Online brokerage services have existed for over 20 years. Trading investments today has never been cheaper. So while the race towards cheap trades (in some cases free) is happening, other functionality is becoming more important when selecting a stock broker.
For this review, I compare E*TRADE and Fidelity Investments. Which one is better depends on your needs? So let's examine the major features first.
We've determined with online brokerages the most critical feature customers care about is the
cost per trade. The second most important feature is the minimum deposit, and the last is if the broker
offers mutual funds. Let's look at how E*TRADE and Fidelity Investments
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In other words, how much does one need to invest to use the service? Out of the two, Fidelity Investments minimum investment of $0 is smaller than the deposit of required by E*TRADE.
Next I'll consider cost per trade for both brokers.
Out of the two, Fidelity Investments is cheaper per trade at $4.95 than E*TRADE at $6.95/trade.
Both E*TRADE and Fidelity Investments offer mutual funds. So this feature isn't a clear difference between the stock brokers.
|Review||E*TRADE Review||Fidelity Investments Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Amount of Deals|
|Promotions||Trade FREE for 60 Days and get up to $2,500||None|
|Stock Trades||$6.95/trade ($4.95/trade for 30+ trades/quarter)||$4.95/trade|
|Options Trades||$6.95/trade + $0.75/contract ($4.95 + $0.50/contract for 30+ trades/quarter)||$4.95/trade + $0.65/contract|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX, Futures||Stocks, ETFs, Mutual Funds, Bonds|
|Access||Website, iOS App, Apple Watch, Android App||Website, iOS App, Apple Watch, Android App|
|Broker Assisted Trade|
|No Fee ETFs|
|Sign Up||Sign Up|
E*TRADE, the grandaddy of online discount brokers, is still a good choice for active investors. Its platforms are easy to use, customer service is responsive, and trades execute quickly. However, there are now many less expensive rivals on the market.
About Fidelity Investments
Fidelity is a full-featured discount brokerage service that includes virtually every investment and banking service you need. The mobile app is also one of the best for trading on the go. However, the service is slow to roll out new features.