Charles Schwab and Fidelity are two of the largest and most respected retail brokers in the US — and they are genuinely close competitors. Both charge $0 commissions, offer IRAs, banking, and robo-advisors, and provide strong research. The main differences are in trading platforms (thinkorswim vs. Active Trader Pro), fund families (SCHD vs. FZROX), and banking features. Here is a complete comparison for 2026.
Schwab vs. Fidelity: Quick Comparison
| Feature | Schwab | Fidelity |
|---|---|---|
| Stock/ETF commission | $0 | $0 |
| Options commission | $0.65/contract | $0.65/contract |
| Account minimum | $0 | $0 |
| Margin rate (starting) | 8.575% | 8.325% |
| Active trader platform | thinkorswim (industry-leading) | Active Trader Pro (desktop only) |
| Mobile active-trader app | thinkorswim Mobile | None (Active Trader Pro desktop only) |
| Futures trading | Yes | No |
| Fractional shares | Yes ($5, S&P 500, up to 30 stocks) | Yes ($1, S&P 500) |
| Own ETF family | SCHD, SCHB, SCHG… (~0.03%) | FZROX, FZILX (0.00%) |
| Robo-advisor | Intelligent Portfolios ($0 fee, $5K min) | Fidelity Go ($0, no minimum) |
| Banking | Schwab Bank (no-fee checking, global ATM) | CMA (no-fee, FDIC up to $5M) |
| 529 plan | Yes (Kansas) | Yes (NH UNIQUE, MA U.Fund) |
Fees and Margin Rates
| Fee | Schwab | Fidelity |
|---|---|---|
| Online stock/ETF | $0 | $0 |
| Options (per contract) | $0.65 | $0.65 |
| Account fee | $0 | $0 |
| Transfer out (ACAT) | $0 | $0 |
| Margin rate (starting) | 8.575% | 8.325% |
Fidelity’s margin rates start slightly lower than Schwab’s — a meaningful difference for active margin users. Both charge $0 ACAT transfer fees, making it easy to move assets if you ever switch.
Trading Platforms
Schwab: thinkorswim
The standout advantage. thinkorswim is widely regarded as the most powerful retail trading platform available:
- 400+ technical indicators and charting tools
- Real-time Level 2 quotes and time and sales
- thinkScript — write custom scanners in a proprietary scripting language
- Futures trading (24/5 access to /ES, /NQ, /CL, /GC, and more)
- paperMoney simulated trading with live market data
- Full thinkorswim Mobile app (futures, L2, multi-leg options)
- Options with full Greeks, probability analysis, and strategy scanner
Fidelity: Active Trader Pro
Fidelity’s professional platform is strong but limited in key areas:
- Real-time L2 data and streaming quotes on desktop
- Advanced charting with 100+ indicators
- Options analytics and strategy tools
- No futures trading
- Desktop only — Active Trader Pro has no mobile equivalent
- No custom scripting equivalent to thinkScript
Winner: Schwab — thinkorswim is more powerful, available on mobile, and supports futures. For most non-active-trader investors, the platforms are equivalent.
Fund Families
Schwab ETFs
- SCHB (US Broad Market, 0.03%) — ~$26B AUM
- SCHD (US Dividend Equity, 0.06%) — ~$60B AUM, highly popular
- SCHG (US Large-Cap Growth, 0.04%)
- SCHF (International, 0.06%)
- SCHZ (US Aggregate Bond, 0.03%)
Schwab ETFs are portable — you can transfer SCHB and SCHD in-kind to another broker without selling.
Fidelity Zero Funds + ETFs
- FZROX (Zero Total Market, 0.00%) — lowest expense ratio of any fund
- FZILX (Zero International, 0.00%)
- FXAIX (Fidelity 500 Index, 0.015%)
- FSKAX (Fidelity Total Market, 0.015%)
Important: FZROX and FZILX are mutual funds that can only be transferred as cash (not in-kind). If you ever move to another broker, you must sell them (potentially triggering taxes in a taxable account).
Winner: Tie — Fidelity wins on absolute cost (0.00%); Schwab wins on portability and the SCHD dividend fund specifically.
Robo-Advisors
| Feature | Schwab Intelligent Portfolios | Fidelity Go |
|---|---|---|
| Annual advisory fee | $0 | $0 |
| Minimum | $5,000 | $0 |
| Cash allocation | 6%–10% (required) | Minimal |
| Tax-loss harvesting | Yes ($50K+) | No |
| SRI option | No | No |
Fidelity Go wins for investors with less than $5,000 (no minimum vs. Schwab’s $5,000). Schwab wins for investors above $50,000 who want tax-loss harvesting. The cash drag in Schwab Intelligent Portfolios (6–10% in low-yield cash) is a real cost — on a $100,000 portfolio, 8% in cash at 2% APY when money markets yield 4.5% costs approximately $200/year in opportunity cost.
Banking
Schwab Bank
- Free checking with no monthly fee
- Worldwide ATM fee reimbursements (unlimited)
- No foreign transaction fees on Schwab Visa Platinum debit card
- FDIC insured to $250,000
- Interest-earning checking (~0.45% APY)
Fidelity Cash Management Account
- Free checking with no monthly fee
- Nationwide ATM fee reimbursements
- FDIC coverage up to $5 million through sweep network (significantly higher than Schwab)
- Debit card for ATM access
- Cash earns competitive money market rates through sweep
Winner: Tie — Schwab Bank is better for international travel (global ATM reimbursements, no foreign transaction fees). Fidelity CMA is better for investors who want higher FDIC coverage.
Who Should Choose Schwab?
- Active traders who need thinkorswim (futures, thinkScript, L2 mobile)
- Options traders who want the best retail analytical platform
- International travelers who benefit from Schwab Bank’s global ATM reimbursements
- Investors who want portable ETFs (SCHB, SCHD transfer in-kind to any broker)
- Investors who use the SCHD dividend ETF specifically
Who Should Choose Fidelity?
- Cost-obsessed investors who want the 0.00% FZROX/FZILX expense ratio
- Investors starting out who want Fidelity Go with no minimum and no advisory fee
- Investors who need the highest possible FDIC coverage (Fidelity CMA up to $5M)
- Investors who want the lower margin rate (Fidelity’s 8.325% vs. Schwab’s 8.575%)
- Non-active-traders who use the standard web/mobile platform equally well at either broker
Key Takeaways
- Both charge $0 on stocks/ETFs with no account minimums; Fidelity has slightly lower margin rates
- Schwab wins on trading platform (thinkorswim), futures, and thinkorswim Mobile
- Fidelity wins on lowest expense ratios (FZROX 0.00%) and Fidelity Go robo-advisor ($0, no minimum)
- SCHD is Schwab’s unique advantage — one of the best dividend ETFs available; FZROX is Fidelity’s unique cost advantage
- For most buy-and-hold investors, both are excellent — the choice often comes down to which ecosystem you prefer
For the full Schwab platform overview, see our Schwab review. For E*TRADE comparison, see our Schwab vs. E*TRADE guide.
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