Fidelity vs. Charles Schwab: A Comprehensive Comparison for 2024 (2024)

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Fidelity vs. Charles Schwab: At a Glance

Fidelity and Charles Schwab are two of the largest and most reputable brokerage firms featured in several of our guides, including the best robo-advisors. You can open an account with either platform to access a vast selection of financial planning and brokerage services.

Both investing platforms have a $0 minimum requirement and offer commission-free trading on stocks, ETFs, and options. However, they have different fee structures, account offerings, educational resources, and investment products.

Here is a comparison review of two of the best trading platforms: Fidelity Investments and Charles Schwab.

Investment Options and Financial Products

Business Insider's personal finance team reviewed two of the industry'sbest online brokerages, Fidelity and Charles Schwab, based on their investment offerings, fees, and trading technology.

Fidelity is the better choice if you want to invest directly in cryptocurrencies like bitcoin and ether. Charles Schwab only offers indirect crypto trading with cryptocurrency-related ETFs and mutual funds.

Fidelity's Investment Offerings

Fidelity Investments is an online brokerage offering expansive wealth-building products and trading strategies. It's a great option for investors seeking commission-free trades.

Some of the available brokerage account options include:

  • Individual or joint taxable brokerage account
  • Automated brokerage account (robo-advisor)
  • Professionally managed account
  • IRAs and small business retirement plans
  • Teen-owned brokerage and custodial accounts
  • Cryptocurrency account
  • Disability savings account
  • Cash management account

Additional asset classes available through Fidelity are bonds, mutual funds, REITs, cryptocurrencies, fractional shares, IPOs, money market funds, deferred fixed annuities, precious metals, CDs, and other fixed-income products.

There are more than 3,700 no-transaction mutual funds and Fidelity's exclusive ZERO expense ratio index funds. ESG investing options are also available. If you're interested in diversifying assets internationally, Fidelity offers international stock trading in over 25 countries and 16 currencies.

Fidelity Go, the platform's robo-advisor, invests your funds in a blend of Fidelity mutual funds.

Charles Schwab's Investments Offerings

Charles Schwab is known for its various low-cost investment and brokerage account options. Its offerings are similar to Fidelity. Available accounts include:

  • Individual or joint taxable brokerage account
  • Automated brokerage account
  • Advisor-assisted accounts
  • Individual and small business retirement accounts (includes Personal Choice Retirement Account)
  • Education savings accounts
  • Custodial accounts
  • Charitable donor-advised fund accounts
  • Trust and estate accounts

Available investment securities with Schwab include stocks, ETFs, index funds, mutual funds, options, commodities, and fractional shares. You can also choose from the brokerage's thousands of no-load (funds without transaction fees) mutual funds and a huge selection of Schwab-managed funds. Moreover, unlike Fidelity, Charles Schwab offers futures contracts.

Schwab's automated accounts invest your assets in a diversified blend of low-cost ETFs by building a personalized portfolio of U.S.-focused and income-focused investment strategies based on investors' risk tolerance and goals.

Fees and Commissions

Fidelity's Fees

Fidelity has a $0 minimum requirement and 0% advisory fee to open self-directed, automated, custodial, and Youth accounts. Specialty accounts have higher minimums. Fidelity Wealth Services, for example, requires a $500,000 minimum with a gross advisory fee ranging from 0.50% to 1.50%.

Fidelity Go has no advisory fees unless you have an account balance of more than $25,000. Larger balances are subject to a 0.35% annual fee with the additional benefit of unlimited one-on-one coaching calls. Otherwise, Fidelity Wealth Services requires a $500,000 minimum.

Commission-free trades are available on assets like stocks, ETFs, and options. To access Fidelity Basket Portfolios, you must pay a $4.99 monthly subscription fee.

Schwab's Fees

Charles Schwab has no account minimum or fees for standard brokerage accounts. Its robo-advisor, on the other hand, requires a $5,000 minimum investment. Intelligent Portfolios Premium has an even higher $25,000 minimum requirement, plus a $30 monthly fee (it comes with unlimited CFP guidance).

Schwab's commission-free selection includes stocks, ETFs, and options (though each options contract costs $0.65).

Schwab Intelligent Portfolios Premium's $30 monthly fee is a flat advisory fee, which means you won't pay more or less based on your account balance. This makes Schwab particularly appealing to investors with larger account balances.

Trading Platforms and Technology

Fidelity's Trading Platforms

Fidelity Go is the platform's robo-advisor, supporting a range of account options and automated trading technologies like automatic rebalancing tools and Smart Shift (automated conservative portfolio allocation in conjunction with target dates).

