In the world of online brokerage services, two prominent players stand out: Fidelity and Interactive Brokers. It’s like comparing apples and oranges, each with its own unique qualities and offerings. Fidelity, a well-established name in the financial services industry, provides a comprehensive range of banking options and investment products. On the other hand, Interactive Brokers, the largest electronic trading platform in the U.S., focuses solely on brokerage services. While Fidelity offers no commission trades for certain investments, Interactive Brokers’ fees vary depending on the chosen pricing plan.
Both platforms grant access to a wide array of investment options, including mutual funds, ETFs, stocks, bonds, and even cryptocurrencies. Fidelity boasts a physical presence with brick-and-mortar locations and a network of financial advisors, whereas Interactive Brokers offers digital advice through themed portfolios. While Fidelity’s desktop platform is more intricate, both companies offer online and mobile tools. Ultimately, Fidelity caters to investors seeking a one-stop-shop for financial services at competitive prices, while Interactive Brokers appeals to those desiring a straightforward, cost-effective brokerage platform.
Key Takeaways
- Fidelity and Interactive Brokers are online brokerage services.
- Fidelity offers banking options and its own investment products, while Interactive Brokers is purely a brokerage company.
- Fidelity offers no commission trades for stocks, bonds, and most mutual funds.
- Interactive Brokers fees depend on the pricing plan chosen, with stock and ETF trades being free with the Lite plan.
Fidelity vs Interactive Brokers: Comparison of Services
Both Fidelity and Interactive Brokers offer a range of services including trading tools, analysis, access to various investment options, and robo-advisor services. However, there are some differences between the two platforms. Fidelity not only provides these services but also offers banking options and its own investment products. On the other hand, Interactive Brokers focuses solely on brokerage services.
| Services and Features | Fidelity | Interactive Brokers |
|---|---|---|
| Account Types | Individual, Joint, Custodial, IRA, 401(k), and more | Individual, Joint, IRA, Trust, Corporate, and more |
| Tradable Instruments | Stocks, Bonds, Mutual Funds, ETFs, Options, Futures, Forex, and more | Stocks, Bonds, Mutual Funds, ETFs, Options, Futures, Forex, and more |
| Commission | $0 for Online U.S. stock, ETF, and option trades | Varies by asset class and trading venue |
| Inactivity Fee | None | $10/month if account balance is less than $100,000 and no trades are made in a month |
| Account Minimum | $0 | $0 for individuals under 25 years old, $100 for IBKR Lite accounts, $1,000 for IBKR Pro accounts |
| Research and Analysis | Extensive research tools, market insights, and educational resources | Research and market data available, additional subscriptions may apply for advanced research |
| Trading Platforms | WebTrader, Active Trader Pro, Mobile App | Trader Workstation (TWS), WebTrader, Mobile App, API Solutions |
| Order Types | Market, Limit, Stop, Stop-Limit, Trailing Stop, and more | Market, Limit, Stop, Stop-Limit, Trailing Stop, and more |
| Mobile Trading | Available | Available |
| Regulation | Regulated by the U.S. Securities and Exchange Commission (SEC) and FINRA | Regulated by the U.S. Securities and Exchange Commission (SEC), FINRA, and other global regulatory bodies |
| Customer Support | Phone, Email, Live Chat | Phone, Email, Live Chat, Secure Message Center |
Both platforms give investors access to a wide range of investment options such as mutual funds, ETFs, stocks, bonds, and even cryptocurrency. In terms of customer support, Fidelity has an extensive network of financial advisors available for users, providing personalized assistance. In contrast, Interactive Brokers offers digital advice with themed portfolios. Therefore, while both platforms offer comprehensive services and investment options, Fidelity stands out for its additional banking options and extensive network of financial advisors.
Interactive Brokers vs Fidelity: Fees and Pricing
With regards to fees and pricing, investors can expect differing cost structures when comparing the two online brokerage services, which may significantly impact their investment strategy and overall returns. Fidelity offers no commission trades for stocks, bonds, and most mutual funds, making it an attractive option for cost-conscious investors. Additionally, Fidelity does not have any account minimums, allowing investors to start with any amount they are comfortable with.
