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Ashley Maready
Editor's Note: This page may be out of date
TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've kept this page covering TD Ameritrade for historical purposes. For the most up-to-date information on Charles Schwab accounts, please see our corresponding Charles Schwab page.
No discussion of the top online brokerages would be complete without talking about Charles Schwab vs. Fidelity, two of the industry's giants. TD Ameritrade -- another industry behemoth -- was recently acquired by Charles Schwab. With millions of account owners, these discount brokers can afford to invest heavily in feature-rich trading platforms. Both Charles Schwab and Fidelity offer large fund selections and great customer service. Either brokerage firm is a top pick for any investor who wants all the bells and whistles at low prices.
Below, we'll take you through a head-to-head comparison of Charles Schwab vs. Fidelity. We'll look at prices, platforms, free perks, and more to help you decide between two of the largest brokers on the block.
Charles Schwab vs. Fidelity: At a glance
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| Rating |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades |
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 |
| Account Minimum | $0 | $0 |
| Next Steps |
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Charles Schwab vs. Fidelity: Prices
Comparing Charles Schwab vs. Fidelity, both are highly competitive when it comes to the cost to place a trade. In fact, they charge the same prices for two of the three major trade types -- stocks and exchange traded funds (ETFs) and options. Here's a quick comparison of their basic commission schedules.
| Broker | Stocks and ETFs | Options | Mutual funds |
|---|---|---|---|
| Fidelity | $0 per trade | $0 plus $0.65 per contract | $49.95 (thousands for free) |
| Charles Schwab | $0 per trade | $0 plus $0.65 per contract | $49.99 (thousands for free) |
Data sources: Fidelity and Charles Schwab.
Charles Schwab vs. Fidelity: Free mutual fund and ETF trades
Charles Schwab and Fidelity both offer many mutual funds and ETFs that you can trade without paying a commission. The typical commission to trade a mutual fund at these two brokers is about $50. A no-transaction-fee (NTF) mutual fund is clearly a boon for cost-conscious investors.
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| Fund type | Fidelity | Charles Schwab |
|---|---|---|
| Total mutual funds | More than 9,400 | More than 13,000 |
| NTF mutual funds | More than 3,300 | More than 4,100 |
Data sources: Fidelity and Charles Schwab.
Fidelity's core business of fund management and retirement plan administration spills over into its online brokerage business. It offers one of the largest mutual fund selections with no transaction fee, including Fidelity Funds.
Fidelity has a competitive fund lineup that keeps getting better (and less costly) over time. Its ZERO℠ line of mutual funds has taken the brokerage industry by storm. Fidelity's ZERO℠ index funds are truly no-cost index fund offerings. Clients pay nothing to buy them, and nothing in management fees.
Charles Schwab vs. Fidelity: Minimum deposit requirements
As a general rule, a discount broker won't turn you away just because you want to start small. Looking at Charles Schwab vs. Fidelity, neither online broker has a minimum commitment. You can open an account without having to empty your savings account to do it.
RELATED: Need a savings account? Check out The Ascent's guide to the best savings accounts.
Charles Schwab vs. Fidelity: Trading platforms
Charles Schwab and Fidelity are leaders in trading platforms.
Charles Schwab customers enjoy highly rated mobile apps on Android, iOS, and Windows devices. They can also use a web browser platform and a full desktop platform, StreetSmart Edge. The StreetSmart Edge platform is available to any Charles Schwab customer, regardless of trading volume or account balance. The TD Ameritrade thinkorswim platform was migrated over to Charles Schwab and is still available for customers who want to keep using it.
StreetSmart Edge's layout is fully customizable. You can adjust it to put the information you want to see front and center. StreetSmart Edge's key features include advanced charting and its All-in-One Trade Ticket, which allows you to build, edit, and place trade orders for multiple securities in one menu. That means you can buy stocks and sell options contracts at the same time, for example. Charles Schwab also offers StreetSmart mobile apps, which have different functionality than the desktop platform but allow you to trade stocks and options on the go.
