Updated 2026-03-30
Fidelity vs Schwab 401(k) Comparison
Compare Fidelity Investments (#1, 9.5/10) and Charles Schwab (#3, 9.1/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Fidelity | Schwab |
|---|---|---|
| Overall Score | 9.5/10 | 9.1/10 |
| Rank | #1 | #3 |
| AUM | $4.5 trillion | $8.5 trillion |
| Participants | 43 million | 28 million |
| Plan Sponsors | 23,000+ | 3,200+ |
| Founded | 1946 | 1971 |
Ratings Comparison
| Category | Fidelity | Schwab |
|---|---|---|
| Fees & Costs | 4.9/5 | 4.5/5 |
| Investment Options | 4.9/5 | 4.7/5 |
| Customer Service | 4.8/5 | 4.7/5 |
| Mobile App | 4.7/5 | 4.5/5 |
Fee Comparison
| Fee Type | Fidelity | Schwab |
|---|---|---|
| Admin Fees | $0 - varies by plan | $0 - varies by plan |
| Expense Ratios | 0.00% - 0.75% | 0.03% - 0.80% |
| Trading Fees | $0 for stocks/ETFs | $0 for stocks/ETFs |
| Advisory Fees | 0.35% - 1.0% | 0% - 0.80% |
Fidelity Strengths
- Zero expense ratio index funds (FZROX, FZILX)
- Industry-leading mobile app and online platform
- 24/7 customer service with dedicated retirement specialists
- Extensive investment options including BrokerageLink
Schwab Strengths
- Excellent customer service with 24/7 support
- complete research and education tools
- Schwab Intelligent Portfolios (free robo-advisor)
- Strong integration after TD Ameritrade merger
Rollover, Loans & Withdrawals
| Feature | Fidelity | Schwab |
|---|---|---|
| Rollover Platform | NetBenefits | Schwab.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via NetBenefits, Phone (800-343-3548), Fidelity branch offices | Online via Schwab.com, Phone (800-724-7526), Schwab branch offices |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA |
Which Should You Choose?
Choose Fidelity if you want:
- Large employers
- Cost-conscious investors
- Self-directed investors
- Solo 401(k) seekers
Choose Schwab if you want:
- Full-service seekers
- Active traders
- Those wanting local branches
- TD Ameritrade users
Our Verdict: Fidelity vs Schwab
Fidelity Investments wins this comparison with a score of 9.5/10 vs 9.1/10. Fidelity excels with zero expense ratio index funds (fzrox, fzilx), making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Fidelity vs Schwab: Complete 401(k) Comparison for 2026
Choosing between Fidelity Investments and Charles Schwab for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Schwab is known for full service. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Schwab's 0.03% - 0.80%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Schwab has $8.5 trillion AUM and 28 million participants.
Key Differences: Fidelity vs Schwab
When comparing Fidelity and Schwab, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Schwab stands out for excellent customer service with 24/7 support. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Fidelity's customer service rating is 4.8/5 compared to Schwab's 4.7/5. For mobile experience, Fidelity scores 4.7/5 while Schwab scores 4.5/5.
Which Provider is Right for You?
Choose Fidelity if you prioritize large employers. Choose Schwab if you're looking for full-service seekers. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Fidelity and Schwab provider pages.
Frequently Asked Questions
Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Schwab is best for full-service seekers. The right choice depends on your employer's plan and your priorities.
Fidelity charges expense ratios of 0.00% - 0.75% with admin fees of $0 - varies by plan. Schwab charges 0.03% - 0.80% expense ratios with admin fees of $0 - varies by plan. Fidelity's fees rating is 4.9/5 compared to Schwab's 4.5/5.
Yes, you can roll over between Fidelity and Schwab. Fidelity uses NetBenefits for rollovers, while Schwab uses Schwab.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Fidelity offers 401(k) loans. Schwab offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Fidelity scores 4.9/5 for investment options, while Schwab scores 4.7/5. Both offer target-date funds, index funds, and managed accounts. Fidelity's investment options include Index Funds, Target Date Funds, Mutual Funds. Schwab offers Index Funds, Target Date Funds, Mutual Funds.
For small businesses, consider plan minimums and per-participant costs. Fidelity is best for large employers, cost-conscious investors, self-directed investors, solo 401(k) seekers. Schwab is best for full-service seekers, active traders, those wanting local branches, td ameritrade users. Compare admin fees: Fidelity charges $0 - varies by plan vs Schwab's $0 - varies by plan.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-30