Fidelity has over 50 million individual investors and $13.7 trillion in assets as of March 2024. This makes it one of the largest investment firms globally1. Charles Schwab has more than 35 million active accounts and $8.85 trillion in assets as of April 20241. Many people wonder which brokerage is the best for investing between these giants.
Whether you’re experienced or new to investing, knowing the differences between Fidelity and Charles Schwab is crucial. This comparison will cover account setup, ease of use, investment options, and trading technology. After reading, you’ll know which company fits your investing needs better.
Key Takeaways
- Fidelity and Charles Schwab are two of the largest investment platforms in the world, serving millions of investors.
- Both firms offer commission-free trades for stocks, ETFs, and options.
- Fidelity boasts superior user experience with robust mobile and desktop platforms, while Charles Schwab excels in market analysis tools2.
- Fidelity requires a minimum investment for robo-advising; Charles Schwab offers free robo-advising for balances below $10,0002.
- Both platforms charge a fee of $0.65 per contract for trading options, with variations in additional service fees3.
- Fidelity offers exclusive ZERO expense ratio funds, while Charles Schwab provides futures contracts, which Fidelity does not currently offer3.
Overview of Fidelity and Charles Schwab
It’s key to grasp the differences between Fidelity Investments and Charles Schwab in the brokerage world. These giants have built strong positions, serving millions.
Historical Background
Founded in 1946, Fidelity Investments has become a major player offering wide-ranging financial services. Charles Schwab started in 1971, focusing on helping investors. Both have led with innovations, adapting to market changes.
Market Position
By early 2024, Fidelity and Charles Schwab are top names in the market. Fidelity leads with a 5.0-star rating, slightly higher than Schwab’s 4.5 stars4. They both have $0 commission trades for online U.S. stocks and ETFs, showing their dedication to affordable investing45. Plus, Fidelity offers no-cost index funds without management fees, appealing to those watching their spending4.
Charles Schwab provides a broader range of investment choices, with access to 12 foreign markets, unlike Fidelity’s 2545. However, Fidelity leads in digital assets, offering cryptocurrency trading which Schwab does not6. Both support various account types including individual and joint taxable accounts, IRAs, and more. Fidelity also offers HSAs5. Fidelity stands out with its extensive educational resources for beginners6.
Account Opening and Usability
Getting an online brokerage account set up at Fidelity or Charles Schwab is easy. They both offer various ways to get started, like online, mobile apps, phone, or in-person visits. This shows how much they care about giving great customer service.
Online and Mobile Options
Fidelity gives you a top-notch mobile experience, with a 4.8-star rating on the Apple store and 4.5 on Google Play7. Charles Schwab’s mobile platform is highly rated too, with 4.8 stars on the Apple store. But, its Google Play reviews are a bit mixed7. These options make it easy to keep up with your investments whenever you want.
Both Fidelity and Charles Schwab have removed stock trading fees. This is great news for investors who trade often8. They also offer options trading at a low cost of $0.65 per contract. This makes it easier to try out more complex investment strategies without spending a lot of money7.
Customer Support and Branch Availability
Fidelity shines with over 100 branches in the U.S., making in-person help easy to find9. They also offer support online and over the phone, so help is always close by.
Charles Schwab goes even further, with over 300 branches across the country9. This wide network shows Schwab’s dedication to being there for their clients in person. No matter what kind of support you prefer, both companies are ready to assist.
| Feature | Fidelity | Charles Schwab |
|---|---|---|
| Mobile App Ratings (Apple) | 4.8 stars | 4.8 stars |
| Mobile App Ratings (Google) | 4.5 stars | 2.2 stars |
| Number of Branches | 100+ | 300+ |
| Options Trading Fees | $0.65 per contract | $0.65 per contract |
| Transaction Fees for Stock Trading | None | None |
In short, Fidelity and Charles Schwab make it easy to start and manage your brokerage account. Their online and mobile platforms, together with outstanding customer service, ensure a smooth investing journey for everyone.
Investment Options and Financial Products
If you compare Charles Schwab and Fidelity, you’ll find they both have many trading products. They both offer a wide range of common stocks, ETFs, options, and bonds. Charles Schwab stands out by offering futures, while Fidelity is unique for including digital currencies like the Fidelity Wise Origin Bitcoin Fund.
Both companies are big on mutual funds. Charles Schwab boasts over 17,000 mutual funds, with more than 4,000 free of loads and fees. In contrast, Fidelity offers more than 10,000 mutual funds, nearly 3,400 of which come without loads and fees10. Plus, Fidelity makes it easy to start with a $0 minimum deposit for mutual funds11.
Managed portfolios are an option too. Fidelity’s managed account fees start as low as 0.20% and go up to 1.04%. Charles Schwab’s fees for managed accounts are between 0.80% and 1.00%12. Also, Charles Schwab requires at least $5,000 to start with their Intelligent Portfolios®12.
