E*TRADE and Fidelity are full-service online brokers that have been around for decades. Founded in 1982, E*TRADE was one of the first U.S. brokers to offer online trading services. The firm positioned itself as one of the best online brokers for options trading after acquiring OptionsHouse in 2016 and integrating an assortment of OptionsHouse tools into the E*TRADE Power platform.
Fidelity was founded in 1946 and made its internet debut in 1995—about a decade after E*TRADE. The company offers a solid all-around package with low costs, excellent research amenities, and valuable tools. While these two brokers have a lot in common, we’ll compare the two to help you determine which one is the right fit for your investing needs.
Important
On April 26, 2022,Fidelity announced that itis launching aDigital Assets Account(DAA)which will enable plan sponsors to offer their participants access to bitcoin through an investment option in their plan’s core plan lineup.
- Account Minimum: $0
- Fees: No commission for stock, ETF, and mutual fund trades. Options are $0.50-$0.65 per contract, depending on trading volume.
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Pros & Cons
Pros
Supports futures, Bitcoin futures and futures options
Additional flexibility with order types
Robust Power E*TRADE platform
Cons
Higher margin rates
Website challenging to navigate
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades
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Pros & Cons
Pros
Low Costs
Access to FOREX and many international exchanges
Smart order routing technology
Cons
Higher broker assisted trading fees
Conditional orders not available on mobile app
E*TRADE vs. Fidelity: Usability
New E*TRADE customers can easily open and fund an account using a mobile device or computer. There are two main web-based platforms with dedicated mobile apps that mirror the functionality of the respective web platforms. One platform is aimed more at casual traders, and the Power E*TRADE platform is designed for the more active crowd.
Fidelity is quite user-friendly overall. Here again, the broker has addressed the challenge of having tools for active traders while accommodating casual investors by splitting its offerings into two platforms. Initial account opening with Fidelity is simple, especially if you're adding an account to an existing household.
Overall, we found E*TRADE is a good choice for active traders and investors—especially those who want access to a suite of excellent options tools. At the same time, Fidelity is better for casual investors and traders looking for low costs and access to international trading.
E*TRADE vs. Fidelity: Trade Experience
Desktop Trade Experience
E*TRADE's standard website can be challenging to navigate due to its two-level menus. However, the fully customizable Power E*TRADE platform is more intuitive, and you can access all your favorite tools in a single layout. You have access to streaming real-time quotes across all platforms, and you can stage orders and send a batch simultaneously. You can also place orders from a chart and track them visually.
Fidelity’s workflow for analyzing or trading existing positions on the website is relatively easy, although it’s a bit clunky sorting through the tabs and drop-down choices. Buy-and-hold investors should find the web-based platform more than adequate, and quotes are real-time and stream across platforms. More experienced investors and traders will appreciate Active Trader Pro's charts, technical indicators, screeners, and advanced order types.
Although it was close, we found that E*TRADE offers a more satisfying desktop trading experience due to its robust Power E*TRADE platform and backtesting capabilities.
Mobile Trade Experience
E*TRADE and Fidelity offer mobile apps that are reasonably easy to navigate. On E*TRADE, watchlists are integrated—and a full range of tradable assets (except for fixed income) are available—across platforms, making it easy to bounce between devices. Unlike Fidelity, E*TRADE’s mobile app supports conditional order types.
Fidelity supports stocks, ETFs, options, and mutual funds on its mobile app. Like E*TRADE, fixed income is missing from Fidelity’s mobile lineup. Mobile watchlists are shared with the desktop and web applications, and you can trade fractional shares and specify dollars rather than shares when entering an order. Fundamental analysis and charting are extremely limited on mobile.
While both apps are well-rated on the App Store, Fidelity has far more reviews. E*TRADE has 4.6 stars from 140,000 reviews, while Fidelity has 4.8 stars from some 2 million reviews. Overall, we found that either app should fit the needs of casual investors and traders, but only E*TRADE supports conditional orders, which could be an essential distinction for active traders.
