Choose the best investment platform for you
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Updated June 26, 2024
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Matthew M Klammer
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Fact checked byMatthew M Klammer
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Fidelity and Robinhood are different in that Fidelity is an established, full-service financial brokerage firm and Robinhood is a newer, app-based investment platform targeting younger investors. One thing they have in common is a focus on reducing the costs that investors face when investing in the market. Fidelity was founded in 1946 and has evolved into a significant force in the online brokerage space with a vast roster of financial products and services suitable for everyone from beginners to experts. Robinhood was founded in 2013 and has stood out as a disrupter in the traditional brokerage industry.
It is important to note that Robinhood’s overall offering is lacking compared to traditional brokers like Fidelity, which once again took our top spot overall in our best online broker and trading platform review for 2024. Fidelity was picked Best for Low Costs, Best for ETFs, and Best for Cash Management. Robinhood can't compete on asset selection, trading tools, and research, but it does have a compelling case in its low costs and simplicity.
Both Fidelity and Robinhood are popular choices for casual investors and traders, so we’ll explore some of the key differences between the two brokers to help you determine which one is the right fit for you and your investment needs.
Open an Account
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades
Read full review
Open an Account
- Account Minimum: $0
- Fees: $0 commissions for stock, ETF, options, and cryptocurrency trading
Read full review
Usability
Fidelity and Robinhood are vastly different when it comes to the look and feel of their platforms. The differing products and services make a head-to-head comparison somewhat tricky. Fidelity has revamped its entire website to improve on the vast legacy site. The user experience at Fidelity is organized, with a clean dashboard that contains the usual account information like summary, positions, balances, activity, orders, and documents. The menu items provide one-click access to every corner of the website, including customer service, opening an account, accounts and trade, planning and advice, news and research, and investment products.
Robinhood does a good job with usability as well, but it benefits from having fewer products and services to pack in. Although designed as a mobile-first app, Robinhood’s web portal might actually be easier to use for users looking for the most comprehensive experience. The main menu enables easy navigation to all areas of the website, including invest, crypto, cash card, learn, and support. Robinhood has added advanced charting, but that can’t compete with Fidelity’s ActiveTrader Pro downloadable trading platform.
Usability Verdict: Tie
Overall, Robinhood and Fidelity offer good usability—with the caveat that the feature depth of the two brokers isn’t equivalent.
Trade Experience
Desktop Trade Experience
The trading experience on Robinhood’s web and mobile platforms is fast, simple, and streamlined. For new investors, Robinhood has the functionality necessary to trade, but more experienced investors will find the trading platform is missing key features and tools. Additionally, there are no customization features available on Robinhood’s web platform.
Fidelity’s trading experience also has a seamless workflow, but pairs it with comprehensive tools and research. Fidelity’s platforms are highly customizable, enabling you to create personalized layouts, set trade defaults, set hotkeys, and so forth. Fidelity’s platforms also support trading from charts or placing basket trades, which are features not available with Robinhood.
Desktop Trade Experience Verdict: Fidelity
Both Fidelity and Robinhood have suitable trading experiences for new investors, but Fidelity is superior to Robinhood for intermediate and advanced investors.
Mobile Trade Experience
Robinhood is a mobile-first brokerage aimed at investors who want a simple trading app without the bells and whistles. Considering this, Robinhood’s mobile experience is what attracts many of its users. Although Robinhood’s quote information streams in real time, it does not offer the same in-depth tools that larger, traditional brokers like Fidelity bring to the table. For instance, you don’t have the ability to trade directly from the chart, the platform does not support conditional orders, and you can’t enter multiple orders simultaneously or stage orders for later entry.
In contrast, Fidelity’s mobile offering is comprehensive, with much of the same functionality as the desktop trading platform. Fundamental analysis, charting, and research are limited in the app, however, and you can't place conditional orders through mobile.
Mobile Trade Experience Verdict: Tie
Robinhood is good for simple trades, while Fidelity’s mobile offering is more comprehensive and a better platform when it comes to the complete mobile trade experience. We also found that both platforms were easier to use on the web than with the mobile app. This is an obvious thing in Fidelity’s case, but surprising in terms of Robinhood and speaks to the improvements it has made in its web platform rather than a worsening mobile offering.
Range of Offerings
Like most major financial firms, Fidelity offers a plethora of asset classes, including recently added cryptocurrency. One notable limitation is that Fidelity does not offer futures trading. Robinhood supports stock, ETF, options, and cryptocurrency trading from a single account. Robinhood has a non-custodial web3 cryptocurrency wallet.
