Fidelity vs Robinhood comparison can be challenging as both platforms offer commission-free trading, fractional shares, access to retirement accounts, ETFs, and cryptocurrency trading. However, there are key differences that users should consider before deciding which one is best for their investment needs.
Fidelity, with over 70 years in the stock trading business, brings a wealth of experience and reliability. In contrast, Robinhood, launched in 2013, appeals more to younger generations with its sleek interface and focus on cryptocurrency trading.
Regarding investment research tools, both platforms provide a variety of options. However, they differ in their fee structures, investment options, and target demographics.
To look deeper into the Fidelity vs Robinhood comparison and determine which broker best fits your investing needs, let’s explore further in the article.
Fidelity vs Robinhood Comparison At a Glance
| Category | Fidelity | Robinhood |
| Rating | 4.5/5 | 5.0/5 |
| Commissions | Stocks & ETFs: $0 | Stocks, ETFs, Options: $0 |
| Options: $0 commission, $0.65/contract | ||
| Crypto: $0 (limited to Bitcoin, Ethereum) | Crypto: $0 (wider variety of cryptocurrencie) | |
| Mutual funds: $0 for Fidelity Funds, $0 purchase on NTF non-Fidelity funds | N/A (no mutual funds) | |
| Account transfer fee: $0 | Account transfer fee: $100 | |
| Account maintenance fee: $0 | Account maintenance fee: $0 or $5/month (Robinhood Gold) | |
| Investments Available | Stocks, ETFs, Fractional shares, Options | Stocks, ETFs, Fractional shares, Options, Cryptocurrencies (Bitcoin, Ethereum) |
| Mutual funds (10,000+), CDs, Bonds | ||
| Account Types Available | Taxable brokerage, Joint tenant, Margin | Taxable brokerage, Margin, Traditional IRA, Roth IRA |
| Robo-advisor (Fidelity Go®), Custodial | Traditional IRA, Roth IRA, Custodial | |
| Checking: No, Savings: No | Checking: No, Savings: Brokerage sweeps | |
| Credit card: Yes | Credit card: No | |
| Mobile App & Platforms | App Rating: iOS – 4.8/5, Android – 4.4/5 | App Rating: iOS – 4.2/5, Android – 4.1/5 |
| Offers multiple desktop and mobile trading platforms | Crypto: $0 (wider variety of cryptocurrencies) |
Things That Are Common Between Fidelity & Robinhood
Fidelity and Robinhood are popular investment platforms with similar features. They both offer commission-free trading, fractional shares, and highly-rated mobile apps for convenient investing.
Neither platform requires a minimum account balance to start. Investors can trade stocks, ETFs, and options on both platforms, as well as invest in cryptocurrencies like Bitcoin and Ethereum.
Both also provide retirement account options such as Traditional and Roth IRAs. Additionally, they offer investment research tools to help users make informed decisions.
These common features make both Fidelity and Robinhood attractive choices for investors looking to trade stocks and other securities without high fees.
Commission-Free Trading in Fidelity vs Robinhood
When looking at Fidelity vs Robinhood, both let you trade stocks and ETFs without paying commissions, which are fees for buying and selling.
Fidelity charges a $0.65 fee for options trading, but not for closing accounts. Robinhood, on the other hand, doesn’t charge for options but has a $100 fee for closing accounts.
While they both offer commission-free trading, their other fees differ, so it’s important to pick the one that suits your needs best.
Fidelity vs Robinhood Fractional Share Comparison
In comparing Fidelity vs Robinhood for fractional share trading, both platforms allow investors to buy a portion of a stock or ETF, making investing more accessible.
Fidelity and Robinhood offer this feature without charging any additional fees. Whether you’re investing in high-priced stocks or just want to diversify your portfolio with smaller investments, both platforms make it easy to do so.
This similarity in fractional share trading ensures that investors have options regardless of which platform they choose to use.
Cryptocurrency Trading Comparison In Fidelity vs Robinhood
When comparing cryptocurrency trading in Fidelity vs Robinhood, both platforms offer access to digital currencies like Bitcoin and Ethereum.
However, Fidelity’s cryptocurrency trading is limited to Bitcoin and Ethereum, while Robinhood allows trading of a wider variety of cryptocurrencies.
Both Fidelity and Robinhood offer options for users looking to enter the world of digital currency trading, whether they want to invest in the two most popular cryptocurrencies or want a broader selection.
Account Minimum in Fidelity vs Robinhood Comparison
In comparing Fidelity vs Robinhood for account minimums, both platforms have a $0 minimum balance requirement to get started. This means you can open an account on either platform without needing to deposit a specific amount of money upfront.
Whether you’re just starting to invest or prefer to keep your initial investment small, both Fidelity and Robinhood offer accessibility by not imposing any minimum account balance.
This similarity ensures that investors have the flexibility to begin investing without any financial barriers on either platform.
