Charles Schwab vs Fidelity Investments — which broker is better?

Pros

• USD 0 commission on every online listed US stock and ETF order, with no share cap and no proprietary-fund restrictions
• thinkorswim desktop, web and mobile are included free — full options chains, thinkScript, backtesting and paperMoney simulation
• Options at USD 0.65 per contract, with the fee waived on buy-to-close orders at USD 0.05 or less
• Around 7,700 no-transaction-fee mutual funds in Mutual Fund OneSource, plus USD 0 new-issue Treasuries at auction
• 24/7 phone and chat support backed by close to 400 physical branches — an unusual combination for a discount broker
• SEC/FINRA-regulated with SIPC cover and an affiliated FDIC-insured bank; parent company SCHW is NYSE-listed and reports publicly
• Schwab Global Account gives online access to 12 foreign markets in local currency from the same login

Cons

• No spot cryptocurrency trading — only ETFs, futures and crypto-adjacent equities, which puts Schwab behind Fidelity and well behind Robinhood
• The default uninvested cash sweep pays close to nothing (0.01% at the time of writing); you have to manually move idle cash into a money market fund
• Transaction-fee mutual funds cost up to USD 49.95 per purchase, with a USD 74.95 ceiling for some fund families
• Margin rates sit near the top of the US market — roughly 11.8% below USD 25,000, versus mid-single digits at Robinhood
• Stock Slices fractional investing is limited to S&P 500 constituents, so it will not cover a small-cap or ADR watchlist
• Trading foreign stocks through a broker costs the greater of USD 100 or 0.75% of principal, which makes ad-hoc international orders expensive
• Currency conversion adds a percentage charge on top of the commission: 1% of principal per conversion below USD 100,000 in the Schwab Global Account, tapering to 0.2% from USD 1,000,000 — USD 100 on a USD 10,000 conversion. Except on small orders, the conversion charge is larger than the online commission. Outside the Global Account, Schwab's pricing guide allows a markup of up to 300 basis points (3%) on USD/foreign-currency conversions

Pros

• USD 0 online US stock and ETF commissions, and Fidelity does not accept payment for order flow on equity orders
• Zero-expense-ratio index mutual funds (the FZROX family) — no other major US broker matches this on fund cost
• Options exercise and assignment cost USD 0, and buy-to-close orders at USD 0.65 or less are free
• No outgoing account transfer fee, no domestic wire fee and no inactivity or maintenance fee
• Idle cash defaults into the SPAXX money market fund rather than a near-zero bank sweep, so uninvested balances earn a market-linked yield without manual intervention
• International trading in 25 markets with settlement in 16 currencies, at GBP 9 for the UK and EUR 19 for euro-zone markets
• Best-in-class research: roughly seven third-party report providers plus the proprietary Equity Summary Score, and consistently rated first for research and education
• Fractional share investing from USD 1 across a broad US universe, not just large-cap index constituents

Cons

• No futures, no futures options and no retail forex — a hard stop for macro and commodity traders
• No paper trading or simulator, so there is no way to rehearse a strategy inside the platform
• Crypto is limited to Bitcoin, Ethereum and Litecoin with a spread of up to 1% built into the price, and is not SIPC-protected
• New accounts are effectively US residents only; Fidelity states it does not open accounts for customers residing outside the United States and restricts existing accounts when clients move abroad
• Charting and drawing tools in Trader+ are weaker than thinkorswim's, and there is no backtesting engine
• The FX markup on international trades settled in USD starts at a full 100 basis points below USD 100,000 — expensive for small foreign orders