Fidelity vs Schwab Solo 401k (2026)
A comprehensive comparison to help you choose between Fidelity Solo 401k and Charles Schwab Solo 401k
Fidelity
Fidelity offers a full-featured Solo 401k with Roth contributions, industry-leading low costs, and zero-expense ratio funds - now matching most competitors on features.
Visit FidelitySchwab
Charles Schwab offers a solid prototype Solo 401k with Roth contributions and no fees, though it lacks loan provisions.
Visit SchwabChoosing between Fidelity and Schwab for your Solo 401k is a decision many self-employed individuals face when setting up their retirement plan. Both brokerages have built strong reputations over decades, and both offer free prototype Solo 401k plans with no setup or annual fees. However, the competitive landscape has shifted significantly in recent years, and these two providers no longer stand on equal footing.
Fidelity has emerged as the clear frontrunner in the Solo 401k space, thanks largely to its revolutionary zero-expense ratio index funds. The Fidelity ZERO Total Market Index Fund (FZROX) and Fidelity ZERO International Index Fund (FZILX) allow Solo 401k investors to build a diversified portfolio without paying any fund expenses whatsoever. This is not a temporary promotion or a loss leader—it represents a fundamental shift in how Fidelity approaches retail investing.
Schwab, meanwhile, continues to offer a solid Solo 401k product with reliable customer service and a user-friendly platform. The brokerage has long been respected for its commitment to individual investors and straightforward approach to retirement accounts. However, Schwab has not matched Fidelity's zero-expense fund offerings, and its Solo 401k plan lacks certain features like participant loans that some investors may want.
Both providers support Roth contributions within their Solo 401k plans, giving you the flexibility to make after-tax contributions that grow tax-free. The question is not whether either provider offers a bad plan—both are legitimate options from established brokerages. The question is which one delivers more value for your specific situation.
Our Rating
Fidelity has a higher rating based on our comprehensive review.
Pricing Comparison
| Fee Type | Fidelity | Schwab |
|---|---|---|
| Setup Fee | $0 | $0 |
| Annual Fee | $0 | $0 |
| First Year Total | $0 | $0 |
Long-Term Cost Analysis
See how costs add up over time
| Time Period | Fidelity | Schwab | Difference |
|---|---|---|---|
| 1 Year | $0 | $0 | Same |
| 3 Years | $0 | $0 | Same |
| 5 Years | $0 | $0 | Same |
| 10 Years | $0 | $0 | Same |
Green highlighting indicates the lower-cost option for each period.
Feature Comparison
| Feature | Fidelity | Schwab |
|---|---|---|
Roth Contributions After-tax contributions with tax-free growth | ||
Participant Loans Borrow up to $50,000 from your plan | ||
After-Tax (Mega Backdoor) Contribute beyond standard limits | ||
Alternative Investments Real estate, crypto, private equity | ||
Checkbook Control Direct investment management |
Pros and Cons
Pros
- Offers both Traditional and Roth contributions
- $0 trading fees for stocks, ETFs, and options
- Full range of investment options
- Accepts rollovers for backdoor Roth IRA strategies
- Zero-expense ratio index funds (FZROX, FZILX)
- Excellent research and educational resources
- Strong customer service reputation
Cons
- No participant loan provisions
- No after-tax contribution option
- Limited to Fidelity platform investments
Pros
- Offers both Traditional and Roth contributions
- Wide range of investment options
- No setup or annual fees
- Excellent customer service
- Commission-free stock and ETF trading
- Strong research and educational tools
Cons
- No participant loan provisions
- No after-tax contribution option
- Limited to Schwab platform investments
- Manual paperwork for some administrative tasks
User Sentiment
Fidelity
Top tier for "Basic" users. The addition of Roth removed the single largest complaint from the user base. The platform is praised for reliability, banking/brokerage integration, and high quality customer support.
Schwab
While the brokerage platform itself is robust and the Schwab Mobile app is excellent for trading, the Solo 401k product feels neglected. The lack of loans, combined with manual administrative processes, makes it difficult to recommend over Fidelity or E*TRADE.
Our Verdict
For most self-employed individuals opening a Solo 401k, Fidelity is the better choice. The math is straightforward: Fidelity's zero-expense ratio funds will save you money every single year for the life of your retirement account. Over a 20 or 30-year investing horizon, those savings compound significantly.
Consider a Solo 401k with $500,000 invested. Even a modest expense ratio of 0.03% costs $150 annually. Fidelity's zero-expense funds eliminate this cost entirely. As your balance grows to $1 million or beyond, the savings become even more meaningful. This is not about nickel-and-diming—it is about keeping more of your investment returns working for you.
Schwab remains a reputable brokerage with quality customer service, but it simply has not kept pace with Fidelity's innovations in the Solo 401k space. Without loan provisions and without a compelling cost advantage, Schwab's Solo 401k offering feels like it is coasting on brand recognition rather than delivering unique value.
Fidelity's platform is equally robust, its research tools are comprehensive, and its mobile app makes account management convenient. When one provider offers equivalent features plus zero-expense funds, the decision becomes clear. Fidelity wins this comparison for the majority of Solo 401k investors.
Which Provider is Right for You?
Choose Fidelity if:
Choose Fidelity if you want the lowest possible investment costs and plan to use index funds for your Solo 401k. Fidelity is ideal for cost-conscious investors who understand that expense ratios matter over long time horizons. If you are starting fresh and have no existing relationship with either brokerage, Fidelity should be your default choice.
Choose Schwab if:
Choose Schwab if you already have accounts there and value keeping your financial life consolidated under one roof. Schwab may also appeal to investors who have had positive customer service experiences and prefer continuity over switching. If you rarely call customer support and prioritize phone-based assistance when you do, Schwab's service reputation may matter to you.