Fidelity and Robinhood are two of the most popular online brokerage platforms available in the market today, despite their pronounced differences.

Originally founded in 1946, Fidelity Investments is one of the biggest global asset managers. Meanwhile, Robinhood is a young fintech startup company that became famous for launching the zero-commissions stock trading revolution.

Both services offer their own distinct advantages for different kinds of investors. It’s important to compare these two leading online brokers to help you decide which platform best fits you. Fidelity vs. Robinhood: Similarities

Fidelity and Robinhood offer commission-free trading of stocks, exchange-traded funds ( ETFs ) and options , making them good options for budget-conscious investors. Note that Fidelity does charge a $0.65 fee per options contract, whereas options trading on Robinhood is completely free.

Neither platform has a minimum balance requirement, and you can open an account without any requirement to deposit funds until you’re ready. Feature Fidelity Robinhood Zero minimum balance requirement ✅ ✅ Commission-free stock, ETFs and options trading ✅ ✅ Margin accounts ✅ ✅ Real-time price quotes ✅ ✅ Access to Level II data ✅ ✅ Instant access to funds while waiting for deposits to clear ✅ ✅ Well-designed, easy-to-use apps ✅ ✅ Extended-hours trading ✅ ✅ Fractional share trading ✅ ✅ Cash management account option ✅ ✅ Fidelity and Robinhood have high-quality investment apps that are easy to navigate and simplfy trading. Ease of use is what made Robinhood famous, and while Fidelity is a more traditional firm their app has won awards for quality.

Both apps provide real-time price quotes, giving you the latest information on your assets. You can access advanced Level II market data if you meet certain requirements—Robinhood Gold offers Level II quotes as part of its $5 a month fee. Fidelity’s advanced Active Trader Pro platform, which features Level II data, is available if you make at least 36 trades in a 12-month period.

Robinhood and Fidelity both offer fractional shares , allowing you to buy partial shares of stock. If you want to trade after-hours when markets are officially closed, you’ll have the chance on both platforms. They both allow margin trading and borrowing money to buy assets.

Lastly, both platforms offer cash management accounts . These types of accounts operate like checking accounts, paying interest on your uninvested cash and providing you with a debit card to make access to your cash easy.

Featured Partner Offers Fidelity vs. Robinhood: Differences

Here’s what really matters: Understanding the key differences between Fidelity and Robinhood. Robinhood operates more as a quick, no-frills app, whereas Fidelity provides an extensive selection of investment tools and account options. Here are the major differences: Expert Trading Platform and Research Tools

While Fidelity and Robinhood both offer a decent mobile app, Robinhood lacks an advanced trading platform.

You can download Fidelity’s Active Trader Pro desktop platform to access a full suite of trading and research tools like charting, stock screeners, portfolio analysis and third-party research. It also includes advanced features for serious investors like heat mapping, an AI assistant and multi-leg options trading. Advanced Trading Features

Fidelity offers several advanced trading features that are absent from Robinhood’s platform. You can trade OTC penny stocks and engage in short selling.

Robinhood does not offer OTC penny stock trading or short selling . Retirement Accounts

Fidelity supports a wide range of different individual retirement accounts ( IRAs ).

Both traditional IRAs and Roth IRAs are available, while business owners can opt for a Solo 401(k). If you’re investing in your child’s college education, you could open a 529 education savings account.

Robinhood only provides taxable brokerage accounts . Cryptocurrency Trading

Crypto is one area where Robinhood shines. Fidelity does not allow you to invest directly in cryptocurrencies and offers only blockchain ETFs and crypto ETFs.

In comparison, Robinhood lets you invest in 17 different cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). One downside is that you presently cannot withdraw your crypto from Robinhood’s platform to a crypto wallet . (Note that the company has promised to enable this feature by the end of 2022.) Customer Service Fidelity’s customer service far exceeds what’s available at Robinhood.Fidelity offers a 24/7 phone line as well as a live chat. Fidelity also has physical branches throughout the country where you can stop by for help with your portfolio. You can hire a professional investment manager from Fidelity for more hands-on investment support.Robinhood customer service is limited to phones. You will need to request a callback via the app, and a customer service representative will contact you when […]

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