As of late, Charles Schwab has an impressive $7.63 trillion in client assets. Fidelity leads with $11.1 trillion under its care. These figures highlight both firms’ massive scale and influence. In our detailed comparison, we’ll explore essentials like trading platforms and financial advice. Our goal is to help you choose the best brokerage for your needs.
Charles Schwab and Fidelity stand out in the brokerage world, catering to millions. Schwab boasts over 400 branches and offers top-notch trading tools and customer service. Fidelity shines with over 200 locations, specializing in retirement planning and cryptocurrency trading, which Schwab doesn’t provide.
Each brokerage has made remarkable strides in improving their offerings. Schwab’s acquisition of TD Ameritrade and Fidelity’s Bitcoin ETP are noteworthy. We aim to detail their differences here. This comparison aims to inform your investment decisions effectively.
Key Takeaways
- Charles Schwab holds $7.63 trillion in client assets, while Fidelity manages $11.1 trillion1.
- Fidelity operates over 200 branches, whereas Charles Schwab has more than 400 branches1.
- Both brokerages offer $0 commission on online stock, ETF, and options trades2.
- For broker-assisted trades, Fidelity charges $32.95, while Schwab charges $2521.
- Fidelity offers direct cryptocurrency trading; Schwab provides exposure through ETFs and mutual funds21.
- Charles Schwab’s assets surpass $8.85 trillion, and Fidelity serves over 50 million individual investors with $13.7 trillion in total customer assets2.
- Both firms provide a comprehensive range of account types, including IRAs, custodial accounts, and 529 plans1.
Overview of Charles Schwab and Fidelity
Charles Schwab and Fidelity lead the brokerage world with top-notch services. They are known for their fresh ways of doing things and strong market presence. This makes them go-to options for different types of investors.
Company Background
As major names in finance, Charles Schwab and Fidelity offer great online trading and analysis tools. Fidelity shines with its wide range of products. It lets people invest in fractional shares without needing a minimum balance. Plus, it charges 0% fees for some accounts3. Investors can also trade stocks in more than 25 countries with Fidelity3.
Charles Schwab focuses on commission-free trades for stocks, ETFs, and options. This approach makes investing simple and accessible for everyone3.
Market Position
Fidelity is known for its easy-to-use mobile app, scoring 4.8 on iOS3. Its resources for planning retirement are top-notch. On the flip side, Charles Schwab’s growth includes buying TD Ameritrade. This move shows its dedication to providing superior services3. Schwab is also dubbed as one of the most trustworthy financial firms3.
Besides, Schwab offers futures trading. This gives investors more options compared to Fidelity’s crypto offerings4.
Both Schwab and Fidelity propose zero fees for trading stocks and ETFs5. Fidelity’s program allows trading over 7,000 stocks and ETFs for as little as $1. In comparison, Schwab targets S&P 500 stocks with a $5 minimum4. These advantages boost their reliability and trust with investors4.
Account Opening Process
Charles Schwab and Fidelity make setting up online brokerage accounts easy. You can open a Schwab account online, through their mobile app, or at one of their 300+ branches. Fidelity’s online setup is also user-friendly but adding certain features might need extra steps6.
Ease of Setup
For many investors, starting an online brokerage account easily is key. Charles Schwab and Fidelity have made their setup processes smooth and simple. With Schwab, you can create your account in various ways, making sure the process is hassle-free. Fidelity aims for an easy setup too, though some features may need more steps6.
Initial Deposit Requirements
Investing with Charles Schwab or Fidelity comes without initial deposit demands. This makes it simpler for all investor levels to begin without worrying about a minimum deposit6. Once set up, both offer many investment choices like stocks and mutual funds. Schwab also provides options trading, a Visa Platinum debit card, and margin trading7.
Online Trading Platforms
When we talk about online trading, Charles Schwab and Fidelity are big names. They have great platforms like Schwab’s thinkorswim and Fidelity’s Active Trader Pro. Each offers tools that cater to different types of traders8. Thinkorswim is known for its deep technical studies and futures trading9. Fidelity’s platforms, however, are famous for being easy to use and offering detailed market analysis10.
