Choosing Fidelity alternatives means that you have a wide range of choices to meet your specific financial needs.
As it covers everything from regular investments to retirement planning and even automatic investing. But if you want more options or control, there are other choices.
Among these choices, Robinhood stands out as a popular platform known for its commission-free trading and intuitive interface.
Additionally, Wealthfront offers automated investing services, while Etrade provides a robust suite of investment tools.
Webull is emerging as a favorite for its advanced trading features, and Interactive Brokers offers a comprehensive range of investment options for more seasoned investors.
Investors of all skill levels can benefit from these platforms, whether they are beginners looking to get started or seasoned traders seeking more options and control.
All the major platforms are covered in this article, along with their distinct features, which will help you determine which Fidelity alternative is right for you.
Let’s move on to the article.
Fidelity Alternatives and Competitors in a Glance
| Aspect/Platform | Robinhood | Wealthfront | E-Trade | Webull | Interactive Brokers |
| Commission-Free Trading | Yes | No | Yes | Yes | No (for IBKR Lite) |
| User-Friendly Interface | Yes | Yes | Yes | Yes | No (complex interface) |
| Fractional Share Trading | Yes | No | No | No | Yes |
| Cryptocurrency Trading | Yes | No | No | Yes | Yes (limited availability) |
| Educational Resources | Limited | Yes | Yes | Limited | Yes |
| Investment Options | Stocks, ETFs, Options, Cryptocurrencies, ADRs | ETFs, Index Funds, IRAs, 529 Plans | Stocks, ETFs, Mutual Funds, IRAs, Business Accounts | Stocks, ETFs, Options, Cryptocurrencies | Stocks, ETFs, Mutual Funds, Options, Futures, Forex |
| Customer Service | Limited | Limited | Subpar | Subpar | Multiple Channels |
| International Markets | No | No | No | No | Yes (33 countries) |
| Advanced Trading Tools | No | No | Yes | No | Yes |
| Margin Trading | No | No | Yes | Yes | Yes |
| Fractional Share Trading | No | No | No | No | Yes |
| Mobile Trading | Yes | Yes | Yes | Yes | Yes |
| Account Minimum | None | $500 | None | None | Varies (depends on account type) |
Alternative for Commission-Free Trading: Robinhood
Robinhood is an online platform that makes investing easier for everyone. It started in 2013 and lets you trade without paying any fees, which is great for beginners among Fidelity alternatives.
Features
- No Fees: You can trade stocks, ETFs, options, cryptocurrencies, and ADRs without any fees.
- Easy to Use: It has simple apps for your phone and computer, so you can trade and keep an eye on your investments easily.
- Fractional Shares: You can buy small pieces of expensive stocks, so you don’t need a lot of money to start.
- Options Trading: If you know about options, you can trade them too, and it’s easy to understand.
- Cash Management: You can quickly deposit money and use a debit card to access your funds.
Similarities with Fidelity
- No Fees: Just like Fidelity, Robinhood doesn’t charge fees for trading.
- Easy to Use: Both platforms are easy to understand, although Fidelity might have more educational resources. In addition, closing your Robinhood account is a much more convenient option.
- Types of Investors: Fidelity serves all kinds of investors, while Robinhood is more focused on beginners and people who want things simple.
Pros
- No account minimum, no monthly fee
- Very easy to use
- Allows cryptocurrency and fractional share trading
- Instant access to deposited cash
Cons
- App design may encourage active trading, which is not appropriate for most investors
- Delayed price quotes
- Limited education and research tools
- Accepts payment for order flow
- No access to mutual funds or bonds
Alternative for Automated Investment Services: Wealthfront
Wealthfront is an automated investment service for those who prefer a hands-off approach to investing.
Features
- Automated Portfolio Management: Despite Fidelity alternatives it builds and manages diversified portfolios using low-cost ETFs and index funds.
- Self-Driving Money: Automatically allocates funds for bills, savings, and investments. Chime vs Wealthfront is competitive on this feature.
- Path Tool: Offers a comprehensive view of finances and long-term goals.
- Fees: Requires a $500 minimum initial contribution and charges a 0.25% annual advisory fee.
Similarities with Fidelity
- Investment Options: Offers various investment options tailored to different goals and risk levels.
- Automated Services: Provides automated investment services, making investing convenient.
- Focus on Financial Objectives: Aims to help users efficiently achieve financial goals.
Pros
- Tax-efficient trading
- 529 education accounts
- Bank account with modest yield and no fees
- Low advisory fees
Cons
- Overwhelming amount of features
- No fractional share trading
Alternative for Comprehensive Financial Tools: Etrade
Etrade is an online brokerage firm with a focus on providing user-friendly tools and resources in Etrade promotions.
Features
- Access to Consultants: Provides access to free financial consultants and trading specialists.
- Educational Resources: Offers a range of educational materials, including articles, videos, and webinars.
