Choosing between two of America’s largest brokerages isn’t easy. Fidelity and Charles Schwab both offer commission-free trading, no account minimums, and enough investment options to fill a library. But the differences between them could significantly impact your investing experience — especially as your portfolio grows.
Bottom line upfront: Fidelity and Schwab are neck-and-neck on most features — but two differences break the tie. Fidelity pays you 10× more on idle cash (4.97% vs 0.45%) and has fractional ETF shares. Schwab counters with thinkorswim, the best active trading platform in retail brokerage. This guide tells you exactly which one fits your style.
- Both Fidelity and Schwab offer $0 commissions on stocks and ETFs — fees are nearly identical
- Fidelity edges out Schwab on research depth and fractional shares for beginners
- Schwab’s thinkorswim platform gives active traders a powerful edge
- Both brokers have no account minimums and offer strong retirement account options
Bottom line: Fidelity is our top pick for most investors thanks to superior research and cash management — but Schwab is excellent for active traders.
Open a Fidelity Account →We compared every major feature side-by-side so you don’t have to. Here’s what we found.
Trading Fees & Commissions
Both Fidelity and Schwab eliminated commissions on U.S. stock and ETF trades back in 2019. Options trades cost $0.65 per contract at both brokers. Mutual fund trades vary depending on whether the fund is on the broker’s no-transaction-fee list.
| Feature | Fidelity | Charles Schwab |
|---|---|---|
| Stock/ETF trades | $0 | $0 |
| Options (per contract) | $0.65 | $0.65 |
| No-transaction-fee mutual funds | $0 (3,300+ funds) | $0 (4,000+ funds) |
| Account minimum | $0 | $0 |
| Fractional shares | ✅ Stocks & ETFs | ✅ Stocks only |
| Cash sweep rate | ~4.97% (SPAXX) | ~0.45% (default) |
| 24/7 Customer support | ✅ | ✅ |
Winner: Tie on commissions. Fidelity wins on cash sweep rates. Fidelity’s default money market fund (SPAXX) earns meaningfully more on idle cash — a real advantage for investors who hold cash between trades.
Account Types & Investment Options
Both brokers offer the full spectrum of account types: taxable brokerage, traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA, 401(k) rollover, HSA, custodial accounts, and trusts. Neither charges maintenance fees.
Fidelity’s ZERO index funds (FZROX, FZILX) carry a 0.00% expense ratio — literally free to own. Schwab’s equivalent index funds are nearly free too, but not quite. For ultra cost-conscious investors, Fidelity wins on this front.
Both platforms give access to stocks, ETFs, bonds, mutual funds, options, and alternative investments. Schwab added cryptocurrency trading post-TD merger, while Fidelity focuses on institutional crypto custody rather than retail trading.
Research & Tools
This is where Fidelity truly shines. The platform’s research center is among the best in the industry, offering reports from 20+ independent providers including Morningstar, CFRA, and Zacks. Stock screeners are powerful and customizable, and the learning center is genuinely beginner-friendly.
Schwab’s research is also excellent — particularly through StreetSmart Edge and the integrated thinkorswim platform (from the TD Ameritrade acquisition). Thinkorswim is widely considered one of the best active trading platforms available, offering sophisticated charting, options analytics, and paper trading for practice.
Winner: Fidelity for research depth; Schwab for active trading tools.
Mobile App
Both apps receive strong ratings in the App Store and Google Play. Fidelity’s app is intuitive and clean, with full account management, trading, and a stock scanner. Schwab’s app is similarly capable, and thinkorswim Mobile is available separately for power users who want advanced charting on the go.
If you’re a casual investor who checks your portfolio weekly, both apps feel virtually identical. If you trade frequently, Schwab’s thinkorswim Mobile gives you more firepower.
Customer Service
Both Fidelity and Schwab offer 24/7 phone support — a rarity in the brokerage world. They each have hundreds of physical branch locations across the U.S. where you can meet with a financial consultant in person, free of charge. This sets them apart from digital-only brokers like Robinhood or Webull.
Fidelity vs Schwab: The Decision Framework
Choose Fidelity if…
- You hold cash between investments and want it working harder (SPAXX ~4.97% vs Schwab’s 0.45% default)
- You want fractional shares in both stocks AND ETFs (Schwab only offers fractional stocks)
- You’re a buy-and-hold investor who wants the lowest possible index fund fees (FZROX/FZILX at 0.00%)
- You’re a beginner who values depth of research and educational content
- You want 24/7 customer support with a proven, stable platform
Choose Schwab if…
- You actively trade and want access to the thinkorswim platform (charts, options analytics, paper trading)
- You want cryptocurrency exposure through your brokerage account
- You prefer Schwab’s broader mutual fund selection (4,000+ NTF funds vs Fidelity’s 3,300+)
- You’re in a region where Schwab has more convenient branch locations
- You’re a TD Ameritrade customer already on the merged platform
Our Verdict
Fidelity wins for most investors. The cash sweep rate alone is a significant, ongoing edge — if you keep $10,000 in cash, Fidelity pays you ~$450/year while Schwab pays ~$45. Add ZERO expense ratio index funds (literally 0.00%) and fractional ETF shares, and Fidelity consistently delivers more value for passive, long-term investors. Schwab is an excellent broker and thinkorswim is genuinely the best active trading platform available for retail investors — but that advantage only matters if you use it. For the typical investor who contributes monthly and checks their portfolio occasionally: Fidelity, and it’s not particularly close.
Open your Fidelity account and start investing today:
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Fidelity offers $0 commissions, no account minimums, and some of the best index funds in the industry — all on a platform trusted by 40+ million investors.
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WealthIQ Editorial
This article was produced by the WealthIQ editorial team using AI-assisted research and drafting, with review for accuracy before publication. Sources include IRS.gov, SEC.gov, FDIC.gov, and Federal Reserve data. View our editorial standards →