Advisory fees are key in wealth management. Fidelity charges between 0.50% and 1.50% for advisory services12. Meanwhile, Charles Schwab’s Intelligent Portfolios Premium® asks for a $300 initial fee and a $30 monthly fee12.
Each firm gives you access to a different set of financial tools. Schwab has over 2,000 ETFs you can trade without commission through Schwab ETF OneSource™11. Fidelity offers commission-free trades on U.S. stocks and ETFs, all with no yearly fee11.
Trading Platforms and Technology
When we compare Fidelity and Charles Schwab, both offer strong platforms for investors.
Desktop Platforms
Charles Schwab’s thinkorswim desktop platform shines with many technical tools. It works well on different devices. This makes it a top choice for experienced traders13. Fidelity’s Active Trader Pro holds its ground with top-notch charting and features for various trader levels14.
https://www.youtube.com/watch?v=bnfCoqyfVMY
Mobile Platforms
Charles Schwab’s thinkorswim app brings desktop features to your phone. This makes trading advanced and easy on the move. Fidelity’s mobile app is simpler but still gives a smooth trading experience1.
Each app uses the best investment tech to manage your investments anywhere.
Order Types and Execution
Fidelity and Charles Schwab have many order options. Schwab’s trades are fast, at an average of 0.03 seconds. They fill 97.5% of orders at great prices1.
Fidelity shows their care for clients with an average $12.97 saved on big equity orders. They are quick too, with a 0.05-second speed131. They focus on top-notch service without taking payment for order flow on stocks or ETFs.
Costs and Fees
Comparing Fidelity and Charles Schwab shows they both aim to cut trading costs. They offer commission-free U.S. stock trades15. Fidelity goes further, not charging for mutual fund trades and offering over 3,700 no-transaction-fee mutual funds15. Meanwhile, Charles Schwab charges a $49.95 fee for mutual funds15.
Looking at margin rates is key for those using borrowed money. Fidelity offers slightly lower rates, making it a cost-effective choice for regular traders. Investing fees also matter, with both firms working to stay competitive.
Commission Structures
Fidelity and Charles Schwab both have $0 stock and options commissions16. This reflects the wider move to commission-free trading16. At $0.65 per options contract16, Fidelity highlights its aim to lower trading costs for all types of investors.
Additional Fees
There’s a difference in other fees. Charles Schwab has a $76 fee to transfer out accounts, but Fidelity does not charge for this15. This approach makes Fidelity more attractive cost-wise. Additionally, Charles Schwab provides over 4,000 no-load, no-transaction-fee mutual funds, offering many choices without extra investment fees compared to Fidelity16.
| Cost Component | Fidelity | Charles Schwab |
|---|---|---|
| U.S. Stock Trade Commissions | $0 | $4.9515 |
| Mutual Fund Commissions | $015 | $49.9515 |
| Account Transfer Out Fees | $015 | $7615 |
| Options Per Contract Fee | $0.6516 | $0.6516 |
In the end, both Fidelity and Charles Schwab have fees that can compete. But, Fidelity’s strategy on margin rates and no certain fees could save more money over time. Reviewing these details helps decide which brokerage matches your investment needs and goals.
Account Types Offered
Fidelity and Charles Schwab offer many account types for different investment needs. They have retirement accounts like IRAs and brokerage accounts for personal investing. Fidelity gives easy access to a variety of accounts, from regular brokerage ones to elaborate small business retirement plans.
Fidelity has a broad selection for IRAs, including traditional, Roth, SEP, and SIMPLE IRAs17. You can also pick individual, joint, and custodial accounts for everyday investing. They provide managed accounts and special ones like Health Savings Accounts (HSAs) and 529 College Savings Plans17.
Charles Schwab offers many account types too. It has retirement and brokerage accounts, like Fidelity. Schwab stands out in global markets, offering access to over 30 international stock exchanges. They also have an impressive collection of mutual funds, with more than 17,000 available, 4,000 of which are fee-free17.
Fidelity and Schwab understand the importance of financial planning for everyone. Schwab’s basic robo-advisor is free. But, they charge for premium services with a one-time setup fee of $300 and a $30 monthly fee17. Fidelity offers free robo-advisor services for accounts under $25,000. For larger accounts, they charge 0.35% annually17.
With these diverse account options, Fidelity and Schwab help investors meet their financial planning goals. They provide the flexibility needed for tailoring investment strategies. This adaptability is key to successful personal financial planning.
Fidelity vs Charles Schwab: Trading Experience
Fidelity and Charles Schwab both offer great trading experiences but cater to different investor needs. Each brokerage has unique features on their desktop and mobile platforms. This makes them attractive to various investor types.
