term speculation.

How much does Vanguard cost?

Vanguard keeps investing costs low, especially for strategic investors. Online trades of US-listed stocks and Vanguard ETFs are commission-free, while options trades cost $1 per contract when placed online.¹ There are over 160 mutual funds that can be traded without transaction fees when done through its platform.

The average expense ratio for Vanguard funds and ETFs is around 0.07%, compared with an industry average closer to 0.44%.² Account service fees are generally waived if you choose e-delivery of statements or meet certain balance thresholds. Otherwise, Vanguard may charge $25 per year per account.

For automated investing, Vanguard has digital advisor and personal advisor services for professional financial guidance.

💡 Note that most Vanguard mutual funds require a minimum investment of $3,000, though some target-date or STAR funds allow smaller starting amounts.³

Overall, Vanguard remains an affordable option for investors focused on creating sustainable portfolios. But you might start looking for an alternative if you prefer more flexible trading tools, broader international access, or accounts without balance-based fees and conditions.

Let’s look over some options:

1. Wise

Wise cuts through the noise of traditional banking with honest, real-rate transfers. With one account, you can hold over 40 currencies, send to more than 160 countries, and receive money with local account details in 9 currencies.

The Wise debit card works in over 150 countries and automatically converts from any balance you hold at the real exchange rate with transparent fees.

While Vanguard focuses on long-term investing in US markets, Wise specializes in international money management. It’s built for everyone, including travelers, freelancers, expats, and global businesses, who need to send, hold, or spend across currencies without paying inflated exchange rates or hidden bank fees.

Wise pros & cons

✅ Pros	❌ Cons
Real exchange rate with transparent fees	Small conversion fee when exchanging currencies
Hold, add, and receive over 40 currencies	Some features may vary by region
No monthly fees or minimum balance	Debit card withdrawal limits apply
Spend in 150+ countries with the Wise debit card	Transfer speed depends on partner banks
Local account details in 9 currencies	Limited investment option as “Stocks”

Wherever work or travel takes you, Wise keeps your money working at full value.

2. Charles Schwab

Charles Schwab is a long-standing brokerage and banking firm that helped popularize low-cost trading since its launch in the 1970s. It offers a wide range of investment products, including US stocks, ETFs, mutual funds, bonds, and options.

Online trades of US-listed stocks and ETFs are commission-free, and options trades cost $0.65 per contract.⁴ The mutual funds in Charles Schwab’s OneSource lineup also trade without commissions.

Charles Schwab combines investing with full-service banking. Its investor checking account has no monthly fees or minimum balance, reimburses ATM fees worldwide, and the linked Schwab Bank Visa Debit Card has no foreign transaction fees.

These features make Charles Schwab a strong pick for investors who want brokerage and banking in one platform.

Charles Schwab pros & cons

✅ Pros	❌ Cons
$0 commissions on US stocks and ETFs	International wire transfers cost $15–$25⁵
No monthly fee or minimum balance for a checking account	Limited multi-currency and global money movement
ATM fee rebates and no foreign transaction fees on debit card	The user interface may feel dated
Thousands of no-transaction-fee mutual funds	Daily transfer limits and intermediary bank charges
Wide selection of investment products	Platform may be less intuitive for beginners

Charles Schwab stays cost-effective for US-based investors. But it’s not primarily used to handle international transfers and cross-border investing, so performing these tasks can be expensive and limited.

3. Robinhood

Robinhood suits mobile-first investors who want quick access to stocks, ETFs, options, and crypto with minimal setup.

Online trades of US stocks, ETFs, and options carry $0 commissions, and there’s no account minimum to get started. Users can also trade cryptocurrencies with just pennies and even invest fractionally in popular stocks.

For active traders, there’s a Gold tier that unlocks perks like a 3.75% APY on uninvested cash with $2.5 million FDIC insurance, access to Morningstar research, and larger instant deposits.⁶

Robinhood is a go-to choice for beginners or casual traders who want a low-cost, easy-to-use platform.

Robinhood pros & cons

✅ Pros	❌ Cons
Commission-free trading for US stocks, ETFs, and options	Lack of mutual funds or a full range of bonds
Fractional share investing	Research and analysis tools are limited
No account minimum	Not built for multi-currency or global money movement
Streamlined mobile app with simplified UX	Margin and borrowing carry risk and higher cost
Instant deposits and fast trade execution	Limited account types (mainly taxable brokerage and IRA)

If you want a simple mobile platform with access to US markets and don’t require international banking, Robinhood is a reliable pick.

4. Interactive Brokers

Interactive Brokers (IBKR) is made for active traders, professionals, and global investors who want access to nearly every market imaginable. You can trade stocks, ETFs, options, futures, forex, and bonds across 160 markets in over 30 countries.

