Our Verdict

Both Fidelity Investments and ETRADE are top-tier online brokers that offer robust trading platforms, extensive research and education, and competitive pricing. However, Fidelity edges out ETRADE as our overall top choice.
For most investors, especially if you are focused on long-term investing, retirement planning, or seeking a one-stop shop for all your financial needs, Fidelity is the stronger choice. While active traders and options specialists may prefer E*TRADE’s platforms and tools, Fidelity remains competitive even in these areas.
Why Choose Fidelity

Choose Fidelity for its superior execution quality, higher yields on uninvested cash, fractional share trading for individual stocks, and broader range of offerings, including direct cryptocurrency trading. Benefit from lower options contract fees and no payment for order flow on stocks and ETFs, potentially leading to better trade execution.
Who Fidelity Is Best For
Fidelity caters to a wide range of investors but is particularly well-suited as you will:
- Benefit if you are a long-term investor or retirement saver
- Save if you are a cost-conscious investor
- Utilize extensive research if you are a research-oriented investor
- Earn high yields on cash
- Diversify your portfolio if you are interested in fractional shares
- Trade cryptocurrencies if you are an enthusiast
- Value trade execution quality
- Access a one-stop financial shop
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Who Fidelity Is Not Right For
While Fidelity is an excellent choice for many, you should:
- Reconsider if you are an advanced options trader
- Avoid if you are a forex trader
- Look elsewhere if you are a futures trader
- Compare if you are seeking the absolute lowest margin rates
- Explore other options if you want a wider range of cryptocurrencies
Why Choose E*TRADE

If you prefer industry-leading mobile apps and excellent options trading tools, E*TRADE shines, particularly for active traders. However, it falls short of Fidelity in areas like cash management yields, international trading capabilities, and direct crypto access.
Who E*TRADE Is Best For
E*TRADE excels in several areas, making it an excellent choice because of the following:
- Excel if you are an active trader or day trader
- Choose E*TRADE if you are an options trader
- Benefit if you are a mobile-first investor
- Learn from strong educational resources
- Invest in mutual funds
- Trade futures confidently
- Access valuable research
Who E*TRADE Is Not Right For
E*TRADE may not be the best fit so you have to:
- Reconsider if you seek high yields on cash balances
- Look elsewhere if you want fractional share trading of individual stocks
- Avoid if you are an international stock trader
- Explore other platforms if you are a cryptocurrency enthusiast
- Compare if you prioritize the absolute lowest costs
- Consider alternatives if you seek sophisticated portfolio analysis tools
Fidelity vs. E*TRADE: Main Differences
Overall, Fidelity tends to have a slight edge in pricing, particularly with its lower options contract fees and more competitive margin rates for larger balances. Also, Fidelity’s open API may provide more flexibility if you seek custom solutions.
| Fidelity | E Trade |
Ideal For | Fidelity is ideal for a broader range of investors, from beginners to advanced traders, and particularly shines for long-term investors, retirement savers, and those seeking a comprehensive financial platform. Its combination of low costs, extensive research, excellent trade execution, and wide range of offerings make it a versatile choice for most investors. It also offers commission-free trading for stocks and ETFs, which is now standard in the industry. | E*TRADE, while also suitable for a variety of investors, particularly excels for active traders, options specialists, and mobile-first investors. Its Power E*TRADE platform and mobile apps are standout features for those who prioritize advanced trading tools and on-the-go access. Offers commission-free trading for stocks and ETFs, which is now standard in the industry.
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Pricing | ● Fidelity charges $0.65 per contract for options trades. ● Fidelity offers over 3,300 no-transaction-fee mutual funds. ● Fidelity’s margin rates range from 13.75% for balances under $25,000 to 9.25% for balances over $1 million. ● Struggle with no account maintenance fees or inactivity fees. ● Charges $75 for full account transfers out.
| ● E*TRADE charges $0.65 per contract if trading less than 30 times per quarter, and $0.50 per contract for more frequent traders. ● E*TRADE provides access to over 6,500 no-load, no-transaction-fee mutual funds. ● E*TRADE’s margin rates range from 14.20% for balances under $10,000 to 12.20% for balances of $250,000 and up. ● Struggle with no account maintenance fees or inactivity fees. ● Charges $75 for full account transfers out. |
Integrations | ● Offers integration with eMoney Advisor for financial planning. ● Provides API access for developers to create custom integrations. ● Integrates with various tax software programs for easier tax reporting.
| ● Integrates Morgan Stanley research and analysis tools following its acquisition. ● Offers TipRanks integration for stock analysis. ● Provides integration with various tax software for streamlined tax reporting.
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Standout Features | ● Offers superior trade execution with no payment for order flow on stocks and ETFs. ● Includes fractional share trading for individual stocks. ● Gives higher yields on uninvested cash through money market funds. ● Includes direct cryptocurrency trading (Bitcoin and Ethereum). ● Incurs extensive proprietary and third-party research.
| ● Offers a power E*TRADE platform with advanced charting and real-time data. ● Provides industry-leading mobile apps for both casual and active traders. ● Provides robust options trading tools and analysis. ● Enjoy excellently organized educational content, access to Morgan Stanley research and analysis.
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Fidelity vs. E*TRADE: Standout Features
Fidelity takes the lead here.
Fidelity

