Which is better, Charles Schwab or Fidelity?

Charles Schwab and Fidelity are two highly reputable brokerages that cater to every type of investor. They provide extensive research tools, user-friendly mobile apps, and plenty of transaction-fee-free investment options. Both companies are known for providing excellent customer service. Which one you prefer ultimately depends on your requirements and personal preferences. If you're a novice or intermediate investor with straightforward transaction requirements, both brokerages could meet your needs. There are a couple of differences between the two to consider. Charles Schwab offers a platform for trading futures contracts, but Fidelity does not. Charles Schwab is a little bigger, in that it offers a larger selection of no-transaction-fee mutual funds (but Fidelity still offers thousands of choices). Charles Schwab allows some employer health savings accounts to be linked to a Charles Schwab brokerage account. At Fidelity, you can have an HSA account and choose a way to invest it, but it's not connected with your company's plan. Fidelity offers a wider variety of options for buying fractional shares. Charles Schwab's stock slices are limited to the S&P 500, but Fidelity allows fractional share purchases of all exchange-traded stock and ETFs.

What's the minimum amount of money to open an investment account?

There is no minimum deposit requirement at Charles Schwab or Fidelity. Some transactions may have a minimum, such as $1 to $5 for fractional share transactions.

Is money in a brokerage account FDIC insured?

No. Brokerage accounts are investments, and investments are not eligible for FDIC insurance, but they are covered under Securities Investor Protection Corporation (SIPC). Uninvested cash at Charles Schwab and Fidelity is held in an interest-bearing FDIC-insured savings account.

Charles Schwab vs. Fidelity

The world of online stock trading might seem intimidating at first, but it's more accessible than you think. Two of the most popular platforms, Charles Schwab and Fidelity, make it easy to dip your toes into the market whether you're an experienced investor or just getting started.

Charles Schwab and Fidelity offer tools and features tailored to different investing styles, including guidance for newbies and advanced tools for experienced investors. Both platforms can offer a lot of value whether you're interested in hands-on trading or prefer a more passive approach.

Let's explore what sets Charles Schwab and Fidelity apart as brokerages.

Charles Schwab vs. Fidelity: At a glance

Offer	Charles Schwab	Fidelity
Rating	Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Rating image, 5.0 out of 5 stars. 5.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Commissions	$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.	$0 commission for online U.S. stock and ETF trades. No fees to buy fractional shares.
Account Minimum	$0, ($5 minimum per fractional share transaction)	$0, ($1 minimum per fractional share transaction)
Next Steps	Read Review	Read Review

Charles Schwab vs. Fidelity: Prices

Comparing Charles Schwab vs. Fidelity, both are highly competitive when it comes to the cost to place a trade. Fees are essentially the same for the three major trade types -- stocks and exchange traded funds (ETFs) and options:

Broker	Stocks and ETFs	Options	Mutual funds
Fidelity	$0 per trade	$0 plus $0.65 per contract	$0
Charles Schwab	$0 per trade	$0 plus $0.65 per contract	$0

Data sources: Fidelity and Charles Schwab.

Both Fidelity and Charles Schwab charge a $49.95 short-term redemption fee if you hold a mutual fund position for less than 60 days (Fidelity) or 90 days (Charles Schwab). In other words, if you buy and then sell within that time frame.

Charles Schwab vs. Fidelity: Free mutual fund and ETF trades

Charles Schwab and Fidelity both offer many mutual funds and ETFs that you can trade without paying a commission.

Fund type	Fidelity	Charles Schwab
Total mutual funds	More than 10,000	More than 17,000
NTF mutual funds	More than 3,300	More than 4,000

Data sources: Fidelity and Charles Schwab.

Fidelity offers one of the largest mutual fund selections with no transaction fee, including Fidelity Funds.

Fidelity's competitive fund lineup keeps getting better (and cheaper) over time. Its ZERO℠ line of mutual funds are truly no-cost index fund offerings. You won't pay anything to buy them, nor any management fees.

Charles Schwab vs. Fidelity: Minimum deposit requirements

You can get started investing at any level. Neither Charles Schwab nor Fidelity has a minimum commitment. Technically, the minimum to open an account is $0, but it might make more sense to get started when you have some money, even if it's only $10 or $20.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.

Account	Fees	Account Minimum
Featured Offer Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold	$0	Open Account for Robinhood
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	$0 for stocks, $0 for options contracts	$0	Open Account for SoFi Active Investing
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Commission-free; other fees apply	$0	Open Account for E*TRADE

Charles Schwab vs. Fidelity: Trading platforms

Charles Schwab and Fidelity are leaders in trading platforms.

Charles Schwab clients can manage their investments via top-rated mobile apps, a user-friendly web browser interface, and its robust trading platform, thinkorswim. Thinkorswim works on desktop or mobile. It was adopted from TD Ameritrade when that brokerage was acquired by Charles Schwab. StreetSmart Edge is being phased out, but Charles Schwab integrated the best features of both platforms. So if you used and still love StreetSmart Edge, your favorite features should still be available. Every Charles Schwab customer gets full access to the thinkorswim platform, regardless of how much you trade or your account balance.

