Compare Fidelity and Charles Schwab on fees, DRIP, fractional shares and research for dividend investing.
Updated August 26, 2026
Fidelity and Charles Schwab are the two highest-rated brokerages in our reviews — 4.9/5 and 4.8/5 — and for most investors either is an excellent home for a dividend portfolio. Both charge $0 for stock and ETF trades and $0.65 per options contract, have no account minimums or inactivity fees, offer free dividend reinvestment, and back it up with 24/7 phone support and research that includes dedicated dividend screeners. If you landed here after TD Ameritrade folded into Schwab in May 2024, this is the comparison that matters now.
The differences are narrow but real for dividend investors. Fidelity’s DRIP is automatic on eligible securities; Schwab’s is free but off by default, so you must enable it per position. Fidelity sells fractional shares of thousands of stocks from $1; Schwab’s Stock Slices covers S&P 500 companies only, with a $5 minimum. Schwab answers with thinkorswim — its Stock Hacker screener has 60+ filters including dividend yield — plus 400+ branches for in-person help, and a $50 transfer-out fee versus Fidelity’s $75. Fidelity’s interface can feel overwhelming at first; Schwab’s app feels clunky next to newer brokers.
The gold standard for dividend investors seeking zero commissions, exceptional research, and automatic DRIP.
A trusted full-service broker with zero commissions, 400+ branches, and powerful thinkorswim trading platform.
| Feature | Fidelity | Charles Schwab |
|---|---|---|
| Our Rating | 4.9/5 | 4.8/5 |
| Trading Commissions | $0 | $0 |
| Account Minimum | $0 | $0 |
| Fractional Shares | Yes | S&P 500 only |
| DRIP | Automatic | Free |
| Research Tools | Excellent | Excellent |
| Best For | Long-Term Dividend Investors | Beginners Who Want Support |
Want the full breakdown of fees, DRIP, and research tools? Read our Fidelity review and Charles Schwab review.
Fidelity by a nose for dividend investing: automatic DRIP, fractional shares of any eligible stock from $1, and research from 20+ providers make building and compounding an income portfolio slightly easier. Schwab is the better pick if you value branches and in-person support, want thinkorswim for deeper screening and charting, or already hold a former TD Ameritrade account there — there’s no fee-based reason to move. Whichever you choose, the setup step that matters most at Schwab is turning DRIP on.
Related: Fidelity vs TD Ameritrade (now Schwab) · Fidelity vs Robinhood · Charles Schwab vs Vanguard
Fidelity edges it: DRIP is automatic, fractional shares start at $1 on thousands of stocks, and its dividend screener and 20+ research providers are best-in-class. Schwab matches Fidelity on $0 commissions and support and adds thinkorswim and 400+ branches, but its DRIP must be enabled manually and fractional shares are limited to S&P 500 stocks. We rate Fidelity 4.9/5 and Schwab 4.8/5.
Both offer free DRIP with fractional reinvestment, but only Fidelity turns it on automatically for eligible securities. At Schwab you enable dividend reinvestment per position in your account settings — a one-time step that’s easy to forget.
Nearly identical: $0 stock and ETF trades, $0.65 per options contract, no account minimums, maintenance, or inactivity fees at either. Schwab charges $6.95 for OTC stocks, $25 for broker-assisted trades, and $50 for a full account transfer out; Fidelity charges $75 for a transfer out and $15 for domestic wires. Both offer thousands of no-transaction-fee mutual funds.
Only if you want Fidelity’s specific advantages — automatic DRIP and fractional shares beyond the S&P 500. TD Ameritrade accounts migrated to Schwab in May 2024, and thinkorswim, the platform most TD users cared about, is free at Schwab and unavailable at Fidelity. Staying put is a perfectly good choice.
Not sure these are the right fit? Explore more comparisons.
Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.