TD Ameritrade vs Fidelity vs Charles Schwab 2024

And you’ll pay an advisory fee of 0.50% to 1.50% for guidance from a wealth management advisor. If you use Fidelity’s robo-advisor service, you will have access to one-on-one financial coaching calls. Schwab has higher rates on many investment products and services than Fidelity, and has a worse trading platform.

• They also have large amounts of educational material on their website along with state-of-the-art market research.
• We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations.
• Charles Schwab and Fidelity both offer robust access to research to help investors make better investment decisions.
• The typical commission to trade a mutual fund at these two brokers is about $50.

Charles Schwab offers a best-in-class trading platform and zero-commission stock trading. That makes it a good choice for investors who want some face-to-face guidance. Schwab charges no commissions for bonds, while Fidelity and E-Trade charge $1 per bond. Fidelity does not offer futures, but futures with E-Trade and Schwab cost $1.50 per contract. Overall, E-Trade tends to be the cheapest option for trading mutual funds.

Recently, the trend amongst brokerage platforms has been to reduce or remove as many fees as possible. As a result, E-Trade, Schwab, and Fidelity collect no commissions for online stock, exchange-traded funds (ETFs), and option trades. However, all three charge $0.65 per options contract, with E-Trade dropping the price to $0.50 for investors conducting over 30 trades per quarter. Many of Fidelity’s investment products have lower costs than TD Ameritrade’s (many of which are Schwab offerings). Their trading platforms are both excellent, though thinkorswim gives TD a slight edge (I use TradingView anyways).

E-Trade vs. Schwab vs. Fidelity

Schwab holds a slight edge over E-Trade in terms of the breadth of product offerings. If you’re a DIY investor who’d like to avoid certain fees, E-Trade might be a good pick. E-Trade and Fidelity don’t take the same approach to fees. Meanwhile, the Federal Deposit Insurance Corp. protects E-Trade’s CDs at up to $250,000 per depositor.

Novice traders can easily get started with Fidelity or E-Trade. Both companies provide mobile and desktop platforms that aren’t overly complicated and educate without overwhelming users. Investing to secure a comfortable retirement might not be a foreign concept for most people, but how to invest isn’t as clear. With more asset variety and investment services in the market than ever, it can be challenging to know how to get started. Companies like E-Trade, Schwab, and Fidelity have done their utmost to earn the business of individual investors across the country.

Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Known as Core Portfolios, E-Trade’s robo-advisor requires a minimum investment of just $500 and charges an annual advisory fee of 0.30% of your assets.

What are some Fidelity and TD Ameritrade competitors?

For balances of at least $25,000, Fidelity charges a 0.35% annual advisory fee (based on assets under management); this includes free one-on-one coaching calls. Even before they acquired TD Ameritrade, Schwab was the largest brokerage in terms of assets under management. Now, it manages $7.3 trillion for a client base that ranges from long-term investors to short-term traders. Charles Schwab customers enjoy highly rated mobile apps on Android, iOS, and Windows devices.

Stash vs Fidelity and Others: Services

I’ve already told you that my preferred broker is Fidelity, but the decision was easier when I made it. Now that Schwab has acquired TD Ameritrade, the comparison between brokers has gotten tighter. Each broker caters to different types of investors – once you figure out your own needs and what each broker specializes in, the choice becomes obvious.

Which is better: Charles Schwab or Fidelity?

Charles Schwab was founded in 1971, giving the firm a tenure of more than 50 years in the brokerage business. Free and extensive, with several external providers available at no cost. For more details about the categories considered when rating brokers and our process, read our full methodology. Phone, email, chat 24/7, and in-person support available at branches Monday through Friday 8 a.m. No annual or inactivity fee; $50 for full transfer out of assets.

Education and Research

They can also use a web browser platform and a full desktop platform, StreetSmart Edge. The StreetSmart Edge platform is available to any Charles Schwab customer, regardless of trading volume or account balance. The TD Ameritrade thinkorswim platform was migrated over to Charles Schwab and is still available for customers who want to keep using it. If you’re a fan of fractional investing and automated investing, Fidelity might be a better bet compared with Charles Schwab.

You can view the information that’s most important to you (a stock’s daily volume, high or low price, price-to-earnings multiple, and so on). Charles Schwab and Fidelity are leaders in trading platforms. As a general rule, a discount charles schwab vs etrade broker won’t turn you away just because you want to start small. Looking at Charles Schwab vs. Fidelity, neither online broker has a minimum commitment. You can open an account without having to empty your savings account to do it.

Betterment vs. Vanguard: Automation Versus Human Support

Research from providers including, Morningstar, Argus, and S&P, plus more in-house generated commentary and tools. If you’re looking for a full-service investment broker, Schwab might be worth considering. As you might imagine, E-Trade and Schwab charge their fair share of fees. The Schwab platform bases investment decisions on a customer’s preferences, which can include one of three strategies and one of six risk profiles.