You invest vs fidelity

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Fidelity Investments vs. Robinhood

These two brokers have some fundamental differences, one being among the most established discount online brokers while the other is a relative upstart. Fidelity continues to evolve as a major force in the online brokerage space. Fidelity's brokerage service took our top spot overall in both our 2019 and 2020 Best Online Brokers Awards, as the firm has continued to enhance key pieces of its platform while also committing to lowering the cost of investing for investors. Robinhood's claim to fame is that they do not charge commissions for stock, options, or cryptocurrency trading. Due to industry-wide changes, however, they're no longer the only free game in town.  

Fidelity's brokerage service took our top spot overall in both our 2019 and 2020 Best Online Brokers Awards and also ranked in best for advanced traders. Robinhood, once a low-cost leader, no longer holds that distinction. We'll look at how these two match up against each other overall.

Usability

Fidelity is quite friendly to use overall. The firm has addressed the challenge of having the tools for active traders while still having an easy experience for basic investors by essentially splitting its offering into two platforms. Initial account opening with Fidelity is simple, especially if you're adding an account to an existing household.

However, adding on account features such as options trading or margin involves filling out an additional application, and none of that data (such as your occupation) is copied from your profile, so you have to enter it again. Less active investors mainly looking to buy and hold will find Fidelity's web-based platform more than sufficient for their needs, with quotes, charts, watchlists, and more packed into an interface that manages to avoid being overwhelming.

Active Trader Pro, Fidelity's downloadable trading interface, gives traders and more active investors a deeper feature set than is available through the website. Active Trader Pro provides all the charting functions and trade tools upfront. It is customizable, so you can set up your workspace to suit your needs. 

Robinhood is very easy to navigate and use, but this is related to its overall simplicity. Robinhood's app and the website are similar in look and feel, which makes it easy to invest through either interface. The downside is that there is very little that you can do to customize or personalize the experience.

Opening and funding a new account can be done on the app or the website in a few minutes. An order ticket pops open whenever you are looking at a particular stock, option, or crypto coin. All the asset classes available for your account can be traded on the mobile app as well as the website, and watchlists are identical across platforms. Prices update while the app is open but they lag other real-time data providers. 

Trade Experience

Desktop Experience

Fidelity’s workflow for analyzing or trading existing positions on the website is relatively easy—you'll find links to news and research for tickers in your portfolio or on a watchlist. It's when you're searching for a new trading idea that it gets clumsy to sort through the various tabs and drop-down choices. Most investors will find what they are looking for in the News & Research tab where you can find stocks by market cap, dividend yield, top rating in the sector, and so on. You can set a few defaults for trading on the web, such as whether you want a market or limit order, but most choices must be made at the time of the trade. 

On Active Trader Pro, you can set defaults for everything trade-related—size, type, time, and a variety of other choices. You can also place a trade from a chart. Active Trader Pro provides real-time data across the platform, including watchlists, charts, order entry tickets, and options chain displays. In addition to the filters, charting tools, defined alerts, and entry and exit tools that will meet the needs of most active traders, Active Trader Pro also provides a probability calculator, options analytics, measures of cross-account concentrations, and much more. 

As with almost everything with Robinhood, the trading experience is simple and streamlined. Robinhood deals with a subsection of equities rather than the entirety of the market, but on every quote screen for the stocks and ETFs you can trade on Robinhood, there is a straightforward trade ticket. 

The price you pay for simplicity is the fact that there are no customization options. If you want to enter a limit order, you'll have to override the market order default in the trade ticket. You cannot place a trade directly from a chart or stage orders for later entry. Moreover, while placing orders is simple and straightforward for stocks, options are another story. Placing options trades is clunky, complicated, and counterintuitive.

Although Robinhood allows options trading, the platform seems geared entirely towards making market orders for assets rather than actually attempting to strategically use options to profit. This perception is reinforced by the fact that pricing refreshes every few seconds, but the actual pricing data lagged behind two other platforms we opened simultaneously by 3–10 seconds. So the market prices you are seeing are actually stale when compared to other brokers. This will not faze anyone looking to buy and hold a stock, but this data lag kills any idea of using Robinhood as a trading platform.

Mobile Experience

You can trade stocks, ETFs, options, and mutual funds on Fidelity’s mobile app but not fixed income. Fidelity has enabled fractional share trading on its mobile apps; customers specify dollars rather than shares when entering an order. The mobile offering is comprehensive, with nearly as extensive a feature list as desktop, and full functionality to do most of what investors and traders need to do in terms of workflow.

You can choose your own login page and buttons at the bottom of the device for your most frequently-used features, and define how you want your news presented. Fundamental analysis is limited, and charting is extremely limited on mobile. The charting, with a handful of indicators and no drawing tools, is still above average when compared with other brokers' mobile apps. Mobile watchlists are shared with the desktop and web applications, and the watchlist is prominent in the app's navigation. Most order types one can use on the web or desktop are also on the mobile app, with the exception of conditional orders. 

For Robinhood customers, all the asset classes available for your account can be traded on the mobile app as well as the website, and watchlists are identical across the platforms. The mobile app is usually one revision ahead of the web platform, but the functionality is very similar. 

Range of Offerings

Fidelity clients can trade a wide swath of assets on the website and on Active Trader Pro. Equities (including fractional shares), options and mutual funds can be traded on the mobile apps. One notable limitation is that Fidelity does not offer futures, futures options, or cryptocurrency trading. 

Robinhood allows you to trade cryptocurrencies in the same account that you use for equities and options, which is unique, but it's missing quite a few asset classes, such as fixed income. Robinhood allows fractional share trading in nearly 7,000 stocks and ETFs.

Order Types

Fidelity allows you to enter a wide variety of orders on the website and Active Trader Pro, including conditional orders such as one-cancels-another and one-triggers-another. Conditional orders are not currently available on the mobile app. Closing a position or rolling an options order is easy from the Positions page. With Fidelity's basket trading services, you can select a group of up to 50 stocks, called a basket, that can be monitored, traded, and managed as one entity. You can automatically allocate investments across multiple securities with an equal dollar amount or number of shares. This capability is not found at many online brokers.  

Robinhood has a limited set of order types. You can enter market or limit orders for all available assets. You cannot enter conditional orders. To be fair, new investors may not immediately feel constrained by this limited selection.

Trading Technology

Fidelity's trade execution engine, Fidelity Dynamic Liquidity Management (FDLM), seeks the best available price and gives clients a high rate of price improvement. Fidelity says that its clients who execute a 1,000 share marketable order can expect to save on average, $16.66 on that transaction compared to the quote at order entry. That is $13.86 better than the industry average of $2.80, according to Fidelity's internal statistics (data from January through September 2019).

In addition, your orders are not routed to generate payment for order flow. Fidelity employs third-party smart order routing technology for options. Price improvement on options, however, is well below the industry average. Backtesting of trading strategies can be done in Fidelity’s Wealth-Lab Pro, a premium feature available to investors in households that place 36+ stock, bond, or options trades in a rolling 12-month period, and have at least $25,000 in assets across their eligible Fidelity brokerage account. Customers can execute their strategy trading in Wealth-Lab Pro by qualifying for automated trading, which requires $100,000 in equity and 500 trades per year. 