Desktop Trading Experience
Charles Schwab is well-liked by advanced traders, thanks to its thinkorswim platform. The platform offers many advanced features and analytics. It gives traders robust tools like futures, forex, and portfolio margin trading10.
On the other hand, Fidelity aims at beginners and intermediate investors. Its desktop tools are easy to use1. The platform’s quick execution speed of 0.05 seconds speeds up trading1.
Both offer free trading for stocks and ETFs. They charge $0.65 per options contract2. This makes it simpler for investors to choose a platform based on features rather than cost.
Mobile Trading Experience
The thinkorswim app by Charles Schwab brings the power of its desktop version to mobile. It’s great for active traders on the move1.
Fidelity’s mobile app focuses on simplicity yet performs well. It doesn’t have as many features as Schwab’s app but is still effective. It’s designed for easy navigation and trade execution10.
Both brokers stand out, but they cater to different users. Fidelity’s simple interface is best for new or casual investors. Charles Schwab offers in-depth tools for the experienced trader. For more details, you can visit the Charles Schwab workplace.
Ultimately, your trading preference decides between Fidelity and Charles Schwab. Both are excellent, but it depends on what you’re looking for. Do you want simplicity or advanced features?
Fidelity vs Charles Schwab Fees Comparison
When we look at the fees of Fidelity and Charles Schwab, some key details emerge. These details help you decide which broker is best for saving money on trades. Both companies offer free trading for U.S. stocks, ETFs, and options. This makes them great choices for traders looking to keep costs low1819.
Fidelity is especially attractive for those watching their budget. It has no minimum balance requirements and charges no fees for account maintenance or inactivity18. Furthermore, Fidelity is more favorable for mutual fund traders. They charge nothing for many funds and $49.95 for others19.
Charles Schwab stands toe-to-toe with Fidelity in offering $0 stock and ETF trade commissions. They also don’t ask for a minimum deposit19. Schwab matches Fidelity by charging a $0.65 fee per options contract19. Additionally, Schwab provides extensive banking services, not available at Fidelity19.
Bonds are where Fidelity shines in affordability. Their bond prices are significantly lower, by $15.41 on average, than those of competitors like Merrill Lynch. This makes Fidelity a great option for bond traders18.
Fidelity also offers various advisory services. These include Fidelity Go, Fidelity Wealth Services, and others. They suit different investment strategies and goals18. The advisory fees start at 0.50% and can go up to 1.04%, based on how much you invest18.
Choosing between them comes down to their additional offerings and small fee differences. These can influence your trading and investment decisions19. Here’s a quick guide to help you choose:
| Aspect | Fidelity | Charles Schwab |
|---|---|---|
| Commission on U.S. Stocks & ETFs | $0 | $0 |
| Options Trading Fee | $0 + $0.65/contract | $0 + $0.65/contract |
| Account Minimum | None | None |
| Mutual Fund Fees | $0 for no-transaction-fee funds, $49.95 for others | Varies based on fund; typically higher |
| Advisory Services | Fidelity Go, Fidelity Wealth Services, others | Schwab Intelligent Portfolios® |
| Banking Services | No | Yes |
| Bond Pricing | $15.41 lower per bond on average | Standard market rates |
Both Fidelity and Charles Schwab have pricing that makes them top choices for budget-minded traders. Think about what each offers and how the slight differences in fees fit your financial plans.
Research and Education Resources
Fidelity and Charles Schwab are great at providing research and educational tools. These resources help improve financial literacy and trading education. They use advanced tools and comprehensive information. This helps traders make smart decisions.
Market Research Tools
Fidelity offers detailed market analysis with strong tools for all investors. Charles Schwab is known for its excellent market research, sometimes seen as better than Fidelity’s6. Schwab also got the top spot for Research in the 2024 StockBrokers.com Awards6. Both have great tools for analyzing portfolios and getting market insights. These are key for good investment research.
Educational Articles and Webinars
Fidelity and Charles Schwab both offer great educational content, but in different ways. Fidelity is better for those new to investing, with many articles and webinars6. It’s rated the best for beginners and makes learning easy5. Schwab, however, is top for day trading education. It also offers lots of mutual funds without transaction fees6.
Now, let’s dive deeper into how these two brokers stack up:
| Feature | Fidelity | Charles Schwab |
|---|---|---|
| Best for | Beginners5 | Overall Broker5 |
| Market Research | Good | Superior6 |
| Education | Comprehensive for new investors6 | Better day trading education6 |
Deciding between Fidelity and Charles Schwab depends on what you want from your investments. Both offer strong research and educational tools. They make sure you have the skills to navigate the financial world. To compare Vanguard, Fidelity Investments, and Charles Schwab Corporation more closely, check out this link3.
Customer Service and Support
In the world of brokerage, great customer service is key to keeping investors happy. Fidelity and Charles Schwab lead in this area, offering excellent support around the clock.
