4-star brokerage firm rating

Etrade Review

4-star brokerage firm rating

Fidelity review

Etrade vs Fidelity Investments



Etrade vs Fidelity 2014: Account Pricing, Commissions, Fees




Etrade


Fidelity Investments

  • Stocks and ETFs: $9.99 ($7.99 if making 150+ trades per quarter)
  • Stocks and ETFs broker assisted: $34.99
  • Options: $9.99 + $0.75 per contract ($7.99 + $0.75 if making 150+ trades per quarter)
  • Mutual funds: $19.99
  • Futures contracts: $2.99 per contract, per side + fees
  • Forex: markup or markdown will be included in the prices quoted on the E*TRADE FX trading platform
  • Fixed Income: markup or markdown and any transaction fee will be included in the price quoted
  • Bonds: $1 per bond (minimum $10, maximum $250) for online secondary market trades. Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities.
  • Investment products: stocks, bonds, mutual funds, forex, fixed income, futures, options, ETFs
  • Etrade minimum deposit to open account: $500 for non-retirement cash account, $0 for retirement cash account, $2,000 for margin account
  • All Etrade fees

  • Stocks and ETFs: $7.95
  • Stocks and ETFs broker assisted: $32.95
  • Stocks and ETFs FAST (automated service phone): $12.95
  • Options: $7.95 + $0.75 per contract
  • Mutual funds: $75
  • Bonds (U.S. Treasury Auctions, including TIPS Auctions, U.S. Treasury Bills, Notes), primary market CDs: on a net yield basis
  • GSE (Agency Securities), secondary CDs, Municipals, Corporates (BBB- or higher), CATS/TIGRS, Corporates (BB+ or lower): $1 per bond ($250 max.; $50 max if maturing in one year)
  • Commercial Paper: $50 per transaction
  • Investment products: stocks, bonds, mutual funds, options, commercial paper, forex, foreign stocks, UITs, precious metals, ETFs
  • Fidelity minimum deposit to open account: $2,500
  • All Fidelity fees




Etrade vs Fidelity Investments: Pros




Etrade


Fidelity Investments

  • No account maintenance or inactivity fees
  • Large and well established company
  • Powerful trading tools
  • No IRA account fees, and no minimums with electronic statements and confirmations
  • Low minimums to open accounts: $500 for cash account, $0 for retirement cash account, $2,000 for margin account
  • Banking products available: checking, savings, money market accounts, CDs, and credit cards
  • No surcharges on large orders or penny stocks
  • Great research amenities from S&P, MorningStar, Thompson Reuters, Credit Suisse, Smart Consensus
  • Access to trading on 40 foreign exchanges
  • Free streaming quotes
  • Very broad selection of products: 8,000 mutual funds, every ETF sold, over 30,000 bonds, securities from 77 international markets, 1,300 no-load, no-transaction fee mutual funds, 90 commission-free ETFs

  • Great research tools with large selection of independent research from 12 firms
  • Low-cost Fidelity mutual funds
  • Free DRIPs (dividend reinvestment plans)
  • Rich selection of investment products
  • Good banking services
  • No surcharges, except for $0.0192 per $1,000 of principal in addition to commission that is added to sell orders




Etrade vs Fidelity Investments: Cons




Etrade


Fidelity Investments

  • High commissions on stocks and ETFs
  • High margin rates
  • $0.005 per share surcharge on extended hours trades (ECN fee) and on trades executed through E*TRADE Pro at an ECN during both regular market and extended hours sessions
  • E*TRADE Pro platform is available at no charge only to customers who execute at least 30 stock or options trades during a calendar quarter

  • Extremely high commissions ($75 per transaction) on non-Fidelity mutual funds
  • $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 a mutual fund is sold less than 180 days after purchase)
  • High margin rates
  • Foreign currency wires cost up to 3% of principal
  • No free streaming quotes (these are available only to active traders, which requires 120+ trades per year via the Active Trader Pro platform)




Etrade vs Fidelity Investments: Comparison Summary



We start this brokerage review by comparing the two companies' investing costs. Fidelity Investments (Fidelity Review) commissions are now less expensive than at E*trade (E*trade Review): $7.95 and $9.99 respectively for stock and ETF trades. But mutual fund transactions are $19.99 at Etrade and an amazing $75 at Fidelity (!). The two firms offer large selection of NTF or no-transaction fee mutual funds. Both brokerage companies do not have surcharges on large orders and on stocks priced 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 enough to appreciate the difference. Unlike the competitor, the company does not offer free streaming quotes to all its customers.

Etrade comes ahead in banking services and trading tools. Out of these two firms, it is also a better choice for a Beginner Investor Account.

When comparing IRA accounts, Fidelity Investments' fees might diminish returns for some customers. Etrade's no-fee approach makes it a more appealing choice for an individual retirement account.

Both brokerage houses offer a lt of value to prospective customers but their commissions are higher than average in the industry. Etrade is a good choice for "buy-and-hold", long-term and mutual funds investors who rarely trade as well as for IRA accounts. Fidelity Investments is great for those looking to invest mostly in Fidelity-family of mutual funds.


Etrade Promotion - 60 days free
trading + up to $600 bonus:

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Fidelity Promotion - no promotion
at this time:

Fidelity review

This article was updated on 1/13/2014.



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Review discount online brokerage firms comparison: Etrade or Fidelity Investments? Differences between investment companies. Recommendation for stocks, options, ETFs, mutual funds, bonds investors. Fidelity versus Etrade for beginner investors, long term, individual retirement accounts, active/day traders. See what stock broker service is better, cheaper, offers lower fees, cost, rated higher and easier to use. Which you should choose?


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