Mobile Apps Comparison In Fidelity vs Robinhood
When comparing mobile apps in Fidelity vs Robinhood, both platforms offer highly-rated apps for convenient investing on the go.
Fidelity’s app has received high ratings on both iOS and Android platforms, providing users with access to multiple desktop and mobile trading platforms. Robinhood’s app focuses on simplifying the investing process and has also received positive ratings.
Whether you’re a beginner or an experienced investor, both Fidelity and Robinhood offer user-friendly mobile apps to manage your investments with ease.
Research Tools Comparison In Fidelity vs Robinhood
Comparing research tools in Fidelity vs Robinhood, both platforms provide resources to help users make informed investment decisions.
Fidelity offers a wide range of research tools, including access to proprietary research, market analysis, and educational materials. Robinhood also provides investment research tools, although its offerings may be more limited compared to Fidelity.
Things Which Make Them Apart From Each Other
Fidelity vs Robinhood In Retirement Accounts
When considering retirement accounts, Fidelity vs Robinhood offers different options. Fidelity provides access to Traditional and Roth IRAs, along with other retirement accounts like custodial accounts.
On the other hand, Robinhood recently started offering Roth and Traditional IRAs but doesn’t provide custodial accounts. Discover more about Robinhood by exploring its comprehensive review.
If you’re focused on retirement savings and want a broader range of account options, Fidelity might be the better choice. However, if you’re primarily interested in IRAs, both Fidelity and Robinhood can accommodate your needs.
Investment Options in Fidelity vs Robinhood Comparison
When 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, sign-up bonuses, and bonds.
In contrast, Robinhood doesn’t support mutual fund trading but provides access to a wider selection of cryptocurrencies, including Bitcoin and Ethereum.
If you’re interested in traditional investments like mutual funds and bonds or want to explore the world of cryptocurrencies, both Fidelity and Robinhood offer diverse options to suit your investment preferences.
Fidelity vs Robinhood Comparison Of Customer Support & Service
When comparing customer support in Fidelity vs Robinhood, it’s crucial to consider the availability and quality of service.
Fidelity typically offers various support channels such as phone, email, and live chat, along with in-person support at its branch locations.
In contrast, Robinhood primarily relies on email support with limited phone support availability.
Fidelity vs Robinhood Which Option Suits You Best?
Considering customer service options can help users determine which platform provides better assistance and responsiveness to their needs.
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, Robinhood might suit you better if you’re primarily interested in commission-free trading, fractional shares, and a user-friendly mobile app along with sign up bonus and referral bonus.
Consider factors like account minimums, retirement account options, and cryptocurrency trading to determine which platform aligns best with your investment goals.
Fidelity vs Robinhood Comparison With Other Brokerage Accounts
Charles Schwab
- Trusted brokerage with many investment options and no trading fees. Offers bonuses for signing up and referring friends. Customers like its easy-to-use platforms which you can find in its review. 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. 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 advice for retirement planning. No bonuses, but users praise its low fees and strategies. Alternatives are Charles Schwab, Fidelity, and TD Ameritrade.
Tastytrade
- Specializes in options trading education and bonuses for joining and referrals. Users value its educational content and community. Alternatives include Thinkorswim, Power E*TRADE, and Tastyworks.
Webull
- Commission-free trading with sign-up bonus and referrals. Users like its mobile app and research tools. Alternatives are Robinhood, Charles Schwab, and TD Ameritrade.
Wealthfront
- Offers automated investing and bonuses for signing up and referring friends. Users appreciate its hands-off approach and low fees. Alternatives include Betterment, Personal Capital, and Wealthsimple.
Conclusion
When comparing Fidelity with Robinhood and other brokers, it’s important to think about things like what you want to invest in, how much it costs, any bonuses you might get, and what other people say about their experiences
Fidelity offers lots of different ways to invest and has good services, which is great if you want lots of choices and support.
Robinhood is good if you’re just starting and want to trade without paying fees.
The right choice depends on what’s best for you and what you want to achieve with your investments.
FAQ
Which platform, Fidelity or Robinhood, is better for beginners?
Both platforms are good for beginners, but they offer different approaches. Robinhood is easy to use with no fees for trading, making it great for new investors who want a simple way to start. Fidelity provides more educational resources and tools, which can be helpful for beginners who want to learn more before investing.
Are there any differences in investment options between Fidelity and Robinhood?
Yes, there are differences. Fidelity offers a wider range of investment options, including stocks, mutual funds, and bonds. They also have access to more than 10,000 mutual funds. Robinhood focuses more on stocks, ETFs, options, and cryptocurrencies like Bitcoin and Ethereum.
How do the fees compare between Fidelity and Robinhood?
Both platforms offer commission-free trading for stocks and ETFs. However, Fidelity may have fees for options trading and other services like account transfers. Robinhood may also charge fees for certain services. It’s essential to check the fee schedules of both platforms to see which one is more cost-effective for your trading habits.