Robinhood does not publish its trading statistics the way all other brokers do, so it's hard to compare its payment for order flow statistics to anyone else. The industry standard is to report payment for order flow on a per-share basis but Robinhood reports on a per-dollar basis instead, claiming that it more accurately represents the arrangements it has made with market makers.

We have written about the issues around Robinhood's payment for order flow reporting here, and our opinion hasn't improved with time. Robinhood does not disclose its price improvement statistics, which leads us to make negative assumptions about its order routing practices. The target customer is trading in very small quantities, so price improvement may not be a huge consideration. However, other brokers who also charge $0 for equity trades are offering their customers impressive price improvement, so Robinhood needs to get serious about execution quality in order to stay competitive.

Costs

Fidelity's fees are in line with most industry participants, having joined in the race to zero fees in Oct. 2019. Fidelity charges no commissions for online equity, ETF, or OTCBB trades. There is no per-leg commission on options trades. Per-contract commissions are $0.65. Margin interest rates are average compared to the rest of the industry. Fidelity charges $75 on the initial purchase of certain mutual fund families, including industry giant Vanguard Funds. International trades incur a wide range of fees, depending on the market, so take a careful look at those commissions before entering an order.

Robinhood's trading fees are easy to describe: free. All equity trades (stocks and ETFs) are commission-free. Options trade for $0—no per-leg fee and no per-contract fee. Trading on margin requires a Robinhood Gold subscription at $5 per month, which includes $1,000 of margin. Margin usage over $1,000 is charged 5% interest, which is relatively low.

Fidelity clients are automatically enrolled in cash sweep programs that pay a much higher interest rate than most other brokers make available. Fidelity does make money from the difference between what you are paid on your idle cash and what they can earn on customer cash balances, but it is hard to begrudge them the money when they are already paying you an above-average rate.

Robinhood clients, once they make it off the waitlist and design their own Mastercard debit card, can earn modest interest on their uninvested cash, which is swept to its network of FDIC-insured banks. Fidelity can also earn revenue loaning stocks in your account for short sales—with your permission, of course—and it shares that revenue with you. Fidelity tells us that for two months of lending certain hard-to-borrow securities, 38% of accounts earn $100 or less, another 37% earn between $100 and $1,000 and the remaining 25% earn over $1,000. Robinhood retains all the income it generates from loaning out customer stock and does not share it with the client.

Fidelity doesn’t engage in payment for order flow (PFOF). This is the practice where a broker accepts payment from a market maker for letting that market maker execute the order. Rather than focus on these payments, Fidelity looks for quality trade executions and ensures that your orders are achieving price improvement on almost every trade. This is a very important point of differentiation for Fidelity as many of its competitors have seen PFOF revenue grow, likely at the price of better execution for their customers. 

We discussed Robinhood's lack of transparency around PFOF above, but it is worth repeating that this appears to be a major revenue stream for the broker. Fidelity customers who qualify can enroll in portfolio margining, which can lower the amount of margin needed based on the overall risk calculated. This service is not available to Robinhood customers. 

The largest differentiator between these two brokers when it comes to costs and how the brokers make money from and for you is price improvement. Fidelity clients enjoy a healthy rate of price improvement on their equity orders, but the rate is below average for options. On average, equity orders receive $0.0091 per share in price improvement, and options orders receive $0.0342 per contract. Robinhood does not disclose its price improvement statistics, which we discussed above. It’s not a good look.  

Research Amenities

This is another area of major differences between these two brokers. 

Fidelity's research offerings on the website include flexible screeners for stocks, ETFs, mutual funds, and fixed income, plus a variety of tools and calculators. Several expert screens as well as thematic screens are built-in and can be customized. The ETF screener has a similar look and feel as the stock screener, but includes analyst ratings. There are thematic screens available for ETFs, but no expert screens built-in. When researching ETFs, you can type in a ticker (or group of tickers) to find ETFs that contain that stock. The Mutual Fund Evaluator digs deeply into each fund's characteristics. Though it tends to drive the user to Fidelity funds, that's not unexpected given the platform.

For options, there are scanners powered by LiveVol with some built-in scans, plus the ability to create a custom scan. Fixed-income investors can use the bond screener to winnow down the nearly 120,000 secondary market offerings available by a variety of criteria and can build a bond ladder. Those looking for an options trading idea on the website can dive into the Strategy Pairing Tool, which lets clients who know what underlying and option strategy interests them to scan for trading ideas.

The Strategy Evaluator evaluates and compares different strategies; results can automatically populate a trade ticket. The website features numerous news sources, which can be sorted by holdings and watchlist, and updates in real-time. The news sources include global markets as well as the U.S. On Active Trader Pro, you can set up streaming news feeds and videos from Bloomberg TV. Fidelity clients have access to integrated third-party research from sources such as Standard & Poors, Hightower Report, Ned Davis Research, and Zacks. Fidelity's web-based charting has integrated technical patterns and events provided by Recognia, and social sentiment scores provided by Social Market Analytics. Charting is more flexible and customizable on Active Trader Pro. Though charting on the mobile app is relatively limited, it’s still better than that offered by most other brokers. 

In contrast, Robinhood offers its customers very little in the way of research and trading ideas, but this is an area that the firm is updating frequently. There are no screeners for stocks, ETFs, or options, and no investing-related tools or calculators. The trading idea generators are limited to stock groupings by sector. Once you click on a group, you can add a filter such as a price range or market cap. News is available from The Wall Street Journal, Reuters, and Barron's in addition to videos from CNN Business, Cheddar, and Reuters. Third-party research from Morningstar can be accessed by Robinhood Gold clients ($5/month subscription). The charting is extremely rudimentary and cannot be customized. Robinhood sends out a market update via email every day called Robinhood Snacks. 

Portfolio Analysis

Fidelity’s portfolio analysis program, FullView, lets you bring in external accounts to give you a picture of all of your assets, which also lets you give limited access to your investments to an advisor. FullView can be slow to load and a little difficult to customize once you’ve added several non-Fidelity accounts.

The reports give you a good picture of your asset allocation and where the changes in asset value come from. The portfolio performance reports built into the website can be customized and compared to a variety of benchmarks. Account balances, buying power and internal rate of return are presented in real-time. Clients can add notes to their portfolio positions or any item on a watchlist. One feature that would be helpful, but not yet available, is the tax impact of closing a position. 

Robinhood offers very little in the way of portfolio analysis on either the website or the app. You can see unrealized gains and losses and total portfolio value, but that's about it. The start screen shows a one-day graph of your portfolio value; you can click or tap a different time period at the bottom of the graph and mouse over it to see specific dates and values. There is no asset allocation analysis, internal rate of return, or way to estimate the tax impact of a planned trade. There is no trading journal. To perform any kind of portfolio analysis, you'll have to import your transactions into another program or website. Account balances and buying power are updated in real-time. 

Education

Fidelity's Online Learning Center contains more than 600 pieces of content in areas including options, fixed income, fundamental and technical analysis, and retirement. The educational content is made up of articles, videos, webinars, infographics, and recorded webinars. The content is a mixture of Fidelity and third-party created content, which includes courses intended to guide the learner forward.

Fidelity also offers weekly online coaching sessions, where clients can attend a small group (eight–10 attendees) online educational session to have in-depth discussions around the topics of options and technical analysis. The mobile apps feature what Fidelity calls Learning Programs that help beginning investors better understand market and investing concepts. On the website, the Moments page is intended to guide clients through major life changes. Topics include home purchases, getting married or divorced, losing a parent or spouse, having or adopting a child, sending a child to college, transitioning into retirement, and others. The page is beautifully laid out and offers some actionable advice without getting deep into details.