Both companies give you many order types, matching various trading strategies. Schwab makes trading better by including thinkorswim in its desktop options9. Fidelity offers a customizable experience through its web platforms, full of research and analysis tools9.
Schwab’s thinkorswim is fast, executing orders in 0.03 seconds with 97.5% price improvement9. Fidelity is also impressive. It improves prices by an average of $12.97 for 1,000-share orders. Their orders are quick, at 0.05 seconds, and 98.93% hit the best possible prices9. These facts show how both brokers use advanced tech for fast and efficient trading.
Mobile Trading Experience
Investors now find mobile trading essential for portfolio management on the move. Charles Schwab and Fidelity have developed strong mobile apps for today’s traders.
App Functionality
Charles Schwab’s thinkorswim mobile app stands out for making the switch from desktop easy. It offers a full set of tools for traders who want detailed functions and live data streaming8. Fidelity’s app, on the other hand, is simpler and easier to navigate, perfect for those who prefer straightforwardness over a lot of features8.
Schwab offers over 16,000 mutual funds, a bigger selection than Fidelity’s 15,0008. Both apps come with real-time streaming and advanced trading tools, so you’re always up-to-date with market moves.
User Reviews
How users rate mobile apps is crucial. Charles Schwab’s app gets high scores for being user-friendly and feature-rich. It makes trading easy anywhere8. Fidelity’s app also earns praises for its elegant design and ease of use. It’s great for trading and investment management, suitable for all levels of investors11.
Fidelity’s focus on an intuitive design appeals especially to casual investors. It makes investing simpler and more accessible.
Whether you want an app with all the advanced trading tools or one that’s easy to use, Charles Schwab and Fidelity have got you covered. The best app for you depends on what you need and how you like to trade. Check out these mobile trading apps to find your match.
Investment Services Offered
Charles Schwab and Fidelity offer many trading products. They have mutual funds, ETFs, bonds, and options for investors. These firms provide the key investment options today’s investors expect.
Charles Schwab has a larger selection of mutual funds, with over 17,000 available. It also offers more than 4,000 no-load, no-fee mutual funds. This is more than Fidelity’s nearly 3,400 options1. Investors can diversify their portfolios with fewer costs at Schwab.
Fidelity offers direct crypto trading with the Fidelity Wise Origin Bitcoin Fund. This enhances its digital asset offerings9. Fidelity also has comprehensive advisory services. Their managed portfolios have fees between 0.20% and 1.04%, helping those who want professional asset management12.
Both firms offer OTC stocks and advisory services. Charles Schwab’s Schwab Intelligent Portfolios® have no advisory fees. They require a $5,000 minimum account balance. This offers a budget-friendly option for automated investing12. On the other hand, Fidelity’s Wealth Management services have fees between 0.50% to 1.50%12.
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Fidelity has over 200 branches, while Schwab has more than 400 across 45 states. Schwab’s broader branch network makes in-person support easier for its clients1.
Both companies charge $0.65 for each options contract1. They also offer $0 commission on stock and ETF trades. This keeps them competitive for frequent traders9.
Commission Fees and Costs
Charles Schwab and Fidelity have great rates for trading stocks and ETFs. They don’t charge for online stocks and ETFs trades at Schwab13. Fidelity also lets you trade U.S. equities and ETFs online without fees14. This is great news for people looking to save on trading costs.
Stock and ETF Trading Costs
For options traders, both brokers offer a simple fee structure. Schwab has no base commission but charges $0.65 per contract for options13. Fidelity matches this with a $0.65 per-contract charge for online options trades14. This way, traders know exactly what they’ll pay upfront.
Options Trading Costs
Mutual fund trading fees vary between the two. Schwab trades some funds at no cost but charges up to $74.95 for others online13. On the other hand, Fidelity offers no fee for their Fidelity ZERO index funds14. But, they might charge up to $49.95 for other funds15.
