Charles Schwab Brokerage and Fidelity Investments are large brokerages available to professional traders and retail investors, alike. At first glance, they seem similar, with zero-commission trading for many products, no account minimums and no account fees for retail brokerage accounts. There are differences between the two, however.
The Charles Schwab Corporation was founded in 1971 as a traditional brokerage and then pioneered the idea of a discount brokerage firm. Charles R. Schwab remains at the helm as Chairman of the Board. Schwab is considered the “largest publicly trading investment services firm,” according to its website, and holds $7.8 trillion in client assets, servicing 32.5 million accounts.
Fidelity celebrated its 75th anniversary in 2021. It is even bigger than Schwab, holding $15.1 trillion in investor assets and serving roughly 40 million people. It is also known as the largest 401(k) provider in the U.S.
This look at both companies — their fees for certain trades, their ease-of-use and how other consumers feel about the brokerages and their trading platforms — will outline the differences between Schwab and Fidelity and help you determine which one may be best for you.
Side-by-Side Comparison of Fidelity and Charles Schwab
| Feature | Fidelity | Charles Schwab |
|---|---|---|
| Account minimum | $0 | $0 |
| Trading fees | $0 for stocks & ETFs | $0 for stocks & ETFs |
| Mutual funds | Over 10,000, many no-transaction-fee funds | 4,000+ no-transaction-fee funds |
| Options trading | $0 per trade + $0.65 per contract | $0 per trade + $0.65 per contract |
| Margin rates | Starts at 8.25% | Starts at 10.825% |
| Fractional shares | Yes, through Fidelity’s Stocks by the Slice® | Yes, through Schwab Stock Slices™ |
| Research tools | Advanced research tools, Active Trader Pro platform | Strong research tools, thinkorswim platform (upcoming) |
| Customer service | 24/7 phone, chat, and in-person branches | 24/7 phone, chat and in-person branches |
| Best for | Long-term investors, retirement accounts, active traders | Beginners, ETF investors, full-service banking |
Fidelity vs. Schwab: Key Differences Explained
Investment Options
Both Fidelity and Schwab offer a wide range of investment options, all for low or no costs. However, there are some differences:
- Fidelity offers more no-transaction-fee mutual funds than Schwab; it also offers cryptocurrency trading.
- Schwab provides a strong lineup of ETFs and index funds and offers forex and futures trading, something not available at Fidelity.
Trading Platforms and Tools
Although Schwab and Fidelity both cater to beginning investors, with their no-commission trading and no account minimums, they also each have their own advanced trading platforms for more active investors.
- Fidelity’s Active Trader Pro is a bit more intuitive and easier to understand, making it a good choice for beginning investors or those who simply want to chart and trade stocks and options. It’s also a good option for longer-term investors.
- Schwab’s thinkorswim has more advanced functionality and is better suited to active day traders or those who trade more exotic securities like futures and forex.
Fees and Account Costs
A comparison chart on the Schwab website shows that fees on the most common products, including stocks, options, ETFs and standard options are all the same. All of these products are fee-free, with $0 commissions through both brokerages. Both Fidelity and Schwab have standard options per contract fees of $0.65.
Broker-assisted trades with Schwab cost $25 per transaction. If you use the automated phone system, you’ll pay $5 per trade. Schwab also charges an outgoing wire transfer fee of $25, which is reduced to $15 if you submit the transfer online. Schwab also charges fees for other things, such as insufficient funds or late settlements.
Fidelity, on the other hand, has no wire transfer fees, no insufficient funds fee and none of the other fees most common to a retail brokerage. But you’ll pay $32.95 if you require a broker’s assistance to place a trade for you.
If you trade on margin, Fidelity might be the better option for you. Fidelity’s lowest margin interest rate is currently 8.25%, vs. Schwab’s 10.825%.
Robo-Advisory and Automated Investing
Schwab Robo-Advisor
Schwab’s robo-advisor will build, monitor and automatically re-balance your diversified portfolio of $25,000 or more. You’ll also gain access to a certified financial planner. The start-up costs for Schwab Intelligent Portfolios Premium are $300, plus a monthly maintenance fee of $30.
Alternatively, you can set up a robo-advisor account with no start-up fees and no monthly fees through Schwab Intelligent Portfolios. You won’t gain access to a personal advisor, however.
Both accounts divide your funds between ETFs and cash.
Fidelity Robo-Advisor
Fidelity also offers two tiers of robo-investing. Fidelity Go has no account minimum — although you’ll need at least $10 to invest — but you won’t get personalized 1:1 advice. You’ll pay no fees for an account holding less than $25,000 and just 0.35% annually for balances of $25,000 or more.
The Fidelity Personalized Planning & Advice Account combines robo-investing with personalized service from a financial planner, similar to Schwab Intelligent Portfolios. You’ll need $25,000 to open an account and will pay 0.50% annually.
According to Condor Capital Wealth Management, Fidelity Go has logged the highest returns of any robo-advisor over the past seven years, with an average annual return of 7.5%.
Customer Support and Accessibility
Online review sites give both Schwab and Fidelity high marks for their trading platforms, especially for beginning investors. It’s easy to set up an account on either platform.
You can open a Schwab account online, using the mobile app, by phone or at one of the organization’s over 300 branches.
Fidelity has more than 200 Investor Centers across the globe where you can open an account and receive guidance, but the website encourages users to take care of business online through their virtual assistant or by phone “before stopping by.”
Both companies have 24/7 customer service available.
Pros and Cons of Fidelity vs. Schwab
| Pros | Cons |
|---|---|
| Fidelity has a wider selection of no-fee mutual funds | Schwab has fewer mutual funds without transaction fees |
| Schwab offers a better banking experience with checking/savings integration | Fidelity lacks comprehensive banking options |
| Both platforms have strong research tools and educational resources | Fidelity’s Active Trader Pro has a steeper learning curve |
| Schwab’s acquisition of TD Ameritrade integrated the advanced trading platform thinkorswim | Some investors prefer Fidelity’s proprietary funds over Schwab’s |
Which Brokerage Should You Choose?
- Choose Fidelity if: You prioritize mutual funds, active trading tools, research resources, and crypto trading.
- Choose Schwab if: You want integrated banking, a broad ETF selection, advanced charting and trading capabilities and access to forex and futures trading.
Fidelity vs. Schwab FAQ
Here are answers to some commonly asked questions about Fidelity vs. Schwab.- Is Fidelity or Schwab better for beginners?
- Both Fidelity and Schwab are good for beginners because they offer great trading platforms, investor education materials, and low costs.
- Which brokerage has lower fees?
- For most common fees, such as commissions on stocks and bonds and account fees, Schwab and Fidelity are essentially the same. The differences generally come at the margins, in terms of things like overdraft fees, phone fees or margin rates.
- Can I transfer my account between Fidelity and Schwab?
- Yes, you can transfer your investment account between essentially any brokerage firm.
- Which platform offers better customer service?
- Both Fidelity and Schwab offer 24/7 customer service.
Dawn Allcot and Scott Jeffries contributed to the reporting for this article.
Information is accurate as of March 20, 2025.
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.