Fidelity vs. Robinhood: Which Broker Is Right for You?

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.

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 per month.

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 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 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 a $5 per month fee 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.

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.

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.

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