Charles Schwab vs. Fidelity

Fidelity Investments and Charles Schwab are two of the largest US brokerage firms, offering extensive financial planning and brokerage services.

Both have no minimum account requirement and provide commission-free trading on stocks, ETFs and options. Among other features, Fidelity Investments is renowned for its educational resources, while Schwab is known for offering advanced trading tools.

Each firm has different fee structures, account types and investment products. However, while Fidelity Investments offers cryptocurrency trading, Charles Schwab does not.
You really can’t go wrong with either firm, so the choice will depend on your specific investing needs and experience level. Here’s how they compare.

Charles Schwab vs. Fidelity Investments: A quick comparison

	Charles Schwab	Fidelity Investments
	Read Review	Read Review
Finder Score	★★★★★ 4.5/5	★★★★★ 4.6/5
Minimum to open	$0	$0
Annual fee	$0	$0
Stock trade fee	$0	$0
Options trade fee	$0	$0
Options contract fee	$0.65	$0.65
Crypto trade fee	N/A	1%
Investment options	Stocks, ETFs, options, mutual funds, bonds, futures, forex, CDs	Stocks, ETFs, options, cryptocurrency, mutual funds, bonds, forex, precious metals, CDs
ACATS fee	$50	$0
Inactivity fee	$0	$0
Customer support	24/7 support, live chat, phone support, email	24/7 support, live chat, phone support, email
Mobile app reviews	Apple App Store: 4.8/5 stars based on over 889,680 reviews as of July 30, 2024 Google Play Store: 2.3/5 stars based on over 26,150 reviews as of July 30, 2024	Apple App Store: 4.8/5 stars based on over 2.4 million reviews as of July 30, 2024 Google Play Store: 4.5/5 stars based on over 137,750 reviews as of July 30, 2024
Bonus offer	Get a $101 bonus	None

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How features compare

	Charles Schwab	Fidelity Investments
Robo-advisor	Yes	Yes
Human financial advisor	Yes	Yes
Fractional shares	Yes	Yes
IRA match	No	No
Cash sweep rate	0.45% APY	Earn a 7-day yield of 4.98% as of July 30, 2024, with SPAXX or 2.72% APY with the FDIC program
IPO access	Yes	Yes
Instant buying power	Yes	Yes
Paper trading	Yes	No
24/5 trading	Yes	No
Educational resources	Yes	Yes

How the trading platforms compare

There are many features to consider when choosing between these two brokers, such as their investment options, educational resources, available trading tools and more.

Charles Schwab: A powerful platform for advanced traders

After acquiring TD Ameritrade, Charles Schwab has emerged as one of the largest full-service brokerage firms in the US, managing nearly $9 trillion in client assets.⁽¹⁾

As a part of its acquisition, Schwab took control of thinkorswim, a popular professional-grade trading platform available on web, mobile and desktop.

Thinkorswim desktop is highly customizable, offering advanced tools for strategy testing and trade execution, while the mobile app provides powerful, on-the-go trading capabilities. The web version offers a streamlined, accessible trading experience from any browser without the need for a download.

Additionally, Schwab supports everyday investing through Schwab.com and Schwab Mobile.

Schwab’s research tools and educational resources cater to all experience levels, featuring stock screeners, options chains, advanced charts and Schwab Equity Ratings for over 3,000 US stocks.

Fidelity Investments: User-friendly with extensive resources

Fidelity Investments is a top-tier brokerage firm that serves over 50 million individual investors with more than $13 trillion in assets.⁽²⁾

Its platform is accessible and beginner-friendly, with exceptional research tools and educational resources to support investors of all experience levels. The platform features premium research reports, in-depth analysis, advanced charting tools, screeners, technical analysis from Recognia and a Social Sentiment Score, all of which help make well-informed investment decisions.

However, some users have reported performance issues with Fidelity’s Active Trader Pro, which might affect those who need real-time trading capabilities.

The similarities

Fidelity Investments and Charles Schwab are two of the most prominent brokerage firms, both offering commission-free trading on stocks, ETFs and options. They provide a wide range of financial planning and brokerage services, including mutual funds and retirement accounts.

