Consolidating Cash Assets to a Single Brokerage - Fidelity or Schwab?

[ShokWaveRider]

We are considering consolidating all our cash no-qualified assets other than Annuities with either Fidelity or Schwab. I am not interested in Vanguard or ANY other brokerage, so please no recommendations needed there. This post is only to solicit opinions for or against Fidelity or Schwab. They get equal reviews on-line. We have absolutely NO interest in their trading platforms or stock research offerings and do not use financial phone apps, so not interest here either.

We have a friend with Fidelity and another with Schwab, they both talk highly of each. I thought I would expand my review with input from members here.

I am currently also reviewing Cash incentives offered by both for significant new money. Currently Schwab is winning, but as each branch have their own incentives, the school is still out there.

I was wondering what folks' opinions here are. I like either as they have brick and mortar offices relatively close by.

Main areas of interests are: Annuities, CDs, Treasuries and other fixed non stock investments.

Thanks in advance for your inputs.

 

[W2R]

I would put half in each. In fact, I have about half my cash in each of two establishments right now. Feels safer to me.

 

[jebmke]

They are both very good; over the years I've had accounts with each of them (not any longer). I don't hold cash so can't comment on that but you should have no issues trading Treasuries or CDs at either one.

 

[OldShooter]

Our experience (positive) is with Schwab, but I have come to believe that the individual rep you are assigned is more important than the name over the door. At Schwab, you get a specific rep if you have $1M with them. Fido is probably similar. The rep gets paid a small amount every month simply for having you in his book and helping you as needed.

I would suggest that you make a list of rep characteristics that you like, then contact the two branch managers and ask to interview one or two of their troops. Characteristics should probably include age, sex, and investment interests. Age and sex may be particularly important for a widow who has had limited involvement with the family investments.

Maybe also talk to your friends' reps if they sound like someone you'd consider working with. A rep gets paid for bringing new money into the house so I'm sure they will be very happy to talk with you.

As far as products and features, this is such a competitive market that differences will come and go as both horses race. I would not worry about this unless you have some highly specialized interest or need.

 

[ExFlyBoy5]

I have had no issues with FIDO. Used to use VG (tired of the outdated interface) and TDA (nightmare customer service issues) and consolidated all to FIDO...it's been a couple of years and am happy with them.

 

[DawgMan]

Our experience (positive) is with Schwab, but I have come to believe that the individual rep you are assigned is more important than the name over the door. At Schwab, you get a specific rep if you have $1M with them. Fido is probably similar. The rep gets paid a small amount every month simply for having you in his book and helping you as needed.

I would suggest that you make a list of rep characteristics that you like, then contact the two branch managers and ask to interview one or two of their troops. Characteristics should probably include age, sex, and investment interests. Age and sex may be particularly important for a widow who has had limited involvement with the family investments.

Maybe also talk to your friends' reps if they sound like someone you'd consider working with. A rep gets paid for bringing new money into the house so I'm sure they will be very happy to talk with you.

As far as products and features, this is such a competitive market that differences will come and go as both horses race. I would not worry about this unless you have some highly specialized interest or need.

FWIW, Schwab also provides now "free of charge" a team of more experienced reps if you have a min of 8 figures with them. More of the white glove treatment...

 

[ShokWaveRider]

Schwab is offering a $2500 bonus...

 

[ExFlyBoy5]

Schwab is offering a $2500 bonus...

That is a good incentive.

 

[Alex The Great]

Both Fidelity and Schwab are great, but I'm still learning Schwab interface. At Fidelity which I use for a very long time everything is simple and intuitive. May be I just became addicted to Fidelity

 

[braumeister]

FWIW, Schwab also provides now "free of charge" a team of more experienced reps if you have a min of 8 figures with them. More of the white glove treatment...

Is the decimal point considered?

 

[cbo111]

Is the decimal point considered?

Ha, that's what I was thinking. If you have to stop and cipher what 8 figures is, you probably don't have it.

 

[lawman]

FWIW, Schwab also provides now "free of charge" a team of more experienced reps if you have a min of 8 figures with them. More of the white glove treatment...

Tell me more..Not thrilled with my rep although I use him/her very little. Overall pleased with Schwab but have not gotten the assistance I would like when looking for corporate bonds..

 

[DawgMan]

Tell me more..Not thrilled with my rep although I use him/her very little. Overall pleased with Schwab but have not gotten the assistance I would like when looking for corporate bonds..

My understanding is this service, "Schwab Wealth Services" is new as of the end of last year. I was contacted by them, but previously had a local rep which is pretty standard. Like you, the rep was very limited in his experience and was basically there as a contact. I have noticed the Wealth Services Team (so far I have interacted with about 4 different individuals, but 1 primary contact) is allot more experienced and sophisticated. As an example, their bond guy has been helpful both buying and strategizing by bond ladder.

I brought all this up in a previous thread you may find helpful...

https://www.early-retirement.org/forums/f28/schwab-wealth-services-anyone-110918.html

 

[euro]

FWIW, Schwab also provides now "free of charge" a team of more experienced reps if you have a min of 8 figures with them. More of the white glove treatment...

Probably not that many folks who have 10 million to put into a brokerage account, so yeah, they better roll out the white gloves....




As for the OP question, I have accounts with Fido and Schwab and given the parameters outlined in the OP, I would say it is a complete toss up. Fixed income research online may be a tad better at Fido, but customer service may be a tad better at Schwab. But again it is splitting hairs

 

[OldShooter]

FWIW, Schwab also provides now "free of charge" a team of more experienced reps if you have a min of 8 figures with them. More of the white glove treatment...

Yes. I forget the name of the program but my rep told me that $10M+ gets your account reassigned to New York. The $1M-$9.999M is called "Pinnacle."

 

[Montecfo]

Excellent reviews on these two as well as all the other brokerages (except Vanguard, which never participates) annually on Kiplinger and Barron's, and a few more.

Lots more data there on which ones provide the best service, investment choices, technology, etc.

Kiplinger in 2021 rated them: Fidelity, Schwab, E*Trade
Barron's in May: Interactive Brokers, E*Trade, Fidelity, Schwab

 

[Accidental Retiree]

Both Fidelity and Schwab are great, but I'm still learning Schwab interface. At Fidelity which I use for a very long time everything is simple and intuitive. May be I just became addicted to Fidelity

I’m just the opposite. We’ve been with Schwab for 40 years and while we have accounts at both Fidelity and Vanguard, I find more and more that the Schwab interface works better for me.

In fact, within the past year or so they made in-kind Roth conversions even easier.

They’ve also provided stellar phone service in several cases, reversing fees and overnighting a debit card I needed for international travel.

As a result, a whole bunch of rollover IRA money is heading back their way once it’s ready to leave NFCU.

 

[ShokWaveRider]

Leaning towards Schwab for a bite of that $2,500 carrot.

 

[Accidental Retiree]

Is the decimal point considered?

I think you forgot the emoticon:

 

[Montecfo]

Leaning towards Schwab for a bite of that $2,500 carrot.

E*Trade offers a similar incentive, plus they will pay transfer costs. Fidelity will pay your transfer costs but that is about it.

 

[FIREd_2015]

I've been with Fidelity for 20+ years. The few time I've had to call customer service they have always been knowledgeable and helpful. I also like the free TurboTax every year. There is some controversy as to the amount of assets needed to qualify but I believe it's 7 figures not including institutional assets (401k, 403b, etc.)

 

[TrvlBug]

Years ago when I was bringing new money to Fidelity, they matched the incentive ($2,500) being offered by a competitor. Doesn't hurt to ask.

 

[24601NoMore]

What's the attraction of EITHER when it comes to Cash Non-Qual Assets?

I've bought Annuities through FIDO, and am not in a hurry to buy another one. Their sales and service pales by comparison to Stan the Annuity Man which in my experience is by far the best of the 3 options for Annuities (among FIDO, Blueprint Income and Stan's firm). Plus, they only sell Annuities from 5 or so different firms - and you can easily get WAY higher yield A+ (or higher) Annuities with Stan or even Blueprint.

CDs don't seem a lot better.

And Money Market? FIDO MM funds usually lag Vanguard. And last time I checked, Schwab does as well.

Maybe I'm just not aware of the reasons one would want to consolidate all non-Qual Cash Assets at EITHER FIDO or Schwab. What's the draw to do so?

 

[OldShooter]

E*Trade offers a similar incentive, plus they will pay transfer costs. Fidelity will pay your transfer costs but that is about it.

E-Trade is Schwab, but IMO the likelihood is that the brand will be slowly extinguished in favor of the Schwab brand. Software platforms may be merged rather than one or the other being adopted. My understanding is that the Etrade software has some desirable featurs that the Schwab platform does not. But regardless, IMO starting with Etrade is just buying one degree or another of grief as Schwab absorbs it.

 

[youbet]

Yes. I forget the name of the program but my rep told me that $10M+ gets your account reassigned to New York. The $1M-$9.999M is called "Pinnacle."

Do you happen to know if IRA's are included in the add-up?