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Bottom line: Fidelity automated investing and E*TRADE automated investing both offer competitive automated investing accounts, but Fidelity is the best choice for those who want to pay the least. E*TRADE could be a good fit for investors who want to automate custodial accounts, or take advantage of alternative approaches like socially responsible investing.
Fidelity vs. E*TRADE automated investing: The biggest differences
Both Fidelity automated investing and E*TRADE automated investing have options for all types of investors, including those who prefer automated portfolios. Plus, the two investment platforms offer mobile apps, educational resources, and easy access to customer support.
Fidelity automated investing, however, is the best option for investors in search of the lowest costs. It not only uses zero-expense-ratio mutual funds for both of its automated accounts, but it also has a $0 minimum requirement for its Fidelity Go account. In addition, the brokerage offers two automated accounts, while E*TRADE only offers one.
Read more: Fidelity Investments review
E*TRADE automated investing is a better choice for those who want to automate accounts other than individual and joint brokerage accounts and IRAs. Fidelity lets you automate health savings accounts (HSAs), but unlike E*TRADE, it doesn’t allow for automated custodial accounts. E*TRADE could also be a good choice for those who want to experiment strategies like socially responsible investing.
Fidelity and E*TRADE’s fees and features also vary.
Fidelity Investments
E*TRADE
Account types
Individual brokerage account, joint account, Traditional IRA, Roth IRA, rollover IRA, and health savings account (HSA)
Account types
Individual, joint, and custodial brokerage accounts; traditional IRAs, Roth IRAs, rollover IRAs, and SEP IRAs
Investment choices
Fidelity Flex mutual funds
Investment choices
ETFs
Account perks
Zero-expense-ratio Fidelity Flex mutual funds, portfolio rebalancing, professional oversight, advisor guidance, mobile app access, and 24/7 customer support
Account perks
Portfolio rebalancing, professional oversight and monitoring, smart beta and socially responsible investing strategies, mobile app access, and 24/7 customer support
Human advisors available?
Yes — unlimited access to one-on-one financial coaching and professional investment management with Fidelity Personalized Planning and Advice; advisor access also
Human advisors available?
Yes — one-on-one guidance from a financial consultant with E*TRADE Blend Portfolios and E*TRADE Fixed Income Portfolios
Robo-advice?
Yes — Fidelity Go and Fidelity Personalized Planning and Advice
Robo-advice?
Yes — E*TRADE Core Portfolios
Are Fidelity’s automated accounts right for you?
Pros
No minimum for Fidelity Go; $0 advisory fees for those with balances below $10,000Automated accounts managed by a team of Fidelity professionalsBoth portfolios rely on Fidelity Flex mutual funds, so you won’t have to pay expense ratios for holding your investmentsFidelity Personalized Planning & Advice includes ongoing, one-one-one advisor support
Cons
No tax-loss harvesting
Fidelity automated investing gives you access to two different automated portfolios: Fidelity Go and Fidelity Personalized Planning & Advice. Both robo-advisors utilized Fidelity’s own Fidelity Flex mutual funds (these investments have zero expense ratios and contain a mix of domestic and foreign stocks, bonds, and other investments), so the robo-advisors are ideal for those who want to save money on their investments.
The brokerage’s most inexpensive automated account, Fidelity Go, has a $0 minimum requirement, and it waives advisory fees for those with balances below $10,000. You’ll only have to pay fees if you have an account balance above $10,000.
For those who surpass this limit, Fidelity charges the following: Those with balances between $10,000 and $49,999 pay $3/month, and those with $50,000 or greater pay 0.35% per year.
Fidelity Personalized Planning & Advice, however, has a higher minimum requirement ($25,000), and it offers something Fidelity Go doesn’t — one-on-one human advisor guidance. The account also has a 0.50% annual fee.
Overall, both Fidelity Go and Fidelity Personalized Planning & Advice offer competitive features and account perks. These include automatic portfolio rebalancing, zero-expense-ratio funds, goals-based portfolios, and 24/7 customer support.
The best choice for you comes down to how much money you’re willing to invest and whether you want additional advisor guidance.
Are E*TRADE’s automated accounts right for you?
Pros
Automated account relies on both oversight from E*TRADE experts and computer algorithmsLow-cost socially responsible and smart beta ETFsEasy user interfaceCompatible with multiple brokerage and retirement accounts
Cons
Relatively high management feeHigher minimum requirement than Fidelity GoNo tax-loss harvesting
E*TRADE automated investing also offers an automated investing account — Core Portfolios — that passively builds wealth according to your goals and risk tolerance. You’ll need at least $500 to get started, and you’ll be responsible for a 0.30% advisory fee.
Investors should note, however, that this is the brokerage’s only automated account; unlike Fidelity, it doesn’t offer an additional account that combines automated portfolio management with one-on-one advisor support. But if you’re okay with foregoing the robo-advice, you can use one of its two professionally managed portfolios.
E*TRADE automated investing’s Core Portfolios account also invests your money in ETFs, so you’ll likely have to account for expense ratios in addition to the yearly 0.30% fee you’ll pay. And as for eligible account types, it accepts individual, joint, and custodial brokerage accounts. Core Portfolios is also compatible with traditional IRAs, Roth IRAs, rollover IRAs, and SEP IRAs.
Another perk is that you can customize your portfolio to utilize smart beta strategies or socially responsible investing strategies. In other words, you can either tweak your portfolio to include stocks that have historically performed well, or you can invest in companies whose environmental and social values match yours.
E*TRADE automated investing is also a good idea for those who value readily available customer support and mobile app access. The brokerage offers 24/7 customer service and live chat.
Fidelity vs. E*TRADE — Frequently asked questions (FAQ)
Is Fidelity better than E*TRADE?
Fidelity and E*TRADE both offer a variety of self-directed and automated investing options. But Fidelity is likely a better fit for those who value lower fees. E*TRADE best suits investors who want access to automated custodial accounts.
Does Fidelity charge monthly fees?
You’ll only pay monthly fees for automated investing if you have an account balance between $10,000 and $49,999.
How much money do you need to open an E*TRADE account?
You don’t need a minimum amount to open E*TRADE’s self-directed brokerage account. However, for automated investing (through Core Portfolios), you’ll need at least $500.