SoFi Invest vs Fidelity vs Charles Schwab: Which Brokerage Offers the Best Fractional Shares and Lowest Fees for Beginners?

Fidelity, Charles Schwab, and SoFi Invest all let beginners trade U.S. stocks and ETFs online without a standard commission. The important differences appear when you look beyond the “$0 trades” headline: Fidelity offers the broadest established fractional-share program, Schwab combines recently expanded fractional investing with extensive support and trading tools, and SoFi puts investing inside an all-in-one financial app.

Quick verdict: Fidelity is the strongest overall choice for most beginners. Its $1 fractional-share minimum, access to more than 7,000 eligible U.S. stocks and ETFs, recurring investments, retirement accounts, research, and planning tools make it suitable for both a first brokerage account and a long-term IRA.

Quick verdict: Which brokerage is best for beginners?

Best overall: Fidelity

Choose Fidelity if you want to invest small dollar amounts across a broad selection of stocks and ETFs. Fidelity’s fractional-share program starts at $1 and supports eligible stocks and ETFs listed on major U.S. exchanges. It also offers recurring purchases, dividend reinvestment, extensive fund research, cash-management features, and a wide range of retirement accounts.

Best for support and room to grow: Charles Schwab

Schwab is a close alternative. Its fractional-share program has expanded from its former S&P 500-focused Stock Slices offering to most eligible U.S.-listed stocks and ETFs, starting at $1. Schwab also stands out for branch access, customer service, investor education, mutual funds, and the thinkorswim trading platform.

Best all-in-one financial app: SoFi Invest

SoFi Invest is best for someone who values simplicity and wants investing, checking, savings, loans, credit products, and access to financial planning in one ecosystem. Fractional purchases start at $5, and recurring investments are available for eligible stocks and ETFs. The tradeoff is a less specialized research and retirement-planning experience than Fidelity or Schwab.

Who this comparison is best for: New U.S. investors choosing a self-directed taxable brokerage account, IRA, or basic robo-advisor. Advanced options strategies, margin costs, futures, cryptocurrency, and international trading require a separate comparison.

Remember that a $0 commission does not mean investing is cost-free. Fund expense ratios, bid-ask spreads, advisory fees, regulatory assessments, transfer charges, margin interest, and optional service fees can all affect your return.

Fractional shares comparison: Fidelity vs Schwab vs SoFi Invest

Fidelity has the clearest advantage for a beginner who wants to automate small purchases across a broad universe. For example, an investor could schedule $20 into a total-market ETF and $10 into a selected stock each week, assuming both securities are eligible.

Schwab’s expansion is significant. Its earlier Stock Slices program was associated with a narrower S&P 500 selection and a higher purchase threshold. The current program covers most eligible U.S.-listed stocks and ETFs with a $1 starting amount. Schwab now refers to the broader service simply as fractional shares, although the Stock Slices name may still appear in older articles.

Schwab supports dividend reinvestment into fractional shares for eligible stocks and ETFs. However, its public fractional-share materials do not promise universal recurring-purchase scheduling across every eligible stock and ETF. Investors who need automatic weekly or monthly purchases should confirm that capability inside the current trade ticket before transferring an account.

SoFi supports recurring investments in fractional-eligible stocks and ETFs. Scheduled fractional orders may be aggregated and executed during a designated trading window, so the final execution price can differ from the price displayed when the schedule was created.

Eligible securities, account types, minimums, order types, and scheduling features can change. Verify the current rules for the specific investment and account before opening or funding a brokerage account.

Fees and minimums: What beginners may actually pay

All three generally charge $0 for ordinary self-directed online trades of U.S. stocks and eligible ETFs. Small regulatory, exchange, or trading-activity fees can still apply, particularly to sales or options transactions.

Fidelity’s service fee for certain ETFs

Fidelity’s $0 ETF commission does not cover every fund without exception. Effective June 1, 2026, purchases of ETFs on Fidelity’s service-fee list may incur a fee of approximately 5% of the purchase amount, capped at $100 per order. The affected list is limited but can change as Fidelity updates its arrangements with fund sponsors.

A beginner purchasing a $100 affected ETF could therefore pay about $5, while a sufficiently large order could reach the $100 cap. Check the order preview and Fidelity’s current commission page and affected-ETF list before submitting an unfamiliar ETF purchase. Do not assume every exchange-listed fund is free merely because most ETF trades are.

Schwab’s manual block-trade fee is not a normal online commission

Reports about Schwab’s $5 “high-touch” fee effective June 1, 2026 concern certain advisor block orders that require human handling through Schwab’s Advisor Services Block Desk. It is not a $5 charge on an ordinary self-directed online stock or ETF order.

Retail investors should instead note Schwab’s standard $25 service charge for broker-assisted stock or ETF trades and $5 charge for certain automated-phone trades. Self-directed online listed-stock and ETF orders remain commission-free under Schwab’s published retail pricing.

SoFi’s advisory and account-related fees

SoFi’s current pricing lists a 0.25% annual fee for Robo Investing, in addition to the expense ratios of the ETFs in the portfolio. That equals approximately $25 per year on a $10,000 balance, before considering market changes.

SoFi also lists an avoidable $25 inactivity fee per Invest account after six months without a login. Logging into the SoFi profile counts as activity; dividends and interest alone do not. Other notable charges include a $100 outgoing account transfer fee and a $100 IRA closing fee. These service charges can matter more than trading commissions for a small or rarely used account.

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Platform-by-platform breakdown

Fidelity: Best balance of access, automation, and retirement tools

Fidelity’s primary strength is breadth. A beginner can use $1 fractional purchases across more than 7,000 eligible U.S. stocks and ETFs, schedule recurring investments, reinvest dividends, open several types of IRAs, and access research without changing brokers later.

