E*TRADE and Fidelity are full-service online brokers that have been around for decades. Founded in 1982, E*TRADE was one of the first U.S. brokers to offer online trading services. The firm positioned itself as one of the best online brokers for options trading after acquiring OptionsHouse in 2016 and integrating an assortment of OptionsHouse tools into the E*TRADE Power platform. In 2020, E*TRADE was acquired by Morgan Stanley and has continued as the retail brokerage arm of the larger wealth management company. E*TRADE is a top five broker with excellent customer service and strong platforms.
Fidelity was founded in 1946 and made its internet debut in 1995—about a decade after E*TRADE. The company offers a solid all-around package with low costs, excellent research amenities, and valuable tools. It is also on a multi-year run as our best broker overall again in 2024, thanks to an ongoing commitment to lowering costs while upping the value delivered to investors. While these two brokers have a lot in common, we’ll compare the two to help you determine which one is the right fit for your investing needs.
Important
Fidelity now provides direct and indirect exposure to cryptocurrency. In 2024, Fidelity also added the Fidelity Wise Origin Bitcoin Fund (FBTC) to its offerings.
- Account Minimum: $0
- Fees: No commission for stock, ETF, and mutual fund trades. Options are $0.50-$0.65 per contract, depending on trading volume.
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades
Usability
New E*TRADE customers can easily open and fund an account using a mobile device or computer. There are two main web-based platforms with dedicated mobile apps that mirror the functionality of the respective web platforms. One platform is aimed more at casual traders, and the Power E*TRADE platform is designed for the more active crowd.
Fidelity is quite user-friendly overall. Here again, the broker has addressed the challenge of having tools for active traders while accommodating casual investors by splitting its offerings into two platforms. Initial account opening with Fidelity is simple, especially if you’re adding an account to an existing household.
Usability Verdict: Tie
Both these brokers are easy to get started with. Overall, we found E*TRADE is a good choice for active traders and investors—especially those who want access to a suite of excellent options tools. At the same time, Fidelity is better for casual investors and traders looking for low costs and access to international trading.
Trade Experience
Desktop Trade Experience
E*TRADE’s standard website can be challenging to navigate due to its two-level menus. However, the fully customizable Power E*TRADE platform is more intuitive, and you can access all your favorite tools in a single layout. You have access to streaming real-time quotes across all platforms, and you can stage orders and send a batch simultaneously. You can also place orders from a chart and track them visually.
Fidelity’s workflow for analyzing or trading existing positions on the website is relatively easy, although it’s a bit clunky sorting through the tabs and drop-down choices. Buy-and-hold investors should find the web-based platform more than adequate, and quotes are real-time and stream across platforms. More experienced investors and traders will appreciate Active Trader Pro’s charts, technical indicators, screeners, and advanced order types.
Desktop Trade Experience Verdict: E*TRADE
Although it was close, we found that E*TRADE offers a more satisfying desktop trading experience due to its robust Power E*TRADE platform and backtesting capabilities.
Mobile Trade Experience
E*TRADE and Fidelity offer mobile apps that are reasonably easy to navigate. On E*TRADE, watchlists are integrated—and a full range of tradable assets (except for fixed income) are available—across platforms, making it easy to bounce between devices. Unlike Fidelity, E*TRADE’s mobile app supports conditional order types. The conditional orders are on the Power E*TRADE app, while the regular E*TRADE app is a simpler experience.
Fidelity supports stocks, ETFs, options, and mutual funds on its mobile app. Like E*TRADE, fixed income is missing from Fidelity’s mobile lineup. Mobile watchlists are shared with the desktop and web applications, and you can trade fractional shares and specify dollars rather than shares when entering an order. Fundamental analysis and charting are extremely limited on mobile.
While both apps are well-rated on the App Store, Fidelity has far more reviews. E*TRADE has 4.6 stars from 180,000 reviews, while Fidelity has 4.8 stars from 2.4 million reviews.
