Schwab vs Fidelity for investing and your IRA in 2026

By Nicolas StrautLast updated October 7, 20267 min read

Tweed is committed to editorial integritySome links on this page are referral or affiliate links, which means Tweed is paid when you open an account or sign up through them. That payment never changes what we write.

Payment never influences our evaluations: every fee, rate, and rule on this page comes from the provider's own terms, observed on the date shown under the headline, and our verdict would read the same without the link. Providers can change or end their offers without notice, and they do not review our pages before we publish.

The investing information provided on this page is for educational purposes only. Tweed does not offer advisory or brokerage services, and does not recommend or advise investors to buy or sell particular stocks, securities or other investments.

Key takeaways

41% of IRA assets, or $8.0 trillion, was invested in mutual funds at the end of the second quarter of 2026.¹
When choosing between Schwab and Fidelity, start with which funds you plan to buy and whether you want a managed account before you compare trading features.
Fidelity is the stronger fit for an index-fund saver who wants $0 funds and a free exit, while Schwab is the stronger fit for a hands-off investor with $5,000 or more who wants a robo portfolio with no advisory fee.

In this article

Schwab vs Fidelity at a glance
What is Charles Schwab?
What is Fidelity?
Schwab vs Fidelity features compared
Schwab vs Fidelity fees for three kinds of investor
Schwab vs Fidelity for a Roth IRA
Should you choose Schwab or Fidelity?
Price your own year before you open an account
Frequently asked questions about Schwab vs Fidelity

Schwab vs Fidelity is a tie on trading costs, because both charge $0 online commissions on US stocks and ETFs and $0.65 per options contract.² The differences are in funds, managed accounts, and the cost of leaving. Fidelity's own index funds charge nothing to hold, and Fidelity charges nothing to transfer out. Schwab's robo portfolio charges no advisory fee at any balance above its minimum. This guide compares Schwab and Fidelity across trading costs, fund pricing, managed accounts, and what each charges inside an IRA.

Schwab vs Fidelity at a glance

Schwab and Fidelity charge the same headline prices but differ on funds, robo fees, and exit fees. Schwab's figures were read on schwab.com on October 6, 2026, and Fidelity's on fidelity.com between September 30 and October 6, 2026.

	Charles Schwab	Fidelity
Online stock and ETF commissions	$0	$0
Options	$0 base + $0.65 per contract	$0.65 per contract
House index funds	Thousands of OneSource funds with no transaction fee	ZERO index funds at a 0% expense ratio
Other companies' transaction-fee funds	Up to $74.95 per purchase	$49.95 per purchase
Secondary bonds	$1 per bond ($10 minimum, $250 maximum)	$1 per bond; Treasuries $0 online
Robo advisor	Intelligent Portfolios: $5,000 minimum, no advisory fee	Fidelity Go: $0 under $25,000, 0.35% at $25,000 and up
Account minimum	$0	$0
IRA match	None listed	None
Full account transfer out	Not confirmed on schwab.com	$0

What is Charles Schwab?

Charles Schwab is a full-service broker that charges $0 online commission on listed stocks and ETFs, sets no account or trade minimums, and sells thousands of mutual funds with no transaction fee through its OneSource list. It also runs Schwab Intelligent Portfolios, a robo advisor that needs $5,000 to start and charges no advisory fee.

Schwab is a Tweed partner. The Charles Schwab review covers Schwab's platform, research, and support. This page focuses on what you pay.

What is Fidelity?

Fidelity is a full-service broker with no account fee and no minimum to open. Its own fund family includes four ZERO index funds that charge a 0% expense ratio with no minimum investment.³ Fidelity also runs Fidelity Go, a robo advisor that charges no advisory fee on balances under $25,000.

Fidelity is not a Tweed partner. Tweed's Fidelity IRA review covers its retirement accounts, including Fidelity Go inside a Roth, in more detail.

Schwab vs Fidelity features compared

Each section below opens with the broker that comes out ahead on that feature. When neither broker comes out ahead, the section says so.

