Why Did/Would You Choose Schwab Over Fidelity?

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ronin
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Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

Current Vanguard customer looking to move to either Fidelity or Schwab. I’ve got a 401k already at Fido. I’ve got multiple IRAs to move from Vanguard as well as getting ready to use taxable.

I’ve been seriously leaning toward Fido as their credit card intrigued me along with their CMA, however I don’t want to overlook Schwab, hence my post.

I would welcome reasons you would or did use to select Schwab over Fido or vice versa.

Thanks.
Whitecap
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Whitecap »

I have enjoyed the customer service at Schwab. Very helpful and cheerful to help me with any questions I have had in the past. Something I can’t figure out on the website? I call them……and they walk me through my questions.

That goes a long way for me. (And their index fund fees are cheap!)
:happy
nalor511
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by nalor511 »

Fido will not match bonuses. Schwab no free Turbo tax. Fido no transfer out fee. Schwab no partial ETF shares
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JoMoney
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by JoMoney »

Not what you're asking for with regard to Schwab, but the biggest reason I'm with Fidelity is I had a workplace 401k there and it was much easier and faster to roll it into IRA(s) at Fidelity then to move it elsewhere. 401k assets rolling over or moving to a different administrator/custodian will go through a process of Fidelity mailing out a check, which can take several weeks and involve additional hassles, potentially leaving you out of the market and in cash (for better or worse) for weeks. Rolling into another account at Fidelity takes a day, and the transfer is done internal to Fidelity without checks being mailed.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
123
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by 123 »

We've had accounts at Schwab longer than Fidelity but I prefer Fidelity. Schwab cheaps out on account holders and makes their default cash account a deposit held at Schwab bank so the interest rate is very low. With Fidelity you can have a default MMF to hold your cash. Both firms have purchased MMF options with higher yields but you have to do a mutual fund "buy" to move money into those. But Schwab purchased MMFs even leave a bad taste in your mouth. At Schwab you have to sell the MMF position and then you can trade when that settles. Fidelity makes many (if not all) of their MMFs "sweepable" meaning that if you buy something Fidelity redeems available MMF shares to cover the purchase.

So why do we have any accounts at Schwab? The accounts we have there are basically 100% invested so there is no significant "loose" cash in the accounts.
The closest helping hand is at the end of your own arm.
loghound
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by loghound »

We use fidelity at work for 401k's, company stock purchase, HSA, etc. and it's fine.

I use schwab for everything else for reasons good and bad.
  • 1. My Dad used Schwab
    2. I have gotten to know my 'guy' at the local schwab pretty well and we are friendly
    3. I've been happy with the basics (order execution, customer service, etc.)
    4. I've never felt pressured to buy a product. I've been pitched some pretty interesting things but never felt pressured (and largely haven't done anything except for a muni bond ladder .... which isn't that exoctic)
    5. Customer service (did I mention that) -- when I call I get really good, fast anwers
    6. there is a local branch I can walk into and talk to 'my guy'
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Trader Joe
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Trader Joe »

ronin wrote: Tue Aug 03, 2021 10:48 pm Current Vanguard customer looking to move to either Fidelity or Schwab. I’ve got a 401k already at Fido. I’ve got multiple IRAs to move from Vanguard as well as getting ready to use taxable.

I’ve been seriously leaning toward Fido as their credit card intrigued me along with their CMA, however I don’t want to overlook Schwab, hence my post.

I would welcome reasons you would or did use to select Schwab over Fido or vice versa.

Thanks.
I highly recommend that you move to Fidelity.

They are an excellent company.
fwellimort
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by fwellimort »

Both have their pros and cons.

Schwab generally has some signing bonuses. Free :moneybag
Schwab has a pretty blue UI. And the whole banking experience feels more... clean and developed.
Has great customer service + no foreign transaction fee.

Fidelity generally has no signing bonuses.
Fidelity UI is very direct and no 'sugar coating'. It's too 'direct' and doesn't feel like a bank and more like 'this is my money'.
Has great customer service but I would say Schwab customer service might be a hair better (based off reputations).
Foreign transaction fee.
Allows partial shares on ETFs which Schwab does not (which to me is BIG).
You might get free Turbotax Premier after some time.

