In the Fidelity vs Robinhood battle of the brokers, we have two major US financial services companies.
On one side, we have Fidelity, a well-established player with a reputation for reliable service and comprehensive offerings. And on the other side is Robinhood, a young upstart that’s quickly gained popularity thanks to its user-friendly platform.
So which broker is right for you?
Let’s take a closer look at both of them to determine if Fidelity or Robinhood is the best pick for you..
Fidelity is a brokerage that’s been around for over 70 years. This multinational financial services corporation has approximately 40 million clients and over $4.5 trillion in discretionary assets.
Fidelity offers numerous services, from retirement services to wealth management, fund distribution, and life insurance. In addition to mutual funds, Fidelity also offers brokerage services to clients in over 200 locations across the US.
Robinhood is a relatively new brokerage founded in 2013. This fintech firm offers commission-free online trading of stocks, American depositary receipts (ADRs), and exchange-traded funds (ETFs).
You can also invest in certain cryptocurrencies with Robinhood. For example, you can buy and sell Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Dogecoin, and Litecoin.
Robinhood vs Fidelity Main Differences
While both Fidelity and Robinhood offer commission-free trades, there are some differences between the two. For example, Robinhood is a streamlined app that offers limited investment options, while Fidelity offers multiple platforms and a wider selection of investments.
Now, let’s get into the details:
Commissions and Fees
Fidelity and Robinhood are two popular online brokerages that offer commission-free stock and ETF trading. Both firms have no account maintenance fees. However, Robinhood Gold subscribers do pay a $5 monthly fee.
Another key difference is that Fidelity charges $0.65 per contract while Robinhood doesn’t. On the other hand, if you want to close your Fidelity account, there’s no fee, but Robinhood imposes a $75 fee for that.
|Commissions & Fees||Fidelity||Robinhood|
|Stock & ETF Commissions||$0||$0|
|Crypto Commissions||No crypto trading||0%|
|Account Transfer Fee||$0||$75|
|Account Maintenance Fee||$0||$0 or $5 per month for Robinhood Gold|
|Options Commissions||$0 commission, $0.65 per contract||$0|
Fidelity Investments vs Robinhood Investments
While both platforms offer fractional shares, stocks, ETFs, and options trading, Robinhood doesn’t allow clients to buy mutual funds.
Overall, Fidelity offers access to a wider range of investments, including mutual funds, CDs, and bonds. Robinhood currently doesn’t offer access to any of these investment options.
However, one feature makes Robinhood a better option for investors — it offers cryptocurrency trading, while Fidelity doesn’t.
|Stocks and ETFs||Yes||Yes|
Fidelity Brokerage Account vs Robinhood Account
The main difference between Fidelity and Robinhood is that the former offers various accounts (e.g., traditional IRAs, 403(b) Plans, Roth IRAs, and health savings accounts). In contrast, the latter only offers taxable brokerage accounts.
|Types of Accounts||Fidelity||Robinhood|
|A taxable brokerage account||Yes||Yes|
|Health savings accounts||Yes||No|
|Cash management accounts||Yes||No|
|529 education savings accounts||Yes||No|
Fidelity App vs Robinhood App
While both companies have great investing mobile apps, Robinhood’s app is a better choice for beginners since it focuses on simplicity. We recommend experienced investors to go with Fidelity due to its Active Trader Pro program.
|Apple Watch App||Yes||Yes|
Robinhood Mobile App
Robinhood is best known for its mobile app, which is designed to be extremely user-friendly. The app’s icons are easy to understand, and the interface is very streamlined.
This makes moving from one screen to another and browsing different stocks quick and easy. Overall, the Robinhood app is designed to be as efficient as possible, making it a great choice for those who like to trade on the go.
The app allows you to see your investment profile, the news feed, and a composite of analysts’ rankings. When you want to buy or sell, you only need to click on the trade button, which will allow you to submit an order immediately.
You can also use the app to find your portfolio, account value, etc., and access different account management options.
Fidelity Mobile App
Is Fidelity better than Robinhood when it comes to mobile apps?
