Why invest with FidelityPlanning and advice. From complex wealth management to your retirement needs, we can help you with simple financial planning and pricing. Personalized investment management that provides investors with a professionally managed solution tailored to their unique investment objectives and preferences. Both brokers make money from cash accrued interest, margin interest, portfolio margins, stock lending programs and order flow payment.
However, Fidelity is much more transparent in its pay-per-order flow activity. The broker does not accept PFOF for stock trading. Although the costs of working with these brokers are relatively similar, we believe that Fidelity has the best offer and greater cost transparency. We work to make investing clear and simple, so you can feel more confident in your decisions.
Fidelity offers a good selection of assets, including stocks, ETFs, options, fixed income, currencies and mutual funds. Keep in mind that margins and discounts may affect the total cost of the transaction and the total or effective return on your investment. Where appropriate, we will also apply smart tax investing techniques3 throughout the year to help you keep more of what your investments earn. You can backtest trading strategies through Wealth-Lab Pro, a premium feature available to eligible Fidelity brokerage clients.
Fidelity offers more than 3,700 mutual funds with no transaction fee and more than 800 mutual funds and index funds with expense rates of 0.50% or less. According to the Fidelity website, the brokerage agency uses investment analysis and stock research from more than 20 independent providers, including Thomson Reuters StarMine. More than 10,000 funds from Fidelity and other companies, plus the tools and expertise to help you choose the funds to meet your investment objectives. One notable limitation is that Fidelity does not offer futures trading, futures options, or cryptocurrencies.
For the casual buy and hold investor, Fidelity offers a wide selection of tools, research and resources along with easy order entry. The large number of options can be intimidating, but Fidelity does a great job of grouping accounts according to their goal with the account and provides a concise description of the purpose of the account type. For these reasons, investors who want to keep track of the different metrics related to their portfolio will be better served by using Fidelity, as the broker enjoys a huge advantage over Robinhood in this category. Both Robinhood and Fidelity are similar in that they offer commission-free trading for stocks, ETFs, and options contracts.
Fidelity's new crypto industry ETF will allow investors to add exposure to the industry and companies included in Fidelity's Digital Payments and Crypto Industry Index, but this is different from direct exposure to cryptocurrency assets. Fidelity also offers access to professional financial advisors and currently manages more than 38 million individual investors.