It's honestly:
Schwab: Signing bonus + Complete banking experience
vs
Fidelity: Partial share ETFs + Free Turbotax Premier
Both have great customer service and provides basically the same investment vehicles for us Bogleheaders.

As for me, I do my investments with Fidelity. I love their partial shares on ETFs.
I have over $100k assets at Merrill Edge to take advantage of 5.25% category cashback credit card (I have two [restaurant/online] cards) with no fee.
All my checking account, ATM withdrawals, etc. is at Fidelity. Bank of America only has an account with $1.

Either are great. Choose whatever makes you more comfortable.
Just know at Fidelity, you will generally end up buying ETFs. At Schwab, you might end up generally buying mutual funds.
And for portability/tax loss harvesting purposes, ETFs are much easier to play around with.
Cyclone

Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Cyclone »

Charles Schwab Bank is a real bank, so they follow bank rules and regulations. I don't know what Fidelity's cash management account is exactly but it's not a bank, but rather kind of bank-like.
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JoMoney
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by JoMoney »

Cyclone wrote: Tue Aug 03, 2021 11:34 pm Charles Schwab Bank is a real bank, so they follow bank rules and regulations. I don't know what Fidelity's cash management account is exactly but it's not a bank, but rather kind of bank-like.
The Fidelity CMA is a brokerage account, but the core settlement for it sweeps cash into a FDIC bank account. You can access cash in it using ATM/debit, checks, ACH/Direct Deposit, and most any way you would access a bank account. ... but it is a brokerage account, and you can buy/hold stocks, bonds, funds, brokered CDs, and other securities in it.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
lazynovice
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by lazynovice »

I chose Fidelity because our 401(k)s are there. I thought Schwab was great too.

We got a transfer bonus going into Fidelity
You can purchase fractional shares of ETFs at Fidelity but not at Schwab
You can sell specific ID shares of mutual funds without having to call or email anyone at Fidelity unlike Schwab. This makes TLH much easier with mutual funds.
The credit card is a very good, free cash back card.

Otherwise, their service, locations, etc were very comparable.
sfnerd
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by sfnerd »

I have both, and both are fantastic.

In addition to what the other posters have mentioned, my take is that Fidelity has better software/technology. Also, there is more control around security at Fidelity (the ability to lock down transfers from accounts, etc.).

Schwab is far better for people who either live abroad or travel abroad frequently and live a "global lifestyle".

You can't lose with either one. Customer service is really great with both. Way better than Vanguard in my opinion.
RetiredAL
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by RetiredAL »

I been a long time (25 yrs) user of both Fidelity and Schwab. I started first with a personal taxable account at Schwab, added two UGMA's when my Mom relinquished her control to accounts that had been at USAA, and around that time I opened tIRA's and Roths for DW and I. A few years later, work switched to Fidelity for their 401K and and then I used a work stock grant sale to open a Roth for me, and later one for DW as a placeholder and for ease doing POA's to each other. When I retired, I rolled my 401K and Pension into separate IRA's at Fidelity because they made it simple to do, and I was only out of the market one day as they just journaled the $ across. 8 years ago my Father made me acting Trustee of his accounts, 2 of which were at Schwab.

I find Fidelity's and Schwab's online stuff about equal.

In dealing with an post-advisor IRA RMD fiasco for my Dad, I found Dad's local Schwab Office very helpful in creating and transferring my Dad's IRA into Schwab. I have only gone to my local Fidelity Office to have POA forms notarized.

The only unusual account servicing items I have experienced with Schwab was with DW's annual Roth funding from our Joint brokerage account, which required my annual calling them because the account holder names were different, our joint being A or B, and her IRA was only B, thus it could not be done online. When I transposed account numbers on a small deposit from DW's old workplace, using her Roth account number instead of the intended IRA, Schwab quickly fixed the error with one phone call.

Two items that may be significant to some:
1) Fidelity's standard POA form is considered "durable". Schwab's standard POA form is "not durable" and requires a different and obscure form + additional steps to be granted as Durable POA.
2) Fidelity will not let a POA agent withdraw $ online, the POA must call them, even though the transfer link has been previously set-up, whereas Schwab will allow the POA to withdraw $ via online when previously set-up. This is a very significant concern to me since the bulk of our retirement monies are in my two Fidelity IRA's and if something incapacitated me, DW cannot just logon using her ID to withdraw IRA money to our bank. Compare that to Schwab where I withdrawal my Dad's RMD each year via online transfer.

