Fidelity vs. Schwab: Which Brokerage Is Better in 2026?
Written by
John Csiszar
Edited by
Joe Evans, CFHC™
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Fidelity and Charles Schwab are two of the biggest names in investing, and both give you a lot for $0 upfront. Each offers commission-free online stock and ETF trades, no account minimums for standard brokerage accounts and strong research tools.
The better choice comes down to how you invest: Fidelity is often a better fit for long-term investors and mutual fund users, while Schwab stands out for advanced traders, banking integration and thinkorswim.
The scale of both firms also reinforces their credibility. Fidelity reported $18.0 trillion in assets under administration in its 2025 annual report, while Schwab said it ended 2025 with $11.90 trillion in client assets and 38.5 million active brokerage accounts.
For investors comparing stability, brand depth and platform breadth, both companies clear that bar comfortably.
Side-by-Side Comparison of Fidelity and Charles Schwab
Feature Fidelity Charles Schwab Account minimum $0 $0 Trading fees $0 for online U.S. stocks and ETFs $0 for online U.S. stocks and ETFs Mutual funds Over 10,000 funds, including many no-transaction-fee options 4,000+ no-load, no-transaction-fee mutual funds Options trading $0 per trade + $0.65 per contract $0 per trade + $0.65 per contract Margin rates 11.825% for balances under $25,000, with rates as low as 7.5% for $1 million+ 11.825% for balances under $25,000, with lower negotiated rates possible above $500,000 Fractional shares Yes, through Stocks by the Slice® Yes, through Schwab Stock Slices™ Research tools Robust research, screeners, Active Trader Pro® Robust research, screeners, thinkorswim® Customer service 24/7 support and Investor Centers 24/7 support and branch network Best for Long-term investors, mutual fund users, retirement savers Active traders, ETF investors, banking-focused customers Both brokerages look similar at first glance, but the details start to matter once you compare margin borrowing, platform depth, robo-advisor pricing and investment selection. That is where the gap becomes more obvious.
Fidelity vs. Schwab: Key Differences Explained
There are some key differences to keep in mind while deciding which platform to go with. Let’s dig into each in a little more detail:
Investment Options
Both brokerages cover the basics well: stocks, ETFs, options, bonds and retirement accounts.
Fidelity has a stronger case for fund-focused investors because its mutual fund lineup is broader, which can be useful if you want to build around index funds, target-date funds or actively managed funds in one place.
Schwab is still competitive here, but its bigger differentiator is product breadth for more active traders.
If you think you may grow into more advanced trading strategies, Schwab has the edge because it pairs its brokerage offering with thinkorswim and supports a more trader-oriented setup.
Fidelity, by contrast, feels more naturally built for people who want a long-term investing home first and an active-trading toolset second.
Trading Platforms and Tools
This is one of the clearest separators in the Fidelity vs. Schwab comparison. Schwab says thinkorswim gives traders “powerful features and real-time insights” across multiple platforms, and it positions the platform for both beginners and advanced traders. That makes Schwab especially appealing if charting depth, strategy testing and trade customization are high on your list.
Fidelity still offers strong tools through Active Trader Pro® and its broader research ecosystem, but its overall experience tends to feel more balanced for mainstream investors.
If you want a brokerage that can handle serious trading without making everything feel like a trading terminal, Fidelity is often easier to live with day to day. That said, for people specifically seeking an advanced platform identity, Schwab usually wins this category.
Fees and Account Costs
On headline trading costs, these firms are nearly identical. Fidelity states that its $0 commission applies to online U.S. equity trades, ETFs and options, with the standard $0.65 per-contract options fee.
Schwab likewise says its standard online $0 commission applies broadly to eligible stock and ETF trades, with options subject to the same $0.65 per-contract charge. Schwab also notes that broker-assisted trades cost $25 and automated phone trades cost $5.
Margin can create more separation. Fidelity’s published schedule shows a 7.5% rate for debit balances above $1 million, while its current base margin rate has been 10.575% since Dec. 12, 2025.
