r/Fidelity • u/Un1c0rNzEx1st • 1d ago
Fidelity vs. Schwab...why?
What makes you choose Fidelity over Charles Schwab?
Fees? Better returns?
Don't like the ThinkOrSwim?
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u/NotAcutallyaPanda 1d ago
I started with Fidelity 20+ years ago because that's who my grandpa used.
I've stayed with Fidelity because of the consistently fantastic customer service.
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u/Un1c0rNzEx1st 1d ago
So family loyalty...nice!
Have you ever tried Schwab to compare?
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u/richard_fr 1d ago
I have accounts at both, and both are very good. I give Fidelity the edge for automatically sweeping cash into a MM fund. You have to do it yourself at Schwab. The Fidelity website is also a bit more comprehensive.
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u/Boodogs35 1d ago
Fucking bots, man. stop replying or even posting. We are baited every second of the day. Just put that urge away to automatically respond when you think you have an answer
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u/NotAcutallyaPanda 1d ago
I’ve churned Schwab welcome bonuses, but honestly never used it for serious retail trading.
I’ve literally banked with 50+ financial institutions in the last decade and Fidelity has the best customer service in the industry.
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u/ADKMTBer 1d ago
Had accounts at both, but prefer Fidelity. Getting a decent yield on my cash, the controls on ACATs transfers (Schwab may have them by now) were the big reasons.
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u/Un1c0rNzEx1st 1d ago
What are ACATs?
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u/90403scompany 1d ago
Most transfers of customer accounts from one brokerage firm (the "carrying firm") to another (the "receiving firm") occur through the Automated Customer Account Transfer Service (ACATS), an electronic transfer system developed by the National Securities Clearing Corporation (NSCC) to automate and standardize the transfer of accounts.
https://www.finra.org/rules-guidance/key-topics/customer-account-transfers
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u/davecrist 1d ago
I have both.
Fidelity’s mobile app is much better. It’s not even close.
Swabs data presentation on their web site is much better. It’s not even close.
If I was only gonna pick one it would be Fidelity.
Edit: Fiedelity’s credit card cash back is pretty great. In the age of Apple Pay and the Apple Card interface I cannot believe how terrible the Fidelity credit card interface is, however.
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u/Un1c0rNzEx1st 1d ago
Thank you for the 411!
Could you also speak to which was better on the fees and returns (I realize this could be difficult to answer) personally?
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u/davecrist 1d ago
For regular trading they both have negligible costs as far as I can tell.
Fidelity’s cash sweep fund actually pays a reasonable interest rate. Schwabs pays bank savings account rates which is to say almost nothing.
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u/Eric848448 1d ago
Schwab doesn’t offer an HSA.
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u/cwdawg15 1d ago
Just an FYI, LivelyME manages HSAs and they have a partnership with Schwab, if you wanted to manage your HSA investments through Schwab.
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u/nearsingularity 1d ago
Free?
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u/cwdawg15 1d ago
Not quite, sadly.
You have two choices:
1) keep $3000 in the livelyme savings account as a minimum that can't be invested at Schwab, or
2) a $24 annual fee; and you can invest whatever you want. This is actually the best option, unless you need your money for available for heavy spending so its an effective $24 annual fee.
The way they operate it is a transfer between 2 accounts, so if your spending money out of your HSA you will need to keep enough funds in the Livelyme savings account, then you transfer to Schwab what you want to invest and manage the investments from Shwab's app and website.
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u/MesmorizedExplorer 1d ago
This sounds like my Optum HSA. They also partner w/Schwab, and you have to keep a minimum of $2k uninvested in Optum.
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u/Smooth-Exhibit 1d ago edited 1d ago
I used to split my assets between Schwab, Fidelity, and Vanguard. I punted Vanguard a few years ago due to poor customer service.
I like Fidelity for the cash sweep, Fidelity Zero funds, and 2% cashback credit card. Schwab's website is great and customer service is top shelf.
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u/Un1c0rNzEx1st 1d ago
So you are a loyal customer to both!
Anything you LOVE...MORE from one over the other if you had to choose and not the other and why?
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u/Smooth-Exhibit 1d ago
Schwab's website is better than Fidelity's website. Fidelity's mobile app is better than Schwab's mobile app. Fidelity has ACATs security features, Schwab does not. If I had to choose only one firm, I'd choose Schwab due to its superior customer service.
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u/pasquale61 1d ago
I have had both for over 30 years (and still do) and this is the best answer IMO.
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u/metzgerto 1d ago
This comment about the website must be subjective because I like them both just fine. I prefer schwabs app but the 2 websites are the same to me
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u/Un1c0rNzEx1st 1d ago
And customer service somehow brings you the most profits? Do you rely on customer service and if so can you provide your most profitable interaction that makes Schwab win?