| Fees and Pricing | Interactive Brokers | Fidelity |
|---|---|---|
| Commission on Stocks | Varies by region and exchange | $0 per trade for U.S. stocks and ETFs |
| Commission on Options | Per contract fee, plus exchange and regulatory fees | $0.65 per contract |
| Commission on Mutual Funds | Varies by fund class | $0 for Fidelity funds, $49.95 for non-Fidelity funds |
| Commission on Bonds | Varies by bond type | $1 per bond ($1 minimum, $250 maximum) |
| Commission on Forex | Spread-based pricing | Varies by currency pair |
| Account Maintenance Fee | $0 | $0 |
| Inactivity Fee | $10/month if account balance is less than $100,000 and no trades are made in a month | None |
| Account Minimum | $0 for individuals under 25 years old, $100 for IBKR Lite accounts, $1,000 for IBKR Pro accounts | $0 for most accounts, $2,500 for margin accounts |
| Cash Withdrawal Fee | $1 per withdrawal | $0 per withdrawal |
| Wire Transfer Fee | $10 per USD withdrawal, $4 per EUR withdrawal | $0 for domestic wire, $10 for international wire (waived for accounts over $100,000) |
| Paper Statement Fee | $5 per statement | $0 |
| Check Fee | $5 per check | $0 |
On the other hand, Interactive Brokers fees depend on the pricing plan chosen, with stock and ETF trades being free with the Lite plan. However, Interactive Brokers does have an account minimum of $0 for the Lite plan and $100,000 for the Pro plan. These varying commission structures and account minimums should be carefully considered by investors when choosing between Fidelity and Interactive Brokers.
User Experience of Fidelity and Interactive Brokers
Regarding the user experience, the platforms of Fidelity and Interactive Brokers offer different features and functionalities that can impact investors’ overall satisfaction and ease of use. Here are four key aspects to consider:
- User Interface: Fidelity’s desktop platform offers a more complex interface with a wide range of tools and customization options. On the other hand, Interactive Brokers focuses on simplicity and efficiency, providing a straightforward interface that may appeal to investors who prefer a streamlined experience.
- Mobile App: Fidelity’s mobile app has a higher rating in the iPhone app store compared to Interactive Brokers. It offers a user-friendly interface with easy navigation and a comprehensive set of features, including trading, research, and account management capabilities. Interactive Brokers’ mobile app also provides essential functionalities but may lack some advanced features available on Fidelity’s app.
- Customer Support: Fidelity has an extensive network of financial advisors available for in-person consultations and guidance, providing personalized support to investors. In contrast, Interactive Brokers offers digital advice with themed portfolios and limited access to human advisors. This difference in customer support options may be a crucial consideration for investors who value one-on-one assistance.
- Online Tools and Programs: Both Fidelity and Interactive Brokers offer online and mobile tools to help investors make informed decisions. However, Fidelity’s desktop platform provides more extensive research and analysis tools, including real-time streaming quotes, advanced charting, and customizable watchlists. Interactive Brokers also offers research tools but with a more simplified approach.
Overall, the user experience of Fidelity and Interactive Brokers platforms varies in terms of user interface, mobile app functionality, customer support options, and available online tools and programs. Investors should consider their specific needs and preferences when choosing between these two brokerage services.
Frequently Asked Questions
Can I transfer my existing investments from another brokerage to Fidelity or Interactive Brokers?
Transferring investments from another brokerage to Fidelity or Interactive Brokers is possible. However, it is important to consider certain factors such as account fees. Both Fidelity and Interactive Brokers may charge fees for transferring investments, although the specific fees may vary. It is recommended to review the terms and conditions of each platform to determine the costs associated with transferring investments.
Do Fidelity and Interactive Brokers offer options trading?
Both Fidelity and Interactive Brokers offer options trading to their clients. Options trading allows investors to buy or sell options contracts, which gives them the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period. However, there are differences in fees and commissions between the two platforms. Fidelity offers no commission trades for stocks, bonds, and most mutual funds, while Interactive Brokers fees depend on the chosen pricing plan, with stock and ETF trades being free with the Lite plan.
Can I open an individual retirement account (IRA) with Fidelity or Interactive Brokers?
Yes, individuals can open an Individual Retirement Account (IRA) with both Fidelity and Interactive Brokers. IRA eligibility requirements generally include being under the age of 70½ and having earned income. However, it is important to note that IRA account fees may apply. These fees can vary depending on the brokerage firm and the specific type of IRA account chosen. It is advisable to carefully review the fee structure of each platform before opening an IRA account.
What are the customer service hours for Fidelity and Interactive Brokers?
Fidelity and Interactive Brokers both offer customer service support to their users. Fidelity provides 24/7 customer support, ensuring assistance is available at all times. On the other hand, the specific customer service hours for Interactive Brokers are not mentioned in the provided information. However, it is important to note that the average response time for customer inquiries can vary depending on the platform and the nature of the inquiry.
Do Fidelity and Interactive Brokers offer paper trading or virtual trading accounts for practice?
Both Fidelity and Interactive Brokers offer paper trading or virtual trading accounts for practice. Virtual trading benefits include the ability to test investment strategies, practice trading techniques, and gain familiarity with the platform without risking real money. While both platforms offer this feature, a comparison of their paper trading features reveals some differences. Fidelity’s virtual trading account offers a customizable dashboard and access to advanced order types, while Interactive Brokers’ paper trading account provides real-time market data and the ability to test algorithmic trading strategies.