Charles Schwab says that thinkorswim gives you "the power to go deeper." You can tailor your workspace to prioritize the information that matters most to you and get on-demand educational content. Using the advanced charting features could help you visualize your various holdings and your overall investment picture. There's an all-in-one trade ticket that simplifies the trading process and allows frictionless transactions. Insights and education are built in, letting you view expert commentary and live news "without taking your eyes off your trading." All of this could make it easier to stay on top of your investments. The technology works on mobile devices, so you can stay connected to the market and buy and sell from anywhere your phone has a signal.

Fidelity also offers a full suite of trading tools. All clients get access to their accounts via a web browser interface, mobile apps, and Fidelity's desktop platform, Active Trader Pro. Active Trader Pro lets you personalize your workspace so you can focus on the investment data that's most important to you. You can also access custom charting tools and real-time news.

The right trading platform is ultimately a personal decision, but since neither broker has a minimum investment, you can easily explore Charles Schwab and Fidelity and choose the interface that feels like the best fit.

Charles Schwab vs. Fidelity: International stocks and ADRs

Fidelity and Charles Schwab are well matched when it comes to trading foreign stocks. Both allow you to buy American depositary receipts (ADRs). ADRs are shares of foreign stocks, but with domestic tickers. Charles Schwab and Fidelity also give you the ability to place trades on overseas markets by logging into your online account.

It's easy to trade international stocks on either platform. Charles Schwab's Global Account gives you access to 12 foreign markets, with real-time quotes and multi-currency reporting. There is no account or trade minimum.

Fidelity customers can tap into even more markets, trading in 25 countries and exchanging between 16 currencies.

Both platforms remove some potential barriers to global investing -- they both provide real-time market data and access to international trading specialists. Timely information and professional guidance are key to investing with confidence.

Charles Schwab vs. Fidelity: Research reports and news

Both brokerages offer low costs and excellent research tools.

Charles Schwab and Fidelity, customers get access to independent third-party research providers for individual stocks, proprietary research reports, and U.S. stock market analysis

This is an important benefit. Not all online discount brokerages offer proprietary research. In-house analysis and commentary are significant expenses that smaller outfits might struggle to justify. Investors who count on in-depth research can get their needs met well by either Fidelity or Charles Schwab.

Top online brokerage: Charles Schwab vs. Fidelity

Charles Schwab and Fidelity are firmly on most lists of top online brokerages. The choice will ultimately depend on the features that are most important to you, and whether one has an interface you prefer over the other.

Charles Schwab and Fidelity both offer zero-commission stock trading for investors at all levels, and robust functionality for those who are advanced or who want to enrich their investing experience. Both brokerages offer a range of free and fee-based guidance. Both allow clients to trade on international stock markets. Both offer reports, custom charts, research tools, and mobile apps. Fidelity and Charles Schwab are great options. Because Charles Schwab and Fidelity both make it easy to become a client, there's nothing to lose by trying one or both, to get a sense for how much you like each platform.

Ratings Methodology

2024 Award Winner

Charles Schwab

Our Rating:

Rating image, 4.5 out of 5 stars.

4.5/5

Bottom Line

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

Account Minimum:

$0, ($5 minimum per fractional share transaction)

Read Review

TIP

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FAQs

Charles Schwab and Fidelity are two highly reputable brokerages that cater to every type of investor. They provide extensive research tools, user-friendly mobile apps, and plenty of transaction-fee-free investment options. Both companies are known for providing excellent customer service.
Which one you prefer ultimately depends on your requirements and personal preferences. If you're a novice or intermediate investor with straightforward transaction requirements, both brokerages could meet your needs.
There are a couple of differences between the two to consider.
- Charles Schwab offers a platform for trading futures contracts, but Fidelity does not.
- Charles Schwab is a little bigger, in that it offers a larger selection of no-transaction-fee mutual funds (but Fidelity still offers thousands of choices).
- Charles Schwab allows some employer health savings accounts to be linked to a Charles Schwab brokerage account. At Fidelity, you can have an HSA account and choose a way to invest it, but it's not connected with your company's plan.
- Fidelity offers a wider variety of options for buying fractional shares. Charles Schwab's stock slices are limited to the S&P 500, but Fidelity allows fractional share purchases of all exchange-traded stock and ETFs.
There is no minimum deposit requirement at Charles Schwab or Fidelity. Some transactions may have a minimum, such as $1 to $5 for fractional share transactions.
No. Brokerage accounts are investments, and investments are not eligible for FDIC insurance, but they are covered under Securities Investor Protection Corporation (SIPC). Uninvested cash at Charles Schwab and Fidelity is held in an interest-bearing FDIC-insured savings account.

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