Fidelity Investments vs Interactive Brokers Review

Comparing brokers side by side is no easy task. For our 2017 Broker Review, we factored in 308 different variables to assess 16 different brokers. So when taking a look at Fidelity Investments vs Interactive Brokers, there is a huge database of information available to us.

To start this comparison, first we will take a look at the broker commission rates for placing regular stock and options trades. Fidelity Investments charges $4.95 per stock trade which is $4.95 more than Interactive Brokers which charges clients $0.00 (the broker charges a per share rate instead) per trade. With options, the base fees charged are $4.95 (Fidelity Investments) and $0.00 (Interactive Brokers). Contracts are pricier at Interactive Brokers, costing $0.70 versus $0.65 at Fidelity Investments, a difference of $0.05 per contract. Not all brokers charge a flat rate fee per trade though, so it is important to read the full commission notes to know the complete breakdown (go to any online broker review page, then scroll to the "Commissions Notes" section).

Next to commission rates, being able to trade the instrument you want is important. Interactive Brokers supports Stock Trading, Options Trading, Mutual Funds and Futures Trading while Fidelity Investments supports Stock Trading, Options Trading and Mutual Funds. Looking at mutual funds, Interactive Brokers trails Fidelity Investments by 5,178.00 total funds, with Fidelity Investments offering 13204 and Interactive Brokers offering 8026. Commission free ETFs also should not be forgotten, Fidelity Investments offers 91 versus Interactive Brokers's total of 33.

Lastly, taking a look at popular features and functionality, we can go a bit deeper to really break down the difference of both brokers. Fidelity Investments alongside Interactive Brokers have virtual trading. Taking a look at mobile trading, Fidelity Investments and Interactive Brokers both have a iPhone App, iPad App and Android App. Not to be left out, online banking is also a nice benefit for many investors, and some brokerages provide these services to clients. Clients can have Checking Accounts, Savings Accounts, Debit Cards and Credit Cards at Fidelity Investments while clients at Interactive Brokers can have none of these. On the whole, when it comes to tools, research, and trading on the go, Interactive Brokers was rated for Best in Class - Platforms & Tools and Best in Class - Mobile Trading in 2014, while Fidelity Investments was rated for Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.

Overall, Fidelity Investments takes the upper hand with 4.50 stars over Interactive Brokers's 4.00 stars.