E*TRADE vs. Fidelity: Which Should You Pick?
Review
Updated
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Over the past couple of decades, the way Americans invest has evolved tremendously. The emergence and evolution of online brokerages has allowed millions of people to buy stocks, bonds, mutual funds, and more at a bare minimum of expense, and virtually instantaneously.
Of course, not all online brokerages are the same. While most popular brokerage platforms share similarities, there are some primary differences investors should consider before opening an account.
Two of the most popular online stock brokers are E*TRADE from Morgan Stanley and Fidelity, so here's a rundown of the key similarities and differences that should factor into your decision between the two.
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Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
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Cole Tretheway has reviewed dozens of brokerages, and his work has been featured on NASDAQ and Yahoo Finance. Cole has surfed through more fine print than is probably healthy, so his readers don't have to.
E*TRADE is great for investors who trade often. The desktop and mobile platforms give you top notch-trading tools, including charts. With four platforms to choose from, you're bound to find one that meets your needs.
Fidelity is great for investors who invest long term. The Fidelity platform is simple, but gives you tons of options. Quick examples: You can invest in stocks, mutual funds, and international investments.
Investors should consider other brokers for trading options. Other brokers have done away with the pricey $0.65 per-contract fees that E*TRADE and Fidelity charge.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
Like most brokerages, E*TRADE and Fidelity have dramatically lowered their pricing structures in recent years. Both have zero-commission online stock and ETF trades. For mutual funds, both brokerages offer an extensive list of no-transaction-fee mutual funds, but if you choose a no-load fund that's not on the list, E*TRADE is the cheaper of the two.
| Broker | Stock trades | Option trades | Mutual funds (no-load) |
|---|---|---|---|
| E*TRADE | $0 | $0 + up to $0.65 per contract | $0 |
| Fidelity | $0 | $0 + $0.65 per contract | $49.95 |
Also, for clients who trade frequently -- which E*TRADE defines as at least 30 stock, option, or ETF trades per quarter -- E*TRADE has an even more favorable commission structure. The per-contract options commission drops to just $0.50, even better than Fidelity's rate.
Both E*TRADE and Fidelity offer excellent access to mutual funds and have a long list of no-transaction-fee options. As of the latest available information, Fidelity has the larger total selection of funds. It boasts over 10,000 funds, while E*TRADE offers over 6,500. Fidelity also offers a small selection of broad-market index funds with zero expense ratio. However, E*TRADE offers all of its mutual funds on a no-load basis -- roughly 3,000 more than Fidelity.
To be perfectly clear, all these numbers are quite large. Unless you have a specific mutual fund in mind that you'd like to buy, you shouldn't have much of an issue with finding a suitable commission-free mutual fund on either platform.
TIP
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Most online brokerages no longer have a minimum account balance. Fidelity and E*TRADE are among them. You can literally open an account with a dollar and start investing. That said, of the two, only Fidelity offers fractional shares, meaning you can buy a dollar's worth of various stocks or ETFs.
Both brokerages offer clients access to independent research from a number of providers. Fidelity offers a particularly large amount of research, from almost 20 independent providers.
And, while we at Motley Fool Money are more buy-and-hold oriented, both brokerages offer special platforms for active traders. Fidelity has its Active Trader Pro software, and E*TRADE offers the company's Power E*TRADE trading platform.
E*TRADE used to have a global trading platform that allowed investors to trade directly on international stock exchanges, but it was discontinued. Fidelity still provides investors access to foreign markets.
To be clear, you can invest in international stocks that trade on U.S. markets, including those that trade as American depository receipts (ADRs), with either brokerage. However, if you want to be able to trade directly on an international stock exchange, Fidelity is the way to go.
As of this writing, Fidelity's brokerage clients can trade on international stock markets in Australia, Canada, Germany, Hong Kong, Japan, and the U.K. In all, Fidelity clients can trade on 25 foreign markets, and can use U.S. dollars or each market's local currency.
As you'd expect from brokerages these days, both E*TRADE and Fidelity offer mobile trading apps. E*TRADE is a pioneer in mobile trading, and its mobile app is highly rated, with a 4.6 out of 5 on the Apple App Store. Plus, E*TRADE also offers an active-trader-focused app version of its Power E*TRADE platform, which has a 4.5 out of 5 rating on the App Store. For Android users, E*TRADE and Power E*TRADE have Google Play Store ratings of 3.9 and 3.8 respectively, so reviews seem to be slightly less favorable on that platform.
The Fidelity Mobile app is also highly rated, with a 4.8 out of 5 rating on the App Store and a 4.4 out of 5 on the Google Play Store. It's fair to say that if mobile functionality is a priority, both of these brokerages should have what you're looking for.
The majority of online brokerages allow clients to obtain a debit card connected with their account. These two are no exception, and both also offer fee-free ATM access.
If you open a Fidelity® Cash Management Account, the brokerage will reimburse all non-bank ATM fees. Clients who add a debit card to their Fidelity brokerage account will not qualify for out-of-network fee reimbursements.
E*TRADE reimburses five ATM fees per month. It also offers unlimited fee reimbursement for clients with $50,000 or more in E*TRADE from Morgan Stanley accounts, or who make at least 30 stock, ETF, or option trades per quarter.
Both brokers are pretty evenly matched here.
To be clear, one of the perks of using an online brokerage is that you don't need in-person help to invest. In addition to user-friendly online and mobile platforms, both brokers offer well-staffed help lines and plenty of educational tools.
Still, sometimes you may want to speak to an investment advisor face to face. In this area, Fidelity is the clear winner.
E*TRADE does not have any physical branches. It merged with Morgan Stanley in 2020, which brings benefits such as access to research and other services. But you can't go into a Morgan Stanley branch to discuss your E*TRADE account.
Fidelity has more than 200 branches across the United States as well as a live chat function for technical issues. If you want a mix of customer support options, Fidelity stands out.
Fidelity and E*TRADE from Morgan Stanley are both excellent online brokerages, and there's a reason they're among the most popular in the business. However, as with most financial comparisons, there's not a one-size-fits-all answer to the question of which is better.
The better choice may depend on some of your personal investment priorities, as well as your current financial situation. With that in mind, here's a breakdown of the key advantages each of these brokerages has over the other:
You might prefer Fidelity if:
You might prefer E*TRADE from Morgan Stanley if:
On E*TRADE's Secure Website.
2025 Award Winner
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,000. Terms apply.
On E*TRADE's Secure Website.
Uncover the names of the select brokers that landed a spot on Motley Fool Money's shortlist for the best online stock brokers. Our top picks pack in valuable perks, including some that offer $0 commissions and big bonuses.
There's no single best stock broker, it all depends on what your needs are and investment style. Think about the type of account you might need, what your investment goals and strategies are, and what tools you might need to support them. Most top brokers offer commission-free trading, but it's worth looking at other fees that could eat into your investments.
E*TRADE is now part of Morgan Stanley, but it offers different accounts and products to suit a broader range of investment needs. The company says you get Morgan Stanley's decades of experience as well as E*TRADE's trading tools, making it a win-win.
Neither E*TRADE nor Fidelity charges monthly fees. Both offer commission-free trading on U.S. stocks, ETFs, and some mutual funds. Check out their fee schedules to understand what services you might be charged for.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
E*TRADE services are available just to U.S. residents.
E*TRADE services are available just to U.S. residents.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
