Fidelity Investments vs. Robinhood (Investopedia)

Fidelity Investments vs. Robinhood (Investopedia)

Fidelity and Robinhood are fundamentally different in that Fidelity is an established, full service brokerage firm and Robinhood is a newer player that has received a lot of publicity, both good and bad. Fidelity was founded in 1946 and has evolved into a significant force in the online brokerage space. Robinhood was founded in 2013 and has stood out as a disrupter in the traditional brokerage industry. However, it’s important to note that Robinhood’s current offering is lacking compared to legacy brokers like Fidelity. Although both Fidelity and Robinhood are popular choices for casual investors and traders, we’ll look at some of the key differences between the two brokers to help you determine which one is the right fit for you and your investment needs.
– Account Minimum: $0
– Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trade
– Account Minimum: $0
– Fees: $0
Usability
Fidelity and Robinhood are vastly different when it comes to the look and feel of their platforms. Fidelity is quite seamless and easy to use. Opening a brokerage account is simple and the website is easy to navigate once you find the numerous sub-menus. You can also use the search bar at the top of each page if you can’t find what you’re looking for. That said, Robinhood is even easier to use and provides a user experience that is one of a kind. Thanks to a mobile app with a clean design that focuses on the basics, Robinhood is an easy choice for investors who primarily use mobile devices to manage their accounts. One caveat is that there is very little you can do to personalize or customize Robinhood’s app to your desired trading experience. In contrast, Fidelity’s Active Trader Pro program is fully customizable. Nonetheless, Robinhood has the one up on Fidelity as it pertains to usability.
Trade Experience
Desktop Trade Experience
The trading experience on Robinhood’s web and mobile platforms is fast, simple, and streamlined. For new investors, Robinhood has the functionality necessary to trade, but more experienced investors will find the trading platform to be less than adequate. Additionally, there are no customization features available on the web platform. On the other hand, Fidelity’s trading experience has a seamless workflow. Fidelity’s platforms are also highly customizable, enabling you to create personalized layouts, set trade defaults, set hotkeys, and so forth. Fidelity’s platforms also supports trading from charts, or placing basket trades—features not available with Robinhood. Both Fidelity and Robinhood have trading experiences that will be suitable for new investors, but we think Fidelity has a clear advantage in this category because of its ability to serve investors of all experience levels.
Mobile Trade Experience
Robinhood is a mobile-first brokerage aimed at investors who want a simple trading app without the bells and whistles. Considering this, Robinhood’s mobile experience is what attracts many of its users. Although Robinhood’s quote information streams in real time, it does not offer the same in-depth tools that larger, traditional brokers, such as Fidelity, do. For instance, you don’t have the ability to trade directly from the chart, the platform does not support conditional orders, and you can’t enter multiple orders simultaneously or stage orders for later entry. In contrast, Fidelity’s mobile offering is comprehensive, with much of the same functionality as the desktop trading platform. Fundamental analysis and charting are limited in the app, however, and you can’t place conditional orders through mobile. That said, Fidelity has recently introduced a beta version, which supports many of the new requested features from its users. Altogether, Fidelity’s mobile offering is more comprehensive and robust than Robinhood’s and we found it the better platform when it comes to the complete mobile trade experience.
Range of Offerings
Fidelity clients will be able to trade a plethora of asset classes due to the broker’s wide range of offerings. One notable limitation is that Fidelity does not offer futures, futures options, or cryptocurrency trading. On the other hand, Robinhood allows you to trade cryptocurrencies in the same account that you use for equities and options. Beyond that, Robinhood has a very limited range of offerings in comparison to Fidelity, so Fidelity has the edge in this category.
Article Sources
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Fidelity. ” [Our Company] “. Accessed Dec. 28, 2021.
United States Securities and Exchange Commission. ” [Form S-1 Registration Statement: Robinhood Markets, Inc.] “. Accessed Dec. 28, 2021.
Fidelity. ” [Active Trader Pro] “. Accessed Dec. 28, 2021.
Fidelity. ” [Mobile Trading With Fidelity] “. Accessed Dec. 28, 2021.
Robinhood. ” [Get more crypto for your cash] “. Accessed Dec. 28, 2021.
Robinhood. ” [Investments you can make on Robinhood] “. Accessed Dec. 28, 2021.
Fidelity. ” [Commitment to execution quality] “. Dec. 28, 2021.
Robinhood. ” [Robinhood Lowers Margin Interest Rate from 5% to 2.5%] “. Accessed Dec. 28, 2021.
Fidelity. ” [Margin Rates] “. Accessed Dec. 28, 2021.
Fidelity. ” [Fidelity Learning Center] “. Accessed Dec. 28, 2021.
Robinhood. ” [How you’re protected] “. Accessed Dec. 28, 2021.
Fidelity. ” [Safeguarding Your Accounts] “. Accessed Dec. 28, 2021.
Robinhood. ” [Robinhood Announces Data Security Incident (Update)] “. Accessed Dec. 28. 2021.

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