It also offers an advanced trading platform for experienced investors. Fidelity's Active Trader Pro provides investors with customizable charts, real-time trading alerts, up-to-date market insight and commentary, stock and ETF screeners, portfolio monitoring, and options trading assistance.

One of Fidelity's most unique trading features is its Basket Portfolios. Similar to creating your own custom mutual fund, Fidelity Basket Portfolios allow you to hand-pick stocks and other securities into a singular "basket" that is traded as one investment.

Fidelity also launched Youth Baskets as part of its mission to educate teenagers about smart investing and money-managing skills. Youth Baskets doesn't have the normal $4.99 subscription fee, and parents can monitor their teens' portfolios in the Fidelity Youth app.

Charles Schwab's Trading Platforms

The brokerage has a robust selection of wealth management tools and mobile features. You can download the Charles Schwab mobile app to track, monitor, and perform trades. You can access in-depth research and charting tools through Schwab's StreetSmart app.

Fractional share investing (referred to as Schwab Stock Slices) allows investors to buy smaller portions of stocks for a cheaper price. Stock Slices are available as $5, $10, $100, or more, but only 10 can be bought simultaneously.

In 2019, Charles Schwab acquired TD Ameritrade, giving the already powerful brokerage access to one of the industry's best advanced trading platforms, thinkorswim. The thinkorswim platform is an elite, customizable software, web, and desktop trading tool for secure and optimized complex trades.

Making a Choice: Fidelity vs. Charles Schwab

Fidelity Investments and Charles Schwab are great for all kinds of traders. Both brokerages offer automated and advisor-assisted accounts, low-cost self-directed trading, margin trading, retirement accounts, and more. However, the two brokerages differ regarding fees, investment products, and educational resources.

There are a few distinctions worth pointing out. You won't need a minimum amount for the most basic automated accounts at Fidelity, but you'll need at least $5,000 for Schwab's. But Schwab makes up for this higher minimum with no advisory fees. You won't have an annual fee with Fidelity Go if you have under $25,000 in your account, but you'll have to pay a $3 monthly fee or 0.35% annual fee for higher balances.

Fidelity is generally better for lower account balances (accounts less than $25,000) and direct crypto exposure. Charles Schwab is better for higher balances and offers a more comprehensive selection of advanced charting tools like the thinkorswim platform.

Additionally, Charles Schwab is the best broker for trading commodities since Fidelity only offers precious metals. With Schwab, you can trade energies, metals, softs, livestock, and agriculture. You can trade regular future trades or micro E-mini futures.

Fidelity vs. Charles Schwab Frequently Asked Questions (FAQs)

Can I open both Fidelity and Charles Schwab accounts?

You can open both a Fidelity and Charles Schwab brokerage account to take advantage of each platform's best features and services. Since both platforms have low-cost account options, you may be able to avoid paying account management or advisory fees.

Which is better for beginner investors, Fidelity or Charles Schwab?

Both Fidelity and Charles Schwab are great brokerage options for beginner investors, so you can't go wrong signing up for either. However, Fidelity's robo-advisor is easier to qualify for, with no minimum balance requirement and no advisory fees for accounts under $25,000.

Do Fidelity and Charles Schwab offer robo-advisor services?

Fidelity and Charles Schwab offer robo-advisor services suitable for beginners and passive investors. Fidelity Go has no account minimum and no advisory fee for accounts under $25,000 (accounts of $25,000+ are charged a 0.35% advisory fee). Schwab Intelligent Portfolios requires a $5,000 minimum with no advisory fees.

How do Fidelity and Charles Schwab stand out from other brokerage firms?

Fidelity and Charles Schwab stand out as two of the largest financial institutions offering a comprehensive wealth management and brokerage service. All kinds of investors can benefit from a Fidelity or Charles Schwab account. Still, there are some key differences, like pricing and investment options, to consider when deciding between the two.

Are investments with Fidelity and Charles Schwab protected?

Fidelity and Charles Schwab are both secure and reliable brokerages offering SIPC insurance. Brokerage accounts are protected with preventive security features like alerts, two-factor authentication, and screeners.

Tessa Campbell

Investing and Retirement Reporter

Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics, shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise:Tessa’s expertise includes:

  • Credit cards
  • Investing apps
  • Retirement savings
  • Cryptocurrency
  • The stock market
  • Retail investing

Education:Tessa graduated from Susquehanna University with a creative writing degree and a psychology minor.When she’s not digging into a financial topic, you’ll find Tessa waist-deep in her second cup of coffee. She currently drinks Kitty Town coffee, which blends her love of coffee with her love for her two cats: Keekee and Dumpling. It was a targeted advertisem*nt, and it worked.

