When we tested 18 of the top online brokers, our analysis revealed that Fidelity (98) outperforms Charles Schwab. 7%) is better than Charles Schwab (96. 6%). Value-driven online broker Fidelity provides zero-dollar trades, industry-best research, top-notch trading tools, and a user-friendly mobile app.
Choosing the right online broker is crucial for your investment success. Two of the most popular and well-regarded options are Fidelity and Schwab. Both offer a wide range of investment products, low fees, and robust trading platforms. But which one is better for you?
This comprehensive guide delves into the key differences between Fidelity and Schwab, helping you determine which broker aligns best with your investment goals and preferences.
Overall Comparison:
| Feature | Fidelity | Schwab |
|---|---|---|
| Overall Rating | 98.7% | 96.6% |
| Commissions & Fees | $0 stock and options trades, no account fees | $0 stock and options trades, no account fees |
| Investment Options | Thousands of stocks, ETFs, mutual funds, options, bonds, and more | Thousands of stocks, ETFs, mutual funds, options, bonds, and more |
| Platforms & Tools | Fidelity.com and Active Trader Pro | Four platforms with advanced features |
| Mobile Trading Apps | Advanced mobile app with research and trading capabilities | Three mobile apps for different trading styles |
| Research | Extensive research tools and data | Comprehensive research from leading providers |
| Customer Service | 24/7 phone, email, and live chat support | 24/7 phone, email, and chat support, plus in-person branch support |
| Education | Extensive educational resources for all levels | Comprehensive educational resources and webinars |
| Ease of Use | User-friendly platform and mobile app | Intuitive platform and mobile apps |
| Winner | Fidelity | Schwab |
Who is Better?
Fidelity:
- Best for: Frequent traders, beginner investors, research and data enthusiasts, retirement planning assistance.
- Pros:
- $0 stock and options trades.
- No account fees.
- Extensive research tools and data.
- User-friendly platform and mobile app.
- Robust educational resources.
- Strong customer support.
- Cons:
- Fewer no-transaction-fee mutual funds than Schwab.
- Limited futures trading options.
Schwab:
- Best for: Beginner investors, advanced traders, investors seeking no-minimum index funds, investors who rely on premium research.
- Pros:
- $0 stock and options trades.
- No account fees.
- More no-transaction-fee mutual funds than Fidelity.
- Comprehensive research from leading providers.
- Four trading platforms with advanced features.
- In-person branch support.
- Cons:
- Higher margin rates than Fidelity.
- Limited educational resources compared to Fidelity.
Key Differences:
- Investment Selection: Schwab offers a slightly larger selection of investments, including more no-transaction-fee mutual funds and the ability to trade futures. Fidelity, however, boasts several index funds with no expense ratio, a rare feature in the industry.
- Research and Data: Fidelity provides more extensive research tools and data, including proprietary research and analysis. Schwab relies on research from leading providers like Morningstar and S&P.
- Trading Platforms: Fidelity offers two platforms, Fidelity.com and Active Trader Pro, both with advanced features and no minimums. Schwab provides four platforms, each catering to different trading styles.
- Mobile Apps: Fidelity’s mobile app is highly rated for its research and trading capabilities. Schwab offers three mobile apps, each tailored to specific needs.
- Customer Support: Both brokers offer 24/7 phone, email, and chat support. However, Schwab also provides in-person support at its branches.
Both Fidelity and Schwab are excellent online brokers with their own strengths and weaknesses. The best choice for you depends on your individual investment goals, preferences, and trading style.
Here’s a quick summary to help you decide:
- Choose Fidelity if:
- You’re a frequent trader or beginner investor.
- You value extensive research and data.
- You need robust educational resources.
- You prioritize a user-friendly platform and mobile app.
- Choose Schwab if:
- You’re looking for a wide selection of no-transaction-fee mutual funds.
- You prefer comprehensive research from leading providers.
- You value multiple trading platforms with advanced features.
- You appreciate in-person branch support.
Ultimately, the best way to choose between Fidelity and Schwab is to open accounts with both brokers and try them out This will allow you to experience their platforms, tools, and customer service firsthand and make an informed decision based on your personal preferences
Which broker is better for researching stocks?
For research, Charles Schwab offers superior market research than Fidelity. Fidelity ranks #5 and Charles Schwab ranks #N/A.
Over time, we’ve discovered that the top brokers offer in-depth quote screens that are not only simple to use but also feature a wide range of fundamental data, rich market commentary, and a variety of third-party research reports. Strong mutual fund, ETF, and stock screeners are also essential for generating trade ideas.
Is Fidelity or Charles Schwab better for beginners?
In the world of stock trading, knowledge is power. One excellent method to reduce the learning curve is to make use of resources like articles, webinars, videos, and interactive elements. In this analysis, we look at the availability of various kinds of educational resources.
According to our analysis, Fidelity provides new investors with a more thorough education than Charles Schwab does for 2024. Videos, education on stocks, mutual funds, exchange-traded funds (ETFs), options, bonds, and retirement are all provided by Fidelity and Charles Schwab. Neither have Paper Trading.
Schwab vs Fidelity vs Vanguard (DETAILED REVIEW)
FAQ
Who is Schwab’s biggest competitor?
What is better than Charles Schwab?
Is Vanguard better than Schwab?
Is Schwab or JP Morgan better?
Is Charles Schwab better than fidelity?
Both Schwab and Fidelity have thousands of these funds to pick from. Each has a slight edge on the other in niche asset classes as Charles Schwab supports trading in futures (which Fidelity does not), while Fidelity supports direct forex trading (which Charles Schwab does not).
Is Vanguard better than Charles Schwab?
The truth is that either broker is suitable for a long-term investor, depending on one’s needs. Vanguard could be a better choice for passive investors who want index funds; Charles Schwab offers more features that appeal to active investors. Ultimately, the better brokerage is dependent on how you invest.
Is Charles Schwab a good investment?
Well-rounded offering: Charles Schwab caters to investors of all stripes: Beginner investors will appreciate the company’s $0 account minimum, while the $0 commission for stock and exchange-traded funds will appeal to active traders.
Does Charles Schwab offer Robo-advising?
This includes robo-advising, which allows you to invest in AI-driven portfolios based on parameters you have preselected. Both Charles Schwab and Fidelity offer this service for free on balances below $10,000. However, Charles Schwab requires a $5,000 minimum investment to use theirs.