Charles Schwab and Fidelity both have options that won’t break the bank. Pay attention to specific trading service fees. Even small differences can matter depending on how you invest.
| Service | Charles Schwab | Fidelity |
|---|---|---|
| Stock and ETF Trading Fees | $0/trade13 | $0/trade14 |
| Options Trading Costs | $0 + $0.65/contract13 | $0 + $0.65/contract14 |
| Mutual Fund Trading Fees | $0 to $74.9513 | $0 to $49.9515 |
Customer Service and Support
It’s vital for anyone beginning in the financial market to understand customer service quality. Charles Schwab and Fidelity stand out for their strong support and commitment to excellent customer service.
Availability
Charles Schwab and Fidelity offer widespread support through different means. Schwab has 24/7 phone, chat, and email support. They also boast more than 300 branches. On the other hand, Fidelity offers 24/7 phone support, chat, email, and has over 200 branches4. This wide network means clients can get financial advice anytime, improving their experience.
Quality of Service
Both brokers are highly praised for their customer service quality. Fidelity is especially strong in phone support, but Charles Schwab is not far behind. Schwab was named 2023’s best overall broker by Bankrate. Meanwhile, Fidelity was selected as the best broker for beginners4. These honors show their commitment to top-notch service, ensuring investors get the advice they need when they need it.
Research and Analysis Tools
Charles Schwab and Fidelity offer a wide range of market research tools. These include advanced screeners, financial calculators, and up-to-date news. They provide thorough market insights and a wealth of data16.
Charles Schwab is known for its depth and quality in market research. It is highly rated among brokers for its rich research offerings to clients. Both brokers also provide their own research reports and access to third-party research. This helps investors make informed investment choices10.
The platforms offer advanced quote screens that enhance your research process. They provide instant data to help you keep up with market shifts. Charles Schwab’s thinkorswim and Fidelity’s Active Trader Pro platforms offer customizable spaces and live news10.
Looking at these features, Charles Schwab has the edge with its broad range of research tools. Using these tools can help you understand the market better. This will assist you in making smart investment decisions and staying a step ahead16.
For a deeper dive on this topic, check this example of comprehensive broker evaluations. It also showcases Charles Schwab’s strengths in market research16.
Range of Investment Options
Charles Schwab and Fidelity each offer a wide range of investment options. Knowing what’s available can help you choose wisely for your goals.
Stocks, ETFs, and Mutual Funds
Schwab and Fidelity allow investors to trade stocks and ETFs without commission164. Schwab has around 4,300 mutual funds with no transaction fees, more than Fidelity4. Fidelity stands out with over 3,700 mutual funds and special index funds that have no expense ratio3.
Cryptocurrency and Forex
Fidelity offers cryptocurrency trading, a service Schwab doesn’t provide16. Both brokers support forex trading, showing their growth in trading options16. This flexibility is great for investors looking for diverse opportunities.
Futures and Options
Schwab is the go-to for futures trading, unlike Fidelity4. Both charge the same for options trading: $0.65 per contract164. This price consistency is helpful for investors exploring futures and options. Schwab also offers international trading and various order types, enhancing your trading strategy16.
Trading Technology and Execution Speed
Charles Schwab and Fidelity lead with their trading technology and fast execution speeds. These key features distinguish them in the brokerage field. By understanding these, you can figure out which broker fits your trading style best.
Order Routing
Order routing greatly affects how fast and smoothly your trades happen. Charles Schwab uses a special order router for quality and efficiency. It achieves quick execution speeds. Many orders even get prices better than the National Best Bid and Offer (NBBO)17. In 2022, Investor’s Business Daily named Schwab a top broker for execution speed and price17. Schwab constantly fine-tunes its routing for top-notch executions17. Its liquidity providers aim for the best execution and sometimes act as market makers17.
On the other hand, Fidelity’s order routing technology shines. It doesn’t accept payment for order flow on equity trades. Plus, it often delivers slightly better net price improvements18. This makes Fidelity strong in trade technology and execution quality.
Execution Quality
Execution quality boils down to price, speed, and the accuracy of trades. Charles Schwab goes beyond basic industry norms for clarity. It’s part of the Rule 605/606 Retail Execution Quality Working Group17. S3 Matching Technologies evaluates Schwab’s performance independently. They look at how well exchanges and liquidity providers do17. Schwab also makes sure orders often get filled at prices better than initially quoted17. Its market makers help maintain a fluid market by buying and selling at those quoted prices17. This method may save clients money while ensuring superior execution.
