Both are excellent. Pick Fidelity for best-in-class app, zero-expense-ratio funds, and broader account types (HSA, Solo 401(k), Youth Account). Pick Schwab for 2x more branches, the thinkorswim active-trading platform, free robo-advisor, and Schwab Bank checking (best for international travelers). For passive investors with no banking or trading complications, Fidelity has a slight edge. For active traders, frequent international travelers, or those who value branch density, Schwab wins.
- 1.Fidelity: FZROX (Total Market) at 0.00% expense ratio. Schwab: SCHB (Total Market) at 0.03%.
- 2.Schwab: 400+ branches nationwide. Fidelity: ~200 Investor Centers.
- 3.Schwab: thinkorswim platform — widely considered the best free desktop trading platform.
- 4.Schwab Intelligent Portfolios: $0 management fee, $5K minimum, 6-30% cash allocation (drag).
- 5.Schwab Bank Investor Checking: unlimited worldwide ATM rebates, no foreign tx fees — best for travelers.
Side-by-Side Comparison
| Feature | Fidelity | Schwab |
|---|---|---|
| Stock/ETF commissions | $0 | $0 |
| Account minimum | $0 | $0 |
| Total market fund | FZROX (0.00% ER, Fidelity-only) | SCHB ETF (0.03%), SWTSX (0.03% mutual fund) |
| S&P 500 fund | FXAIX (0.015%) | SWPPX (0.02%) |
| International fund | FZILX (0.00%, Fidelity-only) | SCHF (0.06%) |
| Physical branches | ~200 Investor Centers | 400+ branches |
| Mobile app rating | 4.8 (iOS) — best in class | 4.5 (iOS) — functional |
| Active trader platform | Active Trader Pro | thinkorswim (industry-leading) |
| Robo-advisor | Fidelity Go ($0 below $25K, 0.35% above) | Schwab Intelligent Portfolios ($0 fee, $5K min, 6-30% cash) |
| Banking integration | Fidelity Cash Management Account | Schwab Bank Investor Checking |
| Foreign ATM rebates | Yes, US ATMs only | Yes, worldwide (industry-leading) |
| Default cash sweep | SPAXX ~2.62% | Schwab Bank Sweep ~0.45% |
| Solo 401(k) with Roth | Yes (rare) | No |
| HSA | Yes, full investment access | No |
| Crypto | Bitcoin, Ethereum (limited) | Bitcoin futures, no spot |
| 24/7 phone support | Yes | Yes |
Verified May 13, 2026 against fidelity.com and schwab.com.
Which has lower fund expenses?
Fidelity, by a small margin. The ZERO funds are unique:
| Fund | Provider | Expense Ratio | Minimum |
|---|---|---|---|
| FZROX (Total Market) | Fidelity | 0.00% | $0 |
| FZILX (International) | Fidelity | 0.00% | $0 |
| FNILX (Large Cap) | Fidelity | 0.00% | $0 |
| SCHB (Total Market ETF) | Schwab | 0.03% | $0 |
| SWTSX (Total Market) | Schwab | 0.03% | $1 |
| SWPPX (S&P 500) | Schwab | 0.02% | $1 |
| SCHF (International ETF) | Schwab | 0.06% | $0 |
On a $500,000 portfolio in total market funds:
- FZROX: $0/year in expense ratios
- SCHB: $150/year
Real but small. The bigger consideration is portability — like Vanguard's VTI, Schwab's SCHB is an ETF that can be transferred to any brokerage in-kind. Fidelity's FZROX cannot leave Fidelity without being sold first.
What is thinkorswim and why does it matter?
thinkorswim is the most advanced free trading platform available, and Schwab is the only major brokerage that offers it. Originally built by TD Ameritrade (acquired by Schwab in 2020), thinkorswim provides:
- Advanced charting with 400+ technical indicators, drawing tools, and custom scripting
- Options analysis including Greeks, probability cones, custom strategy builders
- Paper trading with realistic market simulation
- Scripting language (thinkScript) for custom indicators and alerts
- 24/5 futures trading with full market depth
- Live news, earnings, and economic data integrated into charts
- OnDemand replay that lets you replay historical market sessions to practice strategies
Fidelity's Active Trader Pro is a solid platform, but it lacks thinkorswim's depth, customization, and reputation among professional traders.
Does this matter to you? Only if you're an active trader making frequent options, futures, or short-term equity trades. For buy-and-hold index investors, thinkorswim is irrelevant — you'll never open it. For active traders, it's the single biggest reason to choose Schwab.
What is Schwab Intelligent Portfolios?
Schwab's robo-advisor is unique: $0 management fee, $5,000 minimum investment. No other major brokerage offers a truly free robo. The catch: Schwab allocates 6-30% of your portfolio to cash (held in Schwab Bank, paying ~0.45%).
This "cash drag" is how Schwab profits from the free service — Schwab Bank earns more on lending out the cash than it pays you in yield.
