Fidelity vs. Interactive Brokers Introduction
If you want a brokerage firm with lots of trading tools, Fidelity and Interactive Brokers are solid picks. Both have large selections of trading services. Is one better than the other? We might have the answer.
Fees
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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IB
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$0
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$14.95
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$0.70 per contract
|
$0
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$30
|
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Fidelity
|
$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
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WeBull
|
$0
|
na
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$0 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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IB
|
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Fidelity
|
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WeBull
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Promotions
Interactive Brokers: Use this referral link to get up to $1,000 of IBKR stock for free!
Fidelity: Currently, no promotions.
Webull:
Up to $12,000 cash and 20 FREE shares when you make a deposit at Webull.
First Category: Assets and Accounts
Fidelity has a wide range of account options, including individual, joint, custodial, education, retirement, small business, estate, trust, and health savings accounts. Within these, you can invest in:
- Options
- Stocks
- Bonds
- Funds (mutual, exchange-traded, and closed-end)
- Structured products
- Annuities
- Life insurance
Fidelity also offers trading on 25 foreign stock exchanges, though these trades aren’t commission-free.
Interactive Brokers has a global asset-trading service, covering more than just stocks on foreign markets. Like Fidelity, it charges various commissions for overseas trades. Unlike Fidelity, it connects to over 30 international exchanges.
In the U.S. market, Interactive Brokers lists everything Fidelity does, minus annuities and life insurance. Instead, it includes cryptocurrencies, warrants, futures, precious metals, and forex.
Like Fidelity, Interactive Brokers has many account types, including some for institutional clients.
Interactive Brokers takes this category because of its broader selection of exchanges and tradable assets.
Second Category: Investment Management
Fidelity provides managed accounts in both traditional and robo formats. Its robo program is $3 per month for balances above $10,000 and free below that. There are also older-style accounts and automated separately-managed accounts with different fees and minimums.
Interactive Brokers has robo accounts. It doesn’t offer full-service traditional portfolio management, though it does work with outside investment advisors for institutional accounts.
Fidelity wins here.
Third Category: Customer Service
Both brokers have websites packed with self-help tools. Each has an AI chat system for basic inquiries. Fidelity’s chat can bring in a human agent if you type “human.” Interactive Brokers’ is AI only.
Both sites have secure messaging tools with file attachments. You can also reach both companies by phone. Fidelity’s line is open 24/7, while Interactive Brokers is 24/5.
Fidelity also has physical branches; Interactive Brokers does not.
Fidelity takes this one.
Fourth Category: Websites
Fidelity’s website is well-designed for many tasks. It has screeners for funds, stocks, and options, plus several trade tickets with advanced order types like trailing and OCO. You can choose from several duration settings (fill or kill, for example).
Fidelity’s charts have lots of drawing tools, plot styles, corporate events, technical studies, and more.
Interactive Brokers’ site also has high-quality charts that can stretch the full screen. You can change chart colors and even adjust opacity.
IB’s order ticket is easy to use and includes special order types, such as bracket orders. You’ll also find a stock screener, though we thought Fidelity’s screener was simpler.
Fidelity is our preference for website trading because it’s more user-friendly overall.
Fifth Category: Desktop Software
In addition to excellent websites, both brokers have desktop platforms. Fidelity has Active Trader Pro (ATP), and Interactive Brokers offers Trader Workstation (TWS).
ATP works on Windows and macOS. TWS also runs on Linux. Both are sophisticated and need time to master, but the learning curve is worthwhile. TWS has a demo mode, and anyone can use it, while ATP requires an account login.
Both programs have advanced charting with full-screen capability and right-click trade menus. Active Trader Pro offers seven plot styles and plenty of drawing tools. Trader Workstation has only two plot styles (candlesticks and OHLC bars) plus a few drawing tools.
Both platforms support higher-level order types like basket, contingent, and bracket orders.
Bloomberg TV streams for free on both. You can also set up multiple layouts, use advanced options tools, and view time & sales data.
This category is basically a tie.
Sixth Category: Margin
Fidelity and Interactive Brokers each offer both cash and margin trading. Upgrading from cash to margin is simple on either site. Interactive Brokers’ tools, but not Fidelity’s, display margin data on specific tickers.
Fidelity’s margin rates range from 12.575% to 8.275%. IBKR Lite customers pay a flat 6.83% on all balances.
Interactive Brokers imposes an exposure fee on high-risk accounts, while Fidelity lowers available leverage on accounts with heavy concentrations.
Both firms provide portfolio margin, with Fidelity requiring $150,000 and IB requiring $110,000.
Interactive Brokers is the better choice in margin trading.
Seventh Category: Day Trading and Other Forms of Active Trading
Shorting: Both firms permit short selling, but neither has a shortcut button for it.
Routing Fees and Rebates: Interactive Brokers uses a maker-taker system; Fidelity does not.
Extended Hours: IBKR Lite and Fidelity allow trading from 7:00 am to 8:00 pm, EST. IBKR Pro has an extra three hours of pre-market time.
Level II Quotes: Both Active Trader Pro and TWS have Level II, but only Interactive Brokers charges a fee for it.
Direct-access Routing: TWS has more than 20 routing options for stocks, while ATP has five. Both can directly route options.
Interactive Brokers is the better broker for active trading.
Eighth Category: Other Services
Initial Public Offerings: Fidelity clients can join upcoming stock offerings, while U.S. Interactive Brokers clients cannot.
Fractional-Share Trading: Both companies allow fractional purchases of stocks and funds.
DRIP Service: Interactive Brokers offers dividend reinvesting for stocks. Fidelity does for stocks and ETFs.
Banking Tools: Interactive Brokers has a debit card. Fidelity has more, like checkwriting, bill pay, and a Visa Signature credit card.
Individual Retirement Accounts: Both have IRAs, but Fidelity also provides SIMPLE IRAs.
Recurring Mutual Fund Orders: Fidelity offers these; Interactive Brokers does not.
Fidelity takes this category.
Now, Our Recommendations
Mutual Fund Trading: Fidelity’s mutual fund screener is stronger, and its fund profiles are more detailed.
Stock & ETF Trading: It’s a tie.
Small Accounts: Neither broker charges ongoing fees or requires account minimums for standard customers.
Long-Term Investors & Retirement Savers: Fidelity offers individual 401k plans, old-school financial planning, annuities, and branch offices.
Beginners: Fidelity’s robo platform is a great starting point.
Fidelity vs Interactive Brokers Judgment
Fidelity takes the victory in this matchup. Still, Interactive Brokers is excellent for crypto trading and has a far more robust international trading program than Fidelity.
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