Fidelity vs Robinhood: Which Broker Do You Choose? (2024)

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Fidelity vs Robinhood requires careful consideration as both platforms offer commission-free trading, fractional shares, and access to various investment options, including ETFs and cryptocurrencies.

comparison of fidelity and robinhood

Fidelity, established over 70 years ago, provides reliability and extensive experience, while Robinhood, founded in 2013, attracts younger users with its user-friendly interface and focus on cryptocurrencies.

Despite offering diverse research tools, these platforms differ in their fee structures, investment choices, and target demographics.

To thoroughly evaluate the Fidelity vs Robinhood comparison and determine which best aligns with your investment goals, let’s delve deeper into their differences and similarities in this article.

Fidelity vs Robinhood Comparison At a Glance

CategoryFidelityRobinhood
Rating4.5/55.0/5
CommissionsStocks & ETFs: $0Stocks, ETFs, Options: $0
Options: $0 commission, $0.65/contract
Crypto: $0 (limited to Bitcoin, Ethereum)Crypto: $0 (wider variety of cryptocurrency)
Mutual funds: $0 for Fidelity Funds, $0 purchase on NTF non-Fidelity fundsN/A (no mutual funds)
Account transfer fee: $0Account transfer fee: $100
Account maintenance fee: $0Account maintenance fee: $0 or $5/month (Robinhood Gold)
Investments AvailableStocks, ETFs, Fractional shares, OptionsStocks, ETFs, Fractional shares, Options, Cryptocurrencies (Bitcoin, Ethereum)
Mutual funds (10,000+), CDs, Bonds
Account Types AvailableTaxable brokerage, Joint tenant, MarginTaxable brokerage, Margin, Traditional IRA, Roth IRA
Robo-advisor (Fidelity Go®), CustodialTraditional IRA, Roth IRA, Custodial
Checking: No, Savings: NoChecking: No, Savings: Brokerage sweeps
Credit card: YesCredit card: No
Mobile App & PlatformsApp Rating: iOS – 4.8/5, Android – 4.4/5App Rating: iOS – 4.2/5, Android – 4.1/5
Offers multiple desktop and mobile trading platformsFocuses on simplifying investing process
This table provides a clear Fidelity vs  Robinhood comparison in terms of their ratings, commissions, available investments, account types, and mobile app features.

Things That Are Common Between Fidelity & Robinhood

Things That Are Common Between Fidelity & Robinhood
  • Fidelity and Robinhood, as popular investment platforms, offer similar features.
  • Both provide commission-free trading and fractional shares, catering to investors’ needs.
  • Highly-rated mobile apps from Fidelity and Robinhood ensure convenient investing experiences.
  • Neither platform imposes a minimum account balance requirement, allowing users to start trading freely.
  • Investors can access a variety of securities, including stocks, ETFs, options, and cryptocurrencies like Bitcoin and Ethereum, on both platforms.
  • Retirement account options such as Traditional and Roth IRAs are also available on Fidelity and Robinhood.
  • Both platforms equip users with investment research tools to facilitate informed decision-making.
  • These shared attributes make Fidelity and Robinhood appealing choices for investors seeking low-fee trading options.

In comparing Fidelity vs Robinhood, these features play an important role.

Commission-Free Trading in Fidelity vs Robinhood

Commission-Free Trading in Fidelity vs Robinhood

In comparing Fidelity vs Robinhood, it’s important to note that both platforms allow you to trade stocks and ETFs without paying commissions, which are fees for buying and selling securities.

Fidelity does charge a $0.65 fee for options trading, but it doesn’t charge for closing accounts. On the other hand, Robinhood doesn’t impose fees for options but does have a $100 fee for closing accounts.

While both platforms offer commission-free trading, their fee structures differ, so it’s crucial to choose the one that best fits your needs.

Fidelity vs Robinhood Fractional Share Comparison

Fidelity vs Robinhood Fractional Share Comparison

When looking at fractional share trading in the context of Fidelity vs Robinhood, both platforms enable investors to buy a portion of a stock or ETF, thus making investing more accessible.