Range of Offerings Verdict: Fidelity
Fidelity has the clear edge in this category with a wider range of assets. Investors seeking bonds, CDs, mutual funds, and international trading will find Fidelity a better fit than Robinhood.
Compare Range of Offerings
| Fidelity | Robinhood | |
|---|---|---|
| Short Sales | Yes | No |
| Number of No-Load Mutual Funds | 3,396 | No |
| Assets Available | Stocks, mutual funds, ETFs, bonds, CD's, options, currencies, OTC, cryptocurrencies | Stocks, ETFs, options, OTC, cryptocurrencies |
| Max. Number of Options Legs | 4 | 4 |
| Robo Advisory | Yes | No |
| Number of International Exchanges | 75 | 0 |
| Fractional Share Trading | Yes | Yes |
| Fractional Dividend Reinvestments | Yes | Yes |
Order Types
There’s a similar chasm between the order types at Robinhood vs. Fidelity. Robinhood has market and limit order types—no conditional orders or order staging is available. Fidelity supports numerous orders, with the most complex only available on Active Trader Pro or the web platform. Fidelity web users can access market, limit, stop loss, trailing stop orders, and conditional orders. Mobile traders lack access to conditional orders at both brokers, but Fidelity has beta-tested this feature while Robinhood looks unlikely to change.
Order Types Verdict: Fidelity
If you’re seeking advanced orders, Fidelity is the logical choice. Beginners who need basic market and limit orders will be fine with either platform.
Trading Technology
Fidelity uses proprietary smart order routing technology that seeks the best available price. The average execution speed is 0.04 seconds, and 95.21% of shares are price-improved, meaning a sale above the bid or a buy below the offer. Overall, 98.87% of shares fall within the National Best Bid and Offer (NBBO). If you execute a 1,000-share marketable order, Fidelity reports you will save an average of $15.41 ($1.54 per 100 shares) on the transaction compared to the quote at order entry. Fidelity does not take payment for order flow (PFOF) for stock and ETF transactions.
Robinhood also publishes its trading statistics. The broker reports a net price improvement per 100 shares of $2.77, and 95.62% of its shares are NBBO or better. In the period we looked at, Robinhood actually outperformed Fidelity. In contrast with Fidelity, Robinhood takes payment for order flow, which could add to your trading costs as brokers may start seeking out PFOF to generate revenue. While brokers that accept PFOF are common, Robinhood is on the higher end in terms of PFOF per share and the overall revenue generated from PFOF.
Trading Technology Verdict: Fidelity
We like that Fidelity doesn’t take payment for order flow, allows you to route your own orders, and discloses more execution stats than are actually required. So, while Robinhood outperformed on price improvement in the period we looked at, we still feel Fidelity has a better trading technology and a more transparent approach.
Costs
Like most investment platforms today, Robinhood and Fidelity offer commission-free stock and ETF trading. Robinhood also offers free cryptocurrency trading, while Fidelity charges a spread of 1%. Additionally, there are no account opening fees, account inactivity fees, or fees for domestic wires with either broker.
However, while Robinhood charges $100 to transfer your account off of the platform, Fidelity does not. Trading on margin with a Robinhood Gold subscription at $5 per month, which includes $1,000 of margin and margin usage above $1,000, is charged 6.75% interest. For non-Gold users, a $10,000 balance is 6.75%, and a $100,000 balance would be 6.25%. This rate is low for the industry and much lower than at Fidelity.
At Fidelity, margin interest is 13.575% for a $10,000 balance and 12.075% at $100,000. Both brokers earn money from interest earned from cash, margin interest, portfolio margining, and stock loan programs. As mentioned, only Robinhood receives payment for order flow. Robinhood requires a $5 per month Robinhood Gold account to receive some perks, while access to all Fidelity’s products and services is free.
Costs Verdict: Fidelity
In most areas, Fidelity is as cost-efficient as Robinhood, but the latter has been more aggressive in zeroing out trading fees. If you consider the overall value Fidelity is providing in terms of platform capabilities, it is offering much more for close to the same costs. That is the key reason Fidelity was our 2024 pick for best online broker overall and best low-cost broker.
