Interactive Brokers vs. Fidelity

If you plan to take your investing to the next level - either through day trading or in-depth fundamental analysis as part of your long-term investment strategy, both Interactive Brokers and Fidelity offer excellent analysis tools, educational resources and real-time market data. But that's the baseline. What makes each unique? Finding the right platform for your trading style and financial goals can simplify building your portfolio. Read on to choose between Interactive Brokers or Fidelity to grow your portfolio this year. 

Fees

Both Interactive Brokers and Fidelity have low fees and no commissions on certain trades. Both platforms also have a minimum deposit of $0. 

Interactive Brokers (IBKR) charges $0 on U.S. stock investing purchases or sales with an IBKR Lite subscription. With IBKR Pro, the cost per trade is $0.005 per share, with no transaction fees on exchange-traded funds (ETFs). It charges $0.65 per options contract and $0.85 per futures contract. It also has optional tiered pricing. 

Fidelity has $0 commission on U.S. stocks, ETFs, and option trades. It charges $1 per bond or CD for secondary trading. It also offers zero expense ratio index mutual funds and $0 for Fidelity and hundreds of other funds. 

Winner: 

Fidelity wins for lower fees ($0 commissions) on a wider range of asset classes, including options trades, to get into the world of options. Fidelity does not have any monthly fees for brokerage accounts.

Accounts and Features

Both Interactive Brokers and Fidelity provide enhanced trading experiences, including advanced data analysis, real-time information, and innovative trading features. Both brokerages offer choices from robo-advisors, portfolio management software, and charts for technical analysis. They don't require a minimum account size.

However, having a diverse portfolio is key, and for that, you need access to a wide range of tradable assets. Both Interactive Brokers and Fidelity offer a wide range of tradable assets, including stocks, bonds, mutual funds, and options.

In this case, Interactive Brokers has a slight advantage. In addition to stocks, bonds, mutual funds, options, and ETFs, you can trade metals, forex, fixed-income securities, and even hedge funds. It also gives you access to 150 global markets, including futures trading algorithms and futures trading in over 35 market centers globally. You can also access futures trading guides. 

That's not to say Fidelity is lacking. It provides an impressive array of investment choices, including long and short stocks, corporate treasury municipal CDs bonds with single-leg and multi-leg options trading capabilities, and bond resources. Fidelity also offers forex trading in sixteen currencies across one hundred ninety pairs through four live brokers.

Fidelity also allows fractional shares on mobile apps, making accessing a diversified portfolio with any account size easier. It even has a presence in the Metaverse if you want to explore that, as well as brick-and-mortar locations. 

Winner: 

It's a tie. Both Fidelity and Interactive Brokers have excellent features. If you want to focus on futures, IBKR has an edge, while Fidelity is better for investors who want to explore traditional shares. You can check out Benzinga's full Fidelity review or Interactive Brokers review for additional details on the features. 

Mobile App

Both Interactive Brokers and Fidelity offer robust and convenient mobile trading solutions with comprehensive features and ease of use across different devices, including Android and Apple devices and tablets. You can also trade directly on their websites. 

Winner: 

It's a tie. Fidelity and Interactive Brokers offer an excellent mobile app and easy user access. 

Customer Support

When choosing a broker, customer support is essential to get reliable support when needed. Both Interactive Brokers and Fidelity are known for good customer support. 

Interactive Brokers has customer support for U.S. clients from 7 a.m. until 7 p.m. CST, five days a week. They also provide shorter Sunday sessions. Outside the U.S., Interactive Brokers has phone numbers available along with service hours based on your time zone or region. They also have a chatbot to answer basic questions efficiently.

Fidelity manages approximately 200 offices across multiple states in the U.S., meaning you can get help by walking into a physical location or calling your local office during regular business hours. 

They also offer 24/7 phone support and human chat service (with fewer hours than the phone service). Fidelity’s website has a robo-chat system and link section that leads directly to common requests about account balances, transaction history, or other FAQs. 

Winner: 

Both brokers are known for excellent customer service, but Fidelity offers easier access, including 24/7 support and in-person options, so it's the winner here. 

Ease of Use

Interactive Brokers and Fidelity offer user-friendly features and quick account setup processes. You could create an account on either platform in minutes. If you want a diversified portfolio with low-cost index funds, Fidelity could be a better choice with no fees and quick setup.

However, Interactive Brokers is a better choice if you want to start paper trading options to practice and familiarize yourself with the platforms without financial risk. It's also a better choice if you want to trade futures or improve your day trading skills. 

Winner: 

Interactive Brokers is the winner for its free paper trading options. You can master your trading techniques and analysis skills without risking losses so you're comfortable with trading strategies that work. 

Safety

Interactive Brokers and Fidelity ensure investors' safety through regulation, account protection, and security measures. Both companies have an excellent reputation for top-notch services and compliance. 

Interactive Brokers is a member of NYSE–FINRA – SIPC and is regulated by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It follows stringent guidelines set forth by these regulatory bodies to protect its clients’ safety and security.

Similarly, Fidelity is also an SEC-registered broker-dealer and a member of NYSE-SIPC. They have been around since 1946 and have an impressive security track record. Their adherence to regulatory standards protects their clients, who trust them with their investments through the highest security.

Winner: 

It's a tie. Both Interactive Brokers and Fidelity have excellent regulatory compliance to protect your data and investments and are trusted by the best online stock brokers. 

Frequently Asked Questions