Fidelity vs Charles Schwab
Last updated July 2026
Fidelity
Full-service brokerage with best-in-class cash sweep and zero-fee funds
Advantages
- $0 commissions on stocks, ETFs, and options
- Highest-yielding cash sweep by default via SPAXX (~4.20% in mid-2026)
- Four Fidelity ZERO index funds with 0% expense ratio
- Excellent research, screeners, and retirement planning tools
- Fidelity Cash Management doubles as a checking replacement with ATM reimbursement
Drawbacks
- Trade platform (Active Trader Pro) less polished than Schwab's thinkorswim
- No futures trading
Charles Schwab
Full-service brokerage with the best trading platform (thinkorswim)
Advantages
- $0 commissions on stocks, ETFs, and options
- thinkorswim platform is the best free trading platform for active traders
- Schwab Investor Checking has no fees and unlimited ATM reimbursement worldwide
- Deep research, screeners, and retirement tools
- Access to futures and forex trading
Drawbacks
- Default cash sweep pays only 0.45%, must manually buy money-market funds for yield
- Schwab's own index funds don't quite match Fidelity ZERO's 0% fees
Fidelity and Charles Schwab are the two most-recommended full-service brokerages in the U.S. Both offer $0 commissions, deep research, retirement accounts, and cash management. The differences are subtle but meaningful once you dig in.
Feature Comparison
| Feature | Fidelity | Charles Schwab |
|---|---|---|
| Commissions | $0 stocks, ETFs, options | $0 stocks, ETFs, options |
| Options Contract Fee | $0.65 per contract | $0.65 per contract |
| Cash Sweep Yield | SPAXX at ~4.20% APY by default | 0.45% default; must manually buy SWVXX or SNSXX for yield |
| Mutual Funds | 3,500+ NTF; 4 ZERO expense-ratio index funds | 4,000+ NTF; broad Schwab index fund lineup |
| Futures Trading | No | Yes |
| Research Tools | Deep, multiple third-party research providers | Deep, Schwab-produced plus third-party |
| International Trading | Yes, 25 countries | Yes, 12 countries directly |
| Cash Management | Cash Management account with ATM reimbursement | Schwab Investor Checking with global ATM rebate |
Fidelity Wins
Fidelity wins for most investors because the automatic high-yield cash sweep and ZERO expense-ratio funds are meaningfully better than Schwab's defaults.
Both are excellent, but Fidelity's default SPAXX sweep quietly earns thousands of dollars more per year for the average investor holding idle cash. Schwab wins if you're an active trader who lives inside thinkorswim, or if you travel internationally and use ATMs constantly. For everyone else, Fidelity is the safer overall pick.
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