- Power E-Trade Platform: Designed for intermediate and advanced traders, offering advanced tools and metrics.
- Account Types: Offers various account types, including taxable brokerage accounts and IRAs which makes it distinct among Fidelity alternatives.
- Commission-Free Trading: Allows commission-free trading of stocks and ETFs.
Similarities with Fidelity
- Investment Services: Offers diverse investment services and tools.
- Educational Resources: Provides access to educational resources.
- Caters to Different Investors: Serves beginners, intermediate investors, and experienced traders.
Pros
- Free access to financial consultants
- Intuitive platform for all types of traders
- Strong educational resources
- Paper trading feature
Cons
- Subpar customer service
- No fractional shares
Alternative for Wide Range of Investment Options: Webull
Webull is a mobile brokerage app focused on simplifying stock trading and options trading.
Features
- Mobile Brokerage App: Allows stock, cryptocurrency, and options trading.
- User Community: Features a thriving user community for learning and engagement.
- Commission-Free Trading: Offers commission-free trading for stocks, ETFs, and options.
- Limited Range of Assets: Provides limited tradable assets compared to other platforms among Fidelity alternatives.
- Webull Free Stocks: Webull Promotions is offering Webull free stocks for newcomers.
Similarities with Fidelity
- Investment Services: Offers a range of investment services, including stock and options trading.
- Access to Educational Resources: Provides access to educational resources for learning about investing.
- Commission-Free Trading: Offers commission-free trading like Fidelity.
Pros
- Strong mobile app
- No minimum deposit or fees
- Access to cryptocurrencies
- Active user community
Cons
- No mutual funds or bonds
- Limited educational resources
Alternative for Advanced Trading Platforms and Tools: Interactive Brokers
Interactive Brokers is a top choice for professional investors and day traders seeking advanced tools.
Features
- IB Trader Workstation: Offers advanced tools for researching and making investments.
- Low Commissions: Apart from Fidelity alternatives it provides competitive commissions and fees.
- Wide Range of Investments: Offers access to various asset classes and international markets.
- Account Types: Offers both IBKR Pro and IBKR Lite programs for different types of investors.
Similarities with Fidelity
- Investment Options: Offers a wide range of investment options like Fidelity.
- Educational Resources: Provides access to educational resources for learning about investing.
- Security Features: Prioritizes security features to protect client assets.
Pros
- Low commissions and fees
- Impressive platform with many features
- Wide range of investment offerings
- Strong educational materials
Cons
- Intimidating platform for beginners
- Complex pricing plans
- Subpar customer service
All About Fidelity
Fidelity Investments is a big financial company based in Boston, USA. It’s famous for its mutual funds and other money services.
Started in 1946 by Edward Johnson II, and his family still runs it. Abigail Johnson took over as CEO in 2015, following her father.
It’s one of the most trusted names in finance, helping people invest their money wisely. Fidelity Investments is a go-to choice for many when it comes to managing their money and planning for the future.
Ways to Make Money With Fidelity
- Investing in Dividend Stocks: Get regular payments from companies’ profits. These stocks offer steady returns and can grow over time if you reinvest what you earn.
- Realizing Capital Gains: When your investments grow, you make money. Use smart strategies like spreading your investments and planning for the long term. Take advantage of changes in the market to make more money.
- Earning Interest Payments: Earn money regularly by lending out your money. Reinvesting these earnings can make your money grow even more. Learn about interest rates and how the market is doing to make smart choices.
- Selling Covered Calls: Make money by selling options to others. You can still benefit if the stock price goes up. This helps you manage risk while making some extra cash.
- Participating in Fidelity’s Referral Program: Join a group of people who share investment tips. Build connections and learn from others to grow your money. Get access to more investment opportunities and earn rewards by referring others.
Conclusion
Although Fidelity remains a trusted choice in finance, exploring Fidelity alternatives allows investors to diversify their portfolios and tailor their investment strategies.
Whether opting for the simplicity of Robinhood, the automation of Wealthfront, the comprehensive tools of Etrade, the mobile-first experience of Webull, or the advanced features of Interactive Brokers, investors have a range of options to suit their preferences and financial objectives.
FAQ
Are these alternatives as reliable as Fidelity?
Yes, many of these Fidelity alternatives are reputable and well-established in the financial industry. They prioritize security and regulation to safeguard investors’ assets and maintain trust.
Do these alternatives provide similar investment opportunities to Fidelity?
Absolutely, Fidelity alternatives offer diverse investment options such as stocks, ETFs, and options trading. However, it’s advisable to compare each platform’s offerings to ensure they align with your investment goals.
Are there any fees associated with using these Fidelity alternatives?
Fee structures vary among Fidelity alternatives. Some offer commission-free trading but may have fees for additional services, while others may charge account maintenance or advisory fees. It’s essential to review the fee schedules of each platform before making a decision.