Fidelity vs. Robinhood [2026]: Old(er) vs. New School Investing

Fidelity vs. Robinhood: Overview

	Fidelity	Robinhood
Minimum investment	$1-$10 (depending on account type)	$1
Fees	No commissions	No commissions2 <p>Other fees may apply.</p>
Asset classes	Stocks Index funds Mutual funds ETFs Options Crypto Bonds Certificates of deposit (CDs)	Stocks Index funds ETFs Options3 <p>Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the <a href="https://cdn.robinhood.com/assets/robinhood/legal/Characteristics%20and%20Risks%20of%20Standardized%20Options.pdf">Characteristics and Risks of Standardized Options</a> before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.</p> <p>Robinhood Financial does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. Supporting documentation for any claims, if applicable, will be furnished upon request.</p> <p>Financebuzz is compensated by Robinhood to produce this content.</p> Futures Crypto
Account types	Taxable Margin Cash management Retirement accounts 529 Annuities	Taxable Margin Traditional and Roth IRAs4 <p>The IRA Match is automatically added after eligible contributions from an external account. Keep the contributions in your IRA for at least 5 years from the date you contribute. IRA Match <a href="https://robinhood.com/us/en/support/articles/ira-match-faq/">FAQ</a>.</p> <p>You must have earned income to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice.</p> <p>This is not a recommendation to roll over. Before taking any action with a former employer's retirement plan, be sure to consider the various options: <a href="https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#loans-and-rollovers">https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#loans-and-rollovers</a></p><p>The Robinhood IRA is available to any customer with a Robinhood brokerage account in good standing.</p><p>Other fees may apply. See our Fee Schedule for details.</p><p>Recommendations are not available to Massachusetts residents. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).</p>
Features	Variety of portfolios, including managed portfolios Different tax-advantaged accounts Access to planning and advice News and research tools Fractional shares	Access to advanced research with an upgraded account Instant deposits that can be used for trading5 <p>Bigger instant deposits are only available if your instant deposit status is in good standing.</p> Crypto wallet Fractional shares1 <p>Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of the Robinhood Customer Agreement. All investments involve risk and loss of principal is possible.</p> <p>Robinhood Financial LLC (member SIPC), is a registered broker dealer.</p>
Best for	All levels of investors seeking variety + resources	Beginner investors + crypto traders
	Learn more	Visit Robinhood

When you should choose Fidelity

I would recommend Fidelity over Robinhood if:

• You want access to more account options and asset classes.
• You're looking for educational resources and analytical tools.
• You value a brokerage with a long history and a strong reputation.

You want access to more account options and asset classes

As a full-service brokerage, Fidelity stands out for offering a wide range of account types, asset classes, and digital trading platforms. This makes the provider well-suited to a wide range of investment needs, whether you're a beginner opening your first retirement account or an experienced trader ready to invest in complex assets like crypto and derivatives.

Fidelity offers a variety of taxable accounts and tax-advantaged accounts to invest for your future, including IRAs, 529s, and HSAs. It also gives you many options for trading and account management. For example, if you're more experienced, you can choose to trade individual stocks and manage your own account. On the side of the spectrum, you might prefer Fidelity's managed portfolios if you're a beginner or just looking for something low-maintenance.

Besides catering to individual investors, Fidelity helps businesses manage their benefits plans. While this might not be relevant to the average investor, it means Fidelity is flexible enough to suit your needs should you ever start that business you've always talked about.

You're looking for educational resources and analytical tools

No matter your comfort level with portfolio management and stock trading, Fidelity offers access to the tools you need to learn more about your trades.

It's even possible to get planning help and advice from both online financial planning services and local financial planners. While you might need to pay for professional help, the cost is often worth it for the benefit of making investment decisions that are more aligned with your financial needs and goals.

Plus, the brokerage offers one of the most extensive libraries of educational resources you can find. It has an entire section of its website dedicated to "investing for beginners," which teaches you the basics of different account types, assets, and investment strategies. You'll also find interactive tools for everything from debt payoff and budgeting to estate planning and investment calculations.

You value a brokerage with a long history and a strong reputation

Fidelity has been around since 1946 and serves over 50 million account holders, as of this writing. It's well-reviewed and highly respected in the investing community, making it a good choice for those who value the security and robust services that come with such an established, traditional brokerage. Plus, it ranked above average in the J.D. Power 2026 U.S. Investor Satisfaction Study.

Learn more in our Fidelity review.

Fidelity pros and cons

When you should choose Robinhood

Founded in 2013, Robinhood has a self-declared mission to democratize investing, or make it accessible to more people. Robinhood was one of the first brokerages to pioneer no-commission trading on all ETFs and stocks, and it makes it easy to open an account and begin trading in minutes.

