Discover the key differences between E*TRADE vs Fidelity in this comprehensive comparison. Explore their range of offerings, costs, account amenities, research tools, and customer support to find the online broker best suited to your investment needs.
E*TRADE vs Fidelity: Which Should You Choose?
When deciding between E*TRADE vs Fidelity, two of the most prominent online brokers, it’s essential to weigh their strengths and differences. Both platforms have earned strong reputations for providing investors with diverse tools, investment options, and reliable services. To help you choose, this article offers a detailed, original comparison of their range of offerings, costs, and account and research amenities, covering everything you need to know to make an informed decision.
Range of Offerings: What Can You Invest In?
The types of investments available on each platform are a critical factor in choosing a broker. Here’s how E*TRADE and Fidelity compare:
- Stocks, ETFs, and Options: Both E*TRADE vs Fidelity provide commission-free trading for U.S.-listed stocks, exchange-traded funds (ETFs), and options, making them accessible for beginners and seasoned traders alike.
- Mutual Funds:
- E*TRADE boasts over 4,000 no-transaction-fee (NTF) mutual funds, offering a wide selection for investors seeking diversification without extra costs.
- Fidelity matches this with a robust mutual fund lineup, including its standout zero-expense-ratio index funds, a unique feature that eliminates management fees entirely on select funds.
- Bonds and Fixed Income: Both brokers offer access to corporate, municipal, and Treasury bonds, as well as certificates of deposit (CDs), catering to those seeking stable, income-generating investments.
- Futures and Forex:
- E*TRADE supports futures trading, appealing to advanced traders looking to speculate on commodities or indices.
- Fidelity does not offer futures trading and lacks direct forex (foreign exchange) trading, though it provides forex exposure for qualified investors through other means.
- Cryptocurrency:
- Fidelity stands out by offering direct trading of Bitcoin and Ethereum, a rare feature for traditional brokers.
- E*TRADE does not support direct crypto trading but provides exposure through crypto-related funds or ETFs.
Takeaway: If you’re interested in futures, E*TRADE is the better pick. For cryptocurrency enthusiasts, Fidelity’s direct trading capability gives it an edge. For most other investment types, both brokers are neck and neck.
Costs: Where Will Your Money Go Further?
Cost is a major consideration, as fees can significantly impact your returns. Let’s break it down:
- Trading Fees:
- Both platforms offer commission-free trades for stocks, ETFs, and options.
- For options trading, both charge $0.65 per contract, though E*TRADE provides discounts for high-volume traders (e.g., 30+ trades per quarter).
- Mutual Fund Fees:
- Fidelity excels with its zero-fee index funds, a game-changer for long-term investors aiming to minimize costs.
- E*TRADE offers thousands of NTF mutual funds, but funds outside this list may carry transaction fees, typically $19.99.
- Account Fees:
- Neither broker charges annual maintenance or inactivity fees, keeping accounts affordable.
- E*TRADE imposes a $75 fee for full account transfers out, while Fidelity offers free transfers, giving it a slight advantage.
- Margin Rates:
- Fidelity provides lower margin rates, starting at 8.325% (depending on balance), compared to E*TRADE’s 9.49%, making borrowing cheaper on Fidelity.
- Cash Sweep Accounts:
- Fidelity pays a competitive 2.21% APY on uninvested cash in its default sweep program.
- E*TRADE lags with rates between 0.01% and 0.15%, depending on account balance, which could disappoint cash-heavy investors.
Takeaway: Fidelity generally offers lower overall costs, thanks to its zero-fee funds, better margin rates, and higher cash interest. E*TRADE remains competitive but may cost more in specific scenarios, like transfers or cash holdings.
Account Amenities: What Perks Come With Your Account?
Beyond investments and fees, account features can enhance your experience. Here’s what each broker brings to the table:
- Account Minimums:
- Both E*TRADE and Fidelity require no minimum deposit for standard brokerage accounts, welcoming investors of all levels.
- For robo-advisory services:
- E*TRADE’s Core Portfolios require a $500 minimum.
- Fidelity Go has no minimum, making it more beginner-friendly.
- Robo-Advisors:
- Fidelity Go is free for accounts under $25,000, then charges 0.35% annually, offering a low-cost automated option.
- E*TRADE’s Core Portfolios charges a flat 0.30% annual fee, which is slightly cheaper for larger balances.
- Banking Services:
- E*TRADE provides integrated checking and savings accounts, ideal for those who want to manage banking and investing in one place.
- Fidelity offers a cash management account with debit card and bill-pay features but lacks traditional banking options.
- Interest on Cash:
- Fidelity’s higher cash sweep rate (2.21% APY) outshines E*TRADE’s minimal rates (0.01%–0.15%), benefiting investors with idle funds.
Takeaway: Fidelity’s no-minimum robo-advisor and superior cash interest rates appeal to cost-focused beginners, while E*TRADE’s banking services attract those seeking a financial all-in-one.
Research Amenities: How Do They Help You Invest Smarter?
Strong research and educational tools can make or break your investing success. Here’s how they stack up:
- Research and Screeners:
- Fidelity delivers powerful stock, ETF, mutual fund, and options screeners backed by third-party research from nearly 20 providers.
- E*TRADE offers comparable tools, with a bonus of downloadable mutual fund research reports, an edge Fidelity doesn’t match.
- Educational Resources:
- E*TRADE provides a demo account for paper trading, letting users test strategies risk-free—a huge plus for novices.
- Fidelity counters with extensive articles, videos, webinars, and even in-person workshops, catering to self-directed learners.
- News and Market Data:
- Both platforms deliver real-time quotes, market news, and portfolio analysis tools, keeping you informed.
- E*TRADE slightly leads with its news depth, though Fidelity’s overall package remains competitive.
Takeaway: E*TRADE’s paper trading and beginner-friendly education give it an edge for new investors, while Fidelity’s deeper research tools suit experienced traders.
Customer Support: Who’s Got Your Back?
Reliable support is vital, especially during market turbulence. Here’s the rundown:
- Availability:
- Both brokers offer 24/7 support via phone, live chat, and email, ensuring help is always accessible.
- In-Person Support:
- Fidelity operates over 200 branches across the U.S., perfect for those who prefer face-to-face assistance.
- E*TRADE relies entirely on digital and phone support, with no physical locations.
Takeaway: Fidelity wins for in-person support, while both are equally strong for online and phone assistance.
Final Thoughts: Which Broker Fits You Best?
E*TRADE vs Fidelity are both top-tier brokers, but your choice depends on your priorities:
- Pick E*TRADE if:
- You’re an active trader interested in futures or options discounts.
- You value a demo account to practice trading.
- You want banking and investing under one roof.
- Pick Fidelity if:
- You prioritize low costs with zero-fee funds and better margin rates.
- You’re excited about direct crypto trading.
- You prefer in-person support or a no-minimum robo-advisor.
Both platforms are secure, feature-rich, and trusted by millions. Consider your investing goals—whether it’s minimizing fees, accessing unique assets, or getting hands-on help—and you’ll land on the perfect choice. Happy investing!