Mobile Trade Experience Verdict: E*TRADE
Overall, we found that either app should fit the needs of casual investors and traders, but only E*TRADE supports conditional orders, which could be an essential distinction for active traders.
Range of Offerings
E*TRADE and Fidelity offer all the standard trading products, including stocks (with shorts), ETFs, bonds, and mutual funds. Beyond that, there are a few notable differences. Only E*TRADE supports futures and futures options, while only Fidelity offers access to Forex, crypto, fractional share purchases and dozens of international exchanges. Ultimately, a preference for one broker over the other may come down to the brokers’ range of offerings.
Range of Offerings Verdict: Fidelity
While both brokers offer a wide range of assets, we give Fidelity the edge here mainly for its wider support for fractional share purchases.
Compare Range of Offerings
| Criteria | E*TRADE | Fidelity |
|---|---|---|
| Short Sales | Yes | Yes |
| Number of No-Load Mutual Funds | 6310 | 3396 |
| Assets Available to Trade on Website | Stocks, Mutual funds, ETFs, Bonds, CDs, Options, Futures, Currencies, OTC | Stocks, Mutual Funds, ETFs, Bonds, CD’s, Options, Currencies, OTC, cryptocurrency |
| Max Number of Options Legs | 4 | 4 |
| Robo Advisory | Yes | Yes |
| Number of International Exchanges | 0 | 75 |
| Fractional Share Trading | No (Supported through robo-advisor or automatic ETFs feature only) | Yes |
| Fractional Dividend Reinvestments | Yes | Yes |
Order Types
E*TRADE supports a respectable variety of order types, including conditional orders, on its website and Power E*TRADE platforms. Mobile users can enter a limited number of conditional orders. It’s possible to stage orders for later entry on all platforms, and you can select a tax lot from your portfolio or order ticket to optimize tax efficiency.
Fidelity also supports the usual suspects (market, limit, stop, and trailing stops) and conditional orders on its web and Active Trader Pro platforms. Unlike E*TRADE, however, Fidelity doesn’t offer conditional orders on mobile. You can automatically allocate investments across multiple securities with an equal dollar amount or number of shares—a feature that’s not found at many online brokers.
Order Types Verdict: E*TRADE
In terms of order types, the gap between the two brokers is negligible for most individual investors, but active traders will value the additional flexibility E*TRADE offers over Fidelity.
Trading Technology
E*TRADE’s order routing technology uses advanced order routing, and it sends most orders to market makers. The router looks for a combination of execution speed and quality. According to its execution quality report, orders are filled in 0.09 to 0.11 seconds on average. E*TRADE reports price improvements of $4.59 to $10.51 on average on share orders of 100-9,999 shares. They do receive some money for payment for order flow (PFOF), averaging $0.0014 in the period we looked at. This is the middle of the pack for brokers that accept PFOF and are well below Robinhood and Webull levels.
Meanwhile, Fidelity’s smart order routing technology seeks the best price available and can access all types of market venues, including dark pools, exchanges, and market makers. The company reports a net price improvement of $15.41 per 1,000 equity shares and an average execution speed of 0.04 seconds. Unlike E*TRADE, Fidelity does not accept payment for order flow for stocks or ETFs.
Trading Technology Verdict: Fidelity
Overall, Fidelity wins in the trading technology department due to its superior price improvement statistics, faster execution speeds, and lack of payment for order flow.
Costs
E*TRADE and Fidelity offer $0 commissions for online equity, ETF, and options trades. You’ll pay a $0.65 per-contact options fee at either broker, though E*TRADE drops that fee to $0.50 if you place at least 30 trades per quarter. OTC trades are free at Fidelity and either $6.95 or $4.95 per transaction at E*TRADE, depending on how many trades you place per quarter.