OP - IMO, you can choose either one. :sharebeer
okwriter
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by okwriter »

I have accounts at both. I think Schwab is better for banking, but I prefer Fidelity as a brokerage. Schwab has a great debit card, maybe the best (?). No foreign transaction fee and they refund all ATM fees. But Fidelity is better for investing IMO, due to fractional share ETFs and a better mutual fund lineup.
Financologist
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Financologist »

sfnerd wrote: Tue Aug 03, 2021 11:57 pm I have both, and both are fantastic.

In addition to what the other posters have mentioned, my take is that Fidelity has better software/technology. Also, there is more control around security at Fidelity (the ability to lock down transfers from accounts, etc.).

Schwab is far better for people who either live abroad or travel abroad frequently and live a "global lifestyle".

You can't lose with either one. Customer service is really great with both. Way better than Vanguard in my opinion.
Hi there, curious about your remark regarding Schwab for international folks. Could you please elaborate?

Thanks
Financologist
sfnerd
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by sfnerd »

Financologist wrote: Wed Aug 04, 2021 1:47 am
sfnerd wrote: Tue Aug 03, 2021 11:57 pm I have both, and both are fantastic.

In addition to what the other posters have mentioned, my take is that Fidelity has better software/technology. Also, there is more control around security at Fidelity (the ability to lock down transfers from accounts, etc.).

Schwab is far better for people who either live abroad or travel abroad frequently and live a "global lifestyle".

You can't lose with either one. Customer service is really great with both. Way better than Vanguard in my opinion.
Hi there, curious about your remark regarding Schwab for international folks. Could you please elaborate?

Thanks
With Fidelity, they actively monitor where you are logging in from, and if you are logging in from an international location frequently they may lock your account for new contributions, transactions, etc. This is because they don't want to have to comply with regulations that cover non-US residents.

Schwab is far more understanding of international investors, and even has an international division to support non-US-based investors. Additionally they refund ATM fees globally. Their ATM/debit card has worked flawlessly for me abroad.

In practice, what this means is that for my Fidelity account I do not add new money, and when I access it abroad I use a VPN that makes it look like I'm in the US.

For Schwab, I just use the app and website without a VPN, and no problems in 5+ years of living abroad. I've even had replacement ATM cards sent to me in different countries. [PSA - never tell your brokerages that you live abroad... even Schwab.]
Derpalator
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Derpalator »

lazynovice wrote: Tue Aug 03, 2021 11:50 pm I chose Fidelity because our 401(k)s are there. I thought Schwab was great too.

We got a transfer bonus going into Fidelity
You can purchase fractional shares of ETFs at Fidelity but not at Schwab
You can sell specific ID shares of mutual funds without having to call or email anyone at Fidelity unlike Schwab. This makes TLH much easier with mutual funds.
The credit card is a very good, free cash back card.

Otherwise, their service, locations, etc were very comparable.
Bonuses, like anything, are negotiable. A year or two ago after reading some bonus threads here on bogleheads, I suggested to Fidelity that since I had most of my nut there that perhaps I should get something of a retention bonus. Done nicely of course. Also noted that I intended to move my ex employers 403b and 457b governmental there soon AND had one other employer's retirement account to move there later. In one day they called back with a generous one lifetime bonus only. At that time it was about 1% of my total balance. Fidelity is a great company.

Gotta love their quick adoption of fractional shares for ETFs and the free Turbotax Premier, too. Cheers. :sharebeer
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Svensk Anga
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Svensk Anga »

JoMoney wrote: Tue Aug 03, 2021 10:57 pm Not what you're asking for with regard to Schwab, but the biggest reason I'm with Fidelity is I had a workplace 401k there and it was much easier and faster to roll it into IRA(s) at Fidelity then to move it elsewhere. 401k assets rolling over or moving to a different administrator/custodian will go through a process of Fidelity mailing out a check, which can take several weeks and involve additional hassles, potentially leaving you out of the market and in cash (for better or worse) for weeks. Rolling into another account at Fidelity takes a day, and the transfer is done internal to Fidelity without checks being mailed.
The workaround for this is to roll over to an IRA with the workplace plan custodian, then do an ACATS transfer of the IRA to the desired broker. No need to be out of the market more than a day. If one samples the services of several brokers, collecting account transfer bonuses along the way, before settling on one, all the better.
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galawdawg
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by galawdawg »

As someone who prefers to mutual funds, rather than ETFs, it was a clear decision. Fees.

With a $250k portfolio (some report as low as $100k), Schwab will waive all mutual fund transaction fees for one fund family (such as Vanguard). 1

Fidelity will NOT waive mutual fund transaction fees. Period. And their transaction fee for most, if not all, Vanguard mutual funds is $75.00 per purchase.

Customer service at Schwab is superb. I hear that Fidelity has excellent service as well, but can't speak from experience.





1Schwab charges $49.95 for each purchase of Vanguard mutual funds if you don't qualify for the fee waiver.
Topic Author
ronin
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ronin »

Thanks to everyone for posting their thoughtful perspective. It does seem overall one likely can’t go wrong with either and it’s about making sense of the nuanced differences and whether they matter to me.

Love the power and value of this forum!
augustwest73
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by augustwest73 »

I stopped adding to Fidelity and switched to Schwab when I tried to pull $25K out of Fidelity. Fido wanted the dreaded medallion signature and the wait time at my local bank for an appointment for said signature was a few weeks. I kept the accounts at Fidelity but opened up a Schwab account and have been adding to that ever since. Also, I'm told Schwab debit card is good for overseas withdrawals and exchanges but I've actually yet to try it.
GaryA505
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by GaryA505 »

The thing I don't like about Schwab is that in retirement, in order to use their automatic withdrawal service you have to be in their Intelligent Income / Intelligent Portfolio plan. At least that's what they told me.
Get most of it right and don't make any big mistakes. All else being equal, simpler is better. Simple is as simple does.
Lazareth
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by Lazareth »

Customer service. It has always been superb. I am referring to the phone-in "800 number" service for existing customers, not the local-office commissioned-based Schwab Representative. The one in Hartford seems to advise that which generates most revenue, for him. And if my query is not about a revenue-generating product or service, I get referred to the central office anyway.

With recent mega-acquisitions and Schwab's highly publicized hiring spree, I can only hope we'll continue to get helpful and capable phone reps.
a/69, retired, married, enjoy p/t employment. Three-fund portfolio, after decades of chasing active-managed fund performance.
huzaing
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by huzaing »

ronin wrote: Tue Aug 03, 2021 10:48 pm Current Vanguard customer looking to move to either Fidelity or Schwab. I’ve got a 401k already at Fido. I’ve got multiple IRAs to move from Vanguard as well as getting ready to use taxable.

I’ve been seriously leaning toward Fido as their credit card intrigued me along with their CMA, however I don’t want to overlook Schwab, hence my post.

I would welcome reasons you would or did use to select Schwab over Fido or vice versa.

Thanks.
I think there's a miniscule difference between the two.
If you do a coin toss and select one, and then move on and never look back - you will be fine.

If there was a BIG difference between the two, everybody would already know about it.
So it's not worth your time to spend any significant amount of energy on this question.

Best wishes!
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starboi
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by starboi »

augustwest73 wrote: Wed Aug 04, 2021 10:50 am I stopped adding to Fidelity and switched to Schwab when I tried to pull $25K out of Fidelity.
How were you trying to pull the money out? ACH or wire or...?
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ruralavalon
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by ruralavalon »

ronin wrote: Tue Aug 03, 2021 10:48 pm Current Vanguard customer looking to move to either Fidelity or Schwab. I’ve got a 401k already at Fido. I’ve got multiple IRAs to move from Vanguard as well as getting ready to use taxable.

I’ve been seriously leaning toward Fido as their credit card intrigued me along with their CMA, however I don’t want to overlook Schwab, hence my post.

I would welcome reasons you would or did use to select Schwab over Fido or vice versa.

Thanks.
I don't have accounts at either Schwab or
Fidelity. Both are good choices in my opinion.