Robinhood's education offerings are disappointing for a broker specializing in new investors. There's a "Learn" page that has a list of articles, displayed in chronological order from most recent to oldest, but it is not organized by topic. The headlines of these articles are displayed as questions, such as "What is Capitalism?" or "What is Inventory?" There are no videos or webinars available, but the daily Robinhood Snacks three-minute podcast gives some market information. A page devoted to explaining market volatility was appropriately added in April 2020.

Customer Service

Fidelity offers a 24/7 phone line, online chat with a human agent on the website and in mobile apps. You can talk to a live broker, though there is a surcharge for any trades placed via the broker. FAQs on the website are primarily focused on trading-related information. Customer service appears to respond very quickly on Twitter to complaints sent to their account (@fidelity). The response to those in deep distress on Twitter typically reads, "I'm sorry for the frustration. This isn't how we want you to feel, and we want to make sure your comments are forwarded to the right team. Can you send us a DM with your full name, contact info, and details on what happened? Thank you."

Robinhood’s customer service is done via the app or the website. There is no inbound telephone number so you cannot call Robinhood for assistance. If you work your way through an extensive menu designed to narrow down your support issue, you can enter your own phone number for a callback. You can place a trade through a live broker for $10, but they are not there to offer help otherwise. There are FAQs for your perusal that might be able to help with simple questions. 

Security

Fidelity's security is up to industry standards. Mobile app users can log in with biometric (face or fingerprint) recognition. Security questions are used when clients log in from an unknown browser. Higher-risk transactions, such as wire transfers, require two-factor authentication. Fidelity carries excess Securities Investor Protection Corporation (SIPC) insurance which includes a $1.9 million limit on uninvested cash. According to Fidelity, this is the maximum excess SIPC protection currently available in the brokerage industry.

Robinhood's technical security is up to standards, but it is missing a key piece of insurance. Mobile app users can log in with biometric (face or fingerprint) recognition or a custom pin. Robinhood encourages users to enable two-factor authentication. New logins from unrecognized devices also need to be verified with a six-digit code that is sent via text message or email in case two-factor authentication is not enabled. However, Robinhood carries no excess Securities Investor Protection Corporation (SIPC) insurance.

Our Verdict

The choice between these two brokers should be fairly obvious by now. 

Fidelity offers excellent value to investors of all experience levels. Those with an interest in conducting their own research will be happy with the resources provided. Buy-and-hold investors and frequent equity traders are especially well served, which speaks to how large and well-rounded Fidelity is as an online broker. One consequence of this is that you can spend some time digging for the tool or feature you need to make a particular investment decision—it exists, but you may have to search for it.

That is the trade-off for having such a deep feature set, however, and the separation of Active Trader Pro and the main platform helps to remove some potential clutter. Once you are set up and trading, Fidelity's execution quality is terrific at most trade sizes and their focus on generating interest on your idle cash is admirable. 

If you're brand new to investing and have a small balance to start with, Robinhood could be the place to help you get used to the idea of trading. The extremely simple app and website are not at all intimidating and provide a smooth on-ramp to the investing experience, especially for those exploring stocks and ETFs. While it's true that you pay no commissions at Robinhood, its order routing practices are opaque and potentially troubling. Robinhood also has a habit of announcing new products and services every few months, but getting them into production and available to all clients takes a long, long time.

If you're a trader or an active investor who uses charts, screeners, and analyst research, you're better off signing up for a broker that has those amenities. Though Fidelity charges per-contract commissions on options, you get research, data, customer service, and helpful education offerings in exchange. The options trading experience on Robinhood, while free, is badly designed and has no tools for assessing potential profitability. Even if you are a new investor only interested in buying and holding stocks, there are many zero-fee brokers to choose from now. They may not all have the flashy marketing that backs up Robinhood, but they have a lot more meat to their platform and much more transparent business models.

Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of six months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on their platforms, costs and fees, security, the mobile experience and customer service. We established a rating scale based on our criteria, collecting over 3,000 data points that we weighed into our star scoring system.

In addition, every broker we surveyed was required to fill out a 320-point survey about all aspects of their platform that we used in our testing. Many of the online brokers we evaluated provided us with in-person demonstrations of their platforms at our offices.

Our team of industry experts, led by Theresa W. Carey, conducted our reviews and developed this best-in-industry methodology for ranking online investing platforms for users at all levels. Click here to read our full methodology.

Sours: https://www.investopedia.com/fidelity-vs-robinhood-4587945

Fidelity Investments vs. T. Rowe Price

Both Fidelity and T Rowe Price are both large investment houses that have been in business more than 75 years. Fidelity has a wide range of brokerage product offerings to satisfy their 26 million retail accounts, including equities, fixed income, and mutual funds, and actively courts online traders. While T Rowe Price offers many of the same products, its primary focus is long-term focused investing through their proprietary mutual fund products. Neither platform supports crypto currency, futures, or commodity trading.

Although their offerings are comparable, there are some key differences between these brokers. We’ll look at these differences to help you determine which broker is best for your investing and trading needs.

OPEN AN ACCOUNT

  • Account Minimum: $2,500 ($1,000 for IRAs)
  • Fees: No commission online or by mobile app, accounts with smaller balances pay more for options and broker assisted trades
  • Best for: Those looking for full-service wealth management

Read full review

OPEN AN ACCOUNT

Usability

We found the Fidelity platform easier and more intuitive to use than T. Rowe Price. In part, this is because T. Rowe Price has a two-tiered process that initially brings you to the T. Rowe Price homepage that shows balances for T. Rowe Price mutual funds, but then to Pershing’s platform for non-mutual fund brokerage. Aside from that confusion, Fidelity’s menus and overall navigation is simpler and easier to use. T. Rowe Price required additional navigation to find certain tools that are easier to find on the Fidelity platform. Fidelity also has a robust search function that provides an alternative to working through sub-menus. 

Fidelity segments many of its more advanced features and functions into Active Trader Pro, the downloadable trading platform. This segmentation of platforms works much better than T. Rowe Price’s split functions, as it allows Fidelity to optimize the web platform for basic users and a streaming platform for advanced investors and traders, leaving the investor to decide which is the better fit. Most investors will find Fidelity easier to use than T. Rowe Price regardless of which of Fidelity’s platforms they choose. 

Trade Experience

Desktop Trade Experience

Fidelity and T. Rowe Price both have static updating on their web platforms, not streaming quotes. Fidelity does offer the ability to view a watch list in streaming time. Both web-based platforms operated at a comparable level. Fidelity also offers a customizable desktop workstation that provides streaming quotes and offers the ability to enter conditional orders and multi-leg options strategies. T. Rowe Price only allows for two leg options and basic orders including limit and stop orders. Fidelity’s desktop workstation, unlike the T. Rowe Price website, also supports setting up trade defaults for order entry, the ability to stage orders for later, and place basket trades. When it comes to desktop trading, Active Trader Pro gives Fidelity a large advantage over T. Rowe Price.

