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Open both Fidelity and Charles Schwab?
Old 11-03-2023, 01:53 PM   #1
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Open both Fidelity and Charles Schwab?

I've seen people have both. For what reason would you want or need to open an account with both Fidelity and another on-line brokerage company? Why no have all your money in the same place? I'm new to all this.
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Old 11-03-2023, 02:00 PM   #2
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I wound up with schwab due to the TDAmeritrade deal.

I recently opened a new fee HSA account with Fidelity because I got tired of paying fees with Health Equity, and having limited investment options.
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Old 11-03-2023, 02:02 PM   #3
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SPIC is only $500k at each. I am thinking of having one for Taxables and the other for IRAs.
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Old 11-03-2023, 03:00 PM   #4
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Originally Posted by ShokWaveRider View Post
SPIC is only $500k at each. I am thinking of having one for Taxables and the other for IRAs.
That’s a good reason to have more than one account. Actually, the best reason .
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Old 11-03-2023, 03:16 PM   #5
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1. IMHO Fidelity's Retirement Income Planner is way better than any planning tool Schwab offers.

2. SIPC does NOT cover you in the event of brokerage firm insolvency. It is the required segregation of assets (firm/customer) that does.
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Old 11-03-2023, 03:24 PM   #6
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Originally Posted by ShokWaveRider View Post
SPIC is only $500k at each. I am thinking of having one for Taxables and the other for IRAs.
If you are a couple you can have three accounts with $500K coverage for each account: one in your name, one in her name, and one in both names (joint).

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Old 11-03-2023, 03:27 PM   #7
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Regardless of SPIC insurance, having money in two places isn't a terrible idea.

I know that during the 2007–2008 financial crisis I was glad to have cash in more than one place. If "bad things" happen, you money may not be as accessible as you expect for a while.
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Old 11-03-2023, 03:47 PM   #8
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I have a Schwab account, but I opened it mainly for their investor checking and the no international fees ATM card. Later I bought SCHD there because no fees. ETFs are no fee now at Fidelity.

Otherwise all at Fidelity. When we quit traveling internationally I’ll probably transfer all assets to Fidelity.

Other than brokerage accounts I have several high yield savings accounts and some checking accounts. This takes care of short-term fund needs in case of a disruption. The multiple high-yield savings accounts also makes it easy to take advantage of short-term CD special offers.
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Old 11-03-2023, 04:55 PM   #9
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Originally Posted by scottl73 View Post
I've seen people have both. For what reason would you want or need to open an account with both Fidelity and another on-line brokerage company? Why no have all your money in the same place? I'm new to all this.
I am mostly at Schwab. We each have Health Savings Accounts at Fidelity. At the time we set the HSAs up, we didn't have anythign at Schwab and to my knowledge Schwab still does not do HSAs.

I guess that I could centralize everything at Fidelity. I am at Schwab because of some frustrations when I had much more at Fidelity.

At Schwab I have two people who if I call them they often actually answer the phone, or if they don't and I leave a message then they actually call me back. I can't have that at Vanguard. Or if I email them then one of them gets back to me within 24 hours.

Recent live example. I wanted to have a certain report run that they can run but I can't. Sent an email requesting the report on Nov 2 at 12:29 pm. He called me in the afternoon for clarification on what I needed and at 5:09 pm that day I received emails with secure links to the reports that I requested.
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Old 11-03-2023, 05:30 PM   #10
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I am mostly at Schwab. We each have Health Savings Accounts at Fidelity. At the time we set the HSAs up, we didn't have anythign at Schwab and to my knowledge Schwab still does not do HSAs.
My HSA account (the investment portion), was just moved in September from TD Ameritrade to Schwab. I don't know if someone could currently open an HSA directly with Schwab, but my (now) Schwab investment account is connected through HSA Bank, my HSA administrator through my retiree health insurance.
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Old 11-05-2023, 05:03 AM   #11
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Originally Posted by scottl73 View Post
I've seen people have both. For what reason would you want or need to open an account with both Fidelity and another on-line brokerage company? Why no have all your money in the same place? I'm new to all this.
Never put all your eggs in one basket. And some people got ALOT of eggs.
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Old 11-05-2023, 07:32 PM   #12
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For me, having accounts at both Schwab and Fidelity are just how the chips have fallen. Way back in the early 90's, I had a 403b with Fidelity who was the university's provider. One of my earliest brokers was Waterhouse Securities which was bought by TD which then became TD-Ameritrade which was bought by Schwab. The university at the time I was there offered another retirement option in addition to their 403b: the State retirement system or a VALIC annuity. I opted for the VALIC annuity which I am now in the process of converting to an IRA at Fidelity. When the dust settles, I will be down to Schwab and Fidelity for brokerage/IRAs, a major bank for routine expenses and a foreign bank account for my convenience as a dual national.
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Old 11-15-2023, 09:48 AM   #13
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Once my TDA account transfers to Schwab next year, I'll have both fidelity and Schwab. At that point it'll probably be a feature test for both to see who best meets my needs.
One thing I think works well is having an IRA and Roth in the same place. That makes Roth conversions easier.
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Old 11-16-2023, 06:17 AM   #14
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I have both a Schwab and Vanguard account. Started with Scottrade to TDA to Schwab. They have been located in my town so it was convenient. I have had the same representative throughout and use Scottrade for CD and stocks. I have had Vanguard for IRAs and accounts for RMD money for about 25+ years.
It has been convenient but Fidelity would have worked too.

