Charles Schwab and Fidelity are the two titans of the brokerage industry—full-service platforms that offer virtually everything an investor could need under one roof. Both manage trillions in client assets, both offer commission-free trading, and both provide banking, retirement, and advisory services. Choosing between them often comes down to subtle differences in platform experience, fund offerings, and specific features. This detailed comparison covers every angle to help you pick the right one.
Overview
Charles Schwab, founded in 1971, became the largest publicly traded U.S. brokerage after acquiring TD Ameritrade in 2020. The company manages over $8 trillion in client assets and operates more than 300 branch locations. Fidelity Investments, founded in 1946, is privately held and manages over $12 trillion in assets. Fidelity is the largest retirement plan provider in the United States and operates more than 200 investor centers. Both are industry leaders with decades of proven reliability.
Fees and Commissions
Both charge $0 for online stock and ETF trades. Options trades are $0 commission plus $0.65 per contract at both firms. Both offer extensive lists of no-transaction-fee mutual funds. Schwab’s proprietary index funds have expense ratios as low as 0.02%. Fidelity’s ZERO index funds have 0.00% expense ratios—literally free to own. On fees alone, Fidelity’s ZERO funds give it a slight edge, though the difference on a typical portfolio is minimal.
Investment Options
Both offer stocks, ETFs, options, mutual funds, bonds, CDs, and futures. Fidelity offers international stock trading on 25 foreign exchanges, while Schwab provides access through ADRs but not direct foreign exchange trading. Fidelity also offers cryptocurrency trading directly through the platform. Schwab acquired TD Ameritrade’s futures trading capabilities. Both offer fractional shares—Fidelity’s Stocks by the Slice covers most listed stocks, while Schwab’s fractional trading is limited to S&P 500 stocks.
Index Funds
Fidelity’s ZERO index funds (Total Market, International, Extended Market, Large Cap) charge 0.00% in expense ratios—no other provider matches this. Schwab’s index funds are nearly as cheap, with expense ratios starting at 0.02%. Both firms also offer broad selections of third-party index funds and ETFs. For pure index investing, Fidelity’s zero-fee funds are objectively unbeatable, though the practical difference on a $100,000 portfolio is roughly $20 per year.
Trading Platforms
Schwab inherited TD Ameritrade’s thinkorswim platform, widely considered one of the best trading platforms available for active traders. It offers advanced charting, options analytics, custom scripting, and paper trading. Fidelity’s Active Trader Pro is also excellent, with real-time streaming data, advanced charting, and customizable layouts. Both platforms satisfy active traders, but thinkorswim generally wins on depth and customization.
Robo-Advisory Services
Schwab Intelligent Portfolios is a fee-free robo-advisor with a $5,000 minimum. The catch is that it holds a significant cash allocation (earning Schwab interest revenue instead of advisory fees). Fidelity Go charges 0.35% annually for balances over $25,000 and includes access to financial advisors. Fidelity Go’s approach is more straightforward—lower minimum, transparent fee, no forced cash drag. For automated investing, Fidelity’s model is generally more investor-friendly.
Banking
Both offer integrated banking services. Schwab’s High Yield Investor Checking has no monthly fees, unlimited ATM fee rebates worldwide, and no foreign transaction fees. Fidelity’s Cash Management Account offers similar benefits with ATM fee reimbursement and no monthly fees. Both seamlessly integrate with their brokerage accounts. The banking experience is comparable, with Schwab having a slight edge due to its longer banking track record and larger branch network.
Research and Education
Both provide excellent research from multiple third-party providers plus their own in-house teams. Schwab offers research from Morningstar, Credit Suisse, and others. Fidelity provides research from its own equity team plus 20+ third-party sources. Educational content is extensive at both firms, covering everything from investing basics to advanced strategies. Both also provide sophisticated stock screeners, fund comparison tools, and retirement planning calculators. This category is a genuine tie.
Customer Service
Schwab operates 300+ branches and offers 24/7 phone support. Fidelity has 200+ investor centers and also provides 24/7 phone support. Both offer live chat, social media support, and extensive online help resources. Customer satisfaction ratings are consistently high for both firms. Schwab’s larger branch network provides a modest advantage for investors who value in-person access.
Retirement Services
Fidelity is the largest 401(k) provider in the country, and its retirement planning tools reflect decades of institutional expertise. Schwab’s retirement tools are also comprehensive, with excellent rollover support and retirement income planning. Both offer the full range of IRA types. If your employer uses Fidelity for its 401(k), keeping your other accounts there simplifies your financial life significantly.
The Verdict
Choose Fidelity if you want zero-expense-ratio index funds, direct international stock trading, cryptocurrency access, fractional shares across most stocks, or the best retirement plan integration. Choose Schwab if you want the thinkorswim trading platform, a larger branch network, a no-fee robo-advisor, or the strongest integrated banking experience. Honestly, you can’t go wrong with either—both are exceptional platforms that serve investors well at every level of experience and wealth.