Mobile Trade Experience

Fidelity’s mobile platform is comprehensive, offering similar functionality to the desktop application. That said, we should note that the app doesn’t have access to fixed income trading. In contrast, T. Rowe Price’s mobile platform continues to show similar limitations seen on its website, including an inability to enter orders beyond limit orders. The T. Rowe Price mobile app was also a bit confusing because of the two platform issues between mutual funds and the non-mutual fund brokerage. There are inconsistent menus for these platforms within the T. Rowe Price app, making navigation more challenging than it should be. Fidelity is the clear winner when it comes to both the desktop and the mobile trade experience. 

Range of Offerings

While many of the product offerings at Fidelity and T. Rowe Price are similar, Fidelity offers trading in complex options strategies up to four legs, while you can only trade two leg options strategies at T. Rowe Price. Also, Fidelity offers trading in many more countries than T. Rowe Price.

Fidelity vs. T. Rowe Price Range of Offerings
AssetFidelityT. Rowe Price
Short Sales YesYes
No-Load, No-Fee Mutual Funds 3,4573,500
Bonds YesYes
Futures/Commodities NoNo
Futures Options NoNo
Complex Options YesNo
Robo AdvisoryYesYes
Cryptocurrency NoNo
International Exchanges252
Forex NoNo
Fractional Shares YesNo
OTCBB and Penny StocksYesYes

Order Types

Both Fidelity and T. Rowe Price support basic order entry, limit, and stop orders, but Fidelity offers five types of conditional orders on their website, while T. Rowe Price does not offer any conditional orders. Fidelity supports trading in butterfly and condor options strategies not available on T Rowe Price platforms. Here again, Fidelity has a significant edge over T. Rowe Price, making it the clear choice if you are going to be using anything beyond the basic limit and stop orders.

Trading Technology

Fidelity has a robust infrastructure for order routing called Fidelity Dynamic Liquidity Management that looks to multiple sources to offer the best buy and sell prices to earn their payment for order flow that earns price improvement on 86% of trades received with an average net price improvement of $0.0116 per equity share. T. Rowe Price, in contrast, clears through Pershing, whose website only speaks about their obligation to provide the most favorable terms for their clients, without specific information on order improvement and execution. Fidelity has been more transparent about their trading technology and the price improvement, so we are giving them the edge here as well. 

Costs

There is a substantial difference in costs between Fidelity and T. Rowe Price, even though they both offer commission free online trading of equities and ETFs. Fidelity charges significantly less for options trades than T. Rowe Price. Options trades are $0.65 per contract at Fidelity and $9.95 + $1 per contract for accounts with at least $250,000 in the account at T. Rowe Price, and $19.95 + $1 per contract for smaller accounts. This means a trade involving 50 options contracts would cost $32.50 at Fidelity and $59.95 or $69.95 at T. Rowe Price, depending on your account size at T. Rowe Price. When it comes to fixed income, Fidelity charges $1 per $1,000 bond, while T. Rowe Price charges $1 per $1,000 bond for US Treasury and Agency issues, but $5 per $1,000 bond for corporate and municipal bonds. 

A comparison of margin rates yielded mixed results, with Fidelity charging 8.325% for a $10,000 balance and 6.825% for account with $100,000, and just 4% for accounts of $1 million or more, while T. Rowe Price charges 7.875% for a $10,000 account and 6.375% for accounts above $50,000 with no further break points. T. Rowe Price charges $35 for mutual funds outside of the no-transaction mutual fund program, while Fidelity charges $49.95 and $75 for some mutual fund families. Finally, T. Rowe Price charges a $30 account maintenance fee for customer accounts without a high account balance or $50,000 in T. Rowe Price mutual funds, while Fidelity does not charge account maintenance fees. All in all, investors are getting a better deal at Fidelity than T. Rowe Price.

Account and Research Amenities

Both T. Rowe Price and Fidelity have screening tools for stocks, ETFs, and fixed income that all work well, but Fidelity’s screeners are better. Fidelity’s screeners allow users to choose different themes such as market cap, fixed income, and socially responsible investing. T. Rowe Price brokerage platform screeners do include socially responsible investing, which has gained in popularity. When searching ETFs at Fidelity, you can type a symbol to find ETFs that contain that stock. Fidelity also has an options screener to search for options that has nearly 200 individual criteria for the search.

While Fidelity offers third party research, T. Rowe Price only offers its own proprietary research to its customers. Fidelity also has a trade idea generator, while T. Rowe Price does not. Fidelity has above average charting available on its website and desktop platform, although the mobile app charting is limited. Overall, T. Rowe Price charting tools are weaker, with useful—but more basic—studies and no drawing tools. When it comes to account and research amenities, Fidelity once again has a significant edge.

Portfolio Analysis

While T. Rowe Price offers a number of helpful tools on its mutual fund platform, we found their brokerage platform offering of tools and calculators to be sparse. T. Rowe Price’s limitations are particularly noticeable compared to Fidelity’s robust set of calculators and tools that help you with just about any financial reporting need you can imagine. Fidelity provides you with more nuanced views of your portfolio performance and also is able to consolidate all your outside accounts to help track the major indicators like net worth over time. Fidelity’s portfolio analysis is much more comprehensive than T. Rowe Price’s offering.

Education

The T. Rowe Price brokerage platform provides information on the brokerage platform, investing and asset allocation basics, and a helpful glossary of investment terms, but they do not provide in-depth educational tools. This contrasts significantly with Fidelity’s very strong educational offerings that are helpful for beginners and advanced investors and traders. Fidelity’s learning center includes articles, videos, webinars, infographics, and even interactive sessions with a  trading strategy desk to ask professionals trading related questions. Fidelity has a significant advantage when it comes to attracting investors who want more educational resources from their broker.

Customer Service

Customer support by phone is available at Fidelity 24/7, while T. Rowe Price’s phone hours are 8am to 8pm EST. While Fidelity and T. Rowe Price both provide access to a live broker, only Fidelity offers live chat with a customer support representative, which is available on all of their platforms. If customer service is an important criteria for you, Fidelity is the better choice.

Security

Both T Rowe Price and Fidelity have dual-factor authentication for their brokerage platforms and biometric/fingerprint logon for their apps. Neither of the two brokers has suffered substantial outages or data breaches in recent years. When it comes to security, both brokers score well.

Our Verdict

For all but long-term mutual fund traders, Fidelity’s platforms and overall offering are simply better than T. Rowe Price on nearly every level, including Fidelity having more robust platforms with more competitive commissions. This is especially true for options trading. Moreover, Fidelity offers better stock/ETF screeners, better analytics, better reporting, and better investing tools than T. Rowe Price’s platforms. 

In the rough and tumble world of online brokerage, T. Rowe Price is bringing a knife to a gunfight if they are looking to expand their customer base to more active traders and investors.

Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of six months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on their platforms, costs and fees, security, the mobile experience and customer service. We established a rating scale based on our criteria, collecting over 3,000 data points that we weighed into our star scoring system.

In addition, every broker we surveyed was required to fill out a 320-point survey about all aspects of their platform that we used in our testing. Many of the online brokers we evaluated provided us with in-person demonstrations of their platforms at our offices.

Our team of industry experts, led by Theresa W. Carey, conducted our reviews and developed this best-in-industry methodology for ranking online investing platforms for users at all levels. Click here to read our full methodology.

Sours: https://www.investopedia.com/fidelity-vs-t-rowe-price-4587946
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The Fidelity advantage: A clear choice

1.

