Fidelity has been in the investment game for decades and has continued to set the gold standard for brokerage firms. Meanwhile, newcomer Robinhood, whose main selling point is its no-cost trading, has been slowly losing its slice of the market share as more online brokers have rolled out commission-free trading. While more Reddit users recommend Fidelity Investments over Robinhood, some use these brokers alongside each other, as keeping an account on Robinhood still has its advantages. Below are some of the most informative comments from Reddit users who have used Robinhood and Fidelity.
Robinhood remains a great option for traders who want free stocks and options trading while Fidelity offers a wider range of products that make it the better choice for everything else
If you’re looking to save for retirement or invest in mutual funds and bonds, Fidelity is a no-brainer for youWhat catapulted Robinhood’s popularity is its promise of commission-free trading and simple, streamlined interface. Beginners of trading will find Robinhood and the lower financial risk it requires a good place to start. However, its bare-bones platform and limited offerings prompt those who want to take their trading and investments to the next level to look elsewhere.Robinhood lacks Fidelity’s wide range of products for long term investments. Reddit user ServerOfJustice has the following advice for a Redditor who’s looking to save for his retirement:
Like many others, Reddit user DLVRY has an account on both Robinhood and Fidelity, but uses them for different purposes. It seems to be a common theme for many Redditors who go to Fidelity for their long term investments while also taking advantage of Robinhood’s free trading. As Redditor DLVRY explains:
As mentioned above, Fidelity also offers free stocks and ETFs. However, it is worth noting that its options trading has a fee of $0.65 cents for every option contract. On Robinhood, on the other hand, you can trade stocks, options, and ETFs at no cost.
Something many Redditors don’t like about Robinhood is its lack of automatic dividend reinvestmentAnother reason why some traders leave Robinhood is it doesn’t offer dividend reinvestment. As Reddit user WeenisWrinkle puts it:Despite its lack of dividend reinvestment features, Robinhood still has some advantages. Reddit user fsu_ppg details them in his comment:
Robinhood vs Fidelity Investments Comparison Chart
Investing Platform
Robinhood
Fidelity Investments
Account Minimum
$O
$O
Commission Fee
Free
Free stock and ETF trading, $0.65 cents for every options contract, $.03 to .05 Options Regulatory Fee for every contract
Account Types
Individual Brokerage Account
Retirement and IRA, Brokerage, Education
Cryptocurrency Trading
Yes
No
Fractional Shares
Yes
Yes
Short Selling
No
Yes
Stocks, ETFs, Options
Yes
Yes
Mutual Funds, Bonds, Futures, Forex
No
Yes
Cash Management
Yes
Yes
IPO Investments
No (Only limited pre-IPO)
Yes
Research Tools
Basic
Advanced
Verdict
New users who want to dabble in trading will find Robinhood and its no-frills platform sufficient, but more serious traders and long-term investors should go for Fidelity Investments instead
Fidelity Investments is undeniably the better broker that can meet the needs of long-term investors and active traders alike. It has an intuitive interface, offers a wide range of assets and products, and provides extensive research tools to keep you informed on market trends. However, if you want to trade options, prepare to pay for the option contract fees. While Robinhood cannot compete against the investment giant, the Palo Alto-based company still provides attractive reasons to keep a Robinhood account: its commission-free options, crypto trading, and fractional shares. As keeping a brokerage account on both Robinhood and Fidelity requires $0 minimum, it only makes sense that some Reddit users take advantage of the strengths of both investing platforms.
Managing Editor and Team Leader at Compare Before Buying. Writer and researcher passionate about people, product comparisons, culture, and current events.
