Companies like Fidelity

Fidelity Competitors


Who are the biggest Fidelity competitors and alternatives? Fidelity Investments competitor and similar companies in 2022.


Fidelity Competition Overview


Fidelity Investments has been in business for over 75 years, and they have developed a reputation as one of the most solid and trustworthy brands in the investment world. Overall, Fidelity has a fantastic offering of brokerage products, financial services, and pricing. However, there are a few older Fidelity competitors and many new Fidelity competitors for investors to choose from today.

One of Fidelity’s main older competitors is TD Ameritrade. Two of Fidelity’s main newer competitors are Robinhood and Webull. There are many other brokers out there, but we are going to focus on these three as Fidelity alternatives.


Fidelity Competitors Commissions and Fees


Let’s start off by comparing what many investors focus on the most when deciding which broker to use – commissions and fees. Fidelity maintains a very competitive offering of low commissions and fees across the board, but their competitors have them beat in certain categories.

Fidelity offers $0 commissions on all online U.S. equity trades, online ETF trades, and online options trades. Even though Fidelity doesn’t charge any commissions for options trades, they do charge $0.65 per contract on options trades. Fidelity’s margin borrowing rates fall somewhere in the middle of the industry ranging from 4.750% to 9.075%.

All three of the Fidelity competitors we are discussing join Fidelity in the $0 commissions club. TD Ameritrade, Robinhood, and Webull all offer $0 commissions for online U.S. equity trades, online ETF trades, and online options trades. TD Ameritrade matches Fidelity’s model of charging $.65 per contract on options trades. Both Robinhood and Webull separate themselves from the competition by not charging any per contract fee on options trades.


Fidelity alternative


TD Ameritrade falls far in last place, out of the four brokers, with their high margin borrowing rates ranging from 9% to 11%. Webull has the second-lowest margin borrowing rates ranging from 2.99% to 6.99%. Robinhood by far has one of the lowest margin borrowing rate offerings in the industry with just one fixed rate of 4.25% for a margin balance over $1,000.


Promotions


TD Ameritrade: $0 commissions + transfer fee reimbursement.

Robinhood: Get one FREE stock when you open an account.

Webull: 6 FREE stocks valued $34-$12,600 give-away at Webull.



Fidelity Competitors Crypto Trading


One of the largest holes in Fidelity’s brokerage offering is that they don’t currently offer any cryptocurrency trading. You cannot hold, transfer, or trade crypto with Fidelity at all. The same is true with Fidelity’s older competitor TD Ameritrade. These two brokers are missing out on a large growing market share of investors that are interested in crypto by not being able to compete in this area.


Fidelity alternatives


Both Robinhood and Webull offer crypto trading. These mobile-app-focused brokers were fairly quick to adopt trading capabilities in the crypto markets as the demand for crypto trading has exploded. Robinhood (Robinhood crypto review) gives investors the ability to trade in 10+ cryptocurrencies and Webull (Webull crypto reiew) offers trading in 40+ cryptocurrencies.


Fidelity Competitors Mobile Apps


Fidelity’s mobile app has historically not been the most user-friendly or had the greatest user interface. The app contains a lot of great information and useful tools, but it can be described as a bit archaic. The other three brokers are significantly better Fidelity alternatives for investors looking for a fantastic mobile app.

For serious traders, both Webull and TD Ameritrade have amazing mobile apps. The charting features of Webull and TD Ameritrade’s mobile apps blow Fidelity’s mobile app charts out of the water. Webull and TD Ameritrade’s charts equip traders with lots of customization options, popular technical indicators to choose from, and awesome user interfaces.


Fidelity Competition


For more casual traders or newer investors, Robinhood’s mobile app is much more user-friendly than Fidelity’s. Robinhood’s mobile app has an easy-to-use interface, and they provide investors with helpful tips and explanations throughout the process of placing a trade. Another distinction between Fidelity’s mobile app versus both Robinhood and Webull’s mobile apps is how much easier it is to find investment ideas and do research on Robinhood and Webull.


Fidelity Rival


Order Execution Speed & Quality


Fidelity claims that its order execution quality is one of its strongest selling points. They publish transparent data on their website regarding their order execution quality. They claim to be able to save investors an average of $19.24 on a 1,000-share equity order with their price improvement compared to an industry average of just $4.65 in savings. They also claim to have an average execution speed of 0.05 seconds and to execute 98.5% of orders at or within the National Best Bid and Offer (NBBO).

These are competitive numbers but the other three brokers we are discussing also publish transparent order execution quality data on their websites and have some impressive numbers. TD Ameritrade claims to provide price improvement on 97.5% of executed market orders and to have an average order execution speed of 0.04 seconds for market orders. Webull claims to have an order execution speed of 0.045 seconds for orders containing 500 - 1,999 shares and a rate of 99.47% of shares executed at or better than NBBO for orders in this share range. Robinhood claims to execute 96.79% of orders at the NBBO or better and to save investors an average of $1.72 per 100 shares traded.


Education Resources


Webull and Robinhood both have very helpful FAQ sections about a variety of relevant investing topics on their websites and apps. However, outside of the FAQ sections, neither broker provides investors with extensive educational resources to learn about topics such as trading, investing, and the markets.


Fidelity Main Competitor


Fidelity and TD Ameritrade have two of the best education resource offerings in the industry on their websites. Both brokers have a treasure trove full of content for investors to learn about dozens of different topics including trading, investing, and the markets. Their content includes all forms of learning media such as articles, videos, and courses.


Fidelity similar companies


It would be difficult for any other broker to compete with Fidelity and TD Ameritrade’s education resources offerings unless they were able to package all the same type of educational content nicely in their mobile app. For new or experienced investors, Fidelity and TD Ameritrade are at the top in the category of education resources.


Customer Service


One of Fidelity’s greatest competitive advantages over almost every other broker is its customer service. Customers can contact Fidelity via phone or online chat literally 24/7 on any day of the year, including weekends and holidays. It’s not only the fact that Fidelity is always available for their customers but in addition, the quality of Fidelity’s customer service is excellent.

TD Ameritrade is one of the few firms that rivals Fidelity in the area of customer service. They also offer phone support 24/7 and their customer service representative are great. Webull has a customer service phone number on their website, but they are only available Monday-Friday between 9 am-4:15 pm EST. Outside of those hours, you can send Webull a message through their app and they will get back to you within a day or two.

Robinhood is notorious for the lack of support that they have provided customers in the past. However, they have definitely improved their customer service now with the ability to request a callback from a representative within 30 minutes. Overall, if you are looking for the broker with the best customer service, Fidelity is the way to go.


Promotions


TD Ameritrade: $0 commissions + transfer fee reimbursement.

Robinhood: Get one FREE stock when you open an account.

Webull: 6 FREE stocks valued $34-$12,600 give-away at Webull.



Broker Reviews


Go to TD Ameritrade Review, Robinhood Review, or Webull Review


Fidelity Competitors Final Thoughts


Even with all of the new competition popping up in the brokerage industry, Fidelity still has a competitive brokerage offering across the board. However, there are some areas in which the Fidelity competitors we discussed match or outrank them. Fidelity is always a solid choice to use as your broker, but investors/traders should definitely explore the market and compare Fidelity to the other brokers out there to choose for themselves.

Updated on 5/20/2022.


About the Author
Paul Johnson is a Licensed Stockbroker with 7+ years of experience in the financial services industry. Paul enjoys teaching about investing and writing about financial topics. He is a husband and father of twin boys.