Both Fidelity and Robinhood offer this feature without any additional fees. Whether you’re interested in investing in high-priced stocks or diversifying your portfolio with smaller investments, both platforms make it simple to do so.

This similarity in fractional share trading ensures that investors have options, regardless of whether they choose Fidelity or Robinhood as their preferred investment platform.

Cryptocurrency Trading Comparison

Cryptocurrency Trading Comparison In Fidelity vs Robinhood

In the Fidelity vs Robinhood comparison for cryptocurrency trading, both platforms allow users to buy Bitcoin and Ethereum.

However, Fidelity offers only these two cryptocurrencies, while Robinhood provides a wider selection. Despite this difference, both platforms are suitable for beginners interested in entering the world of digital currency trading.

Whether you’re looking to invest in the most popular cryptocurrencies or explore a broader range of digital assets, Fidelity and Robinhood offer accessible options to get started on your crypto journey.

Account Minimum in Fidelity vs Robinhood

Account Minimum in Fidelity vs Robinhood Comparison

Fidelity vs Robinhood comparison for account minimums, it’s worth noting that both platforms have a $0 minimum balance requirement to open an account. This means that investors can begin investing without needing to deposit any money upfront. 

Whether you’re a new investor taking your first steps into the financial markets or someone who prefers to start with a modest initial investment, both Fidelity and Robinhood provide flexibility and accessibility by eliminating the need for a minimum account balance.

Mobile Apps Comparison

Mobile Apps Comparison In Fidelity vs Robinhood

When comparing the mobile apps offered by Fidelity and Robinhood, both platforms provide highly rated options for convenient investing on the go.

Fidelity’s mobile app has received positive feedback on both iOS and Android platforms, offering users access to various trading platforms seamlessly.

Similarly, Robinhood’s app is known for its user-friendly interface and simplicity, earning praise from many users.

With Fidelity vs Robinhood, their mobile apps are designed to be user-friendly, catering to both beginners and experienced traders alike.

Research Tools Comparison

Research Tools Comparison In Fidelity vs Robinhood

When comparing research tools in Fidelity vs Robinhood, both platforms offer resources to assist users in making informed investment decisions.

Fidelity provides a diverse array of research tools, such as proprietary research, market analysis, and educational materials. Similarly, Robinhood also furnishes investment research tools, although they might be more limited in comparison to Fidelity’s offerings.

Things That Make Them Apart From Each Other

Fidelity vs Robinhood In Retirement Accounts

Fidelity vs Robinhood In Retirement Accounts

When considering retirement accounts in Fidelity vs Robinhood, both platforms offer different options.

Fidelity provides access to Traditional and Roth IRAs, as well as other retirement accounts like custodial accounts. On the other hand, Robinhood Promotions recently introduced Roth and Traditional IRAs but does not offer custodial accounts.

If you prioritize retirement savings and want a broader range of account options, Fidelity might be the better choice. However, if you’re mainly interested in IRAs, both Fidelity and Robinhood can meet your needs.

Investment Options in Fidelity vs Robinhood

Investment Options in Fidelity vs Robinhood Comparison

In comparing investment options in Fidelity vs Robinhood, both platforms offer stocks, ETFs, and options trading.

However, Fidelity stands out with over 10,000 mutual funds available for investment, along with CDs and bonds. In contrast, Robinhood does not support mutual fund trading but provides access to a wider selection of cryptocurrencies, including Bitcoin and Ethereum.

Whether you’re interested in traditional investments like mutual funds and bonds or want to explore cryptocurrencies, both Fidelity and Robinhood offer diverse options to suit your preferences.

Comparison Of Customer Support & Service

Fidelity vs Robinhood Comparison Of Customer Support & Service
Customer care.

When comparing customer support in Fidelity vs Robinhood, it’s important to consider the availability and quality of service.

