What Is The Difference Between Charles Schwab Vs Fidelity Investments?
Apr 26, 2023 By Rick Novak

Charles Schwab and Fidelity Investments are two of the largest and most well-known investment firms in the United States. Both companies offer various investment products and services, including brokerage accounts, retirement accounts, mutual funds, and ETFs. Choosing between the two can take time and effort with so many options. This article will compare Charles Schwab and Fidelity Investments across several categories, including account types, fees and commissions, investment products, research and education, and customer service. After this essay, you will have a better understanding of the similarities & distinctions between these two investing businesses. You will be better prepared to choose the one that is best for you.

Account Types

Both Charles Schwab and Fidelity Investments provide clients with a selection of account types to meet a wide range of requirements and objectives regarding financial investments. Individuals can open brokerage accounts with Charles Schwab, retirement accounts (including standard IRAs, Roth IRAs, and SEP IRAs), custodial accounts for minors, and trust accounts. Individual brokerage accounts, retirement accounts (conventional IRAs, Roth IRAs, and SEP IRAs), custodial accounts, and trust accounts are some of the other account types that can be opened with Fidelity Investments. On the other hand, Fidelity also provides access to a health savings account (HSA) and a 529 plan for saving money on college expenses.

Charges Paid And Earned As Commissions And Fees

Both Charles Schwab and Fidelity Investments offer prices for their investment goods and services that are comparable to one another and are competitive in the market. Online stock, ETF, and options trades conducted through Charles Schwab are free of charge, whereas mutual fund trades cost $4.95 per transaction. Fidelity Investments does not levy any fees for online trading involving stocks, ETFs, or options; the same is true of trades involving Fidelity mutual funds. On the other hand, mutual funds not offered by Fidelity will charge you a transaction fee of $4.95 for each trade.

Products for Investment and Savings

Charles Schwab and Fidelity Investments provide clients access to a comprehensive selection of investment vehicles, such as equities, bonds, mutual funds, exchange-traded funds (ETFs), and many others. However, compared to Charles Schwab's selection of over 4,000 mutual funds, the number of options available through Fidelity Investments (almost ten thousand) is far greater. Additionally, investors can purchase fractional shares of stocks and exchange-traded funds (ETFs) through Fidelity. This enables investors to purchase a piece rather than a complete share.

Both Research And Teaching Are Of Utmost Importance

Charles Schwab and Fidelity Investments, two of the most prominent investment companies in the United States, provide clients with extensive research and educational materials. Charles Schwab provides its customers access to various instructional tools like webinars, articles, and videos. In addition to this, they give customers access to their research and insights and research conducted by third parties such as Morningstar and others. Fidelity Investments provides access to comparable materials, such as webinars, articles, and videos, as well as access to their own research and insights, research from third parties like Morningstar and others, and proprietary research tools such as Stock Screener and Research Wizard.

The Provision Of Services To Customers

Customer satisfaction is a top priority at both Charles Schwab and Fidelity Investments, which both have earned strong reputations. The customer service representatives at Charles Schwab are available by phone and chat around the clock, and they also provide in-person assistance at each of their branch locations. In addition to that, they provide an extensive assistance centre that can be accessed online. Fidelity Investments provides customers access to various support alternatives, including in-person support at their branch locations, phone and chat support available around the clock, and an extensive online help centre.


Both Charles Schwab and Fidelity Investments provide customers with high-quality investment products and services at prices comparable to those of their competitors and with great support staff. Ultimately, the choice between the two may come from the individual investor's specific investment objectives, requirements, and preferences. Individuals searching for a simpler and more basic investment experience may find that Charles Schwab is a better fit than Fidelity Investments, while individuals looking for a wider selection of investment products and research tools may find that Fidelity Investments is a better fit than Charles Schwab.