At $25, broker-assisted trades are a bit cheaper at E*TRADE versus Fidelity’s $32.95 fee. Only E*TRADE offers futures, which you can trade for $1.50 per contract, per side. Margin rates at Fidelity are a bit cheaper than E*TRADE’s. On a $100,000 balance, the rate is 12.075% at Fidelity versus 12.70% with E*TRADE.
Costs Verdict: Fidelity
Overall, you might save money at Fidelity if you OTC or use margin, but E*TRADE will be cheaper if mutual funds or options are your focus.
Compare Costs
| E*TRADE | Fidelity | |
|---|---|---|
| Option for no base commission for trading penny stocks | No – users must pay base commission to trade penny stocks | Yes – there is no commission to trade penny stocks |
| Option for no base commission for stocks and ETFs | Yes – users can trade stocks and ETFs with no base commissions | Yes – there is no commission to trade stocks and ETFs |
| Number of no-load mutual funds without transaction fees | 6310 | 3396 |
| Recurring investment fees | No | No |
| Base commission for options | No | No |
| Cost per stock trade | $0 | $0 |
| Cost per options contract | $0.65 | $0.65 |
| Cost per futures contract | $1.50 | NA |
| Broker-assisted trade fee | $25 | $32.95 |
| Volume-based options discounts (upon meeting a threshold) | Yes | Negotiable |
| Options price cap (upon meeting a threshold) | No | Yes |
| Inactivity fees | No | No |
| Account closure fees | No | No |
Research and Account Amenities
E*TRADE and Fidelity offer a comparable array of research amenities. Both have robust stock, ETF, mutual fund, and options screeners, including those that filter based on ESG/SRI factors. Both brokers also offer numerous tools, calculators, idea generators, and professional research.
Research and Account Amenities Verdict: Fidelity
While Fidelity’s screeners edged out E*TRADE’s in our tests, E*TRADE nearly took the lead for its news offerings. In the end, it was the much higher rate of interest Fidelity pays you on uninvested cash that won them this category.
Compare Account and Research Amenities
| E*TRADE | Fidelity | |
|---|---|---|
| Portfolio Margin Available | Yes | Yes |
| Ability to Choose and Offer Shares Held Long to a Loan Program | Yes – users can offer shares BUT users cannot choose the stocks to loan | Yes |
| Interest Earned on Uninvested Cash | Account dependent (0.01% for accounts under $500K in default sweep) | Yes (Currently 4.95%) |
| Uninvested Cash Automatically Swept into a Money Market Fund | Yes | Yes |
| Requirement for Opening an IRA | $0 | $0 |
| Screeners Offered | ESG/SRI, Stocks, ETFs, Options, Mutual funds, Fixed income | Stocks, ETF’s, Mutual Funds, Fixed Income, ESG/SRI |
| Ability to Build Custom Screen | Yes | Yes |
| Ability to Screen Based on Technical Indicators | Yes | Yes |
| Ability to Save Custom Screens | Yes | Yes |
| Access to Proprietary Research | Yes – with no additional cost | Yes – with no additional cost |
| Access to Third Party Research | Yes – with no additional cost | Yes – with no additional cost |
| Ability to Turn Screen Results into a Watchlist | Yes | Yes |
| Trading Idea Generator Offered | Yes | Yes |
| Daily Market Research Reports Offered | Yes | Yes |
Portfolio Analysis
Here again, E*TRADE and Fidelity have similar offerings. On either platform, you’ll have access to real-time buying power and margin information, plus real-time unrealized and realized gains. Both offer tax reports (capital gains). E*TRADE has time-weighted measures for gains and losses that do a better job of removing the impact of cash flowing in and out of your accounts as contributions or withdrawals.
Fidelity goes a bit deeper in terms of portfolio analysis, with the ability to aggregate holdings from outside your account. Fidelity also offers a self-directed financial planning tool that uses your synced account data to provide insights and guidance and has an additional Fidelity Full View tool that looks at your overall allocations across asset types. And if you want access to your real-time internal rate of return (IRR), you’ll find that only with Fidelity.
