E-Trade vs. Schwab vs. Fidelity

Investing to secure a comfortable retirement may not be a foreign concept for most people, but how to invest is not so clear. With a greater variety of assets 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 gone to great lengths to earn the business of individual investors across the country. With low fees and a broad range of services, investors of all stripes can easily start earning with an investment account with any of these firms. However, when comparing E-Trade vs. Schwab vs. Fidelity, it all comes down to the details. This guide can help you better the services each company provides so you can choose the best that will best serve your needs.

For more help with retirement planning, consider working with a financial advisor.

E-Trade vs. Schwab vs. Fidelity Overview

When comparing E-Trade vs. Schwab vs. Fidelity, there are several similarities that they share as three of the most popular financial companies that offer clients investment and banking services. Each differs in its offerings, and understanding the distinctions can help you decide which one will serve you best.

E-Trade was one of the first companies to establish itself in the online brokerage market. Its longstanding E-Trade app is excellent for new investors looking to get experience in the stock market. Its second app, Power E-Trade, offers advanced options and deep analysis for expert traders.

In 2020, Morgan Stanley acquired E-Trade. Through the acquisition, E-Trade customers can access banking services from Morgan Stanley. In addition, E-Trade offers brokerage accounts, managed portfolios, and retirement accounts for individuals and small businesses.

Fidelity stands out for its extensive spectrum of assets available through its brokerage accounts. Plus, it has eliminated swaths of fees, and many of its accounts have no minimum requirement, including its brokerage accounts, IRAs and custodial accounts. Instead of a conventional banking suite, there is a Cash Management Account that combines investing, saving and checking functionality. As a result, Fidelity’s investment products are among the most accessible in the market.

Schwab, formally known as Charles Schwab, acts as a one-stop shop for a client’s every financial need. Its investment funds have no trade or account minimums. In addition, Schwab allows clients to invest in actively and passively managed funds and individual equities. Plus, Schwab offers a sophisticated robo-advisor tool for investors with large balances through its Intelligent Portfolios feature.

E-Trade vs. Schwab vs. Fidelity: Fees

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 certain trades, such as 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. In addition, trading mutual funds at any of the companies is usually free.

However, both Schwab and E-Trade charge to trade OTC stocks, depending on user activity, while Fidelity charges nothing for this feature. Generally, trading native products within each platform will help you avoid investment fees. Additionally, E-Trade and Fidelity provide dozens of fee-free funds that make passive investing effortless.

E-Trade has a $500 minimum to open a robo-advisor Core Portfolio account that charges 0.3% of the assets managed. On the other hand, Schwab’s robo-advisor accounts have a $5,000 minimum with no fees. Investors who enroll in the Schwab Intelligent Portfolios Premium feature for financial advisor access will incur a $300 planning fee, plus a $30 monthly advisory fee. Lastly, Fidelity’s robo-advisor Fidelity Go accounts have no fees for accounts under $10,000 and 0.35% annually for accounts with $25,000 or more.

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 costs $1.50 per contract, while Schwab costs $2.25 per contract. Overall, E-Trade tends to be the cheapest option for trading mutual funds.

E-Trade vs. Schwab vs. Fidelity: Services and Features

A couple compare E-Trade vs. Schwab vs. Fidelity for their investment needs.

Each company provides several different types of accounts, including free individual stock trading, 401(k)s, individual retirement accounts (IRAs), college saving plans, and joint and custodial accounts. In addition, most accounts have low or no minimum requirements, barring some exceptions, such as Schwab’s $5,000 robo-advisor account. Both Schwab and Fidelity offer 529 plans for education, while E-Trade has a Coverdell education savings account.

In terms of support, Schwab offers a daily Q&A stream Monday through Friday, covering key investing topics. Plus, clients can speak with an investment professional 24 hours a day, 365 days a year, via phone.

Similarly, Fidelity employees are available by phone any time of day or night. Additionally, there is a live chat feature seven days a week on its website, with individual support available for customers reaching out on Reddit, X and Facebook.

In comparison, E-Trade offers limited support with hours only available Monday through Friday.

Finally, all three companies offer robo-advisor services that gather your personal preferences for investing, with Schwab Intelligent Portfolios requiring the most money to get started. To help provide greater direction, all three companies have vast learning libraries online for investors who want to learn more at no extra cost.

E-Trade vs. Schwab vs. Fidelity: Online and Mobile

All three companies’ apps hold excellent ratings, but customer feedback varies.

