Comparison Guide

Fidelity vs Schwab

Fidelity vs Schwab compared on fees, funds, research, and customer service. Both are great, but one edges the other for most investors.

Side-by-Side Comparison

Fidelity

Pros

+Zero-fee index funds (FZROX, FZILX) — literally 0.00% expense ratio
+Fractional shares starting at $1
+Excellent research tools and stock screener
+HSA available (use Fidelity as your HSA provider)
+Cash management account with 2.72% APY (2026)

Cons

-Mobile app can feel cluttered with too many features
-Website is powerful but has a learning curve
-International stock trading is limited
-Some advanced features hidden behind menus

Best For

Index fund investors (zero-fee funds!), HSA holders, and anyone who wants the deepest feature set at the lowest cost.

Schwab

Pros

+Physical branch locations nationwide — talk to a human
+Excellent customer service (consistently top-rated)
+Schwab Intelligent Portfolios (free robo-advisor with $5K minimum)
+Checking account with unlimited ATM fee rebates worldwide
+Clean, intuitive mobile app

Cons

-No zero-fee funds — lowest index funds are 0.02-0.03%
-Fractional shares limited to S&P 500 stocks (Schwab Stock Slices)
-TD Ameritrade integration still causing some growing pains
-Cash sweep rates lower than Fidelity's money market

Best For

People who want branch access, beginners who value customer service, and anyone who uses Schwab for banking + investing together.

Feature	Fidelity	Schwab
Top Advantage	Zero-fee index funds (FZROX, FZILX) — literally 0.00% expense ratio	Physical branch locations nationwide — talk to a human
Biggest Drawback	Mobile app can feel cluttered with too many features	No zero-fee funds — lowest index funds are 0.02-0.03%
Best For	Index fund investors (zero-fee funds!), HSA holders, and anyone who wants the deepest feature set at the lowest cost.	People who want branch access, beginners who value customer service, and anyone who uses Schwab for banking + investing together.

Glen's Verdict

Former hedge fund manager, current index fund enthusiast

Both are excellent. If I had to pick one for a brand new investor: Fidelity — those zero-fee index funds are hard to beat. For someone who values in-person help: Schwab. I personally use Schwab for my brokerage because I've had an account there forever and their customer service has never let me down. The difference between 0.00% and 0.03% expense ratio is about $3 per year on a $10,000 investment. Don't overthink this. Pick one and start investing.

Get Glen’s Updates

Investing insights, new tools, and whatever I’m building this week. Free. No spam.

Unsubscribe anytime. I respect your inbox more than Congress respects property rights.

Frequently Asked Questions

Which is better, Fidelity or Schwab?

It depends on your situation. Fidelity is best for: Index fund investors (zero-fee funds!), HSA holders, and anyone who wants the deepest feature set at the lowest cost. Schwab is best for: People who want branch access, beginners who value customer service, and anyone who uses Schwab for banking + investing together.

What are the main differences between Fidelity and Schwab?

The key differences come down to their strengths. Fidelity advantages include zero-fee index funds (fzrox, fzilx) — literally 0.00% expense ratio and fractional shares starting at $1. Schwab advantages include physical branch locations nationwide — talk to a human and excellent customer service (consistently top-rated).

Can I have both Fidelity and Schwab?

In many cases, yes. Having both can provide diversification and flexibility. Evaluate your specific needs, goals, and eligibility requirements to determine if using both makes sense for your situation.

What are the downsides of Fidelity?

Mobile app can feel cluttered with too many features Website is powerful but has a learning curve International stock trading is limited Some advanced features hidden behind menus

What are the downsides of Schwab?

No zero-fee funds — lowest index funds are 0.02-0.03% Fractional shares limited to S&P 500 stocks (Schwab Stock Slices) TD Ameritrade integration still causing some growing pains Cash sweep rates lower than Fidelity's money market

Recommended Resources

Tools & books I actually use and recommend

Interactive Brokers

Low commissions, global market access, and professional-grade tools. This is where I hold my positions.

Open an Account

The Intelligent Investor

Ben Graham's timeless guide to value investing. The book Warren Buffett calls "the best investing book ever written."

View on Amazon

The Psychology of Money

Morgan Housel on why managing money is about behavior, not intelligence. Short, brilliant chapters you'll re-read.

View on Amazon

Some links above are affiliate links. I only recommend products I personally use. See my full disclosures.