By the Bigger Investing Team • Updated April 2026 • Affiliate Disclosure: We may earn a commission when you sign up through our links, at no extra cost to you.
⚡ Quick Picks
✅ Fidelity — Best overall for beginners: fractional shares, cash management, and top-rated research tools.
✅ Schwab — Best if you also want in-person branch support or plan to use index mutual funds.
If you’re just starting to invest, two names come up over and over: Fidelity and Schwab. Both are massive, trusted brokerages with $0 commission trades, no account minimums, and excellent tools for beginners. So how do you choose?
Short answer: you can’t go wrong with either. But depending on what you care about most, one will fit you better. This guide breaks it down in plain English.
Fidelity vs. Schwab for Beginners: Quick Comparison
| Feature | Fidelity | Schwab |
|---|---|---|
| Account minimum | $0 | $0 |
| Stock & ETF commissions | $0 | $0 |
| Fractional shares | ✅ Yes (Stocks Slices, from $1) | ✅ Yes (Stock Slices, from $5) |
| Index mutual funds | ✅ ZERO expense ratio funds | ✅ Very low-cost options |
| Cash management account | ✅ Yes (high-yield, ATM fee rebates) | ✅ Yes (Schwab Bank) |
| Physical branch locations | ❌ Limited (~200 investor centers) | ✅ 400+ branches nationwide |
| Mobile app rating | 4.8 / 5 (App Store) | 4.8 / 5 (App Store) |
| Robo-advisor | Fidelity Go (free under $25K) | Schwab Intelligent Portfolios (free) |
| IRA accounts | ✅ Traditional, Roth, SEP, SIMPLE | ✅ Traditional, Roth, SEP, SIMPLE |
| Best for | Overall beginners, long-term investors | In-person support seekers, mutual fund investors |
Fidelity Review
BEST OVERALL FOR BEGINNERS
Fidelity Investments
Pros:
✅ ZERO expense ratio index funds (the lowest cost in the industry)
✅ Fractional shares starting at $1 — invest in any stock
✅ Excellent cash management account with ATM fee reimbursements worldwide
✅ Top-rated mobile app and research tools
✅ Free robo-advisor (Fidelity Go) for accounts under $25,000
✅ No account fees or inactivity fees
Cons:
❌ Fewer physical branch locations than Schwab
❌ Website can feel overwhelming for brand-new investors
Bottom Line: Fidelity is hard to beat for long-term, buy-and-hold investors. The ZERO expense ratio funds alone can save you thousands over decades. If you want the best all-in-one account for growing wealth, start here.
No account minimum. No commissions. ZERO expense ratio index funds available from day one.
Open Fidelity Account →
Schwab Review
BEST FOR IN-PERSON SUPPORT
Charles Schwab
Pros:
✅ 400+ physical branch locations — talk to a real person face-to-face
✅ Schwab Intelligent Portfolios — free robo-advisor with no management fee
✅ Excellent index mutual fund selection at low costs
✅ 24/7 customer support by phone
✅ Fractional shares available through Stock Slices
✅ No account minimums or inactivity fees
Cons:
❌ No truly zero-expense-ratio funds (Fidelity’s ZERO funds are cheaper)
❌ Schwab Intelligent Portfolios requires $5,000 minimum to start
Bottom Line: Schwab is the best choice if you want the option to walk into a branch and talk to someone. It’s also excellent for investors who prefer mutual funds over ETFs. Customer service is consistently rated among the best in the industry.
No commissions. No account minimum. 400+ branches if you ever need in-person help.
Open Schwab Account →
Which Broker Is Right for You?
Still not sure? Use this quick decision guide:
| If you want… | Choose |
|---|---|
| The absolute lowest-cost index funds | Fidelity |
| To invest with as little as $1 | Fidelity |
| A checking + investing account in one | Fidelity |
| Face-to-face help at a local branch | Schwab |
| A free robo-advisor with no management fee | Schwab (Intelligent Portfolios) |
| Top-rated 24/7 phone support | Schwab |
| A great all-around beginner account | Either — you won’t regret it |
What to Do After You Open Your Account
Once you’ve chosen a broker, the next step is figuring out what to invest in. For most beginners, the simplest strategy is dollar-cost averaging — investing a fixed amount on a regular schedule regardless of whether the market is up or down. It removes emotion from the equation and builds wealth steadily over time.
If you want to compare more platforms before committing, check out our full list of the best investing apps for beginners in 2026. We’ve tested and ranked over a dozen brokers so you don’t have to.
And if you’re opening a retirement account (which you should), read our guide on Roth IRA explained for beginners before you contribute your first dollar — the tax advantages are significant.
Frequently Asked Questions
Is Fidelity or Schwab better for a Roth IRA?
Both are excellent for a Roth IRA. Fidelity has a slight edge due to its ZERO expense ratio index funds, which means more of your money compounds over time. Either choice will serve you well for decades of retirement savings.
Can I have accounts at both Fidelity and Schwab?
Yes, absolutely. There’s no rule against having accounts at multiple brokerages. Some investors keep a taxable brokerage at one and an IRA at another. That said, for simplicity, starting with one is usually best.
Which is safer — Fidelity or Schwab?
Both are extremely safe. Fidelity and Schwab are SIPC-insured up to $500,000 and are among the most financially sound brokerages in the U.S. Neither has ever had a major security breach affecting customer funds.
Do Fidelity and Schwab charge any hidden fees?
No hidden fees for basic investing. Both charge $0 commissions on stocks and ETFs, and neither charges account maintenance fees or inactivity fees. The main cost to watch is the expense ratio on any mutual funds or ETFs you buy — Fidelity’s ZERO funds have a 0% expense ratio.
Which broker has a better app for beginners?
Both apps are rated 4.8/5 on the App Store. Fidelity’s app is slightly more streamlined for new investors. Schwab’s app is also excellent and has a dedicated section for learning. Try both — they’re free.
🚀 Bottom Line: Both Are Great — Pick One and Start
The biggest investing mistake beginners make is waiting too long to start. Whether you choose Fidelity or Schwab, you’re choosing a world-class brokerage with no commissions, no minimums, and decades of trust. Open your account today, fund it with whatever you can afford, and start building the habit of investing.
✅ Choose Fidelity for the lowest-cost index funds and an all-in-one cash management account.
✅ Choose Schwab if you want branch access or prefer talking to a person.
Affiliate Disclosure & Editorial Note: Bigger Investing may earn a commission when you sign up through links on this page, at no additional cost to you. Our editorial team evaluates independently. Commissions do not influence our rankings. All investing involves risk.
Meet Maurice, a staff editor at Bigger Investing. He’s an accomplished entrepreneur who owns multiple successful websites and a thriving merch shop. When he’s not busy with work, Maurice indulges in his passion for kayaking, climbing, and his family. As a savvy investor, Maurice loves putting his money to work and seeking out new opportunities. With his expertise and passion for finance, he’s dedicated to helping readers achieve their financial goals through Bigger Investing.
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