In closing, both brokers use cutting-edge trading technology and clever order routing for high-speed, quality executions. Charles Schwab and Fidelity stand out as top platforms. They excel in different parts of trade execution18. So, picking either broker could lead to excellent trading results.
Education and Learning Resources
Charles Schwab and Fidelity offer great tools for learning about investing. They help both new and experienced traders make smart choices. At Charles Schwab, you can find many tools for learning. They offer webinars, articles, and calculators that focus on sustainable investments19. These materials are perfect for all, no matter your experience level3. Like Schwab, Fidelity provides lots of resources for beginners. They have articles, webinars, and tutorials that are easy to follow3. People respect Fidelity’s resources for their depth and usefulness3.
Both brokers invest in tools like stock screeners and calculators. Charles Schwab is known for its detailed research tools19. They have funds with no minimum investment, great for beginners20. On the other hand, Fidelity has special learning sections for new traders. They offer lessons on trading in foreign stocks and using fractional shares3. They also have many webinars and tutorials for ongoing learning3.
In summary, Charles Schwab and Fidelity help you grow your investment knowledge. They have lots of resources, making them top choices for learning.
Financial Advisors and Robo-Advisors
Charles Schwab and Fidelity have both added new technology to their services. They now offer tools for traditional financial planning and automated investing. These tools are great for those looking for expert investment advice.
Fidelity Go, Fidelity’s robo-advisor, is known for its low fees. The fees range from 0% to 0.35%, with only a $10 minimum to start21. On the other hand, Schwab Intelligent Portfolios asks for at least $5,000 to begin but does not charge advisory fees. This makes it a strong choice for automated investing21.
Vanguard is a leader with $206.6 billion managed for about 1.1 million clients22. Schwab Intelligent Portfolios has $65.8 billion in assets and serves 262,000 clients22. Fidelity Go also has a lot of users because of its varied financial plans and its focus on keeping fees low.
There are many options for investors depending on their needs. For example, Betterment supports over 800,000 clients. It charges a 0.25% fee for accounts with $20,000 or more, or for those who deposit $250 monthly23. Wealthfront serves more than 700,000 clients. It also has a 0.25% fee, but you can start with just $50023.
Here’s a comparative table highlighting some of the key aspects of these popular robo-advisors in the market:
| Service | Minimum Investment | Annual Advisory Fee | Assets Under Management (AUM) | Clients |
|---|---|---|---|---|
| Fidelity Go | $10 | 0% – 0.35% | N/A | N/A |
| Schwab Intelligent Portfolios | $5,000 | 0% | $65.8 billion | 262,000 |
| Betterment | $0 – $50 | 0.25% – 1% | $26.8 billion | 615,000 |
| Wealthfront | $500 | 0.25% | $21.4 billion | 307,000 |
Both brokers combine low-cost automated managing with deep financial planning. This way, they make sure their clients get the best investment advice for their unique needs.
Security and Account Protection
Keeping your money safe is very important to Charles Schwab and Fidelity. They have strong security steps to protect accounts. They use technology and other ways to keep assets and personal information secure. Most of the $7 trillion at Schwab is very well-protected24. Both companies offer insurance from the Securities Investor Protection Corporation (SIPC). This means if something goes wrong, clients can get back up to $500,000, including up to $250,000 in cash24.
Schwab Bank also has FDIC insurance for each customer, up to $250,000. This insurance protects your deposits if the bank fails. Fidelity protects your money online and offline too. It’s good to know that SIPC insurance has helped 99% of clients recover their investment if a broker-dealer fails24.
On top of these protections, both companies offer banking services that add more security. They have debit cards, credit cards, and loans that help you manage your money safely. Charles Schwab and Fidelity are dedicated to keeping your finances secure.
Charles Schwab vs Fidelity: Final Verdict
When you compare the best online broker, Charles Schwab and Fidelity stand out. Fidelity serves over 50 million customers with $13.7 trillion in assets as of March 20249. It offers more services than Charles Schwab. Charles Schwab has more than 35 million accounts and $8.85 trillion in assets by April 20249.