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Fidelity vs. Charles Schwab: A Comprehensive Comparison for 2024 (2024)

FAQs

Who is better, Charles Schwab or Fidelity? ›

Fidelity is generally better for lower account balances (accounts less than $25,000) and direct crypto exposure. Charles Schwab is better for higher balances and offers a more comprehensive selection of advanced charting tools like the thinkorswim platform.

What is the downside to Fidelity? ›

Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high.

Who is Schwab's biggest competitor? ›

Charles Schwab's top competitors include Wedbush Securities, Envestnet, and Edward Jones Investments. Wedbush Securities operates as a financial services company and specializes in wealth management, brokerage, and investment banking. The company offers various wealth m…

Is Fidelity financially stable? ›

Fidelity was voted the most trusted wealth management company for 2023, earning top rankings for "financial soundness, quality of products and services, protecting privacy and security, and sensitivity to customer needs."

What is the best brokerage firm in the US? ›

The best online brokers for stocks in September 2024:
  • Charles Schwab.
  • Fidelity Investments.
  • Robinhood.
  • E-Trade.
  • Interactive Brokers.
  • Merrill Edge.
  • Ally Invest.
  • Tastytrade.

What is the most successful brokerage firm? ›

5 Largest Brokerage Firms of 2024
Stock Brokerage FirmAssets Under Management*
Vanguard Group$9.3 trillion
Charles Schwab$9.1 trillion
Fidelity Investments$5.5 trillion
JPMorgan Chase & Co.$3.3 trillion
1 more row

What happens if Fidelity goes under? ›

Cash balances in the Fidelity FDIC-Insured Deposit Sweep Program are swept into an FDIC-Insured interest bearing account at one or more program banks and, under certain circ*mstances, a money market mutual fund (the "Money Market Overflow").

Is it safe to keep all your money in Fidelity? ›

Several types of safeguards exist to protect your account and assets. All Fidelity brokerage accounts are automatically protected by the SIPC.

How much does Fidelity charge for a financial advisor? ›

Gross advisory fee applicable to accounts managed through Fidelity® Strategic Disciplines ranges from 0.20% to 0.49% and gross advisory fee applicable to accounts managed through Fidelity® Wealth Services ranges from 0.50%–1.04%, in each case based on a minimum investment of $2 million.

Is there a better brokerage than Schwab? ›

Fidelity is the investment house of choice for more than 51.5 million customers, while Charles Schwab has more than 35 million client banking and brokerage accounts. Both firms are enormous; Schwab boasts more than $9 trillion in client assets, while Fidelity has $14.1 trillion in assets under administration.

What is the best alternative to Charles Schwab? ›

In our expert view, the best alternatives to Charles Schwab are:
  • Interactive Brokers - International broker providing all asset classes.
  • eToro - Global social trading broker.
  • Fidelity - US stockbroker.
  • Zacks Trade - US discount broker.
  • Webull - US discount broker.
  • SoFi Invest - US discount broker.
Jul 19, 2024

How prestigious is Charles Schwab? ›

Investor's Business Daily: Ranked #1 Most Trusted Bank

The IDB Most Trusted Bank award was given to Charles Schwab Bank on September 25, 2023, and expires December 31,2024.

Why is Fidelity better than Schwab? ›

Schwab and Fidelity offer similar customer experiences. As a result, most types of investors can find benefits to working with either. The choice between the two may prove a matter of preferred trading instruments: Schwab is better equipped for futures, and only Fidelity offers direct crypto trading.

Is it safe to keep more than $500,000 in a brokerage account? ›

They must also have a certain amount of liquidity on hand, thus allowing them to cover funds in these cases. What this means is that even if you have more than $500,000 in one brokerage account, chances are high that you won't lose any of your money even if the broker is forced into liquidation.

Why Fidelity is the best? ›

Fidelity has excellent investment platforms for active traders and investors of all types, including mobile, desktop, and the downloadable Active Trader Pro. In contrast with competitors, fees are negligible and many services and products are fee-free.

Is my money safe at Charles Schwab? ›

All of the deposits at Schwab Bank are protected by FDIC insurance. That includes all of our investor checking accounts and savings accounts and CDs.

Is Charles Schwab good for beginners? ›

Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners.

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