E*TRADE vs. Fidelity: Range of Offerings
E*TRADE and Fidelity offer all the standard trading products, including stocks (with shorts), ETFs, bonds, and mutual funds. Beyond that, there are a few notable differences. Only E*TRADE supports futures, futures options, and Bitcoin futures, while only Fidelity offers access to Forex and dozens of international exchanges. Ultimately, a preference for one broker over the other may come down to the brokers' range of offerings.
E*TRADE vs. Fidelity: Order Types
E*TRADE supports a respectable variety of order types, including conditional orders, on its website and Power E*TRADE platforms. Mobile users can enter a limited number of conditional orders. It’s possible to stage orders for later entry on all platforms, and you can select a tax lot from your portfolio or order ticket to optimize tax efficiency.
Fidelity also supports the usual suspects (market, limit, stop, and trailing stops) and conditional orders on its web and Active Trader Pro platforms. Unlike E*TRADE, however, Fidelity doesn’t offer conditional orders on mobile. You can automatically allocate investments across multiple securities with an equal dollar amount or number of shares—a feature that’s not found at many online brokers.
In terms of order types, the gap between the two brokers is negligible for most individual investors, but active traders will value the additional flexibility E*TRADE offers over Fidelity.
E*TRADE vs. Fidelity: Trading Technology
E*TRADE's order routing technology uses advanced order routing, and it sends most orders to market makers. The router looks for a combination of execution speed and quality. According to its execution quality report, orders are filled in 0.12 to 0.18 seconds on average. E*TRADE reports price improvements of $4.25 to $4.83 on average on share orders of 100-9,999 shares. They do receive some money for payment for order flow, averaging $0.0014 in the period we looked at. This is the middle of the pack for brokers that accept PFOF and are well below Robinhood and Webull levels.
Meanwhile, Fidelity's smart order routing technology seeks the best price available and can access all types of market venues, including dark pools, exchanges, and market makers. The company reports a net price improvement of $15.50 per 1,000 equity shares and an average execution speed of 0.08 seconds. Unlike E*TRADE, Fidelity does not accept payment for order flow for stocks or ETFs.
Overall, Fidelity wins in the trading technology department due to its superior price improvement statistics, faster execution speeds, and lack of payment for order flow.
E*TRADE vs. Fidelity: Costs
E*TRADE and Fidelity offer $0 commissions for online equity, ETF, and options trades. You’ll pay a $0.65 per-contact options fee at either broker, though E*TRADE drops that fee to $0.50 if you place at least 30 trades per quarter. OTCBB trades are free at Fidelity and either $6.95 or $4.95 per transaction at E*TRADE, depending on how many trades you place per quarter.
At $25, broker-assisted trades are a bit cheaper at E*TRADE versus Fidelity’s $32.95 fee. Only E*TRADE offers futures, which you can trade for $1.50 per contract, per side. Margin rates at Fidelity are a bit cheaper than E*TRADE’s. On a $100,000 balance, the rate is 11.825% at Fidelity versus 12.45% with E*TRADE.
Overall, you might save money at Fidelity if you OTCBB or use margin, but E*TRADE will be cheaper if mutual funds or options are your focus.
E*TRADE vs. Fidelity: Research Amenities
E*TRADE and Fidelity offer a comparable array of research amenities. Both have robust stock, ETF, mutual fund, and options screeners, including those that filter based on ESG/SRI factors. And both brokers offer numerous tools, calculators, idea generators, and professional research. While Fidelity’s screeners edged out E*TRADE’s in our tests, E*TRADE took the lead for its news offerings—making this category too close to call.
E*TRADE vs. Fidelity: Portfolio Analysis
Here again, E*TRADE and Fidelity have similar offerings. On either platform, you’ll have access to real-time buying power and margin information, plus real-time unrealized and realized gains. Both offer tax reports (capital gains) and the ability to aggregate holdings from outside your account. And if you want access to your real-time internal rate of return (IRR), you'll find that only with Fidelity. Overall, Fidelity takes a slight edge in terms of portfolio analysis.
E*TRADE vs. Fidelity: Education
E*TRADE and Fidelity offer a decent selection of educational content plus dozens of live webinars each month. You’ll find educational articles, life stage planning tools, and investing-related glossaries at either broker, and both offer in-person events. Overall, E*TRADE takes a slight lead here by offering paper trading capabilities and a broader range of educational topics.