Compare Costs
| Fidelity | Robinhood | |
|---|---|---|
| Volume-Based Options Discounts (Upon Meeting a Threshold) | Varies | N/A |
| Recurring Investment Fees | No | No |
| Options Price Cap (Upon Meeting a Threshold) | Yes | N/A |
| Option for No Base Commission for Trading Penny Stocks | Yes | Yes |
| Option for No Base Commission for Stocks and ETFs | Yes | Yes |
| Inactivity Fees | No | No |
| Cost Per Stock Trade | $0 | $0 |
| Cost Per Options Contract | $0.65 | $0 |
| Cost Per Futures Contract | N/A | N/A |
| Broker-Assisted Trade fee | $32.95 | N/A |
| Base Commission for Options | No | No |
| Account Closure Fees | No | No |
| Number of No-Load Mutual Funds Without Transaction Fees | 3,396 | N/A |
Account and Research Amenities
Robinhood’s research offerings are limited and lack asset screeners beyond stocks. Robinhood Gold users have access to Morningstar stock research reports and Nasdaq Level II market data powered by NASDAQ TotalView. Robinhood recently improved its charting capabilities and now includes more advanced charts and indicators such as moving averages, relative strength index (RSI), moving average convergence divergence (MACD), Bollinger Bands, and more. Traders will note that this is the bare minimum, but it is a significant improvement from where Robinhood’s charting was.
Fidelity offers comprehensive research screeners for stocks, ETFs, fixed income, and options, along with many third-party research reports. Fidelity users can access trade idea generators, charting, technical and fundamental data, and more. Fidelity research is extensive and will satisfy all but perhaps the highest-level professional traders. Average investors will find basic and advanced research screeners, charting, and external research at Fidelity that can greatly improve the quality of information going into their investing decisions.
Account and Research Amenities Verdict: Fidelity
Fidelity’s account and research offerings stand out even among its peers, so Robinhood is at a steep disadvantage here. Robinhood’s research capabilities are slim by comparison. This lack of research amenities at Robinhood is unfortunate because the newer investors the broker serves could greatly benefit from more support in this area.
Compare Account and Research Amenities
| Fidelity | Robinhood | |
|---|---|---|
| Portfolio Margin Available | Yes | Yes |
| Ability to Choose and Offer Shares Held Long to a Loan Program | Yes | Users can offer shares but cannot choose the stocks to loan |
| Interest Earned on Uninvested Cash | Varies (now 4.96%) | 1.50% APY (5% for Gold members) |
| Uninvested Cash Automatically Swept Into a Money Market Fund | Yes | Yes |
| Screeners Offered | Stocks, ETFs, mutual funds, fixed income, ESG/SRI | Stocks |
| Ability to Build Custom Screen | Yes | Yes |
| Ability to Screen Based on Technical Indicators | Yes | Yes |
| Ability to Save Custom Screens | Yes | Yes |
| Access to Proprietary Research | Yes, at no additional cost | No |
| Access to Third-Party Research | Yes, at no additional cost | Yes, with additional cost |
| Ability to Turn Screen Results Into a Watchlist | Yes | No |
| Trading Idea Generator Offered | Yes | No |
| Daily Market Research Reports Offered | Yes | Yes |
Portfolio Analysis
Fidelity’s portfolio analysis tools provide information about your Fidelity assets as well as external accounts. The basic Fidelity account dashboard analyzes the usual gains, losses, asset allocation, and performance data. After linking external accounts, the Fidelity free Financial Plan provides a graphical view of account assets, with asset allocation including industry weightings, and comparisons of industry sector weightings within your portfolio. The planner offers digital advice similar to a human financial advisor.
Robinhood offers very little portfolio analysis, especially in comparison to its larger rivals. You can see real-time balances, margin, and buying power, but that’s about it. The home screen shows a one-day graph of your portfolio value, and you can click or tap a different time period at the bottom of the graph to see specific dates and values. Robinhood lacks in-depth asset allocation analysis, internal rate of return, or a way to estimate the tax impact of a planned trade.
Portfolio Analysis Verdict: Fidelity
The portfolio analysis win clearly goes to Fidelity. The portfolio analysis tools at Fidelity are suitable for beginner to advanced investors.
Education
Robinhood has recently improved its Learn portal with additional investment content suited to beginner investors. The app also offers Snacks, a daily email newsletter; a podcast; and a smattering of videos on its YouTube Channel. Robinhood’s educational content is basic and suitable for those seeking “how to” articles about the platform and fundamental investment concepts.
In contrast, Fidelity’s educational resources are suitable for the whole range of investors from beginners to experts. Fidelity’s educational resources are available in various formats, including articles, videos, webinars, and recorded webinars. Fidelity also hosts interactive coaching sessions with the Trading Strategy Desk, where you can discuss questions with a professional trading coach.
Moreover, Fidelity provides content that is intended to guide you through major life changes, including marriage and partnering, divorce, navigating the college journey, losing a loved one, buying a home, and so on. Rounding out Fidelity's educational offerings are an investing glossary, a comprehensive FAQ section, and guest access for non-customers to use its research and education resources.
Education Verdict: Fidelity
All in all, Fidelity has a sound educational offering and beats Robinhood handily in this category.
