Fidelity vs OptionsHouse: Commissions and Investments
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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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- Stocks and ETFs: $3.95
- Stocks and ETFs Broker assisted: $3.95
- Two plans for options:
1. Up to five contracts for $5; each additional
contract $1
2. $8.50 + 0.15/contract (great if trading over 10 contracts)
- Two plans for spreads:
1. Up to 10 contracts for $10; each additional
contract $1
2. $12.50 + 0.15/contract
- Mutual Funds: $9.95
- Orders for U.S. treasury bonds and listed corporate bonds are accepted by phone
- Investments: stocks, options, mutual funds, bonds, ETFs
- Minimum to open Optionshouse account: $1,000 for cash account, $2,000 for margin account
- All Optionshouse fees
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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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- Lowest commissions
- Free streaming quotes
- Efficient trading tools
- No account minimums. Minimum initial funding size is $1,000 for a cash account and $2,000 for a margin account
- No fee IRA accounts
- No volume requirements, maintenance and inactivity fees
- Free check-writing privileges
- Free DRIPs (complete shares only)
- No surcharges for large orders and extended hours trading
- Very low margin rates
- Free virtual trading
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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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- For stocks priced $2 or less that are not options eligible, add $0.005 per share for the entire order
- Shortened extended hours trading: 8:00 am - 9:30 am and 4:00 pm - 5:00 pm EST
- International investors are not accepted
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OptionsHouse vs Fidelity: Comparison Summary
When it comes to commissions and fees, these companies could not be more different:
Optionshouse (Optionshouse Review)
is one of the cheapest brokerage firms in the industry.
In 2011 Fidelity (Fidelity Review)
left the ranks of one of the most expensive brokerage houses, but still customers pay $3.95 for stock and ETF trade at
Optionshouse and $7.95 at Fidelity.
Fidelity offers richer array of investment products as well as many free Fidelity mutual funds. But
if you want to buy non-Fidelity mutual fund you will have to pay $75 in commissions! At Optionshouse all mutual
funds are just $9.95 per transaction.
Unlike Fidelity, Optionshouse does not have annual IRA fees and it's one of the
Best IRA Companies in 2012.
The firm is also made it into our Top Rated Brokerage Houses list.
Both companies don't have surcharges on large orders and extended hours trading. Optionshouse
has no maintenance and inactivity fees but Fidelity could charge Low Balance Fee in some instances.
Optionshouse is better brokerage firm for beginner investors, offering free virtual trading, where investors could practice trading
without risking real money.
Based on dramatically lower commissions and fewer fees, which could save investors thousands of dollars over the years,
we definitely recommend Optionshouse.
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