$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). There is an Options Regulatory Fee (from $0.03 to $0.05 per contract), which applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules.

2. Investor's Business Daily®(IBD), October 2020: Fidelity is the #1 Most Trusted Wealth Management Company. Survey asked 4,297 IBD website visitors and customers to score companies on 6 different criteria, weighted in descending order: quality of products and services, commitment to protecting privacy and security, ethical practices and values, fair pricing and fees, customer service, and customer treatment with the overall score based on the composite scores for each criteria. To be included in the ranking for the wealth management category required at least 75 respondents. Fifty-one financial service companies passed the minimum inclusion criterion. IBD's ranking of Fidelity as the #1 Most Trusted Wealth Management Company should not be construed as representing any client’s experience with, or endorsement of, Fidelity or its wealth management services. Third-party rankings or past performance are not indicative of future performance. The third-party trademarks appearing herein are the property of their respective owners.

3.

Eligible assets include those invested through Fidelity® Wealth Services, Fidelity® Strategic Disciplines, or a combination of both registered as an individual account, a joint account, or certain types of revocable trusts. Assets in other registration types, such as irrevocable trusts, partnerships, or LLCs, will not be included when determining program eligibility. Fidelity Rewards is not offered as a component of any advisory service or program through Fidelity, including, without limitation, Fidelity® Wealth Services and Fidelity® Strategic Disciplines. While there are no program enrollment fees, eligible accounts are charged an advisory fee.

4. You may be eligible to earn additional Points on eligible Net Purchases, in addition to the Points you may earn in the Fidelity® Rewards Visa Signature® Card Program if you qualify and are registered into the Fidelity Rewards+ program. Earn up to 2% cash back on purchases when you use your Fidelity Rewards Visa Signature Card and earn up to an additional 1% as a participant in the Fidelity Rewards+® program for Wealth Management clients. Eligibility and applicability of the additional Points are determined by Fidelity Brokerage Services, LLC. Fidelity Rewards Visa Signature Card Program, managed by Elan Financial Services, and Fidelity Rewards+, managed by Fidelity, are separate programs. Full details for the Fidelity Rewards+ program appear in the Fidelity Rewards+ Terms and Conditions and in the Program Rules for Fidelity Rewards Visa Signature Card Program.

"Highest cash back" claim based on research conducted in December 2020 by Competiscan, LLC of publicly available consumer cash back credit card offers, excluding those with an annual fee, category restrictions, or requirements that cash back be used only as a statement credit.

You could lose money by investing in a money market fund. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Before investing, always read a money market fund’s prospectus for policies specific to that fund.

Fidelity® Personalized Planning & Advice is an advisory service offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Fidelity® Wealth Services is an advisory service offered by FPWA or Fidelity Personal Trust Company, FSB (FPTC), a federal savings bank. Nondeposit investment products and trust services offered by FPTC and its affiliates are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not obligations of any bank, and are subject to risk, including possible loss of principal. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FPTC, FBS and NFS are Fidelity Investments companies. These advisory services are provided for a fee.

Fidelity now offers the Fidelity ZERO Total Market Index Fund (FZROX), Fidelity ZERO International Index Fund (FZILX), Fidelity ZERO Large Cap Index Fund (FNILX), and Fidelity ZERO Extended Market Index Fund (FZIPX) available to individual retail investors who purchase their shares through a Fidelity brokerage account.

*

​Tax-smart (i.e., tax-sensitive) investing techniques, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, primarily with respect to determining when assets in a client's account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a client's overall tax liabilities, or as to the tax results that may be generated by a given transaction. ​​

Fidelity commissioned Corporate Insight to study bond pricing, available online, for self-directed retail investors from three brokers (Merrill Lynch, Morgan Stanley, and Wells Fargo) that offer corporate and municipal bonds for comparison to Fidelity's standard online pricing. The study compared online bond prices for more than 27,000 municipal and corporate inventory matches from January 28 through March 2, 2020. It compared municipal and corporate inventories offered online in varying quantities. The study found that, on average, the three online bond brokers were asking $15.41 more per bond. Corporate Insight determined the average price differential by calculating the difference between the prices of matching corporate and municipal bond inventory at Fidelity, including Fidelity's $1 per bond mark-up for online trades vs. the prices offered online for the same bonds from the three brokers, then averaging the differences of the financial services firms. The analysis included investment grade corporate and municipal bonds only, as the three brokers in the study do not offer non-investment grade bonds for purchase online.

Minimum markup or markdown of $19.95 applies if traded with a Fidelity representative. For U.S. Treasury purchases traded with a Fidelity representative, a flat charge of $19.95 per trade applies. A $250 maximum applies to all trades, reduced to a $50 maximum for bonds maturing in one year or less. Rates are for U.S. dollar-denominated bonds; additional fees and minimums apply for non-dollar bond trades. Other conditions may apply; see Fidelity.com/commissions for details. Please note that markups and markdowns may affect the total cost of the transaction and the total, or "effective," yield of your investment. The offering broker, which may be our affiliate, National Financial Services LLC, may separately mark up or mark down the price of the security and may realize a trading profit or loss on the transaction.

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.

Forbes The Best Online Brokers 2021, Dec 10, 2020: Fidelity was ranked No. 1 Best Online Broker out of 21 online trading platforms evaluated in the Forbes 2021 Online Broker Review.​

StockBrokers.com 2021 Online Broker Review, January 19, 2021: Fidelity was ranked No. 1 for Order Execution and No. 1 for Fractional Shares out of 11 online brokers evaluated in the StockBrokers.com 2021 Online Broker Review.

Investing involves risk, including risk of loss.

Sours: https://www.fidelity.com/why-fidelity/overview

Vanguard vs. Fidelity: Which Is Right for You?

IRA fees: maintenance and inactivity fees

Although fees are largely going extinct, some live on. Fidelity doesn't have an annual maintenance fee or inactivity fee. Vanguard accounts have an avoidable $20 annual account service fee.

You can avoid Vanguard's fee by keeping at least $10,000 invested in its funds or ETFs, or by electing to receive documents (statements, annual reports, etc.) electronically.

Truthfully, if you've ever seen the deluge of paper mail that a portfolio of stocks and mutual funds can create, you may prefer to have it all delivered electronically anyway. (Fun fact: The Wall Street Journal recently reported that 2 million trees are consumed each year printing mutual fund reports!)

Research and retirement tools

Discount brokers drive down costs largely by eliminating many of the frills of full-service brokers. Today, though, many features are coming back, even though the costs are not. Online discount brokers offer their clients basic research functionality just for having an open account.

Vanguard offers insights and research from S&P, FirstCall, and Thomson Reuters. It also offers a plethora of proprietary retirement tools, including its portfolio analysis tool for retirement savers. The tool analyzes your portfolio to show you how similar allocations have historically performed, going so far as to analyze it for expenses and taxes.

Similarly, Fidelity offers third-party research that includes insight from S&P, analyst upgrades and downgrades from hundreds of research companies, plus proprietary tools like Fidelity's insight into analysts' historical accuracy. The company's Planning & Guidance Center can be a real help in building a retirement portfolio, as it can score your savings progress and show you how changes to your assumptions and portfolio affect your retirement outlook.

We've just touched on a few highlights of each broker's research library. In truth, you'll find plenty to explore with either broker.