For new investors, Fidelity and Charles Schwab stand out for their accessibility, featuring user-friendly mobile apps, extensive educational resources and 24/7 live support. Both firms are cost-effective with a $0 minimum requirement to open an account and no annual or inactivity fees. They are also both among the few brokers to offer a free robo-advisor. Fidelity’s robo-advisor charges 0.35% a year for balances of $25,000 or more.

For more advanced investors, Schwab and Fidelity offer a variety of order types, stock loan and dividend reinvestment programs, portfolio margining and an array of screeners. These platforms also provide trading idea generators, financial calculators and portfolio analysis tools to help monitor your investments.

Which broker is better for beginners?

It’s a tie.

Both Charles Schwab and Fidelity Investments offer robust features that cater exceptionally well to new investors.

Fidelity Investments stands out with its low-cost, user-friendly platform, comprehensive educational resources and strong customer support. These features make it an ideal choice for beginners who need guidance and easy access to investment information.

Charles Schwab is equally impressive, providing user-friendly web and mobile platforms, premium research tools and extensive educational content. Its range of features ensures that new investors have access to the best resources and support available.

Ultimately, new investors will find excellent support and resources with either broker, making both Fidelity and Charles Schwab outstanding choices for starting their investment journey.

Which broker is better for advanced traders?

While both brokers cater to investors of all experience levels, Schwab has an edge for advanced traders.

Both Fidelity and Charles Schwab offer a broad range of trading tools and investment options. However, Charles Schwab’s thinkorswim platform, known for its comprehensive features and advanced capabilities, is particularly suited for experienced investors.

Which one’s safer and more reliable?

It’s a tie.
Both Schwab and Fidelity meet industry security standards, offering SIPC insurance, biometric login options and protection against unauthorized activity.

Cash sweep insurance

Cash deposited into Charles Schwab’s cash sweep program is eligible for FDIC insurance up to $1.25 million.⁽³⁾

Fidelity provides FDIC coverage up to $6.25 million on cash swept to program banks.⁽⁴⁾

Fines

Both providers have faced fines and lawsuits. Despite that, they both maintain strong reputations in the industry.

In 2022, Charles Schwab agreed to pay $187 million to settle a Securities and Exchange Commission (SEC) investigation into alleged hidden fees charged by its robo-advisor, Schwab Intelligent Portfolios.⁽⁵⁾ The SEC claimed that from March 2015 through November 2018, Schwab failed to disclose that its robo-advisor allocated funds in a way that internal analyses showed would be less profitable for clients under most market conditions. Schwab neither admitted nor denied the SEC’s findings.

In 2023, Fidelity agreed to pay a $900,000 penalty after being sued by the Financial Industry Regulatory Authority (FINRA).⁽⁶⁾ Fidelity was censured and fined for not having “a system reasonably designed to review and approve options applications.” Fidelity neither admitted nor denied FINRA’s findings.

Charles Schwab vs. Fidelity Investments: Which one’s better?

It’s a tie, though Fidelity is slightly better in an area or two.

Schwab and Fidelity both offer robust trading platforms that cater to investors of all experience levels.

While both brokers provide comprehensive features and amenities, your decision may hinge on the specific asset classes you prefer. Schwab offers futures trading, while Fidelity supports direct crypto trading.

Despite Schwab’s significant recent improvements, Fidelity’s consistent fee elimination and automated cash sweep into a money market fund give it a slight edge in delivering customer value.

Alternatives to Charles Schwab and Fidelity Investments

While Charles Schwab and Fidelity Investments are excellent choices, other options may suit your needs better if, for example, you’re looking to buy and sell crypto.

• Robinhood. Offering commission-free trading across various investment types, including 15 different cryptocurrencies, Robinhood provides advanced charting tools and greater control with the ability to transfer crypto off its platform.
• Public. An excellent choice for beginners interested in trading with a social networking component, Public provides access to seven cryptocurrencies through its partnership with Bakkt.

See how other brokers compare

• Public vs. Robinhood
• SoFi vs. Robinhood
• Webull vs. Robinhood

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