Stock, ETF, and options trading

Neither broker wins on trading costs, because the prices are identical: $0 online for US stocks and ETFs, and $0.65 per options contract at both.⁴ The prices match to the cent. What separates the two brokers for a trader is the platform you prefer to use every day.

Mutual funds

Fidelity wins for an index-fund buyer, because its ZERO funds cost nothing to hold and its fee on other companies' transaction-fee funds is lower, at $49.95 per purchase vs Schwab's charge of up to $74.95. Schwab offers OneSource, a list of thousands of funds with no transaction fee that covers most of what a long-term saver buys. Expense ratios on Schwab's own index funds weren't part of this check, so read the fund's own page before you buy it.

Managed accounts

Schwab wins for a hands-off investor with a larger balance, because Intelligent Portfolios charges no advisory fee at any balance once you meet the $5,000 minimum. Under $25,000 the two robo advisors cost the same in advisory fees: nothing. Above $25,000 Fidelity Go charges 0.35% a year, and the fee section below prices that charge by balance.

Cash yield and margin rates

Fidelity is the only one of the two whose cash rate Tweed could confirm: its SPAXX money market fund showed a 3.49% 7-day yield as of October 5, 2026. Schwab's sweep and money market yields, and its margin tiers, weren't confirmed on schwab.com for this update, so this page doesn't compare them. Tweed doesn't publish figures it couldn't check.

Transferring an account out

Fidelity wins on the exit, since it charges $0 to transfer an account out and $0 to close an IRA.⁵ Schwab's fee for a full account transfer is the one figure in this comparison Tweed couldn't confirm on Schwab's own site, so check Schwab's pricing page or ask Schwab before you count on a free transfer.

Schwab vs Fidelity fees for three kinds of investor

Schwab vs Fidelity fees depend on what you buy, so here is a year priced for three investors. Every figure is a published fee; returns and the expense ratios inside funds and ETFs aren't modeled.

An options trader

An options trader pays the same contract fee at either broker, so the choice depends on each broker's trading tools.

Options contracts per year	Schwab	Fidelity
100	$65	$65
500	$325	$325
1,000	$650	$650

A buyer of other companies' funds

A saver who buys transaction-fee funds from outside fund families pays up to $300 more a year at Schwab when buying monthly. Both brokers waive the fee on funds in their no-transaction-fee lists.

Transaction-fee fund purchases per year	Schwab, up to $74.95 each	Fidelity, $49.95 each
4	Up to $299.80	$199.80
12	Up to $899.40	$599.40

A hands-off investor using a robo advisor

An investor using a robo advisor pays nothing in advisory fees at Schwab from $5,000 up. Fidelity Go's 0.35% applies to the whole balance once the account reaches $25,000, because Fidelity calculates the fee at the account level, not on the dollars above the line.

Balance managed	Schwab Intelligent Portfolios	Fidelity Go
$10,000	$0	$0
$25,000	$0	$87.50
$50,000	$0	$175
$100,000	$0	$350

Schwab vs Fidelity for a Roth IRA

Schwab vs Fidelity for a Roth IRA is close to a tie on cost: neither pays an IRA match, both charge $0 to open, and both sell index funds without a transaction fee. Schwab's IRA page lists $0 opening and maintenance fees across traditional, Roth, rollover, inherited, and custodial IRAs, and Fidelity's Roth IRA lets you start investing from $1. The difference between them is the fee to transfer out, not the price of a trade.

Roth IRA	Schwab	Fidelity
IRA match	None listed	None
Opening and maintenance fees	$0	$0
Managed Roth option	Intelligent Portfolios, $5,000 minimum, no advisory fee	Fidelity Go, $0 under $25,000, 0.35% above
Fee to close or transfer out	Not confirmed on schwab.com	$0

The 2026 IRA limit of $7,500 is the same at any broker, and savers 50 and older can add a catch-up on top. If a match matters more to you than fund choice, the best Roth IRA accounts list includes brokers that pay a match, and theSchwab IRA review covers Schwab's accounts in full.