Portfolio Analysis Verdict: Fidelity
Fidelity has a large edge in terms of portfolio analysis and takes external accounts into consideration as well.
Education
E*TRADE and Fidelity offer a decent selection of educational content, plus dozens of live webinars each month. You’ll find educational articles, life stage planning tools, and investing-related glossaries at either broker, and both offer in-person events. One big difference between the two is that E*TRADE has a demo account for you to try out the platform (and trading) before risking your own money.
Education Verdict: E*TRADE
Overall, E*TRADE takes a slight lead here by offering paper trading capabilities and a broader range of educational topics.
Customer Service
E*TRADE offers 24/7 phone line support with access to brokers, retirement specialists, financial consultants, active trader consultants, and product specialists. You can contact them by email and get in-person help at a relatively limited number of branches. Fidelity has a 24/7 phone line, an online chat feature (limited hours), and a secure email portal.
Customer Service Verdict: Tie
Overall, you can count on reliable customer service from either broker.
Security
E*TRADE’s and Fidelity’s security are up to industry standards. You can log into either broker’s app with biometric (face or fingerprint) recognition, and two-factor authentication is available on all platforms. Both brokers protect against account losses due to unauthorized or fraudulent activity.
Both brokerages are covered by the SIPC which you can think of as being similar to the FDIC, but for brokerage accounts. The SIPC covers account values of up to $500,000 with a $250,000 limit on cash. To protect you beyond these limits both brokers have an excess of SIPC insurance with a $1 billion aggregate limit. The purpose of this insurance is to cover you if the firm should go bankrupt.
Security Verdict: Tie
Both of these brokers are large and up to industry standards. Your money is safe with either firm.
Account Types
E*TRADE and Fidelity both have all the commonly used account types, including:
Fidelity has a number of specialty accounts like the health savings account (HSA) and a non-custodial youth account where the teen makes their own investing decisions.
Account Types Verdict: Fidelity
Fidelity has the edge thanks to more specialty account types. That said, most investors will find the account type they need at either of these brokers.
The Bottom Line
E*TRADE and Fidelity are both considered powerhouses in the online brokerage industry, and most casual investors would likely be happy with either. They ranked closely across many of our metrics in the 2024 Best Online Broker awards.
We found that Fidelity is the best option for most investors because it offers low costs, low margin rates, and access to international trading. However, if you are more of a trader than an investor, we did find that E*TRADE has a better trading experience and some preferential pricing that will kick in if you are active. For everyone else, Fidelity offers a lot of value for very little in terms of cost.
Frequently Asked Questions
Does E*TRADE have monthly fees?
E*TRADE has contract and trading fees rather than blanket monthly fees. The company charges $25 in broker-assisted trading fees. Futures cost $1.50 per contract on E*TRADE while options have a fee of $0.65 per contract. Additionally, OTCBB trades cost either $6.95 or $4.95 per transaction, depending on the number of trades you place each quarter.
How much does it cost to withdraw money from E*TRADE?
E*TRADE does not charge for withdrawals. However, it does charge for outgoing transfers. Partial transfers have a flat fee of $25, while full transfers cost $75.
Is Fidelity good for beginners?
Fidelity is a great option for beginners, especially since it provides a wealth of educational tools to help new investors get started. It also offers low costs which are especially beneficial to new investors.
How We Picked the Best Online Brokers and Trading Platforms
Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research, subject matter expertise, and investor survey data to guide the research and weightings for our 2024 online broker awards. To collect the data, we sent a digital survey with 110 questions to each of the 26 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Feb. 19 to March 19, 2024.
We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 89 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:
Additionally, during our 2024 research, many of the companies we reviewed gave us live demonstrations of their platforms and services via video conferencing methods and also granted our team of expert writers and editors access to live accounts so they could perform hands-on testing.
Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms.
Learn more about how we review online brokers.