Availability and Responsiveness
Fidelity shines with its 24/7 customer service, setting it apart from others1. Charles Schwab also offers strong support across multiple channels. This ensures investors get help quickly and effectively. Such dedication to service boosts their reputations for caring about their clients.
Support Channels
Both firms offer phone, live chat, email, and in-person help at their branches20. This makes sure all investors receive the help they need. Schwab stands out for its local branches, giving a personal touch that many appreciate.
Fidelity, on the other hand, offers innovative online tools and a top-notch mobile app. This provides easy access to support for a smooth experience. For more info on their services, check out the source here20.
Security and Protection
Keeping investments safe is key in the brokerage world. Fidelity and Charles Schwab take serious steps to protect their clients’ assets and info. They follow strict safety rules for financial security.
Account Security Measures
Both Fidelity and Charles Schwab use top encryption to keep user data safe online. They also have two-factor authentication (2FA) to make account access even safer. Schwab takes extra care of Schwab Bank to ensure it has enough cash to cover big withdrawals. This is secured by FDIC insurance up to $250,000 per person at each bank21. This method gives extra safety to clients with large balances.
Fidelity boosts its security with strict protocols and a team focused on cyber threats. This keeps investment security and account protection as their main goals. They provide a safe place for clients’ financial dealings.
Investor Protection Policies
SIPC insurance is crucial for Fidelity and Charles Schwab clients. It offers up to $500,000 in protection for accounts at failed broker-dealers21. Since SIPC started 50 years ago, 99% of clients got their securities back when assets were missing21.
Charles Schwab manages over $8.85 trillion in assets and has more than 35 million clients1. Meanwhile, Fidelity serves over 50 million people and has $13.7 trillion in assets1. These numbers show the trust and protection provided by both brokerages to their clients.
Cryptocurrency and Emerging Markets
The world of finance is changing fast, with cryptocurrency and emerging markets at the forefront. Fidelity is leading by offering new ways to invest in digital assets. They introduced the Fidelity Wise Origin Bitcoin Fund (FBTC) in January 2024, growing their digital asset services1. Fidelity also makes it easy to buy and sell cryptocurrencies like Bitcoin and Ethereum directly22. This is a step ahead of Charles Schwab, which only offers Bitcoin futures and themed ETFs, not direct trading10.
Fidelity shines by allowing you to trade crypto without commission fees, charging up to a 1% spread on trades instead22. They don’t ask for a minimum balance to start trading crypto, and you can begin buying with just $122. Yet, you can only trade from 4 a.m. to 12 a.m. Eastern Time, which might not suit everyone22.
Charles Schwab and Fidelity are both exploring new markets, but their methods show they value different things. While Schwab focuses on a vast array of mutual funds and access to crypto ETFs, Fidelity zeroes in on direct crypto trades and no commission fees10. Their strategies aim to meet varied investor preferences.
Fidelity manages an impressive $11.1 trillion and has over 200 branches, showcasing its vast network as of March 202310. On the other side, Charles Schwab holds $7.63 trillion in client assets and runs over 400 branches, showing a significant presence across 45 states10. These figures highlight the strong foundation each company provides for their clients’ investment journeys, covering both traditional and new market areas.
| Broker | Cryptocurrency Options | Trading Fees | Market Presence |
|---|---|---|---|
| Fidelity | Bitcoin, Ethereum | Commission-free with up to 1% spread | $11.1 trillion in assets, 200+ branches |
| Charles Schwab | Bitcoin futures, ETFs | N/A for direct trading | $7.63 trillion in assets, 400+ branches |
To wrap up, Fidelity and Charles Schwab both offer strong platforms for getting into cryptocurrency and the markets of tomorrow. Depending on what you’re looking for – directly handling digital assets or a wide selection of mutual funds and ETFs – these brokers have you covered for navigating the exciting shifts in finance.
Fidelity and Charles Schwab: User Testimonials
Listening to what investors say about Fidelity and Charles Schwab gives us great insights. People who have used Fidelity and Schwab talk about their different services. This helps us get a full picture from actual users.
Positive Reviews
Many praise Fidelity for its easy-to-use platform and wide range of investments, like annuities and 529 plans23. They say Fidelity has better customer service than Charles Schwab24. Customers like Fidelity’s bond options and praise their support for 401(k) rollovers24.
Negative Reviews
However, some point out problems with Fidelity’s kickbacks24. Whereas Charles Schwab has credit cards with no annual or foreign transaction fees, some are wary of the $695 fee for specific services23. People also worry about Schwab’s past fund losses and their generally higher bond prices compared to Fidelity24. Despite these issues, both provide valuable services, making user opinions important for choosing.
Ultimately, customer stories offer a balanced view, highlighting strengths and weaknesses of each brokerage. Considering these reviews is crucial when choosing between Fidelity and Schwab.