In the event you’re on the lookout for an investing platform with a mobile app and easy-to-use features, you could be comparing Fidelity vs Robinhood and wondering which is best for you. 

There are a lot of things to contemplate. For instance, which investment options and account types can be found? Do Robinhood or Fidelity charge trading fees, and in that case, how much are they?

Selecting the precise platform requires some pondering in your part. What are your investment goals? How much are you willing to pay for a platform that suits your needs? Which investment tools can be found?

We’re here to assist with the answers to all these questions and more. In our Fidelity vs. Robinhood review, we’ll allow you to in on how each platforms work, which features are included, and the way much they cost.

By the point you’ve finished reading, you’ll have every thing you’ll want to make an informed selection about which platform to make use of.

Overview of Fidelity and Robinhood

Let’s start with a fast overview of each Robinhood and Fidelity. 

Each firms are registered brokerages, which implies they’re regulated by the Securities and Exchange Commission, or SEC. 

Robinhood was founded in April of 2013 by Baiju Bhatt and Vladimir Tenev with the goal of making a mobile investment app that might be free and simple to make use of. It was the primary investment platform to not charge a fee for trades.

Robinhood recently added an option for users to establish a Traditional or Roth IRA. The first difference between Robinhood Roth IRA vs Fidelity is that Robinhood offers a 1% matching contribution with no cap.

Fidelity is a multinational financial brokerage firm headquartered in Boston. It was founded in 1946. Today, it’s certainly one of the most important asset managers on the planet and has greater than $5 trillion assets under management (AUM).

Unlike Robinhood, Fidelity charges trading fees for stocks and bonds, in addition to another investments. 

Fidelity has more investment options than Robinhood, including bonds and other investment vehicles that you would be able to’t buy on Robinhood.

Robinhood has greater than 11 million lively monthly users and has been dominating the market. In reality, it’s essentially the most widely used investment app on the planet.

Robinhood vs. Fidelity Comparison: Features and Price

To aid you compare Fidelity Investments vs Robinhood, here’s a chart showing the features and costs of every platform.

	Fidelity Investments	Robinhood
Investment types	Stocks, ETFs, Options, Mutual Funds, Cryptocurrencies (Bitcoin and Ethereum only), CDs, Bonds	Stocks, ETFs, Options, Cryptocurrencies
Fractional shares?	Yes	Yes
IRA options	Traditional, Roth, SIMPLE, SEP, plus 401k	Traditional, Roth
IRA matching?	No	Yes; 1% with no cap; 3% for Robinhood Gold members
Stock & ETF commissions	$0	$0
Options commissions	$0; $0.65 per contract	$0
Premium service?	No	Yes; Robinhood Gold for $5/month of $50/yr
Free mobile app?	Yes	Yes
Mobile advisory?	Yes	No

Let’s highlight a number of key differences here. The primary is when comparing the Robinhood IRA vs Fidelity, only Robinhood offers matching contributions. It’s not as much as what you’ll get with an employer-sponsored IRA. That said, in case your primary goal is saving for retirement and also you don’t have employer matching, Robinhood will give you a solution to boost your savings and investments.

Unlike Fidelity, Robinhood has a premium option, Robinhood Gold. Members who pay for the premium service get these advantages:

• 3% matching for IRA contributions (must remain a Robinhood Gold member for at the least a yr to retain matching funds)
• No interest on the primary $1,000 you borrow for margin trading
• 4.5% APY on uninvested money in your account

Depending in your needs and priorities, either certainly one of these platforms could be best for you. 

Robinhood vs. Fidelity: Investment Options and Account Types

Some of the vital things to contemplate as you weigh your options is the investment decisions and account types which might be available on each platforms.

Number of Investment Options

Fidelity offers more investment options than Robinhood, reminiscent of mutual funds. Here’s a listing of what yow will discover there.

• Stocks
• Exchange Traded Funds
• Bonds
• Mutual Funds
• Cryptocurrency (but only Bitcoin and Ethereum)
• Options
• CDs

The range available is something that’s more likely to appeal to many investors, particularly those that wish to spread their investments across multiple financial vehicles to attenuate their risk.

Robinhood’s offerings are more limited, as follows:

• Stocks 
• ETFs
• Options
• Cryptocurrencies

One area where Robinhood really shines is in cryptocurrency decisions. While Fidelity offers only two cryptocurrencies, plus a collection of crypto ETFs, Robinhood offers a far wider selection.

Pro Tip:

Enroll with Robinhood today and receive a 100% free partial share.

Comparing Account Types

Let’s break down the various account types. To begin, the fundamental investment accounts and trading platforms offered by Robinhood and Fidelity Investments are each free.

With regards to retirement accounts, there’s an enormous difference. It wasn’t that way back that Robinhood didn’t have any retirement accounts in any respect. Here’s what they provide now.