Best for IRAs: Vanguard vs. Fidelity

Considering they may be better known for their mutual funds, Vanguard and Fidelity have a lot to offer when it comes to brokerage services for IRAs. But which is better for you ultimately depends on how you invest. Investors who prefer Vanguard's funds may be better off going that route, while Fidelity loyalists would be wise to open an account with Fidelity, as it offers inexpensive and free ways to invest in its own mutual funds and ETFs.

Sours: https://www.fool.com/the-ascent/buying-stocks/vanguard-vs-fidelity/

Invest vs fidelity you

Fidelity vs J.P. Morgan Self-Directed 2021

StockBrokers.com is committed to the highest ethical standards and reviews services independently. Advertiser Disclosure

Is Fidelity better than J.P. Morgan Self-Directed? After testing 11 of the best online brokers over three months, Fidelity (99.36%) is better than J.P. Morgan Self-Directed (68.86%). Fidelity is a value-driven online broker offering $0 trades, industry-leading research, excellent trading tools, an easy-to-use mobile app, and comprehensive retirement services. Serving over 32 million customers, Fidelity is a winner for everyday investors.


Overall Rating

Feature FidelityJ.P. Morgan Self-Directed
Overall 53.5
Commissions & Fees 54
Offering of Investments 4.53.5
Platforms & Tools 4.51.5
Mobile Trading 53.5
Research 53.5
Education 52.5
Ease of Use 54
Fidelity ReviewJ.P. Morgan Self-Directed Review
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Trading Fees

Feature FidelityJ.P. Morgan Self-Directed
Minimum Deposit $0.00 $0.00
Stock Trades $0.00 $0.00
ETF Trade Fee $0.00 $0.00
Mutual Fund Trade Fee $49.95 $0.00
Options (Base Fee) $0.00 $0.00
Options (Per Contract) $0.65 $0.65
Futures (Per Contract) N/A N/A
Broker Assisted Trade Fee $32.95 $25.00

Margin Rates

Feature FidelityJ.P. Morgan Self-Directed
Under $24,999.99 8.33% N/A
$25,000.00 to $49,999.99 7.83% N/A
$50,000.00 to $99,999.99 6.88% N/A
$100,000.00 to $249,999.99 6.83% N/A
$250,000.00 to $499,999.99 6.58% N/A
$500,000.00 to $999,999.99 4.25% N/A
Above $1,000,000.00 4.00% N/A

Account Fees

Feature FidelityJ.P. Morgan Self-Directed
IRA Annual Fee $0.00 $0.00
IRA Closure Fee $0.00 $75.00

Account Transfer Out (Partial)

$0.00 $75.00

Account Transfer Out (Full)

$0.00 $75.00

Investment Options

Feature FidelityJ.P. Morgan Self-Directed

Stock Trading

YesYes

Fractional Shares

YesNo

OTCBB / Pink Sheets

YesYes

Options Trading

YesYes

Complex Options Max Legs

4 1

Futures Trading

NoNo

Forex Trading

NoNo

Crypto Trading

NoNo

Crypto Trading - Total Coins

0 0

Mutual Funds (No Load)

3786 3500

Mutual Funds (Total)

9842 3500

Bonds (US Treasury)

YesYes

Bonds (Corporate)

YesYes

Bonds (Municipal)

YesYes

Advisor Services

YesYes

International Trading

YesNo

Order Types

Feature FidelityJ.P. Morgan Self-Directed

Order Type - Market

YesYes

Order Type - Limit

YesYes

Order Type - After Hours

YesNo

Order Type - Stop

YesYes

Order Type - Trailing Stop

YesNo

Order Type - OCO

YesNo

Order Type - OTO

YesNo

Order Type - Broker Assisted

YesYes

Beginners

Feature FidelityJ.P. Morgan Self-Directed

Education (Stocks)

YesYes

Education (ETFs)

YesNo

Education (Options)

YesNo

Education (Mutual Funds)

YesNo

Education (Bonds)

YesNo

Education (Retirement)

YesYes

Retirement Calculator

YesYes

Investor Dictionary

YesNo

Paper Trading

NoNo

Videos

YesYes

Webinars (Monthly Avg)

15 0

Webinars (Archived)

YesNo

Progress Tracking

YesYes

Interactive Learning - Quizzes

YesYes

Stock Trading Apps

Feature FidelityJ.P. Morgan Self-Directed

iPhone App

YesYes

Android App

YesYes

Apple Watch App

YesNo

Trading - Stocks

YesYes

Trading - After-Hours

YesNo

Trading - Simple Options

YesYes

Trading - Complex Options

YesNo

Order Ticket RT Quotes

YesYes

Order Ticket SRT Quotes

YesNo

Stock App Features

Feature FidelityJ.P. Morgan Self-Directed

Market Movers (Top Gainers)

YesYes

Stream Live TV

YesNo

Videos on Demand

YesNo

Stock Alerts

YesNo

Option Chains Viewable

YesNo

Watch List (Real-time)

YesYes

Watch List (Streaming)