For investors who borrow heavily on margin, that lower published top-tier rate can be meaningful. For buy-and-hold investors who never borrow, it is much less relevant.
Robo-Advisor Options
Fidelity Go® is one of the more accessible robo-advisors for smaller balances. Fidelity says there’s no advisory fee for balances under $25,000, a 0.35% advisory fee once the balance reaches $25,000, no minimum to open and $10 to start investing.
That structure makes it especially appealing for beginners who want automated investing without paying an advisory fee too early.
Schwab Intelligent Portfolios® also advertises no advisory fee and no commissions, but Schwab is more explicit about the tradeoff: investors still pay direct and indirect costs, including ETF operating expenses, and the portfolio includes a cash allocation at Schwab Bank that can yield less than some outside cash alternatives.
Schwab Intelligent Portfolios Premium also carries a $300 initial planning fee and a $30 monthly advisory fee charged quarterly.
Customer Support and Accessibility
Schwab has a clear advantage for investors who want branch access.
Schwab says clients get 24/7 support plus the convenience of 300+ branches, and its broader site also says accounts can be opened online, by phone or in one of those branches. Fidelity also offers strong support, but Schwab’s physical footprint is a bigger part of its value proposition.
For investors who mostly want digital support, research tools and a large investment menu, Fidelity remains a strong choice. But for people who like the idea of in-person help or want their brokerage to feel more like a traditional financial hub, Schwab has the edge.
Pros and Cons of Fidelity vs. Schwab
Pros Cons Fidelity offers a huge fund lineup and attractive robo-advisor pricing for smaller balances Schwab’s advanced features may be more than some beginners need Schwab offers thinkorswim and a large branch network Fidelity’s platform feels less trader-centric for highly active users Both offer $0 account minimums and $0 online stock and ETF trades Both still charge standard options contract fees Both are large, established firms with strong support The “best” pick depends more on use case than on headline pricing
Which Brokerage Should You Choose?
Choose Fidelity if your priority is long-term investing, mutual funds, retirement accounts and a more accessible robo-advisor for smaller balances. Choose Schwab if you want deeper trading tools, branch access and a brokerage experience that leans more heavily into active trading and full-service convenience.
For most, the real answer is simple: Fidelity is usually better for steady, long-term investors, while Schwab is often better for traders and investors who want more platform depth.
Both are credible, low-cost choices with strong brand authority, which means you aren’t choosing between good and bad. You’re choosing between two good brokers built for slightly different kinds of investors.
Fidelity vs. Schwab FAQ
- Is Fidelity or Schwab better for beginners?
- Both are beginner-friendly because they offer $0 account minimums, $0 online stock and ETF trades and strong educational support. Fidelity may feel simpler for long-term investors, while Schwab can be better if you want branch access and room to grow into more advanced tools.
- Which brokerage has lower fees?
- For standard online stock and ETF trading, Fidelity and Schwab are very close. The bigger pricing differences show up in areas like robo-advisor costs, margin borrowing and service fees rather than in basic commissions.
- Is thinkorswim better than Fidelity’s trading tools?
- For active traders, thinkorswim is often the stronger choice because it offers deeper charting, customization and trader-focused workflows. Fidelity still has solid tools, but its overall experience is usually more balanced for general investors.
- Is Fidelity better for retirement investing?
- Fidelity is often a strong retirement choice because of its broad mutual fund lineup and accessible automated investing options. Schwab can still work well for retirement savers, especially if they also want branch support and banking-style convenience.
- Can you transfer a brokerage account between Fidelity and Schwab?
- Yes, in most cases, you can transfer assets from one brokerage to another through the standard account transfer process. Before starting, check for transfer fees, mutual fund restrictions and how fractional shares will be handled.
Dawn Allcot and Scott Jeffries contributed to the reporting for this article.
Information is accurate as of March 30, 2026.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