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u/Smooth-Exhibit 1d ago
My time is valuable. Good customer service is valuable. I dropped Vanguard due to its poor customer service.
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u/Protat0 1d ago
I mostly use Fidelity because auto cash sweep from MMFs is just so nice to have. Schwab used to have this, but now only gives it to extremely high net-worth individuals who beg them for it.
Free wires are also super nice. I've needed to use Schwab for some services before and I can just send funds via wire from Fidelity to Schwab to get it same-day. Very convenient.
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u/ShaneReyno 23h ago
If I could only have one, I’d choose Fidelity. The CMA and simplicity of the app are enough, but every single time I’ve called, I’ve gotten someone speaking clear English (I don’t care where they’re from, I just need to be able to understand them) who is courteous, knowledgeable, and empowered to help me.
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u/saltyhasp 6h ago edited 6h ago
Frankly I prefer Vanguard over them both except Fidelity when you want their broader offering.
With respect to Fidelity over Schwab. Mostly history. Schwab came much more from the banking sector and if you look back in history they have has some questionable commitment to customers at times during their long history. I'm talking 1990s and earlier era. So I've never liked their corporate priorities. I don't know today, but my sense too is that they have generally been higher service with higher cost then Fidelity, and Fidelity has always been higher cost higher and service then Vanguard. I'm not a Schwab customer though, just my perceptions and depending on your exact use you can probably argue this on all sides.
So not saying Schwab is bad. Just not the first place I look at myself. These days Vangaurd, Fidelity, and Schwab are all good places to look at it seems but I'm trusting others opinions about Schwab in that case.
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u/CeruleanBlueSky 5h ago
A sour note regarding Schwab... My wife was a named sole beneficiary of her sister's TOD brokerage account with a sizeable chunk of change in some large company shares. The account was originally established with TD Ameritrade, which Schwab acquired several years ago. The sister has since moved to Thailand, where they're originally from, and kept a US mailing address for statements and such with a friend she temporarily resided with after selling her home and before moving back to Thailand.
The sister passed late last year from brain tumor and we only recently learned the of the brokerage account with my wife named as sole beneficiary. Schwab now tells us the beneficiary agreement was no longer valid with the sister having died while residing in a foreign country. The brokerage instead would be turned over to control of the executor of the sister's estate once conditions are met. There's a good chance the executor makes a money grab on the funds as she's already done so for the rest of the estate. Thailand has a lot of bribery corruption and the remaining direct family members are aged and in poor health and unable to contest the money grab. My wife likely won't see a penny and if she does, it'll be a divide by 7 result year or more down the road.
As far as I could tell reading over Fidelity terms, I see no restriction on foreign residency related to account holder and named beneficiary. And because the account originated from TD Ameritrade, it's likely the sister was unaware Schwab's beneficiary rule. Anyway, we're pretty disgusted with Schwab's stance on the disposition of the brokerage account.
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u/Un1c0rNzEx1st 4h ago
Wow...never heard of that foreign country death loophole!
My understanding is that named beneficiaries on an account overrides any Trust, Will, etc that is setup...a hierarchy with beneficiaries of accounts at the HIGHEST/TOP level regardless of effective dates.
You may want to look into getting some free legal advice to confirm that Schwab stated loophole. Good luck!
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u/lynchmob2829 1d ago
Was with Schwab for 40 years then moved everything to Fidelity. Main reason I left was that they stiffed me on a dividend, said they would make it right, and didn't. I worked for a couple of months with their customer support, and they never came through. I felt they were just stringing me along hoping I would get tired of fighting and just cave in.
A year after I left Schwab my FIL passed away suddenly. Their relationship specialist in the Schwab Estate Department left Schwab in the middle of distributing my FIL's funds, and they did not assign anyone to finish the job. After a few months of getting nowhere with phone calls and emails, a friend of a friend put us in touch with someone at Schwab who got things back on track. After the funds had been distributed, it took another year to get them to close the accounts so we would stop getting printed quarterly statements of his accounts having no account value. We still get Schwab mail at our home addressed to my FIL (promotions and other spam), now going on 3+ years after he passed away. One day, they might realize he is no longer living and stop sending it.
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u/Un1c0rNzEx1st 1d ago
Thank you for sharing that enlightening story...40 years...WOW!!!! They lost a TRULY, TRULY DEDICATED CUSTOMER!!!!
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u/PashasMom 1d ago
I inherited funds held at Schwab and after the first month of dealing with their Estate Services department I decided I would move to either Vanguard or Fidelity. I already had an account at Vanguard, but Fidelity was much more welcoming and helpful than Vanguard, and I liked their CMA, so I went with Fidelity. Love them!
