Fidelity vs Schwab Comparison
If you're searching for a big and reliable brokerage, Fidelity and
Charles Schwab have you covered. They both hold trillions of dollars in client assets and many years of experience. But
which one stands out the most? This article will explain.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Fidelity
|
$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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|
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Fidelity
|
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Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
First, Let’s Analyze Investment Choices
Self-directed traders at Fidelity can invest in the following:
- Options
- Funds (mutual, closed-end, and exchange-traded)
- Stocks
- Fixed-income securities
- Annuities
- Life insurance and long-term care insurance
These can be held in many account types, like custodial, joint, retirement, trust, and small-business accounts.
Schwab offers nearly the same lineup, plus futures and forex. Besides life insurance, Schwab also has (through a partnership with Crump) disability insurance. Schwab has many account types, too.
Beyond major American exchanges, both firms also allow trading on the OTC market and some international exchanges. Fidelity has 25 foreign exchanges (such as Hong Kong, Ireland, and South Africa). Schwab has 12 (including Australia, Norway, and the UK).
These products reflect what’s possible with self-directed trading. Both firms also have a broad range of advisory services. Each has a robo program. Schwab’s is free (with a large cash requirement and a $5,000 minimum). Fidelity’s robo program does not use a big cash allocation, has no minimum, and charges nothing for balances below $10,000. Beyond that, it costs 0.35% per year.
Both also provide traditional advisory services with varying costs and minimums.
Winner: Overall, very similar
Second, We Need to Look at Their Websites
Self-directed and robo users can log in to each broker’s user-friendly website, where they’ll find many tools. Even with all these resources, navigation remains easy.
Fidelity’s site starts on a Summary page (you can change your landing page) featuring several tiles: IRA contributions this year, net worth totals, and market movers, among others.
When it comes to order entry, there’s a lot to like. Fidelity’s stock order form has 8 order types, 4 of which are trailing. There are multiple time-in-force options, such as on the close or open. Bonds and mutual funds have separate order pages, and more advanced stock tickets are also available. We especially like the conditional ticket (with OCO) and basket trading, which lets you purchase multiple symbols in a single order.
Charts on Fidelity’s site can nearly fill the screen, showing up to 10 years of price history. You can use around 90 technical studies, see company events, pick from 19 plot styles, use several drawing tools, compare symbols, and more.
Schwab’s site is similar, though it doesn’t have tiles. But it does have plenty of other features. One standout is a trade bar at the bottom (Fidelity doesn’t have a trade bar). Schwab’s bar shows essential data like real-time volume and bid-ask spread. You can also display a moderate-sized chart, although orders can’t be placed directly from the bar.
The website’s main trade form has 6 order types (2 are trailing) and 5 time-in-force choices. Like Fidelity, mutual funds and options use distinct tickets.
Schwab’s charts on the website can’t go full screen, though you can pop them out. We found about 70 studies, plus comparisons and drawing tools.
A big difference is Schwab’s browser platform, which Fidelity doesn’t have. Schwab’s platform lets you trade stocks, ETFs, and futures all on one order form. Here, full-screen charting is possible with well over 100 indicators.
Winner: Schwab
Third, It’s Desktop Software
Fidelity does have a standalone platform. It’s called Active Trader Pro (ATP), and it’s packed with pro-level tools, like Level II quotes, basket trading, and robust options features.
Schwab’s desktop system is thinkorswim. It has many of the same features that ATP offers, including Level II quotes, direct-access routing, and advanced options strategies.
Both programs deliver great charting tools and live video news (Schwab has CNBC, Fidelity has Bloomberg).
Winner: Tie
Fourth, Let’s Examine Their Mobile Apps
Schwab has two apps: a standard one and thinkorswim’s. The latter can handle futures trades. The main Schwab app is more user-friendly and can also trade options and mutual funds. Other highlights include an AI assistant and check deposit by phone.
Fidelity’s app includes many of the same tools, such as fingerprint sign-in, mobile check deposit, bill pay, horizontal charting, and an AI. Options and funds each have their own trade forms.
Both apps feature a lot of educational and market content, including streaming video, podcasts, and articles.
Winner: Very close
Fifth, Let’s Inspect Margin Borrowing
Both firms in this survey offer margin accounts. Schwab’s rates begin at
12.575% and go down to
10.825% for balances above $250,000.
Fidelity’s rates start at 12.575% and also drop
to 10.825% for balances above $250,000. For over $1 million, Fidelity drops the rate further to
8.575%.
On Schwab’s site, the Margin Requirements link for a stock or ETF appears under the green Trade button, showing margin details for that security. Fidelity’s site lacks this.
Winner: Very close overall
At Last, Here Are Some Miscellaneous Services
Extended Hours: Both brokerages have pre-market and after-hours sessions. Fidelity’s total timeframe is 8 minutes longer than Schwab’s.
DRIP Service: Both firms let you reinvest cash dividends into new shares at no cost.
Banking Tools: Schwab refunds ATM fees worldwide with its debit card, while Fidelity limits reimbursements to US-based machines. However, Fidelity offers an FDIC-sweep feature covering five times the usual insurance. Schwab does not.
Individual Retirement Accounts: They each have Roth, traditional, Inherited, Custodial, SEP, SIMPLE, and Rollover IRAs with identical fee schedules.
Fractional Shares: Fidelity allows partial-share trades for all US stocks and ETFs. Schwab limits its fractionals to the S&P 500.
Initial Public Offerings: Both have IPO sections on their websites, with minimum account requirements.
Periodic Mutual Fund Investing: Both provide this service.
Winner: Fidelity
Our Recommendations
Mutual Fund Investors:
Schwab has 6,046 funds, while Fidelity has 9,587. Schwab has more no-transaction-fee funds, though, so pick based on your needs.
Long-Term Investors and Retirement Savers: Both are quite strong.
Beginners: Either is a good choice.
Stock and ETF Trading:
Schwab’s thinkorswim platform gives it an advantage.
Small Accounts: Both have zero minimums and no commissions.
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Charles Schwab vs Fidelity: Results
These two giants are very similar in many ways. Schwab leads in futures, forex, and active trading, while Fidelity is the better choice for buying fractional shares.
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Updated on 1/26/2025.
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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