Fidelity Vs. Robinhood Investing
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Fidelity vs. Robinhood investing
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Fidelity
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Robinhood
Bottom line: Fidelity is a better choice for many types of investors, as it offers a wider range of investments, account types, and trading platforms. Robinhood, on the other hand, best suits frequent traders in search of low fees, easy-to-use web and mobile platforms, and investments like cryptocurrencies.
Fidelity vs. Robinhood: The biggest differences
Fidelity and Robinhood are two top platforms in the online brokerage space. While both offer commission-free stocks, ETFs, and options, the two differ when it comes to fees, available investment and account types, features, and more.
Fidelity is the best choice for most types of investors. Whether you're a beginner or experienced trader, active or infrequent investor, or hands-off investor, the brokerage has an account option for you. It also offers investment perks like zero-expense ratio index funds.
Robinhood, however, is a better choice for both frequent traders, options traders, and crypto traders who want access to a simple investing interface. Unlike Fidelity, Robinhood charges $0 per options contract, and it offers more than 10 cryptocurrencies.
Fidelity
Details
Pros & Cons
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Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Additional Reading
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Details
Pros & Cons
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Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Fidelity and Robinhood's features and account options also vary.
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Account types
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Investment choices Stocks, ETFs, options, mutual funds, bonds, CDs, annuities, and IPOs | Investment choices Stocks, ETFs, options, cryptocurrencies, IPOs, and ADRs |
Account perks
| Account perks
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Human advisors available? Yes — unlimited access to financial coaching and investment management with Fidelity Personalized Planning and Advice | Human advisors available? |
Robo-advice? Yes — Fidelity Go and Fidelity Personalized Planning and Advice | Robo-advice? |
Is Fidelity right for you?
- Wealth-building accounts for active traders, automated investors, and retirement investors
- No minimums for brokerage account; Zero Expense ratio index funds and commission-free stocks, ETFs, and options
- Thousands of no-transaction-fee mutual funds
- Market analysis, stock and ETF screeners, and advanced trading platforms
Cons
- Fidelity Go costs more for investors with higher account balances
- No cryptocurrencies
Fidelity has something for almost every type of investor. The online brokerage offers self-directed accounts, automated investing accounts (also known as robo-advisors), custodial accounts, IRAs, 529 plans, and much more. Plus, its low-cost investment choices make it even more suitable for those looking to minimize fees when trading.
Fidelity currently offers no-minimum mutual funds and commission-free stocks, ETFs, and options. It also offers its own Fidelity-managed zero-expense ratio index funds, meaning you won't have to worry about fund fees when investing in different assets.
Unlike Robinhood, Fidelity has two accounts that cater more toward hands-off investors: Fidelity Go and Fidelity Personalized Planning & Advice. The two robo-advisors create personalized, self-managing portfolios based on your investing goals. However, Fidelity Go doesn't allow for one-on-one human advisor guidance, but Fidelity Personalized Planning & Advice does.
This brokerage could also be a great option if you're interested in retirement accounts like IRAs. Its selection — which includes traditional IRAs, Roth IRAs, rollover IRAs, Roth IRAs for Kids, SEP IRAs, and SIMPLE IRAs — applies to both individuals with taxable income, self-employed individuals, and businesses.
Fidelity also offers multiple trading platforms. These include its web platform, mobile apps, and Active Trader Pro platform. Active Trader Pro best suits frequent traders who want to take advantage of perks like real-time price analytics, portfolio monitoring tools, and much more.
Fidelity is available on iOS and Android devices.
Read Personal Finance Insider's complete review of Fidelity here »
Is Robinhood right for you?
- Commission-free trading for stocks, ETFs, options, and cryptocurrencies
- Fractional shares and margin accounts available
- Cash management accounts
- Web platform and mobile app are easy to navigate
- Limited investment types; no mutual funds or bonds
- No custodial accounts
- Crypto wallets not fully rolled out yet; waitlist available
Robinhood is best for active traders (though you can also use its platform to practice buy-and-hold strategies), options traders, margin traders, and crypto investors. When it comes to account types, the online brokerage offers individual investment accounts, margin accounts, and cash management accounts.
Plus, you can exchange stocks, ETFs, and options (these are free of options contract fees) commission-free, and Robinhood also allows for ADR and cryptocurrency investing. Its crypto selection includes assets like bitcoin, ethereum, dogecoin, and more.
In addition, Robinhood is launching traditional and Roth IRAs, but the accounts aren't yet available to the public. These accounts will include $0 trading commissions, a 1% match on every dollar you contribute, recommended portfolios, and more. You can sign up for the waitlist here.
While Robinhood's individual investment accounts don't have any minimum requirements, you'll need at least $2,000 for margin trading, which is only available through Robinhood Gold. The Robinhood Gold subscription costs $5 per month, but it offers the following: margin trading at a 3% interest rate, larger instant deposits of $5,000-$50,000, and access to Nasdaq market data and 1,700+ Morningstar stock research reports.
If you're a beginner investor looking to pack on more knowledge about various wealth-building topics, Robinhood also offers a digital library that contains educational guides on things like investing 101, options trading, and much more.
Robinhood is available on iOS and Android devices.
Read Personal Finance Insider's complete review of Robinhood here »
Fidelity vs. Robinhood — Frequently asked questions (FAQ)
Fidelity suits most types of traders since it offers several self-directed and automated account options. However, Robinhood is a better choice for low fees, and it makes more sense for active traders, day traders, options traders, and crypto traders.
Both platforms could be a great move for beginners, but Fidelity is the best choice since it offers both DIY trading and automated investing accounts. While Robinhood has a simple user interface, it strictly offers self-directed trading, so it may not be a good idea for newer investors who aren't yet ready to trade on their own.
Fidelity only charges a monthly fee for the second tier of its automated account, Fidelity Go. You'll pay $3 per month if you've got an account balance between $10,000 and $49,999.
Yes. The brokerage is regulated by the US Securities and Exchange Commission (SEC), and it offers SIPC insurance of up to $500,000 for you securities and FDIC coverage of up to $250,000 for cash.
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