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Fidelity Investments
Insider’s Rating
4.86/5
Perks
Fidelity Investments offers a wide range of investing products, including fractional shares.
Account Minimum
$0 ($25,000 Fidelity Personalized Planning & Advice)
Fees
0% ($0 or 0.35% for robo-advisor)
Pros
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
Cons
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
Insider’s Take
Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.
Fidelity Brokerage review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Promotion: None at this time
- App store rating: 4.8 iOS/4.4 Android
- Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
- Consider it if: You're focused on long-term investing and retirement.
Charles Schwab
Insider’s Rating
4.88/5
Perks
Open and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500
Account Minimum
$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)
Fees
0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)
Pros
- No minimums; commission-free trading on stocks, ETFs, and options
- Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
- Automated and advisor-managed accounts available
- Multiple trading platforms; stock screeners and other trading tools
Cons
- $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
- Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums
Insider’s Take
Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.
Charles Schwab Brokerage review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
- Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.
Fidelity vs. Charles Schwab: At a Glance
Fidelity and Charles Schwab are two of the largest and most reputable brokerage firms featured in several of our guides, including the best robo-advisors. You can open an account with either platform to access a vast selection of financial planning and brokerage services.
Both investing platforms have a $0 minimum requirement and offer commission-free trading on stocks, ETFs, and options. However, they have different fee structures, account offerings, educational resources, and investment products.
Here is a comparison review of two of the best trading platforms: Fidelity Investments and Charles Schwab.
Investment Options and Financial Products
Fidelity is the better choice if you want to invest directly in cryptocurrencies like bitcoin and ether. Charles Schwab only offers indirect crypto trading with cryptocurrency-related ETFs and mutual funds.
Fidelity's Investment Offerings
Fidelity Investments is an online brokerage offering expansive wealth-building products and trading strategies. It's a great option for investors seeking commission-free trades.
Some of the available brokerage account options include:
- Individual or joint taxable brokerage account
- Automated brokerage account
- Professionally managed account
- IRAs and small business retirement plans
- Teen-owned brokerage and custodial accounts
- Cryptocurrency account
- Disability savings account
- Cash management account
Additional asset classes available through Fidelity are bonds, mutual funds, REITs, cryptocurrencies, fractional shares, IPOs, money market funds, deferred fixed annuities, precious metals, CDs, and other fixed-income products.
There are more than 3,700 no-transaction mutual funds and Fidelity's exclusive ZERO expense ratio index funds. ESG investing options are also available. If you're interested in diversifying assets internationally, Fidelity offers international stock trading in over 25 countries and 16 currencies.
Fidelity Go, the platform's robo-advisor, invests your funds in a blend of Fidelity mutual funds.
Charles Schwab's Investments Offerings
Charles Schwab is known for its various low-cost investment and brokerage account options. Its offerings are similar to Fidelity. Available accounts include:
- Individual or joint taxable brokerage account
- Automated brokerage account
- Advisor-assisted accounts
- Individual and small business retirement accounts (includes Personal Choice Retirement Account)
- Education savings accounts
- Custodial accounts
- Charitable donor-advised fund accounts
- Trust and estate accounts
Available investment securities with Schwab include stocks, ETFs, index funds, mutual funds, options, commodities, and fractional shares. You can also choose from the brokerage's thousands of no-load (funds without transaction fees) mutual funds and a huge selection of Schwab-managed funds. Moreover, unlike Fidelity, Charles Schwab offers futures contracts.
Schwab's automated accounts invest your assets in a diversified blend of low-cost ETFs by building a personalized portfolio of U.S.-focused and income-focused investment strategies based on investors' risk tolerance and goals.
Fees and Commissions
Fidelity's Fees
Fidelity has a $0 minimum requirement and 0% advisory fee to open self-directed, automated, custodial, and Youth accounts. Specialty accounts have higher minimums. Fidelity Wealth Services, for example, requires a $500,000 minimum with a gross advisory fee ranging from 0.50% to 1.50%.
Fidelity Go has no advisory fees unless you have an account balance of more than $25,000. Larger balances are subject to a 0.35% annual fee with the additional benefit of unlimited one-on-one coaching calls. Otherwise, Fidelity Wealth Services requires a $500,000 minimum.
Commission-free trades are available on assets like stocks, ETFs, and options. To access Fidelity Basket Portfolios, you must pay a $4.99 monthly subscription fee.