You should consider Robinhood for your investing if:

• You're a beginner investor who values simplicity.
• You want to trade crypto.
• You're interested in Robinhood Gold.

You're a beginner investor who values simplicity

Robinhood is ideal for beginners because its app is easy to learn, with streamlined features and an intuitive interface. It's wildly popular and receives positive user reviews, with ratings of 4.3 out of 5 stars on the App Store (based on over 4.7 million reviews) and 4.1 out of 5 stars on Google Play (based on over 524,000 reviews).

Although it's not known for being the most robust investing platform or offering the huge array of educational resources that Fidelity does, it's a good choice for newbies wanting to learn the ropes of trading and investing without the noise of too many options. Since I keep things simple and mainly stick to stocks and bonds in tax-advantaged accounts, a provider like Robinhood fits my needs.

You can use Robinhood to open a brokerage account, a crypto account, a margin account, or an individual retirement account (IRA). While any of those accounts might suit your needs, I especially like Robinhood's IRAs since I can get a 1% to 3% match on my contributions, depending on whether I have Robinhood Gold.⁶ <p>The 3% matching on contribution requires a subscription with Robinhood Gold (fees apply), must be subscribed to Gold for 1 year after your contribution to keep the full 3% match. You must have compensation (wage income) in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. For more information refer to the <a href="https://robinhood.com/us/en/support/articles/ira-match-faq/">IRA Match FAQ</a>.</p> <p>Robinhood Gold is offered through Robinhood Financial LLC and is a subscription offering premium services for a monthly fee.</p> <p>You must have earned (wage) income in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least five years to avoid a potential Early IRA Match Removal Fee. For more information, see the IRA Match FAQ. </p> <p>Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions. </p> <p>The Robinhood IRA is available to any of our U.S. customers with a Robinhood brokerage account in good standing. </p> <p>Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC),is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).</p> ⁴ <p>The IRA Match is automatically added after eligible contributions from an external account. Keep the contributions in your IRA for at least 5 years from the date you contribute. IRA Match <a href="https://robinhood.com/us/en/support/articles/ira-match-faq/">FAQ</a>.</p> <p>You must have earned income to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice.</p> <p>This is not a recommendation to roll over. Before taking any action with a former employer's retirement plan, be sure to consider the various options: <a href="https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#loans-and-rollovers">https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#loans-and-rollovers</a></p><p>The Robinhood IRA is available to any customer with a Robinhood brokerage account in good standing.</p><p>Other fees may apply. See our Fee Schedule for details.</p><p>Recommendations are not available to Massachusetts residents. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).</p> Similar to an employer 401(k) match, it's free money for my future.

You want to trade crypto

You should go with Robinhood if you want access to crypto trading, as Fidelity's crypto options are more limited. (Fidelity started offering crypto trading in 2018.)

In addition to fractional stock shares, ETFs, and options trading, Robinhood offers access to over 60 individual cryptocurrencies. Your specific options may depend on how you access Robinhood (e.g., via the app or the web) and which trading method you use.

As with Fidelity, you can transfer certain crypto assets to and from your account via crypto wallets, which offers above-average flexibility.

You're interested in Robinhood Gold

Robinhood offers two tiers: its free tier and Robinhood Gold, which costs $5 per month. While you can get started with the free version, I find that the numerous benefits of Robinhood Gold can make the upgrade well worth it, depending on your investment habits.

With Robinhood Gold, you get access to instant deposits in your account, as well as margin trading.⁵ <p>Bigger instant deposits are only available if your instant deposit status is in good standing.</p> You also get interest on your uninvested cash,⁷ <p>Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings.</p> ⁸ <p>Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.</p> <p>All investments involve risk and loss of principal is possible.</p> <p>Robinhood Financial LLC (member SIPC), is a registered broker dealer.</p> a 3% match on eligible IRA contributions, advanced data and research, and more.

Since I'm serious about making monthly IRA contributions and keeping a sizable amount of uninvested cash for emergencies, the monthly benefits would far outweigh the $5 fee for me.

Visit Robinhood | Learn more when you read our Robinhood review.

Robinhood pros and cons

6 key differences between Robinhood and Fidelity

When considering Fidelity versus Robinhood, here are some important ways they differ.

1. Tax-advantaged investment accounts

If you're looking to maximize your investment dollars with the help of tax benefits, Fidelity is likely a better choice due to a wider range of tax-advantaged account options.