Worked example on a $50,000 portfolio:
| Robo | Management Fee | Cash Allocation | Cash Drag (vs equity at 7%) | Total annual cost |
|---|---|---|---|---|
| Schwab Intelligent Portfolios | $0 | 10% ($5,000) | ~$325/year forgone equity returns | ~$325 |
| Wealthfront | 0.25% ($125) | 0% | $0 | $125 |
| Betterment | 0.25% ($125) | 0% | $0 | $125 |
| Fidelity Go | $0 (below $25K) | 0% | $0 | $0 |
Schwab Intelligent Portfolios looks free but actually costs more than Wealthfront or Betterment for most portfolio sizes. The exception: Fidelity Go is genuinely free for balances below $25,000 — making it the cheapest robo for smaller accounts.
For larger accounts where cash drag is meaningful, paying 0.25% to Wealthfront or Betterment for 100% equity allocation typically wins.
Why is Schwab Bank Investor Checking notable?
Schwab Bank Investor Checking is widely considered the best checking account in America for travelers. Features:
- Unlimited ATM fee rebates worldwide — Schwab refunds ALL ATM fees, anywhere on Earth, with no cap
- No foreign transaction fees on debit card purchases
- No monthly fees, no minimum balance
- Free wires (domestic, with conditions)
- Free checks
- Linked Schwab brokerage account for instant transfers
For a frequent international traveler, the unlimited worldwide ATM rebates alone can save $200-$500/year vs typical bank fees ($3-5 per international ATM use + 3% foreign transaction fees).
Fidelity's Cash Management Account is similar but caps ATM rebates at U.S. domestic locations primarily — international rebates are more limited.
If you travel internationally regularly, Schwab Bank Checking is a real reason to choose Schwab as your primary brokerage.
Which has better mutual fund/ETF selection?
Roughly equivalent. Both offer:
- All major mutual fund families (Vanguard, BlackRock, T. Rowe Price, American Funds, etc.)
- All major ETF providers (iShares, Vanguard, Schwab, SPDR)
- Their own proprietary index fund families
- $0 commission on stocks and ETFs
- Mutual fund minimums vary by fund family
The differences are at the margin:
- Fidelity has the ZERO line (true 0.00% expense ratios)
- Schwab has thinkorswim-integrated screening that's more powerful for active investors
- Schwab has slightly broader options/futures availability
For passive index investors, both have effectively equivalent fund selection.
Choose Fidelity if...
- You want the best mobile app experience
- You want zero-expense-ratio index funds
- You need Solo 401(k) with Roth contribution option (self-employed)
- You want an HSA with full investment access
- You'll use Fidelity Cash Management Account for U.S. domestic banking integration
Choose Schwab if...
- You're an active trader (thinkorswim is the killer feature)
- You travel internationally and want unlimited worldwide ATM rebates
- You value branch density (400+ vs ~200)
- You want a free robo-advisor (Schwab Intelligent Portfolios)
- You want a wider range of in-person advisor options
Use both if...
A common dual-brokerage setup for diversified investors:
- Fidelity for retirement accounts (Roth IRA, HSA, Solo 401(k)) — leverage the ZERO funds and account breadth
- Schwab for taxable brokerage + checking account — leverage thinkorswim, worldwide ATM rebates, and branch access
Both are excellent custodians. There's no penalty for splitting accounts across two top-tier brokerages.
Schwab's default cash sweep (~0.45% via Schwab Bank Sweep) is significantly lower than Fidelity's SPAXX (~2.62%) and dramatically lower than Vanguard's VMFXX (~4.50%). Active Schwab users typically move cash manually to Schwab Value Advantage Money Fund (SWVXX, ~4.40%) for higher yields. By default, Schwab pays one of the lowest cash sweep rates in the industry — a notable downside for cash-heavy investors who don't optimize.
What to Do Now
- ✦Both Fidelity and Schwab offer $0 commissions, $0 minimums, and broad fund selections.
- ✦Fidelity has FZROX at 0.00% expense ratio. Schwab's lowest broad index is SCHB at 0.03%.
- ✦Schwab has 400+ branches (2x Fidelity's ~200) and the thinkorswim active-trader platform.
- ✦Schwab Bank Investor Checking offers unlimited worldwide ATM rebates — best in industry for travelers.
- ✦Schwab Intelligent Portfolios is free but allocates 6-30% to cash, creating drag. Wealthfront/Betterment usually beat it on net.
- ✦For passive investors: lean Fidelity. For active traders + travelers: lean Schwab. Both are excellent.
Related Calculators and Guides
Sources: Fidelity.com, Schwab.com, Bankrate and Wealthvieu brokerage reviews (April-May 2026), 24/7 Wall St. brokerage analysis (March 2026). Expense ratios, branch counts, and platform features verified May 13, 2026. SwitchWize may receive commission when readers open accounts through our links; this does not affect rankings.
Frequently asked questions
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Ranked by composite score: rate + trust + ease
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