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Fidelity vs OptionsXpress



OptionsXpress or Fidelity Investments: Commissions and Investments




OptionsXpress


Fidelity

  • Stocks and ETFs: $8.95
  • Options (active traders): $12.95 for up to 10 contracts, $1.25/contract for over 10 contracts
  • Options (non-active traders): $14.95 for up to 10 contracts, $1.50/contract for over 10 contracts
  • Mutual Funds: $9.95
  • Bonds: $5 per bond, $9.95 minimum
  • Futures: 1-40 contracts $6.99; 41-100 contracts $5.99; 101-300 contracts $4.99; 301-1,000 contracts $3.99; 1,001 + contracts $2.99
  • Options on Futures: 1-40 contracts $12.99; 41-100 contracts $8.99; 101-300 contracts $7.99; 301-1,000 contracts $6.99; 1,001 + contracts $5.99
  • Covered Calls: $22.90 up to 10 contracts
  • Penny Options: 1-10 contracts $4.95 flat; 10 + $0.50/contract
  • Spreads, Straddles & Combos: 2-10 contracts - $12.95 Flat (active traders) $14.95 Flat (non-active traders); 10 + contracts - $1.25/contract (active traders); $1.50/contract (non-active traders)
  • Investments: stocks, options, mutual funds, bonds, futures, options on futures, covered calls, ETFs
  • Minimum to open OptionXpress account: $0 for cash account, $2,000 for margin account
  • All OptionXpress 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 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




OptionsXpress vs Fidelity: Pros



OptionsXpress


Fidelity

  • Best customer service
  • Many well-designed trading tools and cutting-edge trading technology
  • Free streaming quotes
  • $100 bonus for opening new account
  • No fee IRA accounts
  • Great research
  • Free paper trading
  • No money down to open new account
  • Free account transfers
  • Free instructor lead online classes
  • Free broker-assisted trading
  • Free dividend reinvestment (contact customer service)
  • No platform fees

  • 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




OptionsXpress vs Fidelity: Cons



OptionsXpress


Fidelity

  • Higher than average commissions on stocks and ETFs

  • 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




Fidelity vs OptionsXpress: Comparison Summary



OptionsXpress (OptionsXpress Review) has somewhat higher commissions on stocks and ETFs than Fidelity (Fidelity Review): $8.95 versus Fidelity's $7.95 per trade. With Fidelity, any non-Fidelity mutual fund will cost $75 per transaction! At OptionsXpress any mutual fund is just $14.95 per transaction.

Fidelity offers richer array of investment products, better research as well as many free Fidelity mutual funds.

OptionsXpress provides better customer service and trading tools. There are no hidden fees. The firm offers free virtual trading where investors could try different trading strategies without risking their money. Beginner investors could also improve their investing knowledge by taking advantage of free online instructor lead classes.

Unlike Fidelity, OptionsXpress does not have annual IRA fees and the firm is in our Best IRA Companies list.

Both companies don't have surcharges penny stocks and extended hours trading. In 2012 we rated OptionsXpress one of the Best Brokers. Out of these two brokerage firms, it is clearly a better choice. Investors could open cash account at the firm and give it a try with no obligation and no money down.

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