YesNo

Watch Lists - Create & Manage

YesYes

Watch Lists - Column Customization

YesNo

Watch List - Column Filtering

YesYes

Stock App Charting

Feature FidelityJ.P. Morgan Self-Directed

Charting - After Hours

YesNo

Charting - Can Turn Horizontally

YesNo

Charting - Multiple Time Frames

YesYes

Charting - Technical Studies

7

Charting - Study Customizations

YesNo

Charting - Stock Comparisons

YesNo

Trading Platforms

Feature FidelityJ.P. Morgan Self-Directed

Desktop Trading Platform

YesNo

Web Trading Platform

YesYes

Paper Trading

NoNo

Trade Journal

YesNo

Watch Lists - Total Fields

91 4

Stock Chart Features

Feature FidelityJ.P. Morgan Self-Directed

Charting - Adjust Trades on Chart

YesNo

Charting - Indicators / Studies

129 21

Charting - Drawing Tools

22 0

Charting - Notes

YesNo

Charting - Index Overlays

YesYes

Charting - Historical Trades

YesNo

Charting - Corporate Events

YesYes

Charting - Custom Date Range

YesNo

Charting - Custom Time Bars

YesNo

Charting - Automated Analysis

YesNo

Charting - Save Profiles

YesNo

Trade Ideas - Technical Analysis

YesNo

Charting - Study Customizations

5 1

Charting - Custom Studies

NoNo

Day Trading

Feature FidelityJ.P. Morgan Self-Directed

Stock Alerts

YesNo

Streaming Time & Sales

NoNo

Streaming TV

YesNo

Direct Market Routing - Stocks

YesNo

Ladder Trading

NoNo

Trade Hot Keys

YesNo

Level 2 Quotes - Stocks

YesNo

Trade Ideas - Backtesting

YesNo

Trade Ideas - Backtesting Adv

NoNo

Short Locator

YesNo

Order Liquidity Rebates

NoNo

Research Overview

Feature FidelityJ.P. Morgan Self-Directed

Research - Stocks

YesYes

Research - ETFs

YesYes

Research - Mutual Funds

YesYes

Research - Pink Sheets / OTCBB

YesNo

Research - Bonds

YesNo

Screener - Stocks

YesYes

Screener - ETFs

YesYes

Screener - Mutual Funds

YesYes

Screener - Options

YesNo

Screener - Bonds

YesYes

Misc - Portfolio Builder

YesNo

Misc - Portfolio Allocation

YesYes

Stock Research

Feature FidelityJ.P. Morgan Self-Directed

Stock Research - PDF Reports

11 1

Stock Research - Earnings

YesNo

Stock Research - Insiders

YesNo

Stock Research - SEC Filings

YesNo

Stock Research - Social

YesNo

Stock Research - Balance Sheet

YesNo

Stock Research - Cash Flows

YesNo

Stock Research - News

YesYes

Stock Research - ESG

YesNo

ETF Research

Feature FidelityJ.P. Morgan Self-Directed

ETFs - Strategy Overview

YesNo

ETF Fund Facts - Inception Date

YesYes

ETF Fund Facts - Expense Ratio

YesNo

ETF Fund Facts - Net Assets

YesYes

ETF Fund Facts - Total Holdings

YesYes

ETFs - Top 10 Holdings

YesYes

ETFs - Performance Analysis

YesYes

ETFs - Sector Exposure

YesYes

ETFs - Risk Analysis

YesNo

ETFs - Ratings

YesYes

ETFs - Morningstar StyleMap

YesYes

ETFs - PDF Reports

YesNo

Mutual Fund Research

Feature FidelityJ.P. Morgan Self-Directed

Mutual Funds - Strategy Overview

YesNo

Mutual Funds - Performance Chart

YesYes

Mutual Funds - Performance Analysis

YesYes

Mutual Funds - Prospectus

YesNo

Mutual Funds - PDF Reports

NoNo

Mutual Funds - Fees Breakdown

YesNo

Mutual Funds - Top 10 Holdings

YesYes

Mutual Funds - Asset Allocation

YesYes

Mutual Funds - Sector Allocation

YesYes

Mutual Funds - Country Allocation

YesYes

Mutual Funds - StyleMap

YesYes

Mutual Funds - 3rd Party Ratings

YesYes

Options Trading

Feature FidelityJ.P. Morgan Self-Directed

Option Chains - Basic View

YesYes

Option Chains - Strategy View

YesNo

Option Chains - Streaming

YesNo

Option Chains - Total Columns

26 6

Option Chains - Greeks

5 0

Option Positions - Greeks Streaming

YesNo

Option Chains - Quick Analysis

YesNo

Option Analysis - P&L Charts

YesNo

Option Probability Analysis

YesNo

Option Probability Analysis Adv

YesNo

Option Positions - Greeks

YesNo

Option Positions - Adv Analysis

YesNo

Option Positions - Rolling

YesNo

Option Positions - Grouping

YesNo

Banking

Feature FidelityJ.P. Morgan Self-Directed

Bank (Member FDIC)

NoYes

Checking Accounts

YesYes

Savings Accounts

YesYes

Credit Cards

YesYes

Debit Cards

YesYes

Mortgage Loans

NoYes

Customer Service

Feature FidelityJ.P. Morgan Self-Directed

Phone Support (Prospect Customers)

YesNo

Phone Support (Current Customers)

YesYes

Email Support

YesNo

Live Chat (Prospect Customers)

YesNo

Live Chat (Current Customers)

YesNo

24/7 Support

YesNo

Overall

Feature FidelityJ.P. Morgan Self-Directed
Overall 53.5
Commissions & Fees 54
Offering of Investments 4.53.5
Platforms & Tools 4.51.5
Mobile Trading 53.5
Research 53.5
Education 52.5
Ease of Use 54
Fidelity ReviewJ.P. Morgan Self-Directed Review
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Comparing brokers side by side is no easy task. For our 2021 annual broker review, we spent hundreds of hours assessing 11 brokerages to find the best online broker. Let's compare Fidelity vs J.P. Morgan Self-Directed.

Is Fidelity or J.P. Morgan Self-Directed better for beginners?
Fidelity is better for beginner investors than J.P. Morgan Self-Directed. Fidelity offers investors access to Videos, Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds) and Education (Retirement).

What about Fidelity vs J.P. Morgan Self-Directed pricing?
Fidelity and J.P. Morgan Self-Directed charge the same amount for regular stock trades, $0. With options, the base fee is $0 for both Fidelity and J.P. Morgan Self-Directed. Option contracts run $0.65 a piece at both brokerages. For a complete commissions summary, see our best discount brokers guide.

Does Fidelity or J.P. Morgan Self-Directed offer a wider range of investment options?
Fidelity offers a more diverse selection of investment options than J.P. Morgan Self-Directed. Fidelity offers investors access to Stock Trading, Fractional Shares, OTCBB / Pink Sheets, Options Trading, Mutual Funds, Advisor Services and International Trading. Looking at Mutual Funds, Fidelity offers its clients access to 9842 different mutual funds while J.P. Morgan Self-Directed has 3500 available funds, a difference of 6,342.

Which trading platform is better: Fidelity or J.P. Morgan Self-Directed?
To compare the trading platforms of both Fidelity and J.P. Morgan Self-Directed, we tested each broker's trading tools, research capabilities, and mobile apps. For trading tools, Fidelity offers a better experience. With research, Fidelity offers superior market research. Finally, we found Fidelity to provide better mobile trading apps.

Does either broker offer banking?
Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Clients can have Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans at J.P. Morgan Self-Directed while customers at Fidelity can have Checking Accounts, Savings Accounts, Debit Cards and Credit Cards.

Overall winner: Fidelity

Read Next: Best Online Brokers 2021


Related Comparisons

All pricing data was obtained from a published web site as of 01/19/2021 and is believed to be accurate, but is not guaranteed. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.

1Fidelity Sell orders are subject to an activity assessment fee from $0.01 to $0.03 per $1,000 of principal. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.

*INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT · NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE

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Sours: https://www.stockbrokers.com/compare/fidelityinvestments-vs-jp-morgan-self-directed
Vanguard vs Fidelity 2021: 8 Differences!

Fidelity Investments vs. TD Ameritrade

Fidelity Investments and TD Ameritrade are two of the most popular online discount brokerages, and each regularly scores well in Bankrate reviews of the best brokers.

In fact, Fidelity and TD Ameritrade both earned the highest overall marks in our 2021 review of major online brokers. Fidelity is a great choice for customer support, research and its no-fee fund offerings, while TD Ameritrade stands out for its trading platform, wide selection of tradable securities and customer service. (It’s worth noting that TD Ameritrade has been purchased by Charles Schwab and will be integrated into that broker’s platform either in 2022 or the year following.)

So which is better for you? That depends not only on what the broker offers but also on what features you need. Here’s how the brokerages compare on some of the most common features.

Stocks and ETF commissions$0$0
Options commissions$0.65 per contract$0.65 per contract
Account minimum$0$0
Tradable securitiesStocks, ETFs, bonds, mutual funds, optionsStocks, ETFs, bonds, mutual funds, options, futures, forex, cryptocurrency
Account feesNo annual, activity or transfer-out fee$75 transfer-out fee
No-transaction-fee mutual funds3,400+4,000+
Account typesIndividual and joint taxable, IRAs, small business (SEP IRA, solo 401(k), etc.), custodial, 529, HSA, managed portfolio, charitable and trust, among othersIndividual and joint taxable, IRAs, small business (SEP IRA, solo 401(k), etc.), custodial, 529, managed portfolio and trust, among others
Mobile appFidelity Mobile app on the Apple App Store, Google Play Store and AmazonTD Ameritrade Mobile and thinkorswim Mobile apps on the Apple App Store and Google Play Store
Fractional sharesFor purchases and dividend reinvestmentFor dividend reinvestment only
Customer supportPhone 24/7 availability, chat, email, 190+ branchesPhone 24/7 availability, Facebook and Twitter messaging, 175+ branches

Costs

Across a number of areas relating to cost, Fidelity and TD Ameritrade are neck and neck. Both charge zero commission for stock and ETF trades, while options trades come in at $0.65 per contract, right at the industry standard today.

