Fidelity offers no expense-ratio index funds and robust research tools to appeal to a variety of investors. But if its high fees turn you off, consider these four companies like Fidelity.
Brokerages like Fidelity
These trading platforms are some of Fidelity’s closest competitors.
Vanguard offers no-commission ETFs and mutual funds. This private, investor-owned brokerage specializes in low expense ratios. For example, its mutual funds expense ratios averaged 0.10%, which is head and shoulders lower than the industry's average of 0.63% in 2019. As a result, Vanguard's low-cost investment options and limited research tools make it a better option for long-term investors over active traders. Both Fidelity and Vanguard offer financial coaching, but only Vanguard helps you minimize your tax responsibility and charges a lower advisory fee of 0.3% to Fidelity's 0.5%. Vanguard customers with high account balances of at least $50,000 unlock its Personal Advisor Services, connecting you with an investment advisor to create a financial plan that works best for you. Your fiduciary advisor can also offer financial advice and tax-minimization strategies, including tax-loss harvesting.
Like most brokers, E*TRADE offers commission-free trades for stocks, ETFs and options. E*TRADE sets itself apart from Fidelity by offering futures and specialized research tools for options. Its Power E*TRADE platform provides sophisticated analysis to help evaluate the potential risks and benefits of an options trade, such as theoretical probabilities. And since E*TRADE doesn't have a minimum deposit to open, minimum balance or inactivity fee, active and casual traders don't need to worry about account charges.
Robinhood made its debut as a sleek, no-frills, user-friendly platform that offers free trades. But now that most brokers have hopped on the commission-free bandwagon, Robinhood sets itself apart by allowing you to buy cryptocurrency directly and doesn't charge a fee for options contracts. And its instant deposits mean you can start trading immediately.
Charles Schwab is an online broker that offers proprietary research tools that give Fidelity a run for its money. You'll access independent reports and analysis from providers like Morningstar, advanced charting tools and proprietary Schwab equity ratings. While both Schwab and Fidelity offer commission-free online trades, Schwab charges $25 for broker-assisted trades — a steal compared to Fidelity's fee of $32.95. But what makes Charles Schwab one of the top companies like Fidelity, but better, is its variety of investment options, including futures and international stocks. And if you prefer some guided investment assistance, Charles Schwab doesn't charge a robo-advisor fee — but your portfolio must have a minimum balance of $5,000.
Check out what makes Fidelity a powerful trading platform and a few reasons why you might consider alternatives to Fidelity.
Pros
Mutual fund options include zero minimum investment and zero expense ratios
Intuitive and customizable platform
Robust research
24/7 customer service
Cons
High robo-advisor advisory fee
High broker-assisted fee
No futures, forex or cryptocurrency
How to transfer your brokerage account
If you’re changing brokers, you’ll need to transfer your funds. The process may vary depending on the platform you’re currently using and the brokerage you’re going to. Fidelity doesn’t charge a fee to transfer funds to another account and close your current one. Fidelity uses the Automated Customer Account Transfer Service (ACATS) to transfer your funds. You’ll need to:
Fill out a transfer initiation request with your new broker.
Your new broker contacts your current broker to request your account assets.
Your current broker processes your request.
Your old broker deposits funds between five to 14 business days.
Note: Your new broker may not accept proprietary mutual funds or ETFs from your old broker.
Compare trading platforms
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Kimberly Ellis is a personal finance writer at Finder, specializing in banking and financial literacy. After teaching in public and private schools, Kimberly zeroed in on personal financial education to help families and kids develop lifelong money skills. She hails from New York City, graduating summa cum laude from Queens College with a BA in elementary education and mathematics, as well as a New York State teaching certificate. She’s also an aspiring polyglot, always in a book and forever on the hunt for the perfect classic red lipstick. See full bio
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