Fidelity vs. Robinhood: Which Investment Platform is Best

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Fidelity vs. Robinhood: The Biggest Differences

Fidelity Investments - Editorial Name Only and Robinhood are both online brokerages, with Fidelity being one of our top picks for the best online brokerages. While both offer commission-free stocks, ETFs, and options, the two differ when it comes to fees, available investment and account types, features, and more.

Fidelity is the best choice for most types of investors. Whether you're a beginner or experienced trader, active or infrequent investor, or hands-off investor, the brokerage has an account option for you. It also offers investment perks like zero-expense ratio index funds.

Robinhood Investing - Editorial Name Only, however, is a better choice for both frequent traders, options traders, and crypto traders who want access to a simple investing interface. Unlike Fidelity, Robinhood charges $0 per options contract, and it offers more than 18 cryptocurrencies.

Is Fidelity Right for You?

Who is Fidelity Best For?

Fidelity Investments - Editorial Name Only has something for almost every type of investor. The online brokerage offers self-directed accounts, automated investing accounts (also known as robo-advisors), custodial accounts, IRAs, 529 plans, and much more. Plus, its low-cost investment choices make it even more suitable for those looking to minimize fees when trading.

Fidelity currently offers no-minimum mutual funds and commission-free stocks, ETFs, and options. It also offers its own Fidelity-managed zero-expense ratio index funds, meaning you won't have to worry about fund fees when investing in different assets.

Check out Insider's guide to the best IRA accounts

What Fidelity offers

Unlike Robinhood, Fidelity has two accounts that cater more toward hands-off investors: Fidelity Go and Fidelity Personalized Planning & Advice. The two robo-advisors create personalized, self-managing portfolios based on your investing goals. However, Fidelity Go - Product Name Only doesn't allow for one-on-one human advisor guidance, but Fidelity Personalized Planning & Advice does.

This brokerage could also be a great option if you're interested in retirement accounts like IRAs. Its selection — which includes traditional IRAs, Roth IRAs, rollover IRAs, Roth IRAs for Kids, SEP IRAs, and SIMPLE IRAs — applies to both individuals with taxable income, self-employed individuals, and businesses.

Fidelity also offers multiple trading platforms. These include its web platform, mobile apps, and Active Trader Pro platform. Active Trader Pro best suits frequent traders who want to take advantage of perks like real-time price analytics, portfolio monitoring tools, and much more.

Fidelity is available on iOS and Android devices.

Read our Fidelity Investments review

Is Robinhood Right for You?

Who is Robinhood Best For?

Robinhood Investing - Editorial Name Only is best for active traders (though you can also use its platform to practice buy-and-hold strategies), options traders, margin traders, and crypto investors. When it comes to account types, the online brokerage offers individual investment accounts, margin accounts, and cash management accounts.

What Robinhood Offers

You can exchange stocks, ETFs, and options (these are free of options contract fees) commission-free, and Robinhood also allows for ADR and cryptocurrency investing. Its crypto selection includes assets like bitcoin, ether, dogecoin, and more.

In addition, Robinhood is launching traditional and Roth IRAs. These accounts will include $0 trading commissions, a 1% match on every dollar you contribute, recommended portfolios, and more. 

While Robinhood's individual investment accounts don't have any minimum requirements, you'll need at least $2,000 for margin trading, which is only available through Robinhood Gold. The Robinhood Gold subscription has a Robinhood Cash Management Account - Gold Member - Fees Display, but it offers the following: margin trading at a 440% interest rate, larger instant deposits of $5,000-$50,000, and access to Nasdaq market data and 1,700+ Morningstar stock research reports.

If you're a beginner investor looking to pack on more knowledge about various wealth-building topics, Robinhood also offers a digital library that contains educational guides on things like investing 101, options trading, and much more.

Robinhood is available on iOS and Android devices.

Read our Robinhood Investing review

Account types Individual and joint taxable brokerage accounts Automated accounts Individual retirement accounts (IRAs) Annuities Trusts 529 plans Managed accounts HSAs Custodial accounts	Account types Individual brokerage accounts Cash management accounts Margin accounts
Investment choices Stocks, ETFs, options, mutual funds, bonds, CDs, annuities, and IPOs	Investment choices Stocks, ETFs, options, cryptocurrencies, IPOs, and ADRs
Account perks Commission-free brokerage accounts Automated and advisor-assisted investing Tax-advantaged investment strategies Zero-expense ratio index funds Stock and ETF screeners Margin trading Retirement resources	Account perks Commission-free trading Fractional shares No-contract-fee options Crypto trading Cash management accounts Margin trading Morningstar research and Nasdaq data
Human advisors available? Yes — unlimited access to financial coaching and investment management with Fidelity Personalized Planning and Advice	Human advisors available? No
Robo-advice? Yes — Fidelity Go and Fidelity Personalized Planning and Advice	Robo-advice? No

Fidelity vs. Robinhood — Frequently Asked Questions (FAQs)

Is Fidelity better than Robinhood?

Fidelity suits most types of traders since it offers several self-directed and automated account options. However, Robinhood is a better choice for low fees, and it makes more sense for active traders, day traders, options traders, and crypto traders. 

Is Fidelity or Robinhood better for beginners?

Both platforms could be a great move for beginners, but Fidelity is the best choice since it offers both DIY trading and automated investing accounts. While Robinhood has a simple user interface, it strictly offers self-directed trading, so it may not be a good idea for newer investors who aren't yet ready to trade on their own.

Does Fidelity have a monthly fee?

Fidelity only charges a monthly fee for the second tier of its automated account, Fidelity Go. You'll pay $3 per month if you've got an account balance between $10,000 and $49,999.

Is Robinhood safe?

Yes. The brokerage is regulated by the US Securities and Exchange Commission (SEC), and it offers SIPC insurance of up to $500,000 for your securities and FDIC coverage of up to $250,000 for cash.