Fidelity vs. Schwab
Key Points:
- At Schwab and Fidelity, investors will find brokerage services and many additional financial products.
- Robo accounts can be opened at either company in multiple tax treatments.
- High-level software is available for advanced trading at either brokerage firm.
Are you thinking about opening a trading account? If so, Charles Schwab and Fidelity Investments should definitely be on your shortlist.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
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$0
|
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Fidelity
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$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Charles Schwab
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Fidelity
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Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Brokerage Lineups
At either company in this comparison, investors can open a self-directed or full-service brokerage account. The full-service version includes access to a financial advisor, while the self-directed version is a DIY account.
With either setup, several investment vehicles can be purchased. These include annuities, equities, options contracts, bonds, closed-end funds, mutual funds, and ETFs. At Schwab, traders can also buy and sell futures contracts and forex. Fidelity offers direct cryptocurrency trading, and Schwab has begun a phased rollout of direct bitcoin and ethereum trading. Fidelity offers international stock trading in 25 countries, while Schwab’s Global Account provides online trading in 12 foreign markets.
Any brokerage account needs some form of tax treatment. Both firms offer many account registrations, ranging from joint accounts to retirement accounts. Fidelity offers Health Savings Accounts, while Schwab offers Health Savings Brokerage Accounts that can sit inside eligible HSAs.
Winner: Pretty close overall
Portfolio Management
Investors who would rather let professionals manage their accounts should be comfortable at either firm in this matchup. Advisory accounts are available in both robo and traditional formats. A traditional managed account comes with a human advisor, while the lowest management cost is found on the automated side. Fidelity Go starts investing once the account reaches $10, and Schwab Intelligent Portfolios has a $5,000 minimum and no advisory fee, although ETF expenses and other indirect costs still apply.
Winner: Draw
Bank Products
Both investment firms understand that customers need everyday cash-management tools, so both have built out a strong lineup in this area. Schwab actually created its own FDIC-insured bank. Schwab Bank has deposit accounts, mortgage services, credit cards, and a very useful Visa debit card. It comes with unlimited ATM fee refunds around the world with no recurring fee of any kind.
Through its Cash Management Account (CMA), Fidelity offers a similar set of cash-management tools: worldwide ATM fee reimbursements with no account fee. Fidelity has one Visa Signature credit card. Although it doesn’t operate its own bank, its CMA does come with an FDIC sweep program that can provide additional FDIC coverage across multiple program banks for eligible swept cash.
Winner: Another tie
Websites
The Fidelity website has a very large collection of resources, but it doesn’t feel cluttered. Clicking a buy or sell button on a stock’s profile opens a trade window with many useful tools. Trailing, stop, and conditional order types are available, and there are several time-in-force choices. Bonds, mutual funds, options, and cryptocurrencies have their own dedicated order tickets.
Other tools on the Fidelity site include charting with tools, Full View, an integrated dashboard for internal and external financial accounts, and Fidelity Trader+. This last digital resource provides a connected active-trading experience across web, desktop, and mobile.
Schwab’s website also has a browser-based trading platform. Called thinkorswim, this platform is also powerful and includes some strong highlights, such as a stock screener with many search variables. The regular website has a lot of useful material, too. During our review, we found a hub for Investing Themes, which are curated groups of stocks, such as 3D Printing and Autonomous Driving. Options traders will like the integrated advanced spreads.
Winner: Another close one
Mobile Apps
The next software comparison is in the mobile category. Fidelity’s app has strong educational resources; just tap the Discover tab in the bottom menu. Stock profiles include advanced charts, key stats, analyst ratings, social sentiment scores, and much more. A Trader+ mode can be turned on as well.
Schwab has two separate apps: a main app and a thinkorswim platform. The latter is built for heavy-duty trading and is the only one of the two that can submit orders for futures and forex. The regular app is very good as well and has a ticket for mutual funds.
Winner: Schwab
Desktop Software
For the highest level of trading, desktop software is available. Both firms have it. In fact, Fidelity has
two platforms: Trader+ and Active Trader Pro. Both operate at a high level with many tools; Level II quotes, time and sales data, and advanced charting are just a few examples.
Over at Schwab, traders get one platform: thinkorswim. Although it is just one program, it combines a huge number of features into a very sophisticated package. Expect to find trade imbalances, simulated trading, technical analysis, live market news, and more.
Winner: Schwab
Margin Trading
With all this advanced software, margin accounts are naturally available at both firms. Short positions and
option spreads are possible. Fidelity’s website has a very useful margin calculator for hypothetical
trades.
The cost of actually using margin varies at both firms. Fidelity’s schedule begins at
11.825% and reaches 10.075% at higher balances. Schwab’s schedule begins at
11.825% and reaches 10.075% at higher balances. Negotiated rates may be available for very large debit balances.
Winner: Tie
Added Features
Fractional Shares: Stocks can be traded in whole-dollar amounts at either broker-dealer in this comparison. At Fidelity, but not at Schwab, the same applies to exchange-traded funds. Fidelity offers fractional trading in many U.S. stocks and ETFs with a $1 minimum, while Schwab has it for stocks and ETFs trading in the U.S. exchanges with a $1 minimum.
IPO Services: Initial Public Offerings are available at both firms.
Dividend Reinvestment Plans: Automatic dividend reinvesting is possible at either broker.
Recurring Mutual Fund Investing: Both firms offer it. Fidelity customers can also set up recurring investments in stocks, ETFs, and Fidelity Basket Portfolios.
Individual Retirement Accounts: Schwab and Fidelity both offer IRAs. Neither firm imposes an IRA termination charge. An IRA at either company can hold many traditional retirement assets, such as bond ladders and annuities.
Fully-Paid Securities Lending: Available at both companies.
Extended-Hours Trading: Pre-market and after-hours trading are both possible. Schwab offers 24/5 trading in all S&P 500, NASDAQ 100, and Dow 30 stocks, plus more than 600 ETFs, on thinkorswim. Fidelity customers can trade crypto through Fidelity Crypto 7 days a week, 23 hours a day.
Winner: Yet another tie
Recommendations
Small Accounts: Fidelity. It has the lower minimum for robo accounts, and fractional-share trading in ETFs makes it slightly better for brokerage customers.
Mutual Funds: Either will be a wise move.
Frequent Equity Trading: Schwab is better here.
Beginners: A managed account at either firm.
Long-Term Investors & Retirement Savers: Schwab and Fidelity are both very good for long-term projects.
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Charles Schwab vs Fidelity: Results
These two financial powerhouses are very close overall. Schwab has an edge in the software comparison.
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Updated on 5/29/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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