• Traditional IRAs (pre-tax contributions)
• Roth IRAs (post-tax contributions)

As we mentioned above, additionally they offer a 1% matching contribution for normal subscribers, and three% for Robinhood Gold subscribers.

Fidelity has more retirement account options, including:

• Traditional IRAs
• Roth IRAs
• SIMPLE IRAs
• SEP IRAs
• 401(k)

What they don’t offer is any kind of matching program. In the event you’re someone who’s self-employed or doesn’t have an employer matching plan, you could select Robinhood to make the most of their matching program.

Who Should Select Robinhood and Fidelity?

The choice about which investment accounts to make use of is essentially based in your personal preferences. 

Robinhood is probably going the perfect selection for younger, mobile-first investors preferring a streamlined platform. It’s not the precise place for investors who wish to dig deep into the numbers or small time lively traders. As an alternative, it’s ideal for individuals who want access to market news and costs at their fingertips and are comfortable making their very own investment decisions. It’s also an excellent pick for anybody who desires to make the most of IRA matching contributions and free Robinhood stocks.

Fidelity has a more in-depth trading platform that features a robo advisory. Investors get access to stock screeners and may engage in certain forms of riskier trading, including short selling and OTC penny stock trading for serious investors. Fidelity also offers mutual fund trading.

We might say that on the entire, Robinhood is best suited to beginner retail traders and those that desire a streamlined and easy-to-use interface with the opportunity of margin account savings. Fidelity could also be higher suited to more experienced investors.

Pro Tip:

Enroll with Robinhood today and receive a 100% free partial share.

Robinhood vs. Fidelity: User Experience

You need to consider the user experience for any trading platform. Here’s our take.

How Easy Are Fidelity and Robinhood to Use?

On condition that Robinhood began as a mobile app, you may expect them to have the sting in usability, and so they do. That said, it’s not an enormous advantage. Fidelity has done an excellent job with its mobile app.

We give Fidelity a slight advantage for its desktop model and online platform. It has quite a bit more features to assist investors study stocks, ETFs, and so forth. That said, beginners may prefer Robinhood’s easy interface.

Our final remark is that customer support isn’t as easy to access on Robinhood appropriately. Users are required to send a message through the app and wait for somebody to get back to them. In contrast, Fidelity’s customer support is offered 24/7.

Ideal for Different Users

Ultimately, our take is that Fidelity is right for advanced investors who want access to Fidelity’s wealthy array of research tools. With multiple charting options and in-depth evaluation, Fidelity is designed to provide investors the knowledge they should make smart investment decisions.

Robinhood is geared toward latest investors who desire a quick and simple solution to start. Its simplicity and clean interface make it possible to leap right into investing and learn as you go.

Is Robinhood Higher Than Fidelity?

For starting investors, we compare Fidelity vs Robinhood and select Robinhood. It has a straightforward interface, and its mobile-first approach is right for young investors who wish to start investing without having to leap through a bunch of hoops.

While Robinhood doesn’t offer as many investment options or features as Fidelity, we feel that its simplified approach is helpful for individuals who may not have much knowledge about investing. You’ll be able to buy fractional shares, which makes it easy to diversify your holdings.

Most of all, we like Robinhood’s democratic approach to investing. Anybody can join, anybody can invest, and overcoming the initial hurdles to investing is usually step one in a lifetime of saving (and earning) money.

Pro Tip:

Enroll with Robinhood today and receive a 100% free partial share.

Final Verdict: Which is Best for You?

Our final verdict is that we expect Robinhood offers advantages for many investors, particularly those that are only starting out. Individuals who wish to access advanced features can do it for just $50 per yr with Robinhood Gold: a really inexpensive price when put next to another options which might be available.

Now that Robinhood offers Traditional and Roth IRAs, it’s among the best decisions for individuals who wish to kickstart their retirement savings through trading platforms. Upgrading to Robinhood Gold can aid you earn 3% in matching contributions.

That said, if you would like to spend money on mutual funds or bonds, then you need to go along with Fidelity. They provide more diversity when it comes to investments and additionally they have a robo advisor, which is something that appeals to plenty of young investors who want some advice on what to purchase without having to pay for a financial advisor.

In the event you’re a beginner, we strongly suggest getting began with Robinhood. 

Can I open a Roth IRA on Robinhood?

Yes. Robinhood offers each Roth IRAs and Traditional IRAs, with 1% matching funds for normal members and three% matching funds for Robinhood Gold subscribers.

Does Fidelity offer commission-free trading?

Yes, Fidelity offers commission-free trading. They do charge a fee of $0.65 per option contract.

Which is healthier for beginners, Fidelity or Robinhood?

Robinhood has a straightforward interface that’s ideal for starting investors. It’s easy to dive in and begin investing instantly.