- Ensures Better Trade Execution Quality: Fidelity stands out for its commitment to best execution practices. By not accepting payment for order flow on stocks and ETFs, Fidelity potentially offers better trade execution prices. The company reports an average price improvement of $12.97 on 1,000-share equity orders.
- Maximizes Your Cash Management: Fidelity offers significantly higher yields on uninvested cash compared to many competitors, including E*TRADE. Through its money market funds, you can earn competitive yields on your idle cash.
- Utilizes Fractional Share Trading: Fidelity allows you to purchase fractional shares of individual stocks and ETFs. This feature enables you to diversify your portfolio with smaller amounts of capital and invest precise dollar amounts.
- Explore Research And Screening Tools: Fidelity provides an extensive array of research tools, including stock, ETF, mutual fund, and fixed income screeners. The platform offers a large library of third-party research reports, which are graded based on their historical accuracy.
- Leverage the Active Trader Pro Platform: Fidelity’s downloadable Active Trader Pro platform offers advanced charting, real-time data, customizable layouts, and more than 60 charting indicators. It’s a powerful tool for active traders, rivaling specialized trading platforms.
E*TRADE

- Experience Superior Mobile Trading: ETRADE offers two exceptional mobile apps – ETRADE Mobile for casual investors and Power E*TRADE Mobile for active traders. These apps provide a seamless mobile trading experience with robust features and intuitive interfaces.
- Enhance Your Options Trading: The Power E*TRADE platform excels in options trading, offering tools like risk/reward probability charts, the Strategy Seek tool, and a Live Action scanner for identifying unusual options activity.
- Access Valuable Educational Resources: E*TRADE’s Knowledge Center provides a wealth of educational content organized by life stages. This includes articles, videos, classes, and expert commentary, making it accessible and relevant for investors at all levels.
- Trade Futures With Confidence: E*TRADE offers a solid platform for futures trading, including cryptocurrency futures. This makes it a good choice for investors interested in these more advanced trading products.
- Benefit from Integration with Morgan Stanley Research: Following its acquisition by Morgan Stanley, E*TRADE users now have access to Morgan Stanley’s respected research and analysis, enhancing the platform’s research offerings.
Fidelity vs. E*TRADE: How to Open an Account with Fidelity Investments

- Visit its website
- Click on “Open an account”
- Pick if you want an individual or joint account
- Answer the mandatory questions and fill in your personal details
- Pick your account settings and email preferences
- Connect to your bank account
Fidelity vs. E*TRADE: How to Open an Account with E*TRADE

- Visit the website
- Click on “Open an account”
- Select the type of account you wish to open
- Provide personal information such as your Social Security Number, residency status, and current employment details for verification purposes
- Choose your investment profile and preferences for margin trading
- Review your application thoroughly and proceed to create your E*TRADE account ID
Fidelity vs. E*TRADE: Pros and Cons
Due to its low costs and high yields, Fidelity takes the crown.
Fidelity

- Pros
- Ensures Superior Trade Execution: Fidelity does not accept payment for order flow on stocks and ETFs, potentially leading to better execution prices.
- Access Comprehensive Research: Fidelity offers extensive proprietary and third-party research, including a large library of free stock reports.
- Enjoy Low Costs: Fidelity provides commission-free stock and ETF trades, competitive options pricing, and numerous no-fee mutual funds.
- Earn High Yields on Cash: Fidelity offers competitive yields on uninvested cash through money market funds.
- Utilize Fractional Share Trading: Fidelity allows you to purchase fractional shares of individual stocks and ETFs.
- Diversify with a Wide Range Of Offerings: Fidelity provides access to stocks, ETFs, mutual funds, options, bonds, CDs, and even cryptocurrencies.
- Experience Excellent Customer Service: Fidelity offers 24/7 phone support and in-person assistance at branch locations.
- Benefit from a Strong Mobile App: Fidelity provides a user-friendly mobile experience with robust features.
- Cons
- Navigate Complex Platforms: The wealth of features and tools can be overwhelming for beginners.
- Face Limited Cryptocurrency Offerings: Fidelity only offers trading in Bitcoin and Ethereum.
- Miss Out On Forex Trading: Fidelity does not offer foreign exchange trading.
- Manage A Higher Learning Curve: The extensive features and research tools may require more time to master.
E*TRADE