Both brokers offer thousands of mutual funds without a transaction fee. While TD Ameritrade offers more such funds, Fidelity’s selection is easily wide enough to find what you’re looking for. It’s like going to a buffet: extra choices only matter if you’re actually going to partake of them.

Both brokers are friendly to the thrifty, with limited account costs. However, you won’t notice any key differences until you go to close your account, when TD Ameritrade charges $75 for a transfer out, while Fidelity charges nothing. So Fidelity gets a slight edge in this area.

Account minimum

You can’t get any better than no account minimum, and both TD Ameritrade and Fidelity allow new investors to get started with nothing, making them among the top picks for new investors.

Tradable securities

Fidelity and TD Ameritrade have some clear differences in the types of securities they allow you to invest in, and the latter is the clear winner in terms of sheer numbers.

While Fidelity offers the standard range (stocks, ETFs, bonds, mutual funds and options), TD Ameritrade ups the ante with forex, futures and cryptocurrency trading, too. Those additional choices may appeal to traders looking to get into more esoteric corners of the market.

That said, Fidelity’s selection will work well for nearly all investors looking for attractive returns.

Account types

Fidelity and TD Ameritrade offer a similarly wide selection of account types, so you can grow your relationship with the broker as your needs change.

Both offer standard account types such as individual and joint taxable accounts, IRA accounts (Roth IRA, traditional IRA and rollovers), small business retirement accounts (SEP IRA, SIMPLE IRA and solo 401(k)) and 529 accounts. Each offers managed portfolios and trust accounts. Fidelity also offers HSA accounts, which some individuals actually use as retirement accounts.

Both brokers offer a huge variety of account types, and it’s going to be hard to go wrong here.

Fractional shares

Fidelity separates itself from TD Ameritrade in terms of fractional shares. While TD Ameritrade allows you to reinvest only your dividends into partial shares, Fidelity allows that feature as well as purchases of partial shares. In fact, you can buy more than 7,000 stocks and ETFs with Fidelity’s fractional program, among the highest levels of all brokers.

Customer support

In terms of customer support, TD Ameritrade and Fidelity offer access in three key channels: phone, chat or messaging and in-branch. Both offer 24/7 customer support by phone, while chat support may occur through a third party such as Facebook or Twitter. Both brokers also offer a comparable number of branches, where you can seek out in-person assistance, if you need it.

Other factors

Naturally, these brokers are not comparable across every single dimension. Each offers some benefits that the other doesn’t. In the case of TD Ameritrade, since it typically caters to advanced traders, it offers simulated trading through what it calls paperMoney. You’ll start with $100,000 in virtual money and a margin account and you’ll be able to use the broker’s robust thinkorswim trading platform, one of its top features, to hone your skills or see how you’ll fare.

For mutual fund fans, Fidelity offers its ZERO collection of funds without an expense ratio. It’s the first company to offer no-fee mutual funds, though you needn’t be a customer of the brokerage to buy them. A Fidelity ZERO fund ranks in our list of best index funds.

Bottom line

Fidelity and TD Ameritrade are exceptional brokers almost any way you slice it, offering similar features and being investor-friendly. So what’s likely to separate one from the other is what you need in a broker. For example, if you need fractional purchases, Fidelity would likely be a better choice, while those needing a simulator and robust trading platform may find TD Ameritrade a better fit. That said, opening multiple brokerage accounts can have some key benefits, too.

Learn more:

Sours: https://www.bankrate.com/investing/fidelity-investments-vs-td-ameritrade/

You will also like:

overall ratingoverall pros
  • Commission-free US stocks, ETFs, funds and bonds
  • Fast and fully digital account opening
  • Well-established parent company
  • Commission-free US stocks and ETFs
  • Great trading platforms and research
  • US and international stocks
overall cons
  • Available only to US clients
  • Limited product portfolio
  • Basic research tools
  • High mutual fund fees and margin rates
  • Slower account verification
  • Slow live chat
fees
  • Low non-trading fees
  • Low stock and ETF fees / Free stock trading
  • Commission-free stock, ETF, fund, and bond trades
  • Low fees like transaction costs may be applied
  • Free stock and ETF trading
  • Low bond fees
  • No inactivity fee
  • High fees for non-free mutual funds
  • High margin fees
account opening
  • Fast
  • Fully digital
  • No minimum deposit
  • No minimum deposit
  • User-friendly
  • Many account types
  • Slower account verification
  • Not fully digital in some cases
deposit and withdrawal
  • No deposit fee
  • Quick deposit and withdrawal - within 3 days
  • Credit/Debit card not available
  • Only one account base currency
  • High wire withdrawal fee for non-Chase accounts
  • Free withdrawal
  • No deposit fee
  • Several account base currencies
  • Credit/Debit card not available
web trading platform
  • User-friendly
  • Good search function
  • Order confirmation
  • No clear fee report available
  • No two-step (safer) login
  • Limited customizability (for charts, workspace)
  • User-friendly
  • Clear fee report
  • Two-step (safer) login
  • Limited customizability (for charts, workspace)
mobile trading platform
  • User-friendly
  • Good search function
  • Order confirmation
  • No two-step (safer) login
  • No price alerts
  • No Face ID login
  • User-friendly
  • Good search function
  • Good variety of order types
  • No two-step (safer) login
desktop trading platform
  • Clear fee report
  • Good customizability (for charts, workspace)
  • Good variety of order types
  • No two-step (safer) login
  • Loads bit slowly
markets and products
  • Stock
  • ETF
  • Fund
  • Bond
  • Options
  • Portfolio Builder
  • Stock
  • ETF
  • Fund
  • Bond
  • Options
  • Robo-advisory
research
  • Data on asset fundamentals
  • Easy-to-use screener
  • Limited interactive charting
  • No trading ideas
  • Limited set of analytic tools
  • Good interactive chart
  • Trading ideas
  • Data on asset fundamentals
  • News flow quality could be better
customer service
  • Fast response time
  • Relevant answers
  • Fast and relevant phone support
  • No live chat
  • No 24/7 support
  • Secure message instead of email support
  • Phone support
  • Live chat
  • Fast response time
  • No 24/7 support
  • Slow live chat
education
  • Educational videos
  • Good production quality
  • No demo account
  • No trading platform tutorial videos
  • Trading platform tutorial
  • Educational videos
  • Good production quality
  • Demo account is only for desktop
safety
  • Majority of clients belong to a top-tier financial authority
  • High level of investor protection
  • Banking background
  • No negative balance protection
  • Majority of clients belong to a top-tier financial authority
  • High level of investor protection
  • Additional coverage by Fidelity
  • No negative balance protection
  • Does not hold a banking license
  • Not listed on stock exchange
recommended for Beginners and buy-and-hold investors focusing on the US stock market Investors and traders looking for solid research and great trading platforms
Sours: https://brokerchooser.com/compare/chase-you-invest-vs-fidelity


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