Robinhood is best for beginner investors seeking a simple, commission-free platform, while Fidelity Investments is better suited for experienced investors who need a wider range of investment options, research tools, and customer support.
| Attribute | Robinhood | Fidelity Investments |
|---|---|---|
| Commission Fees | Commission-free trading for stocks, ETFs, options, and crypto. | Stocks: $0 for online U.S. equity trades. Sell orders have an activity assessment fee of $0.01 to $0.03 per $1,000 of principal. ETFs: $0 for online ETF trades. Options: $0 commission plus $0.65 per contract. Crypto: Fidelity allows trading in Bitcoin, Ethereum, and Litecoin. Bonds and CDs: New issues are $0. Secondary issues are $1 per bond. Mutual Funds: $0 for Fidelity funds. Non-Fidelity funds have a $0 purchase fee. A $49.95 redemption fee applies if held less than 60 days. |
| Account Minimums | $0 minimum to open an account; $2,000 minimum deposit for Robinhood Gold (margin account). | No minimums to open an account. |
| Investment Options | Stocks, ETFs, Options, Crypto, Fractional Shares, Retirement Accounts (IRA, Roth IRA). Mutual funds and bonds are not available. | Stocks, ETFs, mutual funds, options, bonds, and fractional shares. Fidelity also offers forex and a limited cryptocurrency program. |
| Mobile App Usability | Easy to use, intuitive design, simplified trading experience, clean interface. | The app offers a balance of functionality and ease of use. It includes tools for investors of all levels, integrates with the desktop experience, and offers features such as real-time quotes, multi-leg options trading, and customizable alerts. |
| Desktop Platform | Web-based platform (Robinhood Legend) with advanced research capabilities and customization for active traders. | Fidelity has won awards for its stock trading, research, and planning tools. |
| Research and Education | Educational content to help users learn about investing; professional research from Morningstar for Robinhood Gold members; articles and resources within the app. | Fidelity provides research from third-party providers like Zacks Investment Research and Argus. They also offer educational resources such as articles, videos, and webinars. |
| Customer Service | Available through the app and website via live chat and email; phone support available for certain issues like options and account security; response times can vary. | Fidelity offers 24/7 phone support. Live chat support is also available but not 24/7. Email support is also available and also has customer support available on Reddit. |
| Margin Rates | Margin rates range from 5.7% to 6.75%, depending on the customer's margin balance; first $1,000 of margin with no interest for Robinhood Gold subscribers. | The base margin rate is 11.325% as of December 20, 2024. The lowest rate is 8.25% for debit balances over $1,000,000. |
| Fractional Shares | Offers fractional shares, allowing investors to buy portions of stocks and ETFs with as little as $1. | Fidelity offers fractional share trading, called 'Stocks by the Slice,' allowing investors to buy portions of stocks and ETFs with as little as $1. |
| Securities Lending | Stock lending program that allows users to lend out fully paid stocks in their portfolio. | Fidelity's Fully Paid Lending Program allows customers to lend securities in their portfolio to Fidelity in exchange for income. Customers receive collateral in the form of cash or securities held at a custodial bank independent of Fidelity. Shares on loan are not covered by SIPC. |
| Cash Management | Cash Management feature, acting as a hybrid between a savings and checking account, includes a debit card. | Fidelity offers a Cash Management Account with features like checkwriting, ATM/debit card, direct deposit, and electronic funds transfer. ATM fees are reimbursed worldwide. |
| Retirement Accounts | Traditional and Roth IRAs with a 1% bonus on IRA contributions, which increases to 3% for Gold members. | Fidelity provides various IRA options, including Roth, Traditional, and Rollover IRAs. There are no account fees or minimums to open a Fidelity retail IRA. |