Fidelity and Charles Schwab manage more than $25 trillion in client assets combined. When investors compare brokers, fidelity vs charles schwab is one of the most common matchups.
Both firms offer commission-free stock and ETF trades, strong research, and a wide range of account types. The differences come down to fund lineups, customer service, and the small extras.
This guide walks through the key categories to help you pick the broker that fits your style.
Fidelity vs Charles Schwab: The Basics
Fidelity Investments was founded in 1946 and is privately held. Charles Schwab launched in 1971 and is publicly traded on the New York Stock Exchange.
Both offer brokerage accounts, retirement accounts, banking services, and robo-advisors. Both also dropped trading commissions on U.S. stocks and ETFs back in 2019.
Where they differ is in fund lineups, cash management, and certain customer experience details. Those small differences add up over years of investing.
Account Types and Minimums
Neither broker requires a minimum to open a standard brokerage or retirement account. Both offer individual taxable accounts, joint accounts, traditional and Roth IRAs, SEP IRAs, and 529 college savings plans. If you are still weighing a brokerage account vs retirement account, that decision can shape which features matter most.
Fidelity also offers a popular cash management account with no monthly fee and ATM fee reimbursements. Schwab offers a similar high-yield checking account through Schwab Bank.
Fees and Pricing
For most investors, fees on fidelity vs charles schwab will look nearly identical. The real differences show up in fund expense ratios and cash sweep rates.
Trading Costs
Both charge $0 for online U.S. stock and ETF trades. Options trades cost $0.65 per contract at each broker.
Mutual fund commissions vary. Fidelity offers thousands of no-transaction-fee funds. Schwab does too, though the lists differ.
Expense Ratios
Fidelity made waves with its Zero expense ratio index funds. Funds like FZROX and FZILX charge 0% in annual fees.
Schwab does not match the zero figure, but its index funds are still very low cost. Schwab's S&P 500 Index Fund (SWPPX) charges 0.02% per year, which is still cheaper than most.
Cash Sweep Rates
Uninvested cash sits in a sweep account. Fidelity typically sweeps cash into a money market fund with a competitive yield.
Schwab sweeps uninvested cash into Schwab Bank, which often pays a lower rate. If you keep a lot of idle cash, this difference can matter.
Research and Tools
Both brokers offer deep research libraries with reports from third-party providers. Casual investors will find more than enough in either app.
Active traders may prefer Schwab thinkorswim, the trading platform Schwab inherited from its TD Ameritrade acquisition. It is widely considered one of the best platforms for options and technical analysis.
Fidelity's Active Trader Pro is also strong. It offers customizable screens, real-time analytics, and advanced order types.
Customer Service
Both firms get high marks for customer support. They offer 24/7 phone support, branch offices in major cities, and online chat.
Fidelity has more than 200 investor centers across the U.S. Schwab has more than 300 branches, plus a network from the former TD Ameritrade footprint.
If in-person service matters to you, check which firm has a branch near you.
How They Compare to Newer Brokers
Fidelity and Schwab are full-service brokers. They compete with newer apps that focus on a simpler experience.
Robinhood is popular for active trading and crypto. It has a clean mobile app and offers options, but it lacks the deep research tools that Fidelity and Schwab provide. See Robinhood vs Fidelity and Charles Schwab vs Robinhood for direct head-to-heads. Robinhood also offers a Robinhood Roth IRA with a contribution match for users who want retirement accounts alongside trading.
Public focuses on long-term investing, community, and access to Treasuries and bonds, and our Public.com review digs into the details. It is simpler than Fidelity or Schwab, but it does not offer mutual funds or check writing.
Public
Public
Investing for those who take it seriously. Invest in stocks, bonds, options, crypto & more.
Standout feature
A 5%+ yield Bond Account paired with 3.3% APY on cash — Public is one of the only consumer apps where idle and conservative money is treated as seriously as the equity portfolio.
Fees
Free
Pros
• Invest in stocks, bonds, crypto & more• Earn 3.3% APY* on your cash with no fees• 1% match when you transfer your portfolio• Lock in a 5%+ yield with a Bond Account
Cons
Customer support is in-app and email only, no phone
For most long-term investors, the established brokers still win on breadth of products. Newer apps may work better for specific use cases like fractional shares or social investing.
Which One Should You Pick?
There is no universal winner in fidelity vs charles schwab. Both are strong choices for nearly any investor.
Fidelity may have an edge for index fund investors and those who want a strong cash management account. The Zero funds and competitive sweep yield are real advantages.
Schwab may have an edge for active traders thanks to thinkorswim. It also has more branches and an attractive lineup of low-cost ETFs.
Tips Before You Open an Account
Think about what you actually need. A simple brokerage account, a Roth IRA, or a robo-advisor each have different priorities.
Look at the cash sweep, fund lineup, and trading platform that match your style. If you plan to trade options actively, Schwab's tools may save time. If you want to set and forget index funds, Fidelity's zero-fee funds may save money.
While you build your portfolio, do not forget the rest of your money picture. A solid credit profile can help you qualify for better mortgages, car loans, and credit cards. A credit builder card is built for credit building, and you can use free credit monitoring to track your score.
Frequently Asked Questions
Is Fidelity safer than Charles Schwab?
Both Fidelity and Charles Schwab are SIPC members, which protects securities accounts up to $500,000 including $250,000 in cash. Both are also large, well-capitalized firms with long track records. From a safety perspective, they are considered similarly strong.
Which broker has lower fees overall?
For stock and ETF trades, both charge $0 commissions. Fidelity may come out slightly ahead for index fund investors thanks to its Zero expense ratio funds. Schwab can be cheaper for active traders who use thinkorswim, since the platform is included at no extra cost.
Can I have accounts at both Fidelity and Schwab?
Yes, many investors hold accounts at both brokers. Some use one for their main brokerage and the other for retirement or specific products. Just be aware that managing multiple accounts may complicate tax reporting and rebalancing.
Do Fidelity and Charles Schwab offer credit cards?
Fidelity offers a cash back rewards Visa card that deposits rewards into a Fidelity account. Charles Schwab no longer offers a co-branded credit card to the general public. For credit building, secured cards from specialized fintechs can be a better starting point.