Customer Service
Comparatively speaking, customer service at Fidelity and Robinhood is vastly different. Since there is no telephone number, you cannot call Robinhood for assistance. However, you can enter your own phone number for a callback. The Robinhood callback feature is available 24/7. Additionally, Robinhood has a chatbot. Perhaps because of this web-only approach, Robinhood has not earned a good reputation for its customer service.
Conversely, Fidelity has a 24/7 phone line as well as a chatbot. You can also talk with a live broker or online chat with a live agent. You’ll also find Fidelity branch offices within most major cities across the U.S.
Customer Service Verdict: Fidelity
Fidelity has a strong advantage over Robinhood when it comes to customer service.
Security
The security features at both Robinhood and Fidelity are up to industry standards. Both offer two-factor authentication, biometric recognition, and additional security for unknown devices. Fidelity offers encryption, firewalls, secure email, and 24/7 system surveillance.
Both firms offer FDIC insurance for cash accounts and SIPC insurance for investment accounts. Robinhood’s SIPC insurance includes the basic limits of $500,000 protection, including $250,000 for cash. Fidelity and Robinhood both provide additional SIPC insurance covering up to $1.9 million in cash and an additional $1 billion in excess insurance coverage. This insurance protects against institutional failure, corporate malfeasance, and firm bankruptcy. There is no insurance that protects assets against normal market volatility.
Security Verdict: Tie
The security features at Fidelity and Robinhood meet industry standards. Large investors with greater assets will be best served at Fidelity due to protection for larger asset amounts.
Account Types
Fidelity has the full range of commonly used accounts and much more. You can open a wide variety of accounts, including:
- Taxable brokerage account
- Rollover individual retirement account (IRA)
- Traditional IRA
- Roth IRA
- Inherited IRA
- Simplified employee pension (SEP) IRA
- Self-employed 401(k)
- SIMPLE IRA
- Custodial account
- 529 account
- Health savings account (HSA)
- Youth account (these are not custodial accounts, as investment decisions are made by young investors)
- Trust and estate account
- Fully managed account
By contrast, Robinhood only offered taxable cash and margin accounts until January 2023, when the company introduced IRA and Roth IRA retirement vehicles to eligible customers. These accounts even offer a 1% match up to the annual federal limit if funds are electronically deposited and held in the account for five years.
Account Types Verdict: Fidelity
In terms of account types, Fidelity is the clear winner with its wide range of account types.
The Bottom Line
For the vast majority of investors, Fidelity wins in a competition between these two brokers. Fidelity’s span of products, support specialists, platforms (including full-featured Active Trader Pro), and educational resources makes the company a good choice for all investors from beginner to expert.
Robinhood gets the job done in terms of basic stock, ETF, and options trading, but it often feels like the bare minimum effort. That said, the free cryptocurrency trading and Web3 wallet make Robinhood a contender in the crypto realm. Despite recent improvements in the Learn portal, new investors should go beyond the Robinhood website to learn about investing before allocating large sums of money to the financial markets.
Ultimately, Fidelity is a better choice than Robinhood for almost all investors, but the simplicity and no-cost approach of Robinhood will continue to appeal to newer investors. As those investors continue to develop, however, they may come to appreciate the tools, resources, and capabilities that Fidelity offers.
How We Picked the Best Online Brokers and Trading Platforms
Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research, subject matter expertise, and investor survey data to guide the research and weightings for our 2024 online broker awards. To collect the data, we sent a digital survey with 110 questions to each of the 26 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Feb. 19 to March 19, 2024.
We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 89 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:
Additionally, during our 2024 research, many of the companies we reviewed gave us live demonstrations of their platforms and services via video conferencing methods and also granted our team of expert writers and editors access to live accounts so they could perform hands-on testing.
Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms.
Learn more about how we review online brokers.
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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Fidelity. "Advanced Trading: Trade Smarter".
Fidelity. "Ways Into Crypto".
Robinhood. "Robinhood Wallet."
Fidelity. "Investment Choices."
Fidelity. "Commitment to Execution Quality."
Robinhood. "Our Execution Quality".
Robinhood. "How Robinhood Financial & Robinhood Crypto Make Money."
Fidelity. "Fidelity Crypto Complaints & Disclosures."
Robinhood. "Transfer Your Assets Out."
Robinhood. "Robinhood Margin Rates."
Fidelity. "Margin Loans."
Robinhood. "Introducing Robinhood Advanced Charts."
Fidelity. "Help Your Cash Work Harder."
Fidelity. "Branch Locations."
Fidelity. "Safeguarding Your Accounts."
Robinhood. "SIPC and Account Protection."
Robinhood. "IRA Match FAQ."
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