Investment App Picker
Where to open a retirement or brokerage account. Five honest comparisons.
Read this first
Where you hold your money matters less than what you hold and how often you trade. A boring index fund at any of the top three brokers below will out-perform a fancy advisor charging 1.5% per year over the long run. The big three — Fidelity, Vanguard, and Schwab — are all reputable, all charge zero for stock trades, and all carry SIPC insurance up to 500,000 dollars per account. Pick whichever feels most comfortable to you and your family.
Fidelity
Best for: Best all-around pick for most retirees. Strong customer service, free index funds, friendly phone support.
Pros
- +Free stock and ETF trades.
- +Zero-fee index funds (FZROX, FZILX) — no minimum.
- +Excellent phone support staffed in the US.
- +Local branch offices in many cities for in-person help.
- +Free check-writing and bill-pay built in.
Cons
- −Website has many menus — takes time to learn.
- −They will offer managed accounts that charge 1%+ — politely decline unless you want hand-holding.
Vanguard
Best for: Best if you want index funds and a buy-and-hold strategy. Founded by John Bogle, the inventor of the index fund.
Pros
- +Famous for ultra-low-cost index funds (VTI, VOO, VTSAX).
- +Owned by its fund holders — no shareholders to please.
- +Strong reputation for putting customers first.
- +Best place for traditional or Roth IRAs focused on long-term growth.
Cons
- −Website and app are dated — Fidelity is more polished.
- −Phone hold times can be long during market hours.
- −Less hand-holding than Fidelity or Schwab.
Charles Schwab
Best for: Great pick if you want a full-service broker plus a checking account in one place. Acquired TD Ameritrade in 2023.
Pros
- +Free stock and ETF trades.
- +Schwab Bank checking with no foreign transaction fees and unlimited ATM rebates.
- +Hundreds of physical branches nationwide for in-person help.
- +Excellent research tools and educational content.
Cons
- −Cash sweep pays low interest — move idle cash to a money market fund.
- −Their robo-advisor (Intelligent Portfolios) requires a large cash holding that hurts returns.
Do not time the market
The single biggest mistake retirees make: pulling money out when the market drops, then waiting on the sidelines for it to feel safe again. By the time it feels safe, the rebound has already happened.
A study by Fidelity found that the best-performing customer accounts belonged to people who had forgotten the account existed — they did nothing for years. The worst-performing accounts belonged to people who reacted to every headline.
A common rule of thumb for retirees: keep one to two years of living expenses in cash or short-term bonds, and leave the rest invested. That cash buffer means you do not have to sell stocks during a downturn. Talk to a fee-only fiduciary (one who charges by the hour, not by your balance) if you want a personalized plan.
If they found you on social media — they are not your friend
TikTok and YouTube are flooded with confident-looking people calling themselves "wealth coaches", "trading mentors", or "private group" leaders. Many run paid Discord servers, Telegram channels, or "exclusive" investor groups. Almost all of them are unregistered and illegal under US law.
By federal law, anyone giving paid investment advice to the public must be registered with the SEC or a state regulator, and must register as a broker-dealer or investment advisor representative. Influencers who skip this step are committing a crime — and you have no recourse when their picks lose your money.
Before sending anyone money or following their picks:
- 1.Run their full legal name through finra.org/brokercheck — free, takes 30 seconds. If they are not in there, walk away.
- 2.Check the SEC's investment advisor database at adviserinfo.sec.gov.
- 3.Anyone promising "guaranteed returns", crypto pumps, or "secret" trades is running a scam. Real advisors cannot promise returns — that is securities fraud.
- 4."Pig butchering" scams (where someone befriends you online, then walks you into a fake trading platform) cost Americans over 4 billion dollars in 2024. Never invest through a platform someone you met online told you about.
Worth knowing about transferring accounts
If you already have an account at Edward Jones or another high-fee broker, you can move it to Fidelity, Vanguard, or Schwab without selling anything (an "ACATS transfer"). This avoids tax. The new broker handles the paperwork — you sign one form, it takes about 5-10 business days. The old firm may charge a 75 dollar exit fee, which the new firm often reimburses. Call the broker you want to move TO and ask them to start the transfer.
Related
Quick Tip: open the account at the broker, then call them on the phone with your first deposit question. The quality of that first call tells you everything about how they will treat you for the next 20 years.