Charles Schwab Vs. Fidelity | Bankrate

Charles Schwab and Fidelity are two of the most popular online brokers and for good reason. Both brokers offer services customers are looking for at attractive costs, helping them to rank well in Bankrate’s annual broker reviews.

Fidelity was named Bankrate’s best broker overall as part of the 2025 Bankrate Awards, while Schwab was named the best broker for research and tools. Low costs, great customer service and strong research and educational offerings help make these brokers a good fit for just about any investor.

But deciding which one is right for you will depend on your individual circumstances and what you need from an online broker. Here’s how Schwab and Fidelity compare on some of the most common features.

Schwab vs. Fidelity: Costs

Winner: Fidelity by a hair, thanks to its zero-fee mutual fund lineup.

Schwab and Fidelity both do a good job of keeping costs low for customers. You won’t pay commissions on stock or ETF trades, which has become common in the industry after Schwab cut its commissions to zero in 2019.

In terms of mutual funds, both brokers offer more than 3,000 funds with no transaction fees, which should provide plenty of choice for fund investors looking to save for retirement or other investment goals. Schwab’s offering of no-transaction-fee funds is larger than Fidelity’s, but you shouldn’t have trouble finding a fund that fits your needs at either broker.

There is one area in this category where Fidelity really stands out: It offers completely fee-free mutual funds — Fidelity ZERO funds — that charge no annual expense ratio whatsoever. The Fidelity ZERO Large Cap Index tops our list of best index funds.

Fidelity does not charge account fees, so you won’t have to worry about getting nickel and dimed. Schwab does charge a $50 transfer-out fee, which is less than the industry standard of $75, but still above Fidelity’s zero-fee policy.

Schwab vs. Fidelity: Account minimum

Winner: Draw. Neither broker requires a minimum initial investment. 

Both Schwab and Fidelity have no account minimum, which allows new investors to open an account and fund them once they’re ready to start investing. You can access each broker’s educational resources before funding an account, making both places ideal for new investors.

Schwab vs. Fidelity: Tradable securities

Winner: Draw. Both offer the standard lineup of assets. But only Fidelity offers access to crypto, while Schwab’s lineup features futures and foreign exchange (forex).

Schwab and Fidelity both offer the standard securities that should meet the needs of most investors: stocks, ETFs, mutual funds, bonds and options. Schwab also offers futures and forex trading, which Fidelity does not, but that shouldn’t be an issue for most investors. Those interested in trading crypto may find what they’re looking for at Fidelity, but you’ll be limited to the most popular cryptocurrencies. Charles Schwab offers crypto exposure via thematic ETFs. 

Schwab vs. Fidelity: Account types

Winner: Draw, unless you’re looking for an HSA (only available at Fidelity).

Most investors will find the type of account they’re looking for at either Schwab or Fidelity. Both brokers offer the standard choices such as individual and joint taxable accounts, IRAs (Roth, traditional and rollovers), small business retirement accounts (SEP IRA, SIMPLE IRA and solo 401(k)) and 529 plans. You can also choose from Schwab Intelligent Portfolios or Fidelity Go if you’re looking for a robo-advisor option.

One area where Fidelity stands out is the offering of health savings accounts (HSAs), which some people use to save for health care costs. The accounts can almost function as an additional retirement account because the money can be used for any purpose once you reach retirement age.

Schwab vs. Fidelity: Fractional shares

Winner: Fidelity has a larger lineup of available securities and lower minimum investment requirement. 

Both Schwab and Fidelity offer fractional shares on purchases and reinvested dividends, but you’ll have a much wider list of stocks to choose from at Fidelity than Schwab. Schwab’s fractional shares program is limited to the companies in the S&P 500, whereas Fidelity offers more than 7,000 stocks and ETFs in its Fidelity Stocks by the Slice program. Fidelity’s minimum trade starts at just $1 compared to $5 for Schwab.

Fractional shares allow investors the chance to buy high-priced stocks and make sure the full amount is invested instead of having to wait to afford a full share. Popular stocks such as Alphabet, Amazon and Tesla have, at times, increased into the thousands of dollars for one share in recent years.

Schwab vs. Fidelity: Customer support

Winner: Draw. Both brokers provide multiple ways to get around-the-clock support.

Schwab and Fidelity are both leaders in customer service. You can get questions answered on the phone 24 hours a day, seven days a week, which is becoming rare in the financial services industry. You’ll also have a variety of other options, including online chat, email, and online FAQ sections. You can also visit a branch in person, with Fidelity offering more than 200 locations and Schwab having nearly 400. Investors shouldn’t have any trouble getting their questions answered at either broker.
 

Schwab vs. Fidelity: Security

Winner: Draw. Each offers industry-leading account security and extra insurance on losses due to fraud or brokerage failure.

Brokerages have a vested interest in protecting customers from fraudulent activity. Schwab and Fidelity each have layers of protection in place — identity verification, fraud detection — to safeguard customer data and account access.

Both Schwab and Fidelity will cover any losses to your account due to unauthorized or fraudulent activity (not losses due to investment performance). Each broker carries insurance via the Securities Investor Protection Corporation (SIPC). Standard SIPC insurance covers up to $500,000 in losses, which includes a $250,000 limit for cash. Both also carry excess SIPC coverage. Schwab covers up to $150 million per customer (up to $1.15 million of which may be in cash). There is no per-customer limit on Fidelity’s excess coverage of securities; the coverage cap on cash losses is $1.9 million. 

Who is Charles Schwab best for?

• Investors at every level looking for ongoing education, research and access to top-tier research and insights.
• Advanced traders seeking a highly customizable desktop, web or mobile trading experience via the thinkorswim platform, brought over from the TD Ameritrade acquisition.
• Futures and forex traders.

Who is Fidelity best for?

• Beginners seeking investor-friendly tools to grow their knowledge and wealth.
• Both buy-and-hold types and more active traders who want access to user-friendly trading tools.
• Cost-conscious index-fund investors who want to invest in Fidelity’s no-management-fee ZERO mutual funds.
• Crypto investors who want strong customer support and access to popular cryptocurrencies.

Bottom line

The reality is that either Schwab or Fidelity is an excellent broker choice for investors. The differences between the two are very small and may only matter to those looking for very specific offerings such as futures trading or a certain mutual fund.

Before selecting a broker, be sure to think about the features that matter most to you. If you like certain things about each broker you can always open accounts with both and use whichever broker has the best offering in each category.

— Bankrate’s Dayana Yochim contributed to an update of this article.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.