Introduction

Fidelity and Charles Schwab are two of the biggest investing platforms in the US. Both have decades of experience, massive customer bases, and strong reputations for service and innovation. But they are different in many ways, and depending on what you’re looking for, one can be significantly better. Whether you’re just getting started in investing or managing a complex portfolio, understanding how these platforms differ helps you pick the one that fits your goals best.

Company Heritage and Market Position

Fidelity Investments

Founded in 1946, Fidelity evolved from a mutual fund firm into one of the world’s biggest asset managers, with over $4.5 trillion under management and 40 million customers. Still privately owned, Fidelity focuses on long-term decisions rather than quarterly profits.

It pioneered industry firsts like check-writing money market funds and online trading for retail investors. Today, it’s known for zero-fee index funds and has crypto investing options too.

Charles Schwab

Schwab launched in 1971, shaking up Wall Street with discount commissions that opened investing to everyday Americans. Now managing over $8 trillion in assets, Schwab cemented its dominance after acquiring TD Ameritrade in 2020, bringing the powerful trading platform into its ecosystem.

Account Types and Accessibility

Both platforms offer nearly every account type you could need such as individual, joint, and retirement accounts with no minimums to open.

Retirement accounts (IRAs, SEP-IRAs, Solo 401(k)s) are equally robust. Fidelity’s retirement tools use Monte Carlo simulations, while Schwab’s focus more on straightforward goal-based planning.

Unique accounts: Fidelity stands out by offering Health Savings Accounts (HSAs) with triple tax advantages. Schwab doesn’t. Both offer 529 plans, custodial accounts, and trusts, with Schwab providing slightly more administrative flexibility.

Trading Costs and Fees

Both have changed to a zero commission fee structure, and today, stock and ETF trades are free at both.

• Options: $0.65 per contract at each.

• Mutual funds: 3,400+ no-fee funds at Fidelity, 4,000+ at Schwab.

• Fidelity advantage: Four zero-expense-ratio index funds—literally no fees.

Other fees:

• Wire transfers: Free at Fidelity, $25 at Schwab

• Foreign exchange: Slightly cheaper at Schwab

• Margin rates: Comparable across both

Investment Options and Market Access

Both offer U.S. stocks, ETFs, and bonds with top-tier execution quality.

International access: Fidelity lets you trade directly in 25 foreign markets vs. 12 at Schwab.

Fixed income: Both have massive bond inventories with strong screeners.

Alternatives:

• Crypto: Fidelity supports direct Bitcoin and Ethereum trading; Schwab sticks to ETFs and crypto-related stocks.

• Futures & Forex: Schwab wins here since Fidelity doesn’t offer them.

• Commodities: Schwab allows direct futures trading while Fidelity limits exposure to ETFs and mutual funds.

Platforms and Technology

Web: Both have good, full-featured platforms. Fidelity’s site feels newer and easier to navigate while Schwab’s is functional but dated after merging TD Ameritrade tools.

Mobile: Fidelity’s app scores slightly higher for design and reliability, while Schwab’s app packs in more features, sometimes too many. Schwab users can also use thinkorswim mobile, great for advanced traders.

Desktop platforms:

• Fidelity Active Trader Pro: Advanced charting, analytics, and customization; requires $25K or 36 trades/year.

• Schwab StreetSmart Edge: No minimums, strong charting, and full product access.

• thinkorswim (Schwab): Leading platform for options and technical analysis.

Banking Integration

Both offer full-service banking with FDIC protection.

• Cash yields: Roughly 2.5% APY for uninvested cash at each.

• Debit cards: Schwab has unlimited worldwide ATM rebates and no foreign fees. Fidelity offers reimbursement too, but with limits.

• Extras: Both provide bill pay, mobile deposits, and check writing; Schwab integrates banking services (like mortgages) more directly.

Research and Education

Both deliver top-tier research from companies such as Morningstar and Argus. Fidelity partners with over 20 providers, while Schwab emphasizes fundamental research and stock ratings.

Education:

• Fidelity: Courses, webinars, and paper trading for beginners.

• Schwab: Video tutorials, market commentary, and live classes.

Fidelity leans more technical, and Schwab leans more fundamental.

Customer Support

Both offer 24/7 phone support, fast response times, and strong self-service tools.

• Branches: Schwab has 300+ U.S. branches, and Fidelity has around 200.

• Digital support: Both feature live chat, help centers, and secure messaging.

If in-person service matters, Schwab is better. For online-first investors, both are great options.

Robo-Advisors

Fidelity Go:

• Free under $10K, 0.35% annual fee above that

• No minimum balance

Schwab Intelligent Portfolios:

• No advisory fees, $5K minimum

• Requires 6–30% cash allocation

• Premium tier adds human advisors ($300 setup + $30/month)

Fidelity is simpler but Schwab has more features.

Beyond Traditional Investing: Arch Lending

Traditional brokerages tie up your assets until you sell, often triggering taxes. Services like Arch Lending let investors borrow against Bitcoin instead, unlocking liquidity without losing future upside.

With Arch Lending, you can:

• Access cash without selling

• Avoid taxable events

• Keep long-term upside

It’s a smart complement to traditional investing for those holding crypto alongside stocks and bonds.

Conclusion

Fidelity and Charles Schwab are both great options. Fidelity wins on zero-fee funds, user experience, crypto access, and global reach. Schwab excels in options, futures, banking integration, and branch support. The majority of investors can’t go wrong with either option, and many use both, leveraging each platform’s unique strengths.

Frequently Asked Questions

Can I transfer my existing investments between Fidelity and Schwab?

Yes, both brokerages support ACATS transfers, moving your entire account in 5-7 business days. Neither charges for incoming transfers, though your current broker might impose exit fees. Transferring "in-kind" preserves your positions without selling, avoiding taxable events.

Which platform offers better trade execution?

Both brokerages are great for execution quality. They route orders to multiple exchanges and market makers, seeking price improvement. Real-world differences are negligible for most investors, measured in fractions of pennies per share.

How safe are my investments at each brokerage?

Both firms provide SIPC protection up to $500,000 per account ($250,000 for cash). Additionally, both carry excess insurance. Fidelity through Lloyd's of London and Schwab through various underwriters. Your investments' market risk remains, but institutional failure risk is minimal.

Can I use both platforms simultaneously?

Yes. Many investors maintain accounts at multiple brokerages to access unique features, diversify platform risk, or separate different investment strategies. There's no regulation preventing you from using both Fidelity and Schwab simultaneously.

Which platform works better for options trading?

While both support options trading at identical commission rates, Schwab's thinkorswim platform is considered superior for options analysis. Its risk graphs, probability calculations, and strategy analyzers give serious options traders more sophisticated tools. Fidelity's platform handles basic to intermediate options strategies well but lacks thinkorswim's depth.

Do either offer cryptocurrency IRA accounts?

Neither Fidelity nor Schwab currently offers cryptocurrency within IRA accounts directly. Investors seeking crypto IRA exposure must use specialized providers or invest in crypto-related ETFs and stocks within traditional IRAs.

About Arch

Arch is building a next-gen wealth management platform for individuals holding alternative assets. Our flagship product is the crypto-backed loan, which allows you to securely and affordably borrow against your crypto. We also offer access to bank-grade custody, trading and staking services.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making investment decisions.