E*TRADE vs Fidelity Investments
An honest side-by-side comparison of two of our top investment platforms picks — pricing, strengths, weaknesses, and who each one is really for.
E*TRADE
Ranked #5 of 15 in this directory
Established online brokerage with powerful tools now part of Morgan Stanley
Fidelity Investments
Ranked #1 of 15 in this directory
Full-service brokerage with zero-commission trades and industry-leading research
Our pick: Fidelity Investments. Our editors rank Fidelity Investments higher overall in Investment Platforms — but E*TRADE can be the better fit depending on your budget and use case below. How we review
Compare the details
| E*TRADE | Fidelity Investments | |
|---|---|---|
| Pricing model | Freemium | Freemium |
| Starting price | See website | See website |
| Category | Brokerage | Brokerage |
| Editorial rank | #5 of 15 | #1 of 15 |
Strengths
E*TRADE
- ✓Power E*TRADE platform offers excellent options and futures trading tools
- ✓Morgan Stanley integration provides premium research access
- ✓Wide range of investment products including managed portfolios
- ✓Strong mobile app for both casual and active investors
- ✓Comprehensive retirement account options and planning tools
Fidelity Investments
- ✓Zero-commission trades on stocks, ETFs, and options
- ✓Zero-expense-ratio index funds (FZROX, FZILX) with no investment minimum
- ✓Best-in-class research and educational resources
- ✓Over 200 physical investor centers for in-person guidance
- ✓Fractional shares available starting at $1
Watch out for
E*TRADE
- !Some advanced features are only available on specific platforms
- !Mutual fund commissions apply for non-NTF funds
- !Account interface can feel fragmented between E*TRADE and Morgan Stanley
- !Margin rates are higher than some discount competitors
Fidelity Investments
- !Active Trader Pro desktop app has a steeper learning curve
- !Mutual fund selection can be overwhelming with thousands of options
- !International stock trading fees apply and are higher than some competitors
- !Website navigation can feel dated compared to newer platforms
Best use cases
E*TRADE
- →Options trader wanting powerful analysis tools on Power E*TRADE
- →Employee with Morgan Stanley stock plans wanting an integrated brokerage
- →Active trader seeking a well-established platform with comprehensive tools
Fidelity Investments
- →Long-term investor wanting zero-cost index funds and no commissions
- →Retiree needing a full-service platform with in-person investor center access
- →Active trader seeking powerful tools and best-in-class research
About each tool
E*TRADE
E*TRADE, now a subsidiary of Morgan Stanley, is a pioneer in online brokerage offering zero-commission trading, the Power E*TRADE platform for active traders, and a comprehensive range of investment products. The integration with Morgan Stanley has expanded E*TRADE's capabilities to include access to Morgan Stanley research and workplace stock plan management.
Fidelity Investments
Fidelity is one of the largest and most respected investment platforms in the world, managing trillions in customer assets. The company offers zero-commission trading on stocks, ETFs, and options, along with proprietary zero-expense-ratio index funds that literally cost nothing to own. Fidelity's research platform is consistently rated best-in-class, and the company provides a full suite of retirement accounts, managed portfolios, and financial planning services. With 24/7 customer support, over 200 investor centers, and a powerful active trader platform in Active Trader Pro, Fidelity serves everyone from beginners to sophisticated investors.
Still deciding? Browse all 15 options with honest pros, cons, and pricing.
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