Fidelity vs E*TRADE

Fidelity is the better brokerage for most investors in 2026. It is particularly strong for long-term investors, beginners, investors who keep cash waiting to be invested, fractional-share buyers and people using Fidelity's own low-cost mutual funds.

E*TRADE is the better choice for futures traders and can be better for frequent options traders. E*TRADE also charges less for direct cryptