Etrade vs Fidelity 2012: Commissions, Fees and Investments
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- Stocks and ETFs: $9.99 if 0-149 trades per quarter; $7.99 if 150+ trades per quarter
- Options: $9.99 plus $0.75/contract if 0-149 trades per quarter; $7.99 plus $0.75/contract if 150+ trades per quarter
- Mutual Funds: $19.99
- Futures contracts: $2.99 per contract, per side + fees
- Investment products: stocks, bonds, mutual funds, futures, options, ETFs
- Minimum to open Etrade account: $2,000 for margin account. For securities accounts (except retirement accounts), an account minimum deposit of
either at least $500 in cash or a deposit of securities is required within 60 days of account opening for the account to remain active. There is no initial minimum deposit requirement for retirement, custodial, or employee stock plan accounts. Accounts not meeting the minimum deposit requirement will be closed after 60 days.
- All Etrade fees
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- Stocks and ETFs: $7.95
- Stocks and ETFs broker assisted: $32.95
- Stocks and ETFs FAST (automated service phone): $12.95
- Options: $7.95 plus $0.75/contract
- Mutual Funds: $75 per transaction, 1,400 NTF mutual funds
- Bonds: U.S. Treasury Auctions, incl. TIPS Auctions, U.S. Treasury Bills, Notes, Bonds, incl. TIPS - free
- GSE (Agency Securities), secondary CDs, Municipals, Corporates (BBB- or higher), CATS/TIGRS, Corporates (BB+ or lower): $1 per bond, $8 minimum,
$250 maximum
- Commercial Paper: $50 per transaction
- Investment products: stocks, bonds, mutual funds, options, commercial paper, forex, foreign stocks, UITs, precious metals, ETFs
- Minimum to open Fidelity account: $2,500
- All Fidelity fees
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Etrade vs Fidelity Investments: Pros
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- Very good trading tools
- No IRA account fees, no minimums with electronic statements and confirms
- Minimum to open: $1,000 for cash account, $2,000 for margin account
- Banking products: checking, savings, money market accounts, CDs and credit cards
- No surcharges on large orders, penny stocks and extended hours trading
- Great research amenities
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- Great research tools with largest selection of independent research
- Low-cost Fidelity mutual funds
- Rich selection of investment products
- No surcharges, except for $0.0192 per $1,000 of principal in addition to commission that is added to sell orders
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Etrade vs Fidelity Investments: Cons
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- High commissions on all investment products
- High margin rates
- Customer service complaints
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- Extremely high commission ($75 per transaction) on non-Fidelity mutual funds
- Website is going down or becoming slow on high-volume days
- $12 annual Low Balance Fee for each noncore Fidelity mutual fund if balance is under $2,000
- $75 (minimum) mutual fund Short Term Redemption Fee (if mutual fund sold in less than 180 days after purchase)
- High margin rates
- Foreign currency wires: up to 3% of principal
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Etrade vs Fidelity Investments: Comparison Summary
We start our review by comparing trading costs. Fidelity (Fidelity Review)
commissions are now less expensive than at
Etrade (Etrade Review):
$7.95 and $9.99 respectively for stock and ETF trades. But mutual funds transactions are $19.99 at Etrade and an amazing $75 at
Fidelity (!) (with an exception of Fidelity own funds). Both brokerage companies do not have account maintenance and inactivity
fees as well as no surcharges on large orders, extended hours trading and stocks under $1.
Fidelity's main advantage over Etrade is the best in the industry selection of independent research. However, few people ever
use this feature.
Etrade comes ahead in banking services, trading tools and customer service. Out of these two firms, it is also a better choice
(but far from the best!) for a Brokerage for Beginner Investors.
When comparing IRA accounts,
both companies fall short: Fidelity disappoints with its fees and Etrade is just
too expensive for any kind of account.
Both brokerage houses offer some value to prospective customers, but their commissions are higher than average
in the industry. Etrade is a decent choice for "buy-and-hold" investors. For everybody else we recommend
researching companies in Best Brokerage Firms article, where customers
pay lower commissions and save hundreds or, more often, thousands of dollars over the years in investment costs.
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