The IBKR Lite plan offers commission-free trading for US-listed stocks and ETFs, while IBKR Pro provides advanced tools and ultra-low stock commissions going as low as $0.0005 per share for very high-volume traders.⁷

IBKR also supports multi-currency accounts, where you can hold and trade in multiple currencies. But the system and interface are quite complex, so if you’re new to investing, you might find a steeper learning curve.

Interactive Brokers pros & cons

✅ Pros	❌ Cons
Access to 150+ markets in 30+ countries	Platform complexity may overwhelm beginners
Multi-currency accounts and competitive FX rates	Specific market data feeds and features require extra cost or setup
US stocks and ETFs are commission-free (Lite) or have low costs for high-volume trades (Pro)	Pro plan features may still require high volume to unlock the best rate
Advanced order types, tools, and research infrastructure	Banking and cash-management features are less developed
Transparent pricing structure	Despite transparency, the pricing structure can be confusing because of multiple tiers and regional variations

In short, IBKR is more brokerage-focused, which means that it’s less suited for everyday transactions and more for active trading, portfolio diversification, and access to global markets.

5. E*TRADE

E*TRADE, a part of Morgan Stanley, offers a flexible platform for investors who want a mix of hands-on trading and automated investing.

You can buy and sell US-listed stocks, ETFs, mutual funds, and options with no commission fees. The standard options fee is $0.65 per contract, dropping to $0.50 for active traders who place 30+ trades per quarter.⁸ There’s also a robo-advisor service called Core Portfolios that starts at $500 and charges 0.30% annually.⁹

E*TRADE also provides research tools, trading calculators, and a Pro platform with advanced charting for more experienced users. That said, international market access is limited and there’s no support for multi-currency accounts or full banking services.

E*TRADE pros & cons

✅ Pros	❌ Cons
Commission-free trades for US stocks, ETFs, and mutual funds	Limited international investing and no multi-currency support
Automated investing	$500 minimum for automated portfolios
Wide selection of investment products	Lack of comprehensive banking services
Planning calculators and research tools	No direct cryptocurrency trading
Pro platform for advanced traders	Advanced charting and order tools are limited to Pro

E*TRADE is for users who want an all-around US brokerage platform. But if you trade globally or need cross-border cash flow, other options may be a better fit.

Frequently asked questions about Vanguard alternatives

Before you switch, here’s what to know about Vanguard and its alternatives.

What is the best Vanguard alternative?

The best Vanguard alternative depends on your goals. For global money movement and multi-currency management, Wise is a standout. If you want a full-service US brokerage with banking features, Charles Schwab is the best choice.

Robinhood suits mobile-first traders, while Interactive Brokers is for high-volume trade investors who want access to global markets.

Which Vanguard alternatives offer low fees?

Several alternatives match or beat Vanguard’s fee structure. Wise charges a low, upfront conversion fee and skips hidden foreign transaction charges.

Meanwhile, Robinhood, Charles Schwab, Interactive Brokers, and E*TRADE all offer $0 commissions on US stock and ETF trades. Options, premium tools, and advisory services may come with small fees.

Are Vanguard alternatives safe to use?

Yes. Many Vanguard alternatives are registered with the US Securities and Exchange Commission (SEC) and regulated by the Financial Industry Regulatory Authority (FINRA).

Wise is regulated in multiple regions for currency services. Always check for FDIC insurance or equivalent protections when cash is held.

Can Vanguard handle international transfers?

No. Vanguard isn’t built for international money transfers. It’s mainly an investment company, so while you can request a wire transfer through Vanguard, another financial institution actually processes the transfer.

Which Vanguard alternatives offer better international market access?

Most US brokers focus on domestic markets and offer little to no access to foreign exchanges or multi-currency accounts. If you’re looking for strong global market access, Interactive Brokers offers access to 150+ markets and supports multi-currency accounts.

For investors or businesses operating across borders, Wise has you covered.

Final thoughts

The right Vanguard alternative depends on what you need most.

For full-service investing with solid banking perks, Charles Schwab delivers. Robinhood is for users who prefer trading straight from their phone. For global market access and advanced trading tools, consider Interactive Brokers. If you want a balanced US brokerage with both manual and automated investing, E*TRADE gives you that flexibility.

And for seamless cross-border money movement with no surprises on rates, Wise is the smartest choice.

Each platform excels in its own way, so choose the alternative that best suits your investment, trading, or money movement needs.

With Wise, you can send up to 1,000,000 USD per wire transaction to 140+ countries, with the mid-market exchange rate and low, transparent fees.

Learn more about Wise

Sources

1. Vanguard - options
2. Vanguard - ETF and mutual fund expense ratio
3. Vanguard - mutual funds
4. Charles Schwab - options
5. Charles Schwab - international wire transfer
6. Robinhood - Gold tier
7. IBKR - Pro plan
8. E*TRADE - options contracts
9. E*TRADE - Core Portfolios

Sources checked 12/16/2025