Fidelity matches Charles Schwab with a web browser trading tool and mobile apps. Its advanced desktop platform, Fidelity Active Trader Pro, is free to anyone with a Fidelity account.
As far as free platforms go, the Fidelity Active Trader Pro is tough to beat. Like StreetSmart Edge, the homepage is completely customizable. Features include hundreds of charting tools, real-time news, and optional columns. You can view the information that's most important to you (a stock's daily volume, high or low price, price-to-earnings multiple, and so on).
Admittedly, assessing the quality of a trading platform is more of a subjective art than an objective science. Neither broker has a minimum required investment. So if you view a trading platform as particularly important in choosing a broker, you can easily "try before you buy," so to speak.
Charles Schwab vs. Fidelity: International stocks and ADRs
Some investors want to know how Charles Schwab and Fidelity measure up on trading foreign stocks. Fidelity and Charles Schwab are well matched when it comes to trading foreign stocks. Both brokers allow you to buy American depositary receipts (ADRs). ADRs are basically foreign stocks with domestic tickers. Both Charles Schwab and Fidelity also offer the ability to place trades on overseas markets through your online brokerage account.
Charles Schwab clients can sign up for a Schwab Global Account to trade stocks online on 12 foreign markets with real-time quotes during market hours. There are no account or trade minimums required for a Global Account, and you get access to multi-currency statement reporting.
Similarly, Fidelity customers can trade in 25 countries and exchange between 16 currencies. You can trade domestic and international stocks in a single account, and get access to real-time market data and international trading specialists.
Charles Schwab vs. Fidelity: Research reports and news
The discount brokers of today are unlike those of the past. Historically, the industry focused on eliminating extras like free research to reduce trading costs. Now, electronic trading allows brokers to offer both low costs and excellent research.
Fidelity's value proposition is particularly strong in stock and fund research. Customers get access to at least 10 independent third-party research providers for individual stocks, proprietary research reports on certain investment themes, and top-down analysis of the U.S. stock market.
Charles Schwab also offers access to both proprietary research and research from third-party providers.
Proprietary research is relatively rare when you work with an online discount broker. That's because few have the scale to justify the cost of in-house analysis and commentary. Both Fidelity and Charles Schwab are excellent choices for investors who count on in-depth research.
Top online brokerage: Charles Schwab vs. Fidelity
Charles Schwab and Fidelity are both top online brokerages. Deciding between Charles Schwab and Fidelity comes down to the features and functionalities that are most important to you. Charles Schwab offers a best-in-class trading platform and zero-commission stock trading. Charles Schwab also has an extensive branch network. That makes it a good choice for investors who want some face-to-face guidance.
Fidelity has also joined the zero-commission revolution. The two brokers' pricing structures for other types of trading are nearly identical.
Whether you're looking for the ability to trade on the international stock markets, need a discount broker that offers both proprietary and independent research tools, or want a trading platform with a user-friendly interface and mobile options, Fidelity and Charles Schwab are both great options.
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Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
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Featured Offer
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold | $0 | |
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$0 for stocks, $0 for options contracts | $0 | |
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Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 | $0 |
FAQs
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Charles Schwab and Fidelity are both top-notch brokerages that offer investing opportunities to every type of investor. Both companies offer research, mobile apps, and transaction-fee-free investment options. Both companies have excellent reputations for customer service.
Whether one is better really depends on your needs and how you manage your account. If earning interest on uninvested cash is important to you, choose Fidelity. If you prioritize international trading, you might be more comfortable at Schwab.
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Neither Charles Schwab nor Fidelity has an account minimum. You can start investing with any amount of money.
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Brokerage accounts are not eligible for FDIC insurance. But uninvested cash at both Charles Schwab and Fidelity is held in an FDIC-insured savings account.
Our Brokerages Experts
Kimberly is a career writer and editor with more than 30 years' experience. She's a bankruptcy survivor, small business owner, and homeschool parent. In addition to writing for The Motley Fool, she offers content strategy to financial technology startups, owns and manages a 350-writer content agency, and offers pro-bono financial counseling.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Kimberly Rotter has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy, Charles Schwab, and Target. The Motley Fool recommends the following options: short March 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.