While Fidelity’s mobile app is a comprehensive trading platform that offers many of the same features as the desktop version, there are some limitations to what you can do with it.
For example, you can’t trade fixed income or place conditional orders. Additionally, the charting and fundamental analysis tools are somewhat limited compared to what’s available on the desktop platform.
Overall, though, Fidelity’s mobile app is a powerful tool for trading stocks, options, mutual funds, and ETFs.
Moreover, if you’re a more serious trader, you should download Fidelity’s Active Trader Pro program, which includes real-time data and an easily customizable trading interface.
Who Are Fidelity and Robinhood for?
Now that you know the main differences between the two, Fidelity should be your number one choice if you’re:
- An experienced trader
- Looking for a wider selection of investments
- Looking for a platform offering multiple accounts
On the other hand, you should choose Robinhood if you’re:
- A beginner
- Looking for a user-friendly mobile app
- Looking to trade cryptocurrencies
Both companies are a good choice for people who:
- Want to have a cash management account
- Don’t want to pay stock and ETF commissions
- Want to trade stocks on their own
Ultimately, the best brokerage is the one that fits your needs and goals.
Final Pros and Cons
Now, let’s summarize Fidelity vs Robinhood pros and cons in a neat chart and see what the main advantages and disadvantages of Fidelity and Robinhood are:
|Fidelity Pros||Fidelity Cons|
|Commission-free trades||No crypto trading|
|$0 account transfer fee||High broker-assisted trade fee|
|Large selection of mutual funds, ETFs, and stocks to choose from||High margin rates|
|A wide variety of services, including personal and commercial banking, retirement planning, and wealth management|
|Robinhood Pros||Robinhood Cons|
|No stock and ETF commissions||No mutual funds or bonds|
|$0 options commissions||No retirement accounts|
|User-friendly app||$75 fee for closing an account|
So, which brokerage firm is right for you, Robinhood or Fidelity?
If you’re an experienced trader looking for a large selection of mutual funds, ETFs, and stocks, Fidelity is the right option for you.
On the other hand, if you’re a beginner who wants to find a commission-free brokerage firm that allows crypto trading, opt for Robinhood.
Ultimately, the decision comes down to your particular needs and what’s crucial to you.
Is Fidelity Investments good for beginners?
Yes, it is. Fidelity Investments offers a lot of different tools to help first-time investors. They also provide trading platform tutorials and educational videos. You can get investment advice from experts, and Fidelity’s virtual assistant is available 24/7.
What does Robinhood do that Fidelity does not?
Unlike Fidelity, Robinhood offers crypto trading. With it, you can buy and sell Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Dogecoin, and Litecoin.
To see the estimated buy and sell prices go to Robinhood mobile app and:
- Enter the Detail page for the preferred cryptocurrency.
- Click on the “Trade” button and choose “Buy” or “Sell.”
- Click on “Est Buy Price” or “Est Sell Price.”
You can trade your cryptocurrencies whenever you want to. However, you can’t do it during the scheduled maintenance, which occurs at the same time every day from 5:29 pm to 5:40 pm and from 11:57 pm to 12:09 am.
Can I have both Robinhood and Fidelity?
Yes, you can have both Robinhood and Fidelity.
However, you may not want to.
Because they offer different services, and each has its benefits and drawbacks.
Fidelity is a full-service broker that offers access to many investments, including stocks, bonds, and ETFs. It also offers retirement planning services, educational resources, and customer support.
Robinhood is a commission-free stock broker that offers access to a limited number of investments. It also doesn’t offer retirement planning services.
Who is better, Robinhood or Fidelity?
Fidelity is the clear winner if you’re looking for a wide selection of investment options. The company offers its clients a wide range of options and products, which is why it’s been so successful over the years.
However, a newly-emerged player has been shaking things up on the investment scene in recent times. Robinhood is a brokerage firm focused on shorter-term investing that allows its clients to also trade cryptocurrencies.
This fresh take on investing has been very popular with beginners, and it looks like Robinhood could be a serious competitor to Fidelity in the future. Only time will tell how this Fidelity vs Robinhood rivalry will play out, but Fidelity takes the win for now.