Both brokers offer trades with zero commission. They have no fee for equity, ETF, and options trades10. Options have a $0.65 fee per contract. Fidelity improves the price for large equity orders better than Schwab. For example, Fidelity saves $12.97 on huge orders while Schwab saves $34.99 on orders between 2,000 to 4,999 shares9.
Schwab’s trading is super fast at 0.03 seconds. It fills 97.5% of orders better than expected9. Fidelity’s speed is 0.05 seconds, with 95.47% of orders beating the projected price9. Schwab has an edge with futures and forex options. Fidelity expands in digital assets with the Fidelity Wise Origin Bitcoin Fund (FBTC)9.
Schwab and Fidelity have many mutual funds. Schwab offers 17,000 mutual funds, with 4,000 not requiring a transaction fee10. Fidelity has 10,000 mutual funds with over 3,300 being NTF10. Fidelity also offers broader access to international markets. This makes it great for varied investment options. Both have strong customer support and learning resources. Yet, Fidelity is slightly better, earning 5 stars over Schwab’s 4.510.
If you want rich research tools and a wide market reach, choose Fidelity. But if fast trades and a broad trading platform matter more, go with Schwab.
Conclusion
When choosing between Fidelity and Charles Schwab, both offer great options for investors. Fidelity is known for its rich platforms and wide investment choices. These include IRAs, Donor-Advised Funds, and HSA accounts with no fees25. It also provides automatic investments and fractional shares, perfect for careful and budget-aware investors25.
Charles Schwab, meanwhile, is celebrated for its top-notch customer service, including special events and dedicated advisors25. It’s an excellent pick for those wanting personalized help. Schwab also focuses on retirement services. It has no fees or minimums and $0 commission fees, which is quite attractive26.
Your decision should be based on what you value more: features, service, or investment costs. Weighing Fidelity’s features against Schwab’s support and retirement options can help you decide. For more info, check out this handy guide.
FAQ
What are the main differences between Charles Schwab and Fidelity?
How accessible are Charles Schwab and Fidelity for new investors?
Which trading platform is better for active traders?
How do the mobile trading experiences of Schwab and Fidelity compare?
What investment services do Charles Schwab and Fidelity offer?
Are there any costs associated with trading on Charles Schwab and Fidelity?
FAQ
What are the main differences between Charles Schwab and Fidelity?
Charles Schwab is admired for merging with TD Ameritrade, its future trading options, and the thinkorswim platform. Fidelity, on the other hand, is known for having many customers, offering crypto trading directly, and an easy-to-use web platform.
How accessible are Charles Schwab and Fidelity for new investors?
Both Charles Schwab and Fidelity welcome new investors. They don’t ask for a minimum deposit for most accounts. This makes them popular among beginners. They also have simple online setups to help new investors start easily.
Which trading platform is better for active traders?
Charles Schwab’s thinkorswim desktop platform is often chosen by active traders for its custom options and advanced tools. Fidelity’s Active Trader Pro platform challenges this with a friendly web interface and comprehensive research tools.
How do the mobile trading experiences of Schwab and Fidelity compare?
Schwab’s thinkorswim mobile app offers full desktop functionality for trading on the go. Fidelity’s app is simpler but wins with its design and ease of use, fitting for investors at any level.
What investment services do Charles Schwab and Fidelity offer?
Schwab and Fidelity both offer investment services like stocks, ETFs, mutual funds, and bonds. Schwab is unique with its futures trading options. Fidelity attracts those interested in direct cryptocurrency investments.
Are there any costs associated with trading on Charles Schwab and Fidelity?
Trading online on commission-free equity, ETF, and option trades is available at both brokers. Options have a
FAQ
What are the main differences between Charles Schwab and Fidelity?
Charles Schwab is admired for merging with TD Ameritrade, its future trading options, and the thinkorswim platform. Fidelity, on the other hand, is known for having many customers, offering crypto trading directly, and an easy-to-use web platform.
How accessible are Charles Schwab and Fidelity for new investors?
Both Charles Schwab and Fidelity welcome new investors. They don’t ask for a minimum deposit for most accounts. This makes them popular among beginners. They also have simple online setups to help new investors start easily.
