Hi, Mustachians.
I am not someone who reviews companies, services, products, or experiences. I just don't. So this is unusual for me. I feel compelled in this case because after my spouse died and I've had to have some dealings with Vanguard to figure out the beneficiary account, I have come to regard Vanguard as the devil's spawn.
I notice in a lot of FIRE forums that people seem to really like Vanguard. In my experience, Vanguard's phone and online support is ridiculously, shockingly bad. Their website would be laughable if it didn't hurt so much to use it. The automated phone software is buggy, and woe to you if you actually make contact with a human, as they more often than not will be ill-informed and unfriendly. I guess Vanguard must compete based on low cost, but haven't other companies caught up to them on low-cost transactions and funds?
I have accounts at both Vanguard and another company (which I won't name, because I don't want you to think I'm advertising for them). After dealing with Vanguard, I almost need to call the other company as a form of self soothing because the other company is that much more kind, prompt, and competent. I do have a lot more money at the other company, so maybe when I call them I get put into a VIP queue and that's why my experience is so much better. Is this a thing?
According to Investopedia, in their 2020 Best Online Brokers reviews, the other company earned higher scores than Vanguard in every category they ranked, which includes Best Overall, Best for Beginners, Best Stock Trading App, Best for Day Trading, Best for International Trading, Best for Low Cost, and Best for ETFs.
So what am I missing? Why would anyone use Vanguard? Is it nostalgia-based loyalty based on some distant past when Vanguard was better on cost?