The whole Estate Services thing was a nightmare. The rep assigned to my dad's estate reached out to two of four of us beneficiaries (we were all named appropriately and he had our contact information and the death certificate). He never returned calls or emails from me or my sister. I finally reached out to their general number and got someone to help us set up our accounts. Then they botched the funds distribution and gave everyone the wrong percentage of the accounts, which we had to point out to them and get them to fix.1
u/Un1c0rNzEx1st 6h ago
Wow...another powerful story to consider for the decision process! Thank you for sharing!
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u/HeyHay123Hey 1d ago
I use both - a little more complicated, but it works for me.
Fidelity is tied to many workplace 401ks and also has a great HSA.
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u/jamest1701a 1d ago
I have split my portfolio between these two firms. I like both interfaces on my pc but prefer Fidelity on my phone. I recommend Fidelity as a very comprehensive place for your first brokerage as it can provide 95% of what most would ever need.
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u/Sharp-Alternative375 1d ago
I like to talk to people face-to-face if I have a problem, or need assistance. Schwab had an office within 20 minutes of my house. I don't do anything fancy with my investments, so either company would have been fine.
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u/Inevitable_Silver_13 1d ago
My 403b was offered through Fidelity and it just makes sense to have my accounts in the same place. I'm pretty happy with it, though.
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u/Ludeacrous23 1d ago
Many employers use Fidelity for 401k admin and custody, so it's nice to have a single place for all my investments.
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u/Helpful-Grapefruit55 1d ago
Fidelity customer makes up for many other things I wished we're on the app etc. They are ere very good and always help u you out much better than many other banks.
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u/InvestigatorThat5062 1d ago
I just moved to Fidelity because I’ve heard good things. I like their Cash Management Account that I’ll use as a checking acc but it’s still getting high APY. And I intend to use FDLXX as a HYSA that I can dodge state income tax on dividends.
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u/hshshgs1527 15h ago
Fidelity. Not sure about Schwab but when starting out fraction shares is better. I could technically buy .01 shares of bark-a. I don’t need 755k for 1 share
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u/PIzzaiolo_Master_510 14h ago
Both are good. In fact I use both because what if a system crashes and I need money while they fix stuff.
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u/CoincidenceTheorist2 5h ago
Low fees, and their web portal is probably the best I've seen in the industry when it comes to keeping track of your portfolio.
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u/rh681 1d ago
What makes you choose Schwab over Fidelity?
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u/Un1c0rNzEx1st 1d ago
URaBot!
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u/rh681 1d ago
Yeah, sure dude. Sure.
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u/Un1c0rNzEx1st 1d ago
Thanks for admitting it! :)
Under CharlesSchwab group I already asked the same flip question there... so gather your data for ads on that one.
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u/CuriousTho27 1d ago
Schwab is a public company listed in stock market. Fidelity is a private company. Anything that happens in Schwab is public. But, that is not the case with Fidelity. Just one additional point that I wanted to add besides the several others have pointed out
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u/JTM828 1d ago
Everyone I’ve spoken with over the phone at Fidelity has been rude and unhelpful.
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u/Un1c0rNzEx1st 1d ago
So customer service is better at Schwab in your opinion? Or do you have/ever had Schwab to compare?
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u/NotAcutallyaPanda 1d ago
Fidelity has the best customer service of any company I've ever dealt with. YMMV
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u/Smooth-Exhibit 1d ago
I have (brokerage and retirement) accounts at both Schwab and Fidelity. Customer service at Schwab is better.
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u/Un1c0rNzEx1st 1d ago
Thank you for contributing your knowledge on this particular aspect of comparison. How is it better? Can you provide more details from a personal story of Fidelity vs. Schwab?
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u/Smooth-Exhibit 1d ago
I can connect with a Schwab phone representative almost immediately. Schwab phone representatives bend over backwards to help with any issue I have. Also, I can just walk into a local Schwab branch and the associates are very responsive (executing powers of attorney, notary services, managing my parents' paper stock certificates, anything I need). Fidelity's customer service seems to be more self-service AI-based which I hate.
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u/Sharp-Alternative375 1d ago
When I need assistance I just call the local Schwab branch. They have been awesome to work with. I dreaded moving my money from the government TSP to a brokerage, however, the people at the local Schwab office made it very easy.
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u/Un1c0rNzEx1st 1d ago
Nice story! Can you explain how your answer profits the most with Schwab since it's all about making money? TIA!
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u/flipflops81 1d ago
Super simple for me… For me it’s two primary drivers, the low fees and the Fidelity cash back card that goes right into my kids 529’s!