Fidelity vs Robinhood 2020

Fidelity and Robinhood are two of the most popular stock trading apps in the US. I use both apps on a regular basis and will give my unbiased opinion on which online broker is best for you.

Fidelity Investments vs Robinhood Comparison Chart

FidelityRobinhood (full review)
Trading Fees$0 for stocks; 65 cents per options contract$0
Mobile AppiOs & AndroidIos and Android
Account TypesIndividual, IRAs, Custodial, 401k RolloverIndividual
Customer Service24/7 phone supportEmail support w/ slow response times
Trade Precious MetalsYesNo
Trade OptionsYesYes
Trade Mutual FundsYesNo
Trade ETFsYesYes
Trade OTC StocksSome OTC stock availableNo. Only NYSE & NASDAQ stocks
Dividend Reinvestment (DRIP)YesYes
Cash Management w/ Debit CardYesYes
Instant DepositsYesYes
Margin TradingYesYes

Best Fees & Pricing: Robinhood

Robinhood changed the entire financial industry by offering free stock & options trades from the beginning.

Fidelity changed to free stock trades after many traders/investors jumped ship to avoid paying fees.

While Robinhood is not perfect, I find it hard to beat its 100% free trading structure.

Fidelity offers free stock trades but you must pay a fee per options contract.

Best Trade Execution: Fidelity

Robinhood is free but their trade execution leaves a lot to be desired.

Fidelity offers much better trading execution along with more order types.

There's also the risk of Robinhood outages like what happened during the COVID-19 stock market crash.

Best Extended Hours Trading: Fidelity

Fidelity offers premarket trading from 7am to 9:30am EST and after hours trading from 4pm to 8pm EST.

Robinhood offers premarket trading from 9am to 9:30am EST and after hours trading from 4pm to 6pm EST.

If you like trading before or after the market closes then Fidelity provides a lot more flexibility.

The only downside to Fidelity pre-market and after hours tradind is you cannot buy or sell fractional shares.

Fractional share trading is only available on Fidelity during regular market hours 9:30am to 4pm EST Monday through Friday.

Best Customer Service: Fidelity

Fidelity offers top notch 24/7 phone support for all Fidelity Investment accounts. Their customer support team answers any question you have and will also place trades for you ($35 fee for placing a trade with a customer service rep).

Robinhood offers some of the worst customer service in the entire brokerage industry.

They offer zero phone customer support and their customer support team takes around 3 days to respond to customer support tickets.

If you want 24/7 world class customer service then go with Fidelity.

Best Broker for Retirement Accounts: Fidelity

Fidelity offers traditional IRA, Roth IRA, and SEP IRA accounts for retirement planning. You can track your annual contributions to make sure you stay on track for retirement.

Robinhood doesn't currently offer retirement accounts. It's geared towards millenials who haven't thought about retirement planning yet.

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