Fidelity vs. Robinhood [2025]: Where To Invest Your Money

Fidelity vs. Robinhood at a glance

	Fidelity	Robinhood
Minimum investment	$1 (depending on account type)	$1
Fees	No commissions	No commissions1 <p>Other fees may apply.</p>
Asset classes	Stocks Index funds Mutual funds ETFs Options Crypto Bonds	Stocks Index funds ETFs Options2 <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> Crypto
Account types	Taxable Margin Retirement accounts 529 Annuities	Taxable Margin Traditional and Roth IRAs3 <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 upgraded account Instant deposits that can be used for trading4 <p>Bigger instant deposits are only available if your instant deposit status is in good standing.</p> Crypto wallet Fractional shares5 <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 looking for variety and resources	Beginner investors and crypto traders
	Learn more	Visit Robinhood

When you should choose Fidelity

We 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 strong reputation.

You want access to more account options and asset classes

You should go with Fidelity if you value access to a wide range of account types, asset classes, and digital trading platforms. 

Fidelity offers a variety of taxable accounts and tax-advantaged accounts, providing investors with the ability to utilize IRAs, 529s, and HSAs to invest for the future. In addition to offering the ability to trade individual stocks and direct your own account, Fidelity also offers managed portfolios. These may be good for you if you're a beginner or simply seeking a low-maintenance approach to investing. In addition to catering to individual investors, Fidelity also helps businesses manage their benefits plans.

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, and the brokerage offers one of the most extensive libraries of educational resources we've encountered.

You value a brokerage with a long history and 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.

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 fee trading on all ETFs and stocks, and it makes it easy to open an account and begin trading in a matter of 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. Although it's not known for being the most robust investing platform, it is a good choice for newbies wanting to learn the ropes of trading and investing without the noise of too many choices.

You can use Robinhood to open a brokerage account, a crypto account, or a margin account. Robinhood also offers individual retirement accounts (IRAs), as of 2022. You can open a Robinhood Retirement account and even get a 1% match on qualified deposits you make.

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 offering fractional shares of stocks, ETFs, and options trading, Robinhood offers access to over 30 individual cryptocurrencies. It also allows you to transfer certain crypto assets in and out of your account using crypto wallets. 

You're interested in Robinhood Gold

Robinhood offers two tiers: Its free tier and its Robinhood Gold tier, which costs $5 per month. With the Gold tier, you get access to instant deposits in your account, as well as margin trading. Robinhood Gold also offers interest on your uninvested cash,⁶ <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> ⁷ <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,⁸ <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> advanced data and research, and more.

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

Robinhood pros and cons

What Fidelity and Robinhood have in common

Whether you're investing with Fidelity or Robinhood, you won't have to worry about trading commissions on stocks and ETFs. Additionally, neither brokerage requires a minimum balance to open an account. You can also start trading fractional shares with both Fidelity and Robinhood with as little as $1.

Even though both brokerages offer educational tools and resources, Fidelity has a more extensive library. Additionally, both offer research tools, but Fidelity's are free for many account holders, whereas you might need to pay for a Gold account to access some of the best analysis tools through Robinhood.

Overall, both make it possible for anyone, from new investors to experienced investors, to open an account and begin investing. Both also offer margin accounts with competitive rates, though Robinhood's margin rate is lower than Fidelity's.

Differences between Robinhood vs. Fidelity

When considering Fidelity versus Robinhood, here are some important ways in which they vary.

Tax-advantaged investment accounts

If you're looking to maximize your investment dollars with the help of tax benefits, Fidelity is likely to make a better choice.

Fidelity and Robinhood both offer tax-advantaged investment accounts, but only Fidelity also offers tax-advantaged investing through health savings accounts (HSAs) and 529 plans.

Asset selection

Although both Fidelity and Robinhood provide access to stocks, ETFs, and options, Fidelity has a wider selection of asset classes. And if you want access to mutual funds and bonds, you need to turn to Fidelity. You can even invest in annuities through this brokerage. If you want more fixed-income assets, such as certificates of deposit (CDs) and bonds, Fidelity can offer you that access. 

Robinhood doesn't have the same array of available asset classes, but it has an edge for crypto investing.

Cryptocurrencies

If you're interested in buying cryptocurrency, Robinhood can be a better choice than Fidelity. Both platforms allow for direct crypto trading, but Fidelity only lets you choose from bitcoin, ethereum, and litecoin. For access to more types of cryptocurrencies with Fidelity, you'd want to choose an ETP (which is like an ETF comprised of cryptocurrencies instead of stocks). You can also use your employer-sponsored 401(k) to add bitcoin 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 on an individual basis. Additionally, you can move cryptocurrencies in and out of your Robinhood account through Robinhood's wallets.

Educational tools and analytics

Compared to Robinhood and even other traditional brokerages, Fidelity has a more extensive library of research and analytical tools. Additionally, Fidelity offers managed portfolios, similar to what you see with 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. 

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, while Fidelity does. 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 is the fee for Robinhood Gold, which offers access to margin and some other features.

Fidelity 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.

Account bonuses

Robinhood often offers free stock when you open an account. Fidelity doesn't provide bonus offers for investors, as a general rule.

FAQs

Bottom line

When deciding between Fidelity and Robinhood, it's important to think about your portfolio strategy and goals. We recommend Fidelity for investors seeking a diverse range of assets, accounts, and tools. Robinhood may be a better choice if you want to keep your investing simple, and the investments you want to make are supported by the app.

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.

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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.

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 4.00% (as of 05/03/24) APY⁶ <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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