Schwab's Fees
Charles Schwab has no account minimum or fees for standard brokerage accounts. Its robo-advisor, on the other hand, requires a $5,000 minimum investment. Intelligent Portfolios Premium has an even higher $25,000 minimum requirement, plus a $30 monthly fee (it comes with unlimited CFP guidance).
Schwab's commission-free selection includes stocks, ETFs, and options (though each options contract costs $0.65).
Trading Platforms and Technology
Fidelity's Trading Platforms
Fidelity Go is the platform's robo-advisor, supporting a range of account options and automated trading technologies like automatic rebalancing tools and Smart Shift (automated conservative portfolio allocation in conjunction with target dates).
It also offers an advanced trading platform for experienced investors. Fidelity's Active Trader Pro provides investors with customizable charts, real-time trading alerts, up-to-date market insight and commentary, stock and ETF screeners, portfolio monitoring, and options trading assistance.
One of Fidelity's most unique trading features is its Basket Portfolios. Similar to creating your own custom mutual fund, Fidelity Basket Portfolios allow you to hand-pick stocks and other securities into a singular "basket" that is traded as one investment.
Fidelity also launched Youth Baskets as part of its mission to educate teenagers about smart investing and money-managing skills. Youth Baskets doesn't have the normal $4.99 subscription fee, and parents can monitor their teens' portfolios in the Fidelity Youth app.
Charles Schwab's Trading Platforms
The brokerage has a robust selection of wealth management tools and mobile features. You can download the Charles Schwab mobile app to track, monitor, and perform trades. You can access in-depth research and charting tools through Schwab's StreetSmart app.
Fractional share investing (referred to as Schwab Stock Slices) allows investors to buy smaller portions of stocks for a cheaper price. Stock Slices are available as $5, $10, $100, or more, but only 10 can be bought simultaneously.
In 2019, Charles Schwab acquired TD Ameritrade, giving the already powerful brokerage access to one of the industry's best advanced trading platforms, thinkorswim. The thinkorswim platform is an elite, customizable software, web, and desktop trading tool for secure and optimized complex trades.
Making a Choice: Fidelity vs. Charles Schwab
Fidelity Investments and Charles Schwab are great for all kinds of traders. Both brokerages offer automated and advisor-assisted accounts, low-cost self-directed trading, margin trading, retirement accounts, and more. However, the two brokerages differ regarding fees, investment products, and educational resources.
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.
Fidelity is generally better for lower account balances (accounts less than $25,000) and direct crypto exposure. Charles Schwab is better for higher balances and offers a more comprehensive selection of advanced charting tools like the thinkorswim platform.
Additionally, 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.
Fidelity vs. Charles Schwab Frequently Asked Questions (FAQs)
Can I open both Fidelity and Charles Schwab accounts?
You can open both a Fidelity and Charles Schwab brokerage account to take advantage of each platform's best features and services. Since both platforms have low-cost account options, you may be able to avoid paying account management or advisory fees.
Which is better for beginner investors, Fidelity or Charles Schwab?
Both Fidelity and Charles Schwab are great brokerage options for beginner investors, so you can't go wrong signing up for either. However, Fidelity's robo-advisor is easier to qualify for, with no minimum balance requirement and no advisory fees for accounts under $25,000.
Do Fidelity and Charles Schwab offer robo-advisor services?
Fidelity and Charles Schwab offer robo-advisor services suitable for beginners and passive investors. Fidelity Go has no account minimum and no advisory fee for accounts under $25,000 (accounts of $25,000+ are charged a 0.35% advisory fee). Schwab Intelligent Portfolios requires a $5,000 minimum with no advisory fees.
How do Fidelity and Charles Schwab stand out from other brokerage firms?
Fidelity and Charles Schwab stand out as two of the largest financial institutions offering a comprehensive wealth management and brokerage service. All kinds of investors can benefit from a Fidelity or Charles Schwab account. Still, there are some key differences, like pricing and investment options, to consider when deciding between the two.
Are investments with Fidelity and Charles Schwab protected?
Fidelity and Charles Schwab are both secure and reliable brokerages offering SIPC insurance. Brokerage accounts are protected with preventive security features like alerts, two-factor authentication, and screeners.
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022.Her love of books, research, crochet, and coffee enriches her day-to-day life.
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products.Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News.He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
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