Since your 401k is with Fidelity I suggest moving the IRAs to Fidelity, just for the simplicity from consolidation at a single fund firm.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
tdm757
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by tdm757 »

I use Schwab, although I have a small rollover ira at Fidelity. I find the Schwab interface way better than fidelity. I like the customer service of Schwab, they always make me feel like I am a million dollar client, without paying to be one. Schwab has the no fee atms (they reimburse costs automatically) - anywhere in the world. I can't think of one thing I would like from Schwab, Turbotax free would be good I guess.
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F150HD
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by F150HD »

123 wrote: Tue Aug 03, 2021 10:58 pm We've had accounts at Schwab longer than Fidelity but I prefer Fidelity. Schwab cheaps out on account holders and makes their default cash account a deposit held at Schwab bank so the interest rate is very low. With Fidelity you can have a default MMF to hold your cash. Both firms have purchased MMF options with higher yields but you have to do a mutual fund "buy" to move money into those. But Schwab purchased MMFs even leave a bad taste in your mouth. At Schwab you have to sell the MMF position and then you can trade when that settles. Fidelity makes many (if not all) of their MMFs "sweepable" meaning that if you buy something Fidelity redeems available MMF shares to cover the purchase.
+1
aristotelian
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by aristotelian »

I have both. Some reasons I stick with Schwab:

-no fee ATM withdrawals worldwide from checking account
-24 hour customer service
-personal preference for their website


That said, if I were ever to consolidate all accounts at one place it would have to be Fidelity because they are one of the few to offer a no fee HSA.
MishkaWorries
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by MishkaWorries »

One more happy Schwab customer. We have an HSA at Fidelity and wife's IRS is at Vanguard.

Like most have said, Schwab has great customer service and their debit card is great for international travel and overall Schwab is more traveler friendly. That is why it's our primary broker.

If you like target date funds, Schwab's are the best. Fido and Vanguard juice their returns with higher equity allocations for far too long.

Having said all that, if I were you I'd go with Fido because I can't wait until I can pare down to one bank and broker. I want simplicity when I retire.
We plan. G-d laughs.
bondsr4me
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by bondsr4me »

as of today, we have accounts at Schwab, Fidelity, Vanguard and a few pennies at TDAmeritrade.

of the 3 (not including TDA), if I had to pick just one it would be a tossup between Schwab and Fidelity.

I like them both with an edge going to Schwab's customer service and StreetSmartEdge platform.
Schwab's available history is pretty good too.

For FIDO, I really like the FIDO 2% credit card and the bond quote page.
Also, FIDO does not charge for wire transfers.

you can't go wrong with either Schwab or Fidelity.

VG is on the way out for me; it's not Jack Bogle's VG anymore I'm sorry to say.
I will still use the VG ETF's when suitable for me.
expatish
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by expatish »

sfnerd wrote: Tue Aug 03, 2021 11:57 pm
Schwab is far better for people who either live abroad or travel abroad frequently and live a "global lifestyle".

Respectfully disagree with this. My family and I spent the last 7 years traveling around Mexico, the previous 2 yrs traveling in Europe, and before that a decade in Canada. We used Fidelity the entire time, including ATM withdrawals (our sole source of cash while in Europe and Mexico), and they were great, no issues at all. A couple times in Mexico a rep reached out to confirm our withdrawals were legit, which we appreciated.

To the OP, I'll just add we do have Schwab accounts as well. For the most part Schwab has been fine, but they were hard to work on a few issues when my dad passed away.

After my dad's death, the account transfer took a while...6-7 weeks. I had to keep calling about it. There were no issues (all documentation submitted promptly, I was the sole beneficiary, no complications). They told me the estate department was short-staffed and had a backlog, but when I finally got fed up and (politely) pressed one of the reps, she had the accounts transferred within a few hours. Not sure if this is a typical experience or not.

FYI the director at my dad's independent-living facility told me that of the various brokerages, Schwab was by far the most aggravating for his seniors and their families. Lots of hoops and headaches. YMMV.
RetiredAL
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by RetiredAL »

GaryA505 wrote: Wed Aug 04, 2021 11:01 am The thing I don't like about Schwab is that in retirement, in order to use their automatic withdrawal service you have to be in their Intelligent Income / Intelligent Portfolio plan. At least that's what they told me.
At Schwab, when I click on the "transfer" tab, the set up page has a pull-down for "frequency" - annual, monthly, ect. The screen is the same for either taxable account or IRA account. It only operates against your "cash" position for an external transfer so you must manage your cash balance. I've never used it for other than a 1-time transfer.

Fidelity does have a nice automated sell selection process for retirement distributions that works with Fidelity Funds. I have a monthly withdrawal from my IRA using this sell function. An automated sell of a bond fund occurs the day before the transfer. I could set it to proportionally sell several funds to maintain an AA, but I choose to re-balance by hand every 6 month's. If you want this automated sell & transfer function, them Fidelity may be a better choice.

I guess I'm old school with my Dad's IRA at Schwab. It doesn't bother me in the least to do whatever selling is needed ahead of the single RMD transfer for the year. I re-balance as part of that RMD transfer planning.
GaryA505
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by GaryA505 »

RetiredAL wrote: Wed Aug 04, 2021 12:49 pm
GaryA505 wrote: Wed Aug 04, 2021 11:01 am The thing I don't like about Schwab is that in retirement, in order to use their automatic withdrawal service you have to be in their Intelligent Income / Intelligent Portfolio plan. At least that's what they told me.
At Schwab, when I click on the "transfer" tab, the set up page has a pull-down for "frequency" - annual, monthly, ect. The screen is the same for either taxable account or IRA account. It only operates against your "cash" position for an external transfer so you must manage your cash balance. I've never used it for other than a 1-time transfer.

Fidelity does have a nice automated sell selection process for retirement distributions that works with Fidelity Funds. I have a monthly withdrawal from my IRA using this sell function. An automated sell of a bond fund occurs the day before the transfer. I could set it to proportionally sell several funds to maintain an AA, but I choose to re-balance by hand every 6 month's. If you want this automated sell & transfer function, them Fidelity may be a better choice.

I guess I'm old school with my Dad's IRA at Schwab. It doesn't bother me in the least to do whatever selling is needed ahead of the single RMD transfer for the year. I re-balance as part of that RMD transfer planning.

A Fidelity rep told me that their automatic withdrawals work with any mutual fund, not just Fidelity. Nice.

Vanguard automatic withdrawals only work with Vanguard funds. I could live with that.

Schwab automatic withdrawals only work with ETFs, and only if you are in their Intelligent Income and Intelligent Portfolio plans. Not good.
Get most of it right and don't make any big mistakes. All else being equal, simpler is better. Simple is as simple does.
nalor511
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by nalor511 »

Test drive both Schwab and Fido, that is what I did. They each have their strengths, and they each work. I very mildly prefer Fidelity, but there's really no reason to have to choose
bondsr4me
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by bondsr4me »

nalor511 wrote: Wed Aug 04, 2021 1:11 pm Test drive both Schwab and Fido, that is what I did. They each have their strengths, and they each work. I very mildly prefer Fidelity, but there's really no reason to have to choose
+1
wetgear
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by wetgear »

ronin wrote: Tue Aug 03, 2021 10:48 pm Current Vanguard customer looking to move to either Fidelity or Schwab. I’ve got a 401k already at Fido. I’ve got multiple IRAs to move from Vanguard as well as getting ready to use taxable.

I’ve been seriously leaning toward Fido as their credit card intrigued me along with their CMA, however I don’t want to overlook Schwab, hence my post.

I would welcome reasons you would or did use to select Schwab over Fido or vice versa.

Thanks.
Fido for simplicity/consolidation and I've found their customer service to be excellent. Nothing against Schwab that I'm aware of but Fido has been so great I've had no reason to look elsewhere. I have both their (Elan) credit card and the CMA and they are allowing me one stop banking/investing.
skeptical1
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Location: Sacramento

Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by skeptical1 »

Timely post. I'm in a similar position. Long term Vanguard customer who moved our IRAs to Schwab a few years ago. No concerns with Vanguard, just wanted to diversify between two key players. We still hold our taxable investments at Vanguard. Although I have not had any issues with Vanguard, I'm increasingly concerned about its slow adoption rate for better tech and UI. More troublesome to me is it seems to be shifting resources away from Customer Service. I previously had a "Personal Advisor" who was quite helpful sorting through some transactions a few years ago. That service is no longer available to me. I don't need a lot of customer service, but it's nice to know it's available when needed.

I'm also between Schwab and Fidelity for our taxable accounts. The posts here have been helpful. I like the banking and debit card with Schwab, particularly for foreign travel. My only annoyance, investment wise, is the multi-step process required for RMDs. It's not a deal breaker. I like the idea of a local office, particularly for my wife's benefit, assuming I go first.

I'd like to explore the transition process with both. I get the impression, Schwab would be a bit more favorable in dealing with my Vanguard holdings. My question is how best to proceed? Should I call into the national numbers or schedule face-to-face meetings at the local offices (both are only about a 7-minute drive from home)?
hnd
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by hnd »

i have accounts at both.

to be honest, i have no complaints about either. i could likely interchange them and be happy. that said, i really like the "full view" option at Fidelity that acts like Personal Capital.

There is also another thing that i wish all the other companies have but don't really. and that is the personal returns section under the Performance tab at fidelity.

This basically gives you the returns of your portfolio over 1 mo, 3mo, 1 yr, 3yr, 5yr, 10yr and also allow you to compare it to popular indexes as well as another allocation/product if you want.
BabaWawa
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by BabaWawa »

nalor511 wrote: Tue Aug 03, 2021 10:53 pm Fido will not match bonuses. Schwab no free Turbo tax. Fido no transfer out fee. Schwab no partial ETF shares
That was not true for me. This year a representative at Fidelity got approval for a very competitive transfer bonus that others could not match. Made me an offer I couldn't refuse even though Fido had no advertised offers at the time.
nalor511
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by nalor511 »

BabaWawa wrote: Wed Aug 04, 2021 3:36 pm
nalor511 wrote: Tue Aug 03, 2021 10:53 pm Fido will not match bonuses. Schwab no free Turbo tax. Fido no transfer out fee. Schwab no partial ETF shares
That was not true for me. This year a representative at Fidelity got approval for a very competitive transfer bonus that others could not match. Made me an offer I couldn't refuse even though Fido had no advertised offers at the time.
It is true.

Fidelity will give you a bonus, maybe even a good bonus, maybe even the best bonus. They will not MATCH bonuses, which Schwab will do.
nalor511
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by nalor511 »

skeptical1 wrote: Wed Aug 04, 2021 2:07 pm Timely post. I'm in a similar position. Long term Vanguard customer who moved our IRAs to Schwab a few years ago. No concerns with Vanguard, just wanted to diversify between two key players. We still hold our taxable investments at Vanguard. Although I have not had any issues with Vanguard, I'm increasingly concerned about its slow adoption rate for better tech and UI. More troublesome to me is it seems to be shifting resources away from Customer Service. I previously had a "Personal Advisor" who was quite helpful sorting through some transactions a few years ago. That service is no longer available to me. I don't need a lot of customer service, but it's nice to know it's available when needed.

I'm also between Schwab and Fidelity for our taxable accounts. The posts here have been helpful. I like the banking and debit card with Schwab, particularly for foreign travel. My only annoyance, investment wise, is the multi-step process required for RMDs. It's not a deal breaker. I like the idea of a local office, particularly for my wife's benefit, assuming I go first.

I'd like to explore the transition process with both. I get the impression, Schwab would be a bit more favorable in dealing with my Vanguard holdings. My question is how best to proceed? Should I call into the national numbers or schedule face-to-face meetings at the local offices (both are only about a 7-minute drive from home)?
I just sent each a Secure message with the amount I had to transfer, the bonus I was seeing at a competitor, and would they match it. I did not meet in person, nor would I care to. I like the local branch should it be necessary, but I do not ever want to have to go there.

Schwab is only better if you insist on buying VG mutual funds beyond the portion you are transferring. If you are only transferring and will not add more, your experience at both will be the same. I recommend converting to ETF at VG first, if you ever plan to rebalance.
BabaWawa
Posts: 540
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by BabaWawa »

skeptical1 wrote: Wed Aug 04, 2021 2:07 pm Timely post. I'm in a similar position. Long term Vanguard customer who moved our IRAs to Schwab a few years ago. No concerns with Vanguard, just wanted to diversify between two key players. We still hold our taxable investments at Vanguard. Although I have not had any issues with Vanguard, I'm increasingly concerned about its slow adoption rate for better tech and UI. More troublesome to me is it seems to be shifting resources away from Customer Service. I previously had a "Personal Advisor" who was quite helpful sorting through some transactions a few years ago. That service is no longer available to me. I don't need a lot of customer service, but it's nice to know it's available when needed.

I'm also between Schwab and Fidelity for our taxable accounts. The posts here have been helpful. I like the banking and debit card with Schwab, particularly for foreign travel. My only annoyance, investment wise, is the multi-step process required for RMDs. It's not a deal breaker. I like the idea of a local office, particularly for my wife's benefit, assuming I go first.

I'd like to explore the transition process with both. I get the impression, Schwab would be a bit more favorable in dealing with my Vanguard holdings. My question is how best to proceed? Should I call into the national numbers or schedule face-to-face meetings at the local offices (both are only about a 7-minute drive from home)?
Definitely start with the local office. My recent transition to Fidelity couldn't have been easier. I no longer call the 800 number for help as any questions I have are answered quickly at the local level. No problems with cost basis data transferring. Majority of my portfolio is Vanguard, of course they were ETFs which beat MFs hands down when it comes to portability.

The website functionality is better than any I have seen to date. Lots of educational opportunities offered as well.
BogleFan510
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by BogleFan510 »

A lot of good points raised. As Schwab is publicly traded, I feel they are subject to a bit more auditing scrutiny. I also give them credit for helping drive trading costs down and for championing the small, self directed investor when in earlier eras there were strong headwinds for high fee, fancy broker advice needed, old boy club brokerage noise. Fidelity a fine choice as well. I've used both for decades, Fidelity my backup. I like Fidelities bond desk better, Schwabs customer service team, Schwab's bank ATM card fee reimbursement, Fidelity seems to have a better credit card.
columbian
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by columbian »

Why did I? I joined Schwab for two reasons:
1. DW already had accounts there and was willing to refer me, to the tune of several hundred dollars;
2. The ATM reimbursement fees for using their debit card.

To expand, I'd been perfectly comfortable with banking through a credit union for many years, but we'd just moved out of the CU's primary service area and I was looking for something with a local branch.

DW had brokerage and checking accounts with Schwab because her employer manages RSUs through them. She traveled often for work and found the ATM reimbursement fees for using the Schwab card to be quite convenient.

At the time I was also traveling a good bit myself and I liked to carry and pay in cash often then, so the ATM reimbursement fees sounded quite useful.

Ultimately, though, DW was able to refer me so I netted an easy couple hundred dollars for transferring most (though not all) of my savings.

A few other reasons that have come up since then:
- I don't have to often go in often, and while both Schwab and Fidelity have local branches, Schwab is literally at the bus stop near my office.
- Having assets at Schwab netted me a rate discount on a refinance through Rocket Mortgage.
- My oldest investment accounts are at TD Ameritrade, and I hold out hope that there will be some good that comes out of the merger for me as a customer. I'm thinking of starting a DAF and the process for donating shares from my TDA account seems straightforward.
- I think Schwab has a better website than Fidelity, though I prefer TDA over both.

All that said, if I had to do it again, I probably wouldn't regret having gone with Fidelity. I've had 401k accounts with them in the past, and I do have an HSA on autopilot there. I like that Fidelity can do fractional shares of ETFs.
skeptical1
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by skeptical1 »

Can someone remind me why it's advantageous to convert my VG mutual funds to ETFs prior to changing to another brokerage?
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LiveSimple
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by LiveSimple »

< Duplicate >
Last edited by LiveSimple on Wed Aug 04, 2021 5:06 pm, edited 2 times in total.
Invest when you have the money, sell when you need the money, for real life expenses...
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LiveSimple
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by LiveSimple »

Not sure if all mutual funds are transferable abs can be held in other brokerage accounts. ETFs are more transferable.

Purchasing the non brokerage firm mutual funds will cost you $40 -$50 per transaction.
Invest when you have the money, sell when you need the money, for real life expenses...
fwellimort
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by fwellimort »

skeptical1 wrote: Wed Aug 04, 2021 4:56 pm Can someone remind me why it's advantageous to convert my VG mutual funds to ETFs prior to changing to another brokerage?
Portability. It's future proof. That's the main reason (and much easier to manage than having ETFs in 1 brokerage, mutual funds in another, etc.).

Really nice once you want to move around for signing bonuses and all or you suddenly dislike the customer service you are receiving from your brokerage over time.

The convenience of being able to move in and out to any brokerage is a huge benefit to most people here.
That and the ease of tax loss harvesting. :sharebeer

Moving something like VTSAX or FSKAX or SWTSX can be quite inconvenient at some brokerages.
exigent
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Re: Why Did/Would You Choose Schwab Over Fidelity?

Post by exigent »

If you value a local office, see which one (either? both?) has a nearby office.
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