Should you choose Schwab or Fidelity?

Should you choose Schwab or Fidelity? Both suit a long-term investor, so the choice depends on two or three habits, not on the price of a trade. If you're also weighing an app-first broker, Robinhood vs Schwab and Robinhood vs Fidelity cover that trade-off, and Vanguard vs Fidelity covers the other index-fund house.

Choose Schwab if

You want a robo portfolio with no advisory fee and have at least $5,000 for it
You want rollover, inherited, and custodial IRAs at the same broker as your Roth
Your funds are on the OneSource list

Choose Fidelity if

You want index funds at a 0% expense ratio with no minimum
You buy other companies' transaction-fee funds, where Fidelity charges $49.95 a purchase instead of up to $74.95
You want to know today that moving the account later costs $0, and you'd like a published money market yield on idle cash

Price your own year before you open an account

Your fund list and your balance decide which broker costs less. Price your year with the three examples above, then run theTweed retirement calculator to see what a fee gap of a few hundred dollars a year compounds to by the time you retire. A fee you pay every year for decades costs far more than its yearly amount suggests.

The best brokerage accounts roundup compares both brokers with other brokerage accounts. If Schwab fits, you can open a Charles Schwab account.

Frequently asked questions about Schwab vs Fidelity

What is the downside of Fidelity?

The downside of Fidelity is that its strengths favor long-term fund investors. Its margin rates ran from 12.075% on loans under $25,000 down to 7.75% above $1,000,000 as of September 18, 2026. Those rates are expensive for a small borrower. If you don't borrow and don't care about an IRA match, Fidelity's fee schedule has few other fees to watch for.

What is the downside to Schwab?

The downside to Schwab is cost on less common trades, not on everyday trades. Broker-assisted trades add $25 each, and secondary bond trades carry a $10 minimum. Schwab pays no IRA match either. A few app-first brokers now offer one to win retirement savers who contribute every year and leave the money alone.

What are the top 3 brokerage firms?

There is no official top 3 brokerage firms list. Rankings for long-term investors usually name Charles Schwab, Fidelity, and Vanguard. Schwab alone reported $13.41 trillion in client assets at the end of August 2026. A firm's size suggests it will last, but not that it's cheaper.

Is Charles Schwab safe?

Yes, Charles Schwab is safe if the broker fails, because its brokerage is a SIPC member. SIPC protects up to $500,000 per customer, including $250,000 for cash. SIPC does not cover market losses, so the value of what you own can still fall. Fidelity's brokerage is a SIPC member too.

Is there an income limit for a Roth IRA at Schwab or Fidelity?

Yes, there is an income limit for a Roth IRA at Schwab or Fidelity, because the IRS sets it, not the broker. For 2026 the contribution phases out between $153,000 and $168,000 of income for single filers and between $242,000 and $252,000 for joint filers. If your income is above that range, look at a backdoor Roth.

Which brokerage has the best IRA?

Which brokerage has the best IRA depends on what you want the account to do. Several app-first brokers pay a contribution match, and as of October 6, 2026 the largest is 4% at Public with its $20-a-month Reserve plan. Schwab and Fidelity pay no match but offer far more funds. Whichever broker you pick, compare exit fees before you commit.

Is Vanguard better than Fidelity or Schwab?

Vanguard is not better than Fidelity or Schwab across the board, because it suits a different kind of investor. Vanguard is built around its own index mutual funds and ETFs, so it fits an investor who holds those funds and trades rarely. Vanguard charges $0 on online stock and ETF trades and a $25 annual account service fee that e-delivery waives.

Sources

https://www.ici.org/statistical-report/ret_26_q2
https://www.schwab.com/pricing
https://www.fidelity.com/mutual-funds/investing-ideas/index-funds
https://www.fidelity.com/trading/commissions-margin-rates
https://www.fidelity.com/why-fidelity/pricing-fees

Nicolas Straut

Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.

nicstraut.com

All 28 comparisons →