Choosing between Fidelity vs. Robinhood? Both brokers offer attractive features including highly rated mobile apps and $0 commission for stocks and ETFs. But the types of assets each focuses on and the kinds of accounts they offer vary. Learn about which is best for you in this Fidelity vs. Robinhood comparison.
Fidelity vs. Robinhood: At a glance
| Offer | Robinhood |
Fidelity |
|---|---|---|
| Rating | Rating Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating Rating image, 5.0 out of 5 stars. 5.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Commissions | Commissions | Commissions |
| Account Minimum | Account Minimum | Account Minimum |
| Next Steps | Open Account for Robinhood Read Full Review | Read Review |
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, $0 for options contracts | $0 | Open Account for SoFi Active Investing |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold | $0 | Open Account for Robinhood |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Commission-free; other fees apply | $0 | Open Account for E*TRADE |
Unique perk: Deposit matching
Robinhood does something we typically don't see from stock brokers. It matches all customer IRA deposits 1%. It matches Robinhood Gold members deposits 1% an 3% on taxable and retirement accounts. It's the opposite of a commission: it's extra cash in your accounts. The catch is you need to keep deposits in Robinhood accounts for years to earn your full match. It's worth keeping in mind when weighing Robinhood's fees vs. other brokers'.
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Fidelity vs. Robinhood: Commissions & fees
Both Fidelity and Robinhood make buying stocks affordable with $0 commission fees for online stock and ETF trades. There's also no account maintenance fee with either brokerage firm, unless you sign up for Robinhood Gold, in which case you'll pay $5 monthly.
There are some important differences, though. Fidelity charges a $0.65 options contract fee while Robinhood does not. That makes Robinhood one of the best options trading platforms.
If you want to close out your account, though, Fidelity won't charge you anything to do it while Robinhood imposes a $100 fee. That means you need to think more carefully before trying out Robinhood, as you'll need to pay to get your assets off the platform.
| Fidelity | Robinhood | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 commission, $0.65 per contract | $0 |
| Crypto commissions | $0 (crypto trading is limited to Bitcoin and Ethereum) | $0 |
| Mutual fund commissions | $0 for Fidelity Funds, $0 purchase on no-transaction fee (NTF) non-Fidelity funds; $49.95 redemption fee on NTF funds held for less than 60 days, $49.95 purchase and $0 redemption fee on transaction-fee non-Fidelity funds | N/A (Robinhood doesn't allow trading of mutual funds) |
| Account transfer fee | $0 | $100 |
| Account maintenance fee | $0 | $0, or $5 monthly for Robinhood Gold |
Data sources: Fidelity and Robinhood.
Fidelity vs. Robinhood: Investments available
Fidelity and Robinhood both offer stocks, ETFs, fractional shares, and options. However, that's where the similarities end.
While Fidelity offers clients access to more than 10,000 mutual funds, including many proprietary funds, Robinhood doesn't allow mutual fund trading at all. Fidelity also offers the opportunity to buy CDs and bonds, and Robinhood doesn't. Robinhood, on the other hand, allows you to trade 15 different cryptocurrencies, while Fidelity only offers access to Bitcoin and Ethereum.
| Fidelity | Robinhood | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | Yes | Yes |
| Options | Yes | Yes |
| Mutual funds | Over 10,000 funds | No |
| CDs | Yes | No |
| Bonds | Yes | No |
| Futures | No | No |
| Crypto | Limited to Bitcoin and Ethereum | Yes |
| Currencies | No | No |
Data sources: Fidelity and Robinhood.
Fidelity vs. Robinhood: Account types available
Fidelity and Robinhood differ in the types of accounts offered.
If you're interested in the best robo-advisors, Robinhood won't be an option as it doesn't offer robo-advisory services. Fidelity, on the other hand, offers Fidelity Go®, which is an affordable robo-advisor that charges no fees for investment account balances under $25,000.
Fidelity offers custodial accounts, as well as tax-advantaged retirement accounts. Robinhood doesn't offer custodial accounts, but it offers Roth IRAs and traditional IRAs, and it matches customer deposits 1%. If you're looking for the best broker for IRAs, both Fidelity and Robinhood are worth considering.
Robinhood allows margin trading, but you must be a Robinhood Gold member and pay $5 monthly to get the lowest margin interest rate. Fidelity offers margin account options, too. Although you pay interest on margin with either brokerage firm, it's worth noting that with Robinhood Gold, the first $1,000 of margin is interest free.
| Fidelity | Robinhood | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes; Fidelity Go® | No |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | Simple IRA; SEP IRA; 401(k) plans | No |
| Custodial | Yes | No |
| Checking | No but offers a cash management account | No, but offers a spending account |
| Savings | No | No, but offers brokerage sweeps |
| Credit card | Yes | Waitlist |
Data sources: Fidelity and Robinhood.
Fidelity vs. Robinhood: Mobile app and trading platforms
Both Robinhood and Fidelity offer full-featured mobile apps. However, the Robinhood app received a 4.2-star rating on the iOS platform compared with Fidelity's 4.8-star app. Robinhood's app for Android users averages 4.1 stars on the Google Play store, while users give Fidelity's Android app an average of 4.4 stars.
Robinhood's app focuses on simplifying the investing process, making it one of the best online brokers for beginners. Fidelity, on the other hand, offers multiple desktop and mobile trading platforms including Active Trader Pro. It may be preferred among more experienced investors who want access to a wider variety of research tools.
Final take
Deciding between Fidelity vs. Robinhood isn't an easy choice as both have a lot to offer. Those who want no-fee options contracts, cryptocurrency trading, or an IRA match may prefer Robinhood. Fidelity could be a better fit for retirement investors or those looking for mutual funds. Ultimately, your trading style and personal preferences will determine which brokerage firm is right for you.
LEARN MORE: Best brokers for fractional shares
Open Account for Robinhood
OnRobinhood'sSecure Website.
Ratings Methodology
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Robinhood is a simple, low-cost brokerage with a few rare perks. What it lacks in customer service it provides in a smooth in-app experience. Without membership, you will lack research resources but still be able to trade affordably. With a membership, you can earn 3% and 1% match on IRA and taxable deposits. The app grows fast -- new perks are being released at a rapid pace.
Read Full Review
Fees:
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold
Account Minimum:
$0
Open Account for Robinhood
OnRobinhood'sSecure Website.
FAQs
It depends on your preferences as an investor. Fidelity offers a greater variety of investment types: robo-advisory services and access to mutual funds, bonds, and CDs. It doesn't encourage day trading.
Robinhood is more popular with active traders, including those who want to trade a wide variety of popular cryptocurrencies. Gold members who max their IRAs or contribute a lot of money to Robinhood accounts may prefer to use Robinhood for its deposit boosts. Members get 3% and 1% match on IRA and taxable brokerage account deposits.
No, Robinhood doesn't charge a monthly fee. However, for $5 a month, customers can upgrade to Robinhood Gold, which offers many perks: a higher APY on uninvested brokerage cash, lower margin interest rates, access to Morningstar research and Level II market data from Nasdaq, 3% IRA match, 1% brokerage match, and possible access to Robinhood's credit card.
Fidelity Go® offers free robo-advisor services for accounts with a balance of less than $25,000. Once your account value hits $25,000, you'll pay a 0.35% fee.