E-Trade’s two investment apps are renowned for ease of use and appeal to investors of all experience levels. Beginners can get their feet wet with the E-Trade app, while seasoned traders can take advantage of the depth and customization of the Power E-Trade mobile and desktop app. That said, the E-Trade app holds a 4.7-star rating on the Apple Store and 4.7 stars on Google Play. Power E-Trade has a 4.6-star rating on the Apple store and 4.3 stars on Google Play.

Schwab has a reputation for overwhelming users with too much information, but using its platform on mobile or desktop is surprisingly straightforward. Schwab Mobile has a 4.8-star rating on the Apple store but just 2.6 stars on Google Play. Overall, both new and veteran investors should find Schwab’s tools intuitive.

However, active traders will likely prefer the thinkorswim desktop version, as the mobile version has significantly fewer features. It shows in the ratings, as the thinkorswim app has just a 2.5 rating on Google Play.

Fidelity boasts a 4.8-star rating on the Apple store and 4.6 stars on Google Play. Users report ease of use and excellent customer service. Fidelity’s website functions similarly well, giving users direct access to their accounts with tons of free educational content.

Who Should Use E-Trade, Schwab and Fidelity?

All three companies have worked hard to bring down costs, and they emphasize user experience. Although they have more in common than their differences, investors with specific priorities may gravitate to one company over the others.

For example, experienced investors will likely prefer Schwab or Power E-Trade, as these services provide abundant analysis, information and functionality. However, because of Schwab’s low ratings, mobile-only traders may prefer a different app.

Traders with $5,000 looking to invest through a robo-advisor can access maximal customization with Schwab. That said, Fidelity E-Trade offers investors excellent robo-advisor services with significantly lower minimum requirements.

Novice traders can easily get started with Fidelity or E-Trade. Both companies provide mobile and desktop platforms that are not overly complicated and educate without overwhelming users.

How to Choose the Right Platform for You

E-Trade, Schwab and Fidelity each offer strong investment platforms, but the best choice depends on your personal needs and preferences.

These factors can help when determining which brokerage is right for you.

1. Your Investment Goals

Active trader. If you are looking for advanced tools, real-time data and in-depth analysis, Schwab and E-Trade (particularly Power E-Trade) stand out for their robust platforms that are designed for experienced investors.
Passive investor. If you prefer a set-it-and-forget-it approach, Fidelity and Schwab both offer excellent low-cost index funds, mutual funds and highly-rated robo-advisors to help you build a diversified portfolio.

2. Account Size and Minimums

Small upfront investment. If you are just starting out with a small amount of money, Fidelity and E-Trade shine because they have low or no minimums on many accounts.
Large upfront investment. If you are investing a larger sum and want greater customization or more personalized advice, Schwab’s higher-tier services and premium robo-advisor options may be worth exploring.

3. Device Preferences

Mobile app. Do you prefer trading and managing your investments on your phone or tablet? E-Trade’s mobile apps (both standard and Power E-Trade) consistently get high marks for usability.
Desktop. If you plan to use a desktop for more complex trading, Schwab’s desktop thinkorswim platform offers powerful tools but may feel overwhelming for beginners.
Mobile and desktop. Fidelity offers solid performance on both mobile and desktop, making it a great middle-ground option for most investors.

4. Customer Support Needs

If having fast, reliable support is important to you, Schwab and Fidelity offer 24/7 phone service, live chat, and even in-person help at branches nationwide. E-Trade also provides strong support but with limited hours and no branch support.

By assessing your financial goals, investment style and trading preferences, you can pick the platform that fits you best, regardless of whether you are just getting started, trading daily or managing your retirement savings.

Bottom Line

A couple chooses a brokerage for their investment portfolio.

Individual investing services is a competitive industry, and it shows in the companies vying for customers in that space. When comparing E-Trade vs. Schwab vs. Fidelity, all three offer a full suite of services with little to no fees for many services and both mobile and desktop apps highlighting intuitive use. While investing with any of these three will help you grow your wealth, more experienced traders may prefer the additional features of Schwab or Power E-Trade. On the other hand, green investors may be better suited by E-Trade or Fidelity.

Take the time to explore all available brokerages, and consult a financial advisor who can provide expert advice while guiding your investment plan.

Investing Tips

Investing through a brokerage isn’t for everyone, especially if you don’t have the time or interest to research stocks. A financial advisor can provide the investing services you need. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you decide to invest on your own, it pays to know what you’re doing. SmartAsset has you covered there as well. For example, check out our free investment calculator.