Fidelity typically offers various support channels such as phone, email, live chat, and in-person support at branch locations. In contrast, Robinhood primarily relies on email support with limited phone support availability.

Considering customer service options can help users determine which platform provides better assistance and responsiveness to their needs.

Fidelity vs Robinhood Which Option Suits You Best?

Fidelity vs Robinhood Which Option Suits You Best?

Deciding between Fidelity and Robinhood depends on your specific investment needs and preferences. If you value a wide range of investment options including mutual funds and bonds, along with robust research tools and customer support, Fidelity may be the better choice.

However, if you’re primarily interested in commission-free trading, fractional shares, and a user-friendly mobile app, Robinhood might suit you better. 

Fidelity & Robinhood Comparison With Other Brokerage Accounts

Fidelity vs Robinhood Comparison With Other Brokerage Accounts

Charles Schwab

  • Trusted brokerage with many investment options and no trading fees.
  • Charles Schwab promotions offer bonuses for signing up.
  • Get more bonuses by referring friends using the Charles Schwab referral code.
  • Customers like its easy-to-use platforms.
  • Other options include TD Ameritrade, E*TRADE, and Fidelity.

TD Ameritrade

  • Offers various investments and advanced tools without trading fees.
  • Bonuses are available for new accounts and referrals.
  • Users appreciate its comprehensive services.
  • Alternatives include Charles Schwab, E*TRADE, and Interactive Brokers.

E*TRADE

  • Simple platform with diverse investments and no fees.
  • Bonuses are offered for signing up and referring others with E*Trade promotions.
  • Customers find its tools and research helpful.
  • Other choices are TD Ameritrade, Charles Schwab, and Fidelity.

Interactive Brokers

  • Advanced platform with many investment options and competitive fees.
  • Bonuses for new users and referrals.
  • Users like its technology and low costs.
  • Other options include Charles Schwab, TD Ameritrade, and Robinhood.

Vanguard

  • Focuses on low-cost index funds and retirement planning advice.
  • No bonuses, but users praise its low fees and strategies.
  • Alternatives are Charles Schwab, Fidelity, and TD Ameritrade.

Tastytrade

  • Specializes in options trading education with bonuses for joining and referrals.
  • With Tastytrade referral codes, users can take advantage of educational content and a supportive community.
  • Other options include Thinkorswim, Power E*TRADE, and Tastyworks.

Webull

Wealthfront

  • Offers automated investing with bonuses for signing up and referring friends.
  • Users appreciate its hands-off approach and low fees.
  • Alternatives include Betterment, Personal Capital, and Wealthsimple.
  • The Chime vs Wealthfront comparison elaborates on Wealthfront in more detail.

Conclusion

In conclusion, Fidelity and Robinhood are both popular brokerage platforms, each with its own set of advantages.

Fidelity offers a wide range of investment options, comprehensive research tools, and retirement accounts, making it suitable for investors looking for diverse investment opportunities and long-term planning.

On the other hand, Robinhood is known for its user-friendly interface, commission-free trading, and accessibility to beginner investors, making it a preferred choice for those seeking simplicity and ease of use.

Ultimately, the best platform for you depends on your individual investment goals, preferences, and level of experience.

FAQ

Are there any fees associated with using Fidelity or Robinhood?

Fidelity and Robinhood both offer commission-free trading for stocks and ETFs. However, Fidelity charges a fee for options trading, while Robinhood may impose fees for certain services like account closing.

Can I trade cryptocurrencies on Fidelity and Robinhood?

Yes, both Fidelity and Robinhood allow users to trade cryptocurrencies like Bitcoin and Ethereum. However, Fidelity’s cryptocurrency trading options are limited compared to Robinhood, which offers a wider variety of digital assets.

What types of accounts can I open with Fidelity and Robinhood?

Fidelity provides access to various account types, including Traditional and Roth IRAs, as well as custodial accounts. Robinhood offers individual brokerage accounts, as well as Traditional and Roth IRAs, but does not support custodial accounts.

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