Cheers!
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Old 12-02-2023, 12:03 PM   #15
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I have tested all 3 before retirement and have settled on Fidelity............why?
The Fidelity Platform is so easy to use.
I can buy any ETF or other investments from anywhere from the Fidelity Platform.
I only have one Fidelity ETF and the rest are from Vanguard or Schwab.
I use one of their free financial planners as a second opinion.......did I mention it is free!!
Their retirement planning software is free and easy to use and has great graphic and is just as good as Best Retirements which seems to be talked about all the time on YouTube.
They answer the phone>>>>>>>>. And many other reasons.
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Old 12-02-2023, 12:10 PM   #16
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Quote:
Originally Posted by ShokWaveRider View Post
SPIC is only $500k at each. I am thinking of having one for Taxables and the other for IRAs.
Each carries significantly more in excess coverage.

Quote:
Does Schwab have any additional protections for client securities beyond those provided by SIPC?

Yes, in addition to SIPC, Schwab clients receive an extra level of coverage through "excess SIPC" insurance protection for securities and cash. This helps ensure claims will be covered in the event of a brokerage firm failure and funds covered by SIPC protections are exhausted. Schwab's Excess SIPC program has a $600 million aggregate (meaning the most the program will pay for the Excess SIPC portion of the losses). Commodity interests, futures contracts and cash in futures accounts are not protected by SIPC.
Quote:
Additional Coverage
In addition to SIPC protection, Fidelity, through National
Financial Service (NFS), provides its brokerage customers
with additional “excess of SIPC” coverage from Lloyd’s
of London together with other insurers.† The excess of
SIPC coverage would only be used when SIPC coverage
is exhausted. Like SIPC, excess of SIPC protection does
not cover investment losses in customer accounts due to
market fluctuation. It also does not cover other claims for
losses incurred while broker-dealers remain in business.
Total aggregate excess of SIPC coverage available
through Fidelity’s excess of SIPC policy is $1 billion. Within
Fidelity’s excess of SIPC coverage, there is no per customer
dollar limit on coverage of securities, but there is a per
customer limit of $1.9 million on coverage of cash awaiting
investment. This is the maximum excess of SIPC protection
currently available in the brokerage industry.

Both SIPC and excess of SIPC coverage is limited to
securities held in brokerage positions, including mutual funds
if held in your brokerage account and securities held in book
entry form. Neither SIPC nor additional coverage protection
covers investment losses due to market fluctuations.
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Old 12-02-2023, 12:29 PM   #17
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I do have brokerage accounts at both Fidelity and Schwab. I like Fidelity's interface and functionality much more than Schwab.
The reason for Fidelity was my former employer who had 401K plan there. Historically, both tIRA and Roth IRA are also at Fidelity. In addition to that, an important chunk of after tax investment (individual stocks) is there. Another reason to use Fidelity were their debit and credit cards I use for a long time. Finally HSA is also there by historic reason.
The reason for Schwab was another former employer who deposited vested RSUs there. Also, investment in SCHD is another reason I keep using Schwab.
But I think without SCHD I could consolidate everything at Fidelity as of now.
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Old 12-02-2023, 01:11 PM   #18
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Originally Posted by audreyh1 View Post
I have a Schwab account, but I opened it mainly for their investor checking and the no international fees ATM card. Later I bought SCHD there because no fees. ETFs are no fee now at Fidelity.

Otherwise all at Fidelity. When we quit traveling internationally I’ll probably transfer all assets to Fidelity.

...
We have accounts at both, mainly to avoid all eggs in one basket and initially to compare the two. Agree with others that FIDO seems to have an easier interface, but we are passive investors except for setting up the year's withdrawals and rebalancing both annually and in conjunction with Roth conversions.

Note that both of them offer no fee international ATM cards, but right now we only have a taxable account at FIDO; thus, we haven't taken advantage of Schwab's ATM functionality. Fidelity has performed as promised on ATM reimbursement--even when the dispensing machine has outrageous fees.

Both are far more user friendly for me than Vanguard and Merrill Edge.
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Old 12-02-2023, 02:04 PM   #19
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Note that both of them offer no fee international ATM cards, but right now we only have a taxable account at FIDO; thus, we haven't taken advantage of Schwab's ATM functionality. Fidelity has performed as promised on ATM reimbursement--even when the dispensing machine has outrageous fees.
We have both so that we have a backup ATM account when traveling overseas.

Just one minor difference. Fidelity reimburses ATM fees within a day. Schwab seems to bunch them up and refund end of the month or something like that.
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Old 12-02-2023, 02:37 PM   #20
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We have both so that we have a backup ATM account when traveling overseas.

Just one minor difference. Fidelity reimburses ATM fees within a day. Schwab seems to bunch them up and refund end of the month or something like that.
FWIW, I was a bit surprised on my trip this past summer when all the ATMs I used in Europe had no fee. That's a trend I hope continues.
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