- Pros
- Enjoy Outstanding Mobile Apps: E*TRADE offers two top-rated mobile apps catering to different types of investors.
- Leverage Robust Options Trading Tools: E*TRADE provides advanced options analysis and trading capabilities.
- Benefit from Strong Educational Resources: E*TRADE offers a wealth of well-organized educational content for investors at all levels.
- Trade Actively With The Power E*TRADE Platform: ETRADE’s active trader platform offers advanced features for frequent traders.
- Access A Wide Selection Of No-Fee Mutual Funds: E*TRADE provides access to over 6,500 no-load, no-transaction-fee mutual funds.
- Trade Futures With Confidence: E*TRADE offers a solid platform for futures trading, including cryptocurrency futures.
- Gain Insights From Morgan Stanley Research: E*TRADE provides access to respected Morgan Stanley analysis and research.
- Practice With Paper Trading: E*TRADE offers a demo account for practice trading without risking real money.
- Cons
- Expect Low Interest on Cash Balances: E*TRADE offers very low yields on uninvested cash compared to competitors.
- Miss Out On Fractional Shares For Individual Stocks: E*TRADE only offers fractional shares through dividend reinvestment or robo-advisor.
- Avoids International Stock Trading: E*TRADE does not offer trading on international exchanges.
- Trade Without Direct Cryptocurrency Options: E*TRADE only offers crypto ETFs and futures, not direct trading.
- Pay Higher Options Contract Fees If Infrequent: E*TRADE charges $0.65 per contract for those trading less than 30 times per quarter.
Fidelity vs. E*TRADE: Customer Reviews
Customer reviews for both Fidelity and E*TRADE are generally positive, but they highlight different strengths and weaknesses of each platform. Fidelity earns a 3.6 and 4.8 rating from Forbes ADVISOR and U.S News Money respectively. E*TRADE enjoys a 4.4 rating from NerdWallet, 3.6 from Forbes ADVISOR and 4.5 from U.S News Money.
Fidelity receives positive feedback for its low costs and fees, extensive research and educational resources, excellent customer service, user-friendly interface, and high yields on cash balances. However, common criticisms include the complexity of platforms for beginners, occasional technical issues during high-volume trading periods, and limited cryptocurrency offerings.
E*TRADE’s positive feedback often highlights its excellent mobile apps, robust options trading tools, user-friendly interface, strong educational resources, and reliable customer service. Frequent criticisms include low interest rates on cash balances, lack of fractional shares for individual stocks, and no international stock trading.
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Fidelity and E*TRADE: Competitors
While Fidelity and E*TRADE are both top-tier online brokers, they face stiff competition from several other players in the industry. Here are some of their main competitors:
- Charles Schwab: A major competitor to both Fidelity and E*TRADE, Schwab offers a comprehensive platform with $0 commission trades, robust research, and a wide range of investment products. Schwab acquired TD Ameritrade in 2020, further solidifying its position in the market.
- TD Ameritrade: Now part of Charles Schwab, TD Ameritrade remains a strong competitor, particularly known for its thinkorswim platform, which is popular among active traders and options specialists.
- Interactive Brokers: Known for its advanced trading capabilities and low costs, Interactive Brokers is a strong competitor, especially for active traders and those interested in international markets.
- Merrill Edge: Backed by Bank of America, Merrill Edge offers integrated banking and investing services, competing with Fidelity’s comprehensive financial offerings.
- Robinhood: While targeting a different demographic (primarily younger, newer investors), Robinhood has disrupted the industry with its user-friendly app and commission-free trading model.
- Vanguard: A strong competitor in the long-term investing and retirement planning space, Vanguard is known for its low-cost index funds and ETFs.
Pro Tips
- Leverage research tools
- Utilize educational resources
- Consider your specific needs
- Take advantage of cash management features
- Explore mobile capabilities
- Use practice accounts
- Consider fractional shares
- Optimize for taxes
- Explore integration possibilities
- Stay informed about new features
Recap
Fidelity Investments and ETRADE are both leading online brokers offering robust trading platforms, extensive research tools, and competitive pricing. Fidelity stands out for its superior execution quality, higher yields on uninvested cash, and broader range of offerings including direct cryptocurrency trading.
It’s particularly suitable for long-term investors, retirement planners, and those seeking a comprehensive financial platform. ETRADE excels with its industry-leading mobile apps, advanced options trading tools, and strong educational resources, making it ideal for active traders and options specialists. While both platforms have strengths, Fidelity edges slightly ahead for most investors due to its comprehensive offerings and lower costs.
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