While Fidelity and Robinhood both offer tax-advantaged investment accounts, only Fidelity also offers tax-advantaged investing through health savings accounts (HSAs) and 529 plans. Whether you need these additional options depends on your family and finances.

You might want a brokerage that also offers HSAs if you have an eligible high-deductible health insurance plan and want to take advantage of the triple tax benefits many investors overlook. On the other hand, if you have kids and want to save for their education, a Fidelity 529 plan would allow tax-free withdrawals of earnings and contributions for eligible education expenses in the future.

2. Asset selection

Although both Fidelity and Robinhood offer access to stocks, ETFs, and options, Fidelity offers a wider range of asset classes, which I find useful for diversifying a portfolio and balancing out risk and return.

For example, if you want access to mutual funds and bonds, you'll need to turn to Fidelity, since Robinhood doesn't offer these popular investments. You can also invest in annuities through this brokerage. Plus, if you want more fixed-income assets, such as certificates of deposit (CDs), Fidelity provides these, too.

Robinhood doesn't offer the same array of asset classes, but it has an edge in crypto investing.

3. Cryptocurrencies

If you're interested in buying cryptocurrency, I think Robinhood is a better choice than Fidelity, especially if variety is important to you.

While both platforms allow for direct crypto trading, Fidelity only lets you choose from Bitcoin, Ethereum, Solana, Litecoin, and Fidelity Digital Dollar. For access to more types of cryptocurrencies with Fidelity, you'd want to choose an ETP (an ETF composed of cryptocurrencies rather than stocks). You can also use your employer-sponsored 401(k) to add crypto to your portfolio, but that's a different process than opening your own account through Fidelity.

Robinhood lets you buy and sell Bitcoin, Litecoin, Ethereum, and dozens of other cryptocurrencies individually. Additionally, it has allowed users to move crypto in and out of their Robinhood account via Robinhood's wallets for several years, whereas Fidelity only began supporting crypto transfers in 2025.

4. Educational tools and analytics

Compared with Robinhood and other traditional brokerages, Fidelity offers a more extensive library of research and analytical tools to help you learn about investments and make more informed decisions.

Additionally, Fidelity offers managed portfolios, similar to those offered by the best robo-advisors. If that's important to you, and you don't want to direct your portfolio on your own, it can make sense to look for a broker that does the heavy lifting of data-backed asset allocation.

On the flip side, Robinhood's mobile interface and mobile app are arguably easier to use than Fidelity's. In my experience, apps from traditional brokerages sometimes overload you with information or make it harder to figure out how to place trades or make deposits. Still, the learning curve doesn't need to be a dealbreaker for you, if you're not afraid to get your hands dirty.

5. Fees

Even though both Fidelity and Robinhood offer commission-free trading, there are other fees to be aware of.

For example, when trading options, Robinhood doesn't charge a per-contract fee, unlike Fidelity. Depending on the type of account you get with Fidelity, you might pay a percentage of the assets in your portfolio as a management fee. With Robinhood, a flat $5 fee applies to Robinhood Gold, which offers access to margin and other features.

Fidelity also offers some funds that don't come with expense ratios, whereas you still have to consider expense ratios for ETFs on Robinhood, even without the trading fee. I recommend comparing the fees and fine print for both options before deciding which option makes more financial sense.

6. Bonus offers

Fidelity generally doesn't provide bonus offers to investors, and it isn't advertising any as of March 2026. On the other hand, Robinhood often offers various promotions for different account types and transactions.

In addition to the 1% to 3% IRA contribution boosts, Robinhood has offered account transfer bonuses for moving funds to a taxable account or transferring certain crypto deposits to the platform. It has also offered new customers free fractional shares. However, keep in mind that such offers vary and have rules.

FAQs

Bottom line

When deciding between Fidelity and Robinhood, think carefully about your portfolio strategy and goals. I recommend Fidelity if you want a diverse range of assets, accounts, and tools. On the other hand, if you want to keep your investing simple, Robinhood may be a better choice as long as the app supports the investments you want to make.

Both are among the best investment apps, so choosing between Fidelity and Robinhood depends on your unique needs. You should also compare different brokerages besides these two to find one that offers the tools you need, the accounts and asset classes you're interested in, and a fee schedule you can work with. Also, don't be afraid to use both when you can benefit from each.

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Robinhood Benefits

• Buy and sell stocks 24 hours a day, 5 days a week with Robinhood's "24 Hour Market"
• Commission-free trading (other fees may apply)
• No account minimum
• Trade stocks, options, ETFs, and more
• Earn 3.75% (as of 11/03/25) APY⁷ <p>Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings.</p> on your uninvested cash with Robinhood Gold, subscription fee applies

4.2

FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.

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