Robinhood vs. Fidelity: what’s the difference?

Robinhood vs. Fidelity: What are the differences?

Robinhood and Fidelity are two prominent names in the investment world, but they operate with different philosophies and cater to varied audiences.

Robinhood primarily appeals to new investors with its easy-to-use platform and commission-free trading model. At the same time, Fidelity boasts a rich history of serving a wide range of investors with comprehensive services and Fidelity financial advisor options.

Fidelity's investment strategies emphasize a long-term approach. They offer tools and educational resources and actively manage funds tailored to individual goals. They also provide a wide selection of investment vehicles, including mutual funds, ETFs, and retirement accounts, appealing to those who prefer a structured, hands-on investment journey.

Fidelity’s investment options also cater to investors looking to diversify their portfolios with international funds and sector-specific ETFs.

Robinhood investment strategies focus on accessibility and simplicity. The platform allows users to trade stocks, ETFs, options, and cryptocurrencies. Its intuitive interface and gamified elements attract younger investors who prefer a streamlined, self-directed experience.

Beginners seeking easy entry into investing may find Robinhood’s financial services sufficient, but those aiming for long-term growth might benefit from Fidelity's broader expertise and tools.

What fees can I expect from Fidelity & Robinhood?

Understanding the fees associated with investment platforms is crucial. While Fidelity and Robinhood have transparent pricing structures, their fee models differ significantly.

Fidelity fees

Fidelity fees include zero commissions on US stocks, ETFs, and options, with a $0.65 fee per options contract. The firm also offers a range of no-transaction-fee mutual funds. Transaction fees may apply for mutual funds that are not in this category.

Financial advice through a Fidelity financial advisor incurs fees, typically a percentage of assets under management (AUM).

Fidelity does not charge account maintenance or inactivity fees for standard brokerage accounts, IRAs, or HSAs. Margin trading rates are tiered, starting at 13.575% for balances under $25,000, with lower rates for higher balances.

Robinhood fees

Robinhood fees align with the company's mission to make investing accessible. The platform offers commission-free trading on US stocks, ETFs, and options.

Robinhood Gold is a subscription service that costs $5 per month. It includes benefits like reduced options, contract fees, and margin investing. Interest rates start at 5.75% for balances up to $50,000 and decrease for larger balances.

Regulatory trading fees apply, such as $0.000166 per share for equity sells and $0.00279 per contract for options sells, capped at $8.30 per transaction.

Is Fidelity or Robinhood Better?

Both platforms have unique advantages and disadvantages; choosing between Fidelity and Robinhood is highly subjective.

Here are some pros and cons of both companies that can help you make your decision.

Pros of Fidelity

Cons of Fidelity

Pros of Robinhood

Cons of Robinhood

Robinhood or Fidelity: which should I choose?

When deciding between Fidelity and Robinhood, understanding their features and limitations is critical.

Fidelity's customer service, diverse investment tools, and extensive services appeal to those seeking guidance and structure.

Robinhood's app provides a simpler, more accessible experience. However, it does not offer access to a Robinhood advisor, which might be a drawback for investors who require one-on-one professional advice.

Factors like fees, investment strategies, and additional services should guide your decision. Here are some other key considerations:

How do Fidelity and Robinhood remain competitive and adapt to changing market conditions?

Fidelity's investment strategies continuously evolve by integrating advanced technology and expanding its educational resources. It supports investors with diversified portfolios and tools for long-term wealth-building.

Fidelity financial advisor’s commitment to innovation and customer satisfaction has solidified its place as a trusted name in the industry.

Robinhood, on the other hand, adapts by prioritizing accessibility and introducing features like cryptocurrency trading. Its ability to attract younger investors has made it a disruptive force in the investment landscape.

When comparing Robinhood and Fidelity, both firms respond to market trends, but their strategies cater to different demographics.

Which platform provides better customer service and support?

Fidelity customer service is widely regarded as one of the best in the industry.

It offers multiple support channels, including 24/7 phone assistance, live chat, and in-person consultations. Fidelity excels at providing comprehensive and timely support, making it ideal for investors seeking hands-on guidance.

In contrast, Robinhood’s customer support has been criticized for slow response times and limited availability, although improvements have been made in recent years. The platform has enhanced its help center and introduced live phone support for urgent issues.

Can I access my Fidelity or Robinhood accounts through their websites and mobile apps?

Fidelity’s website and app cater to beginners and seasoned investors, providing advanced research tools and account management features. The platform includes everything from financial planning tools to real-time market analysis.

Robinhood’s app is highly intuitive and mobile-first, making it ideal for on-the-go trading. However, its web platform is comparatively limited in functionality and geared more toward casual investors.

Find the right financial advisor

Choosing between Fidelity and Robinhood ultimately comes down to your investment style, goals, and preferences.

You can determine which platform aligns best with your financial needs by weighing factors such as fees, investment strategies, and available services.

Let Unbiased match you with a professional financial advisor who can help you align your investment strategy with your financial goals.