E*TRADE vs. Fidelity: Customer Service
E*TRADE offers 24/7 phone line support with access to brokers, retirement specialists, financial consultants, active trader consultants, and product specialists. You can contact them by email and get in-person help at a relatively limited number of branches. Fidelity has a 24/7 phone line, an online chat feature (limited hours), and a secure email portal. Overall, you can count on reliable customer service from either broker.
E*TRADE vs. Fidelity: Security
E*TRADE’s and Fidelity’s security are up to industry standards. You can log into either broker's app with biometric (face or fingerprint) recognition, and two-factor authentication is available on all platforms. Both brokers protect against account losses due to unauthorized or fraudulent activity.
Both brokerages are covered by the SIPC which you can think of as being similar to the FDIC, but for brokerage accounts. The SIPC covers account values of up to $500,000 with a $250,000 limit on cash. To protect you beyond these limits both brokers have an excess of SIPC insurance with a $1 billion aggregate limit. The purpose of this insurance is to cover you if the firm should go bankrupt.
E*TRADE vs. Fidelity: Account Types
E*TRADE and Fidelity both have all the commonly used account types, including:
- Individual brokerage accounts
- Custodial accounts
- Coverdell education savings account(ESA)
- Traditional individual retirement accounts (IRAs)
- Roth IRAs
- Rollover IRAs
- Beneficiary IRAs
- IRAs for Minors
- SIMPLE IRAs
- Simplified Employee Pension IRAs
Fidelity has the edge here, however, as it has a number of specialty accounts like the health savings account (HSA) and a non-custodial youth account where the teen makes their own investing decisions. That said, most investors will find the account type they need at either of these brokers.
Final Verdict
E*TRADE and Fidelity are both considered powerhouses in the online brokerage industry, and most casual investors would likely be happy with either. They ranked closely across many of our metrics in the 2022 Best Online Broker awards. However, we found that Fidelity is the best option overall because it offers low costs, low margin rates and access to international trading.
Frequently Asked Questions
Does E*TRADE have monthly fees?
E*TRADE has contract and trading fees rather than blanket monthly fees. The company charges $25 in broker-assisted trading fees. Futures cost $1.50 per contract on E*TRADE while options have a fee of $0.65 per contract. Additionally, OTCBB trades cost either $6.95 or $4.95 per transaction, depending on the number of trades you place each quarter.
How much does it cost to withdraw money from E*TRADE?
E*TRADE does not charge for withdrawals. However, it does charge for outgoing transfers. Partial transfers have a flat fee of $25 while full transfers cost $75.
Is Fidelity good for beginners?
Fidelity is a great option for beginners, especially since it provides a wealth of educational tools to help new investors get started. It also offers low costs which are especially beneficial to new investors.
What is the most trusted brokerage?
According to the 2022 U.S. Full-Service Investor Satisfaction Study by J.D. Power, UBS, an investment bank and financial services company, ranks the highest in investor satisfaction. The company provides investment services to more than 50 countries and scored 777 for customer satisfaction, 33 points above the industry average. Comparatively, Fidelity was ranked seventh with a score of 748.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
Fidelity charges an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. SeeFidelity's Brokerage Commission and Fee Schedule for details.
Methodology
Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. This year, we revamped the review process by conducting an extensive survey of customers that are actively looking to start trading and investing with an online broker. We then combined this invaluable information with our subject matter expertise to develop the framework for a quantitative ratings model that is at the core of how we compiled our list of the best online broker and trading platform companies.
This model weighs key factors like trading technology, range of offerings, mobile app usability, research amenities, educational content, portfolio analysis features, customer support, costs, account amenities, and overall trading experience according to their importance. Our team of researchers gathered 2425 data points and weighted 66 criteria based on data collected during extensive research for each of the 25 companies we reviewed.
Many of the brokers we reviewed also gave us live demonstrations of their platforms and services, either at their New York City offices or via video conferencing methods. Live brokerage accounts were also obtained for most of the platforms we reviewed, which our team of expert writers and editors used to perform hands-on testing in order to lend their qualitative point of view.
Read ourfull Methodologyfor reviewing online brokers.
