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Bottom line: Fidelity is a better choice for all 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 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 and Robinhood’s features and account options also vary.
Fidelity Investments
Robinhood
Account types
Individual and joint taxable brokerage accountsAutomated accountsIndividual retirement accounts (IRAs)AnnuitiesTrusts529 plansManaged accountsHSAsCustodial accounts
Account types
Individual brokerage accountsCash management accountsMargin accounts
Investment choices
Stocks, ETFs, options, mutual funds, bonds, CDs, annuities, and IPOs
Investment choices
Stocks, ETFs, options, cryptocurrencies, IPOs, and ADRs
Account perks
Commission-free brokerage accountsAutomated and advisor-assisted investingTax-advantaged investment strategiesZero-expense ratio index fundsStock and ETF screenersMargin tradingRetirement resources
Account perks
Commission-free tradingFractional sharesNo-contract-fee optionsCrypto tradingCash management accountsMargin tradingMorningstar research and Nasdaq data
Human advisors available?
Yes — unlimited access to financial coaching and investment management with Fidelity Personalized Planning and Advice
Human advisors available?
No
Robo-advice?
Yes — Fidelity Go and Fidelity Personalized Planning and Advice
Robo-advice?
No
Is Fidelity right for you?
Pros
Wealth-building accounts for active traders, automated investors, and retirement investorsNo minimums for brokerage or automated accounts; Zero Expense ratio index funds and commission-free stocks, ETFs, and optionsThousands of no-transaction-fee mutual fundsMarket analysis, stock and ETF screeners, and advanced trading platforms
Cons
Fidelity Go costs more for investors with higher account balancesNo 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?
Pros
Commission-free trading for stocks, ETFs, options, and cryptocurrenciesFractional shares and margin accounts availableCash management accountsWeb platform and mobile app are easy to navigate
Cons
Limited investment types; no mutual funds or bondsNo IRAs or custodial accountsCrypto 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 include a $0.65 options contract fee) commission-free, and Robinhood also allows for ADR and cryptocurrency investing. Its crypto selection includes assets like bitcoin, ethereum, dogecoin, and more.
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.