Fidelity vs Schwab: Which Brokerage Is Better for You?
Two of America's largest brokerages, compared across every feature that matters. Fees, funds, platforms, banking, and customer service.
Quick Verdict
Choose Fidelity if...
You want the lowest possible index fund costs. Fidelity's ZERO funds charge a 0.00% expense ratio. Best for passive investors who buy and hold.
Choose Schwab if...
You need excellent banking integration and advanced trading tools. Schwab's checking account has zero foreign transaction fees, and thinkorswim is the best trading platform available.
Feature-by-Feature Comparison
15 key features compared side by side. Green highlights where Fidelity wins, blue where Schwab wins.
| Feature | Fidelity | Schwab |
|---|---|---|
| Stock/ETF commissions | $0 | $0 |
| Options (per contract) | $0.65 | $0.65 |
| Mutual fund minimum | $0 | $0 |
| Account minimum | $0 | $0 |
| Fractional shares | Any stock from $1 | S&P 500 only (Stock Slices) |
| Index fund expense ratios | 0.00% (ZERO funds) | 0.02% to 0.03% |
| Margin rates | 8.25% to 13.33% | 8.50% to 13.50% |
| Cash management | Fidelity Cash Management | Schwab Investor Checking |
| ATM fee reimbursement | Unlimited worldwide | Unlimited worldwide |
| Foreign transaction fees | 1% | 0% |
| Mobile app rating | 4.7/5 (iOS) | 4.7/5 (iOS) |
| Research tools | 20+ providers, strong ETF screener | thinkorswim (industry-leading) |
| Robo-advisor | Fidelity Go ($0 under $25K) | Schwab Intelligent Portfolios ($5K min) |
| Customer service | 24/7, 200+ branches | 24/7, 300+ branches |
| International trading | Limited | Broader access |
Index Fund Comparison
Where the real cost difference lives. Fidelity's ZERO funds have no expense ratio but are locked to Fidelity. Schwab's funds cost slightly more but are portable.
Total US Stock Market
Fidelity
FZROX
Fidelity ZERO Total Market
Expense Ratio
0.00%
Minimum
$0
Not transferable out of Fidelity
Schwab
SWTSX
Schwab Total Stock Market
Expense Ratio
0.03%
Minimum
$0
Portable to any brokerage
S&P 500
Fidelity
FXAIX
Fidelity 500 Index
Expense Ratio
0.015%
Minimum
$0
Tracks S&P 500, very low cost
Schwab
SWPPX
Schwab S&P 500 Index
Expense Ratio
0.02%
Minimum
$0
Tracks S&P 500, very low cost
International
Fidelity
FZILX
Fidelity ZERO International
Expense Ratio
0.00%
Minimum
$0
Not transferable out of Fidelity
Schwab
SWISX
Schwab International Index
Expense Ratio
0.06%
Minimum
$0
Portable to any brokerage
30-Year Cost on $100,000 Investment
Assuming 7% annual returns, reinvested. The expense ratio compounds against your growth every year.
Fidelity ZERO (0.00%)
$0
in fees over 30 years
Schwab Index (0.03%)
~$900
in fees over 30 years
Vanguard Equivalent (0.04%)
~$1,200
in fees over 30 years
The difference is real but modest. The bigger consideration is portability: Fidelity ZERO funds cannot be transferred to another brokerage. If you might switch, Schwab's funds give you more flexibility.
Banking Comparison
Both offer checking accounts with unlimited worldwide ATM reimbursement. The key difference: Schwab charges zero foreign transaction fees.
| Feature | Fidelity | Schwab |
|---|---|---|
| Account name | Fidelity Cash Management | Schwab Investor Checking |
| ATM fee refunds | Unlimited worldwide | Unlimited worldwide |
| Debit card | Yes | Yes |
| Foreign transaction fees | 1% | 0% |
| Mobile deposit | Yes | Yes |
| Bill pay | Yes | Yes |
| FDIC insured | Yes (through partners) | Yes |
International travellers: Schwab is the clear winner
Schwab Investor Checking charges 0% foreign transaction fees and reimburses all ATM fees worldwide. Fidelity Cash Management also reimburses ATM fees, but charges a 1% foreign transaction fee on purchases abroad. For frequent travellers, this 1% adds up quickly.
Brokerage Match Quiz
Answer 7 questions to get a personalized recommendation based on your investing style, needs, and preferences.
Question 1 of 7
What is your primary investing style?
Who Should Choose Which?
Best for Beginners
Fidelity (slight edge)
Simpler mobile app, fractional shares of any stock from $1, and ZERO expense ratio funds make it easier and cheaper to start investing with small amounts.
Best for Active Traders
Schwab (clear edge)
The thinkorswim platform (acquired from TD Ameritrade) is the gold standard for active trading. Advanced charting, paper trading, options analysis, and custom scripting.
Best for Passive Investors
Fidelity (clear edge)
ZERO expense ratio index funds mean you keep more of your returns. FZROX and FZILX cover US and international markets at literally zero cost. No other brokerage matches this.
Best for Retirement
Tie
Both offer excellent IRA options, 401(k) rollovers, and target-date funds. Fidelity's fee advantage is small at this scale. Schwab's Intelligent Portfolios is a solid robo-advisor. You cannot go wrong with either.
Best for Banking
Schwab (clear edge)
Zero foreign transaction fees and unlimited ATM reimbursement make Schwab Investor Checking the best brokerage checking account, especially for international travellers.
Best for Small Portfolios
Fidelity (clear edge)
No account minimums, fractional shares of any stock from $1, and Fidelity Go robo-advisor is free for balances under $25,000. Schwab's Stock Slices are limited to S&P 500 stocks.
Trading Platforms
Fidelity
- +Fidelity.com: Clean web interface, good for buy-and-hold investors
- +Active Trader Pro: Free desktop app with capable charting and screening
- +Mobile app: Highly rated, intuitive for beginners
Best for investors who check their portfolio monthly and want simplicity over power features.
Schwab
- +thinkorswim (desktop): Industry-leading platform with advanced charting, paper trading, and custom scripting
- +thinkorswim (mobile): Powerful trading on the go with most desktop features
- +Schwab.com: Recently redesigned web platform, steadily improving
Best for active traders who use technical analysis, trade options, or need advanced tools daily.