Which trading platform is better for active traders?
Charles Schwab’s thinkorswim desktop platform is often chosen by active traders for its custom options and advanced tools. Fidelity’s Active Trader Pro platform challenges this with a friendly web interface and comprehensive research tools.
How do the mobile trading experiences of Schwab and Fidelity compare?
Schwab’s thinkorswim mobile app offers full desktop functionality for trading on the go. Fidelity’s app is simpler but wins with its design and ease of use, fitting for investors at any level.
What investment services do Charles Schwab and Fidelity offer?
Schwab and Fidelity both offer investment services like stocks, ETFs, mutual funds, and bonds. Schwab is unique with its futures trading options. Fidelity attracts those interested in direct cryptocurrency investments.
Are there any costs associated with trading on Charles Schwab and Fidelity?
Trading online on commission-free equity, ETF, and option trades is available at both brokers. Options have a $0.65 fee per contract. Mutual fund fees vary, with Schwab charging up to $74.95 and Fidelity up to $75. The costs may vary based on the services and products you choose.
How do Charles Schwab and Fidelity support their customers?
Charles Schwab and Fidelity provide extensive customer service through many channels. Fidelity is top-rated for phone support. Schwab is also recognized for its excellent customer service, showing its commitment to helping customers.
What research and analysis tools do Schwab and Fidelity provide?
Both brokers offer tools for research and analysis, like screeners and financial calculators. Schwab leads in market research depth. Fidelity shines with its research reports and comprehensive market analysis.
Which broker offers a wider range of investment options?
Charles Schwab generally has more to choose from, including futures trading and international markets. Fidelity offers direct crypto and Forex trading options. But both cover the basic investment products well.
How does the trading technology and execution speed compare between Schwab and Fidelity?
Schwab impresses with its fast and efficient order router, often getting better prices than the NBBO. Fidelity doesn’t take payment for order flow and slightly outdoes Schwab in trade execution with better price improvements.
What educational resources are available from Schwab and Fidelity?
Both brokers have lots of learning resources to help make informed choices. Fidelity is especially good for learning, with articles, webinars, and beginner resources. This makes it a leading place to learn in the finance world.
Do Schwab and Fidelity offer financial advisor services?
Yes, they both have financial advisors and robot-advisors ready to help. These services provide tailored financial advice and automated portfolio management, great for all types of investors.
What security measures do Schwab and Fidelity have in place?
Both maintain top security to keep customer assets and information safe. They have strong digital security and account protection. Plus, they offer banking services for secure financial management.
.65 fee per contract. Mutual fund fees vary, with Schwab charging up to .95 and Fidelity up to . The costs may vary based on the services and products you choose.
How do Charles Schwab and Fidelity support their customers?
Charles Schwab and Fidelity provide extensive customer service through many channels. Fidelity is top-rated for phone support. Schwab is also recognized for its excellent customer service, showing its commitment to helping customers.
What research and analysis tools do Schwab and Fidelity provide?
Both brokers offer tools for research and analysis, like screeners and financial calculators. Schwab leads in market research depth. Fidelity shines with its research reports and comprehensive market analysis.
Which broker offers a wider range of investment options?
Charles Schwab generally has more to choose from, including futures trading and international markets. Fidelity offers direct crypto and Forex trading options. But both cover the basic investment products well.
How does the trading technology and execution speed compare between Schwab and Fidelity?
Schwab impresses with its fast and efficient order router, often getting better prices than the NBBO. Fidelity doesn’t take payment for order flow and slightly outdoes Schwab in trade execution with better price improvements.
What educational resources are available from Schwab and Fidelity?
Both brokers have lots of learning resources to help make informed choices. Fidelity is especially good for learning, with articles, webinars, and beginner resources. This makes it a leading place to learn in the finance world.
Do Schwab and Fidelity offer financial advisor services?
Yes, they both have financial advisors and robot-advisors ready to help. These services provide tailored financial advice and automated portfolio management, great for all types of investors.
What security measures do Schwab and Fidelity have in place?
Both maintain top security to keep customer assets and information safe. They have strong digital security and account protection. Plus, they offer banking services for secure financial management.