Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
Fidelity vs. Charles Schwab: The Biggest Differences
Fidelity and Charles Schwab are featured in a number of our guides, including the best brokerages for beginners. Both investing platforms have a $0 minimum requirement and offer commission-free trading on stocks, ETFs, and options. But Fidelity and Charles Schwab have different fee structures, account offerings, educational resources, and investment products.
Investors looking for an online brokerage with a huge selection of well-designed trading tools and portfolio management features may prefer an account with Charles Schwab (although Fidelity isn't necessarily a bad option for this either). Schwab has slightly more advanced wealth management tools compared to Fidelity, including Schwab's Private Client service, Portfolio Checkup tool, and in-depth research and charting tools.
Charles Schwab's automated-only account, Schwab Intelligent Portfolios, beats Fidelity when it comes to fees since it has no advisory fees or commissions. But since the account has a
Charles Schwab is the best broker for trading commodities since Fidelity only offers precious metals. With Schwab, you can trade energies, metals, softs, livestock, and agriculture. You can trade regular future trades or micro E-mini futures.
If you want to invest directly in cryptocurrencies like bitcoin and ether, Fidelity is the better choice. Charles Schwab only offers indirect crypto trading with cryptocurrency-related ETFs and mutual funds.
Is Fidelity Right for You?
Who Fidelity is Best For
You can get access to market research, professionally managed portfolios, professional financial advice, and Fidelity's ZERO expense ratio index mutual funds. Fidelity also offers environmental, social, and governance mutual funds and ETFs for investors wanting to invest in ESG investments.
Ways to Invest With Fidelity
Fidelity Investments utilizes stock research and investment analysis from multiple independent providers for up-to-date market insight and commentary.
Fidelity offers a large selection of assets including stocks, bonds, options, mutual funds, REITs, ETFs, crypto, fractional shares, IPOs, money market funds, deferred fixed annuities, precious metals, CDs, and other fixed-income products. It also offers several retirement and investing tools, like tax-loss harvesting, customizable dashboard layouts, and real-time trading alerts.
Fidelity offers roughly 10,000 mutual funds. The online brokerage also offers smart trading technology. US investors can also invest in cryptocurrencies like bitcoin and ether with Fidelity's Crypto account. However, its crypto selection is fairly limited.
Fidelity's unique selection of retirement resources includes the Retirement Readiness questionnaire feature, which shows you which steps you need to take to live comfortably in retirement. It also provides retirement income calculators and Social Security calculators.
Automated Investing With Fidelity
Overall, both Fidelity Go and Fidelity Personalized Planning & Advice give you access to investment accounts managed by a team of Fidelity professionals and 24/7 customer support. The two accounts also allow you to adjust your risk tolerance and investing goals at any time, and Fidelity will automatically rebalance your portfolio to ensure it's on track.
Fidelity Go
If you're solely after low-cost automated portfolio management,
Fidelity Personalized Planning & Advice
Fidelity Personalized Planning & Advice, on the other hand, merges automated investing and advisor assistance. This account offers everything Fidelity Go does, but it also includes unlimited one-on-one calls with Fidelity financial advisors.
Though you'll be responsible for a $25,000 minimum requirement and 0.50% annual fee, this account is great if you're looking for professional advice on topics like retirement saving, establishing an emergency fund, reducing debt, and designing a financial plan.
Is Charles Schwab Right for You?
Like Fidelity,
Who Charles Schwab is Best For
Charles Schwab also offers a suite of retirement account options, including inherited IRAs and custodial IRAs. IRAs are available as automated accounts. Plus, Charles Schwab offers small business retirement accounts like individual 401(k) plans, business 401(k)s, and more.
If you want to diversify your portfolio with commodities and future trades, Charles Schwab is the better option. You can trade precious metals, energies, softs, and much more with this brokerage.
Ways to Invest With Charles Schwab
Charles Schwab gets you commission-free trading, mobile apps, investment research and tools, and 24/7 customer support. Schwab's commission-free selection includes stocks, ETFs, and options (though each options contract costs $0.65).
Schwab offers thousands of no-load (funds without transaction fees) mutual funds and a huge selection of Schwab-managed funds. But unlike Fidelity, Schwab offers futures.
When it comes to research and educational content, there's no shortage of materials on Schwab's platform. The brokerage offers a digital knowledge center that teaches you about retirement, saving, and other important personal finance topics. Schwab also offers market insights, live programs, and webcasts with wealth-building content.
If you're interested in investing with retirement accounts, Schwab offers the following options: traditional IRAs, Roth IRAs, rollover IRAs, inherited IRAs, and custodial IRAs. The company also provides its own Retirement Income Solutions services to offer assistance for those planning for retirement.
Charles Schwab Brokerage Account review
Automated Investing With Charles Schwab
Like Fidelity, Charles Schwab's automated accounts — Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium — also include an automated-only account and an automated-plus-advice option. Plus, each account features automatic rebalancing, tax-loss harvesting, and professional oversight.
As for its investment selection, both of Schwab's automated accounts invest your assets in a diversified blend of low-cost ETFs. According to its website, Schwab builds personalized portfolios with more than 80 variations of investments. It offers more than 51 ETFs, three different investment strategies (Global, U.S. Focused, and Income Focused), and six different risk profiles. You can find more information about its underlying ETF fees here.
Schwab Intelligent Portfolios
With Schwab Intelligent Portfolios, you can sit back and watch your money grow over time. This account invests your money in ETFs, and Schwab says it builds, monitors, and automatically rebalances your investments for you. There's no advisory fee, but you'll need at least
Schwab Intelligent Portfolios review
Schwab Intelligent Portfolios Premium
The other automated option is Schwab Intelligent Portfolios Premium. This account — which requires a $25,000 minimum, a one-time $300 planning fee, and a $30 monthly advisory fee – combines automated advice with unlimited professional guidance from a CFP.
Fidelity vs. Charles Schwab — Frequently Asked Questions (FAQs)
Is Fidelity better than Charles Schwab?
When it comes to automated investing, Fidelity offers less expensive investments. However, Schwab is a better option for those with balances of $25,000 or more. You'll only be able to skip out on advisory fees with the Fidelity Go automated account if you've got a balance under $25,000. Though Schwab Intelligent Portfolios has a higher minimum requirement ($5,000), its lack of advisory fees is constant for all balances.
Who is larger: Fidelity or Schwab?
Fidelity is larger than Schwab. As of 2023, Fidelity is managing around $11.7 trillion in total assets with over 42 million individual investors. Charles Schwab is managing around $7.38 trillion total customer assess with 34 million active brokerage accounts.
Is Fidelity safer than Charles Schwab?
Both Fidelity and Charles Schwab currently have an A+ rating from the Better Business Bureau and are generally safe investing platforms. But keep in mind that investing always has a level of risk involved.
Fidelity Personalized Planning & Advice vs. Schwab Intelligent Portfolios Premium
Schwab Intelligent Portfolios Premium combines all of the features of Schwab Intelligent Portfolios with unlimited one-on-one guidance from a certified financial planner (CFP). This account shares Fidelity Personalized Planning & Advice's $25,000 minimum requirement, but its fee structure is quite different.
Instead of an annual asset-based fee, Schwab charges a $300 one-time planning fee, plus a $30/month advisory fee.
Those with balances under $72,000 will comparatively pay less in advisory fees (excluding investment/fund fees) with Fidelity Personalized Planning & Advice. Schwab's $30/month fee results in $360 per year, but if you subtract Fidelity's 0.50% fee from $72,000, you'll get the same $360 result.
So, in other words, the Fidelity account becomes more expensive than Schwab's once your account balance exceeds $72,000.
Fidelity vs. Charles Schwab: Which is Right For You?
There are a few distinctions worth pointing out: You won't need a minimum amount for the most basic automated accounts at Fidelity, but you'll need at least $5,000 for Schwab's. But Schwab makes up for this higher minimum with no advisory fees. You won't have an annual fee with Fidelity Go if you have under $25,000 in your account, but you'll have to pay a $3 monthly fee or 0.35% annual fee for higher balances.
Another distinction between the two brokerages is that their investment choices vary. Fidelity offers trading in 27 countries and 20 currencies, and Schwab also offers international trading in over 30 foreign markets. Schwab also lets you trade in eight local currencies with its Schwab Global account.
Fidelity could be a better option for lower account balances through its automated investing platform, or crypto trader. Schwab may be the better choice for advanced charting tools and portfolio management features. It's also the better option for futures trading and commodities.