Its cash-management account and planning tools are useful for people coordinating emergency savings, retirement contributions, and taxable investing. Fidelity also offers zero-expense-ratio index mutual funds, although investors should compare portability, diversification, and tax treatment rather than choosing a fund based on its expense ratio alone.

Pros: Broad fractional selection, strong recurring-investment features, extensive retirement accounts, substantial research, and no minimum for a standard retail brokerage account.

Cons: The website and app can feel dense, some non-Fidelity mutual funds carry transaction fees, and a limited list of ETFs can trigger the newer service fee.

Charles Schwab: Best for education, service, and advanced platform access

Schwab combines a beginner-friendly $1 fractional minimum with physical branches, 24/7 service, educational materials, and a large mutual fund marketplace. Schwab-branded funds and thousands of OneSource funds can be purchased without transaction fees, although short-term redemption fees and fund expenses may apply.

The thinkorswim platform gives Schwab customers a path toward advanced charting, options analysis, and active trading. Beginners do not need those tools immediately, but they can grow into them without moving to a different broker.

Pros: Broadly expanded fractional shares, branch support, strong education, a large no-transaction-fee fund selection, and thinkorswim.

Cons: The standard interface can feel traditional, recurring fractional purchases may not be as universally available as at Fidelity or SoFi, and Schwab Intelligent Portfolios requires $5,000 and maintains a cash allocation.

SoFi Invest: Best for mobile-first financial management

SoFi offers a clean interface, fractional purchases from $5, recurring investments, self-directed accounts, IRAs, and a robo-advisor. Its main differentiator is integration: users can see investing alongside SoFi banking, borrowing, and other financial products.

Pros: Straightforward app, eligible fractional stocks and ETFs, recurring purchases, $0 self-directed options contract fees, and an integrated financial ecosystem.

Cons: Less extensive research and trading functionality, a $25 inactivity fee, a $100 outgoing transfer fee, a $100 IRA closing fee, and a 0.25% robo-advisor charge.

Risks and limitations of fractional-share investing

Fractional shares make it easier to put small balances to work, but they do not make an investment safer. A $5 fractional position can lose the same percentage as a $500 whole-share position.

• Transfers may require liquidation. Fractional stock and ETF positions generally cannot move through the standard ACATS system. The broker may sell the fraction and transfer only whole shares and cash, potentially creating a taxable gain or loss.
• Voting rights can be limited. Brokers may not pass through voting rights for fractional portions, even when whole-share owners can vote.
• Execution can differ. Fractional orders may be processed as “not held” orders, aggregated with other orders, or executed only during regular market hours.
• Corporate actions receive special treatment. Splits, mergers, tender offers, and reorganizations can result in a fractional position being paid in cash.
• Commission-free is not cost-free. ETF expense ratios, mutual fund loads, bid-ask spreads, options fees, advisory charges, and taxes remain relevant.

Do not select a broker solely because it offers a signup bonus or the lowest fractional minimum. A one-time $50 promotion is unlikely to compensate for years of unsuitable investment choices, avoidable fund expenses, or transfer fees.

Which brokerage fits your investing profile?

• Small recurring contributions to a taxable account or IRA: Fidelity is the strongest fit because of its $1 minimum, broad ETF access, automation, and retirement tools.
• Long-term index investing: Fidelity or Schwab. Compare the specific index fund’s expense ratio, transaction fee, minimum, portability, and tax efficiency.
• Branch access and human support: Schwab is the clearest choice for investors who want the option of in-person assistance.
• Hands-off investing below $25,000: Fidelity Go has no advisory fee below that threshold, while SoFi Robo charges 0.25% but requires only $50 to begin. Compare portfolio construction as well as price.
• Hands-off investing with at least $5,000: Schwab Intelligent Portfolios has no stated advisory fee, but its required cash allocation creates an indirect tradeoff because some cash alternatives may offer a higher yield.
• Active or advanced trading: Schwab’s thinkorswim platform is the most capable option of the three, although frequent trading remains risky for beginners.
• One mobile financial ecosystem: SoFi is the best fit when convenience across banking, borrowing, and investing matters more than deep research.

Alternatives to Fidelity, Schwab, and SoFi

Robinhood and Webull may appeal to mobile-first traders who prioritize streamlined interfaces and trading features. Public combines fractional investing with community and research features. Interactive Brokers offers sophisticated trading tools, international-market access, and broad fractional capabilities, but its platform can be more complex for a first-time investor.

Compare these alternatives on the same basis: eligible fractional ETFs, recurring-purchase support, IRA availability, options costs, cash treatment, customer support, and outgoing transfer fees. Promotional rewards should be a secondary consideration.

What to do next

1. Confirm eligible investments. Search for the stocks or ETFs you plan to buy and verify that fractional shares, recurring purchases, and dividend reinvestment are supported.
2. Read the complete fee schedule. Check mutual fund charges, affected-ETF fees, advisory costs, inactivity rules, broker-assisted fees, and outgoing transfer charges.
3. Compare protections and transfer policies. Confirm the brokerage entity’s SIPC membership, understand what SIPC does and does not protect, review any additional coverage, and learn how fractional positions are treated when transferring.

For many beginners, a practical starting plan is a diversified, low-cost index fund purchased automatically each payday. Fractional shares can make that plan easier to implement, but the long-term value comes from diversification, consistent contributions, controlled costs, and patience—not from frequently trading individual stocks.

Bottom line: Fidelity wins for most beginners, Schwab is the best service-oriented alternative with strong long-term platform depth, and SoFi is best for investors who prioritize a simple all-in-one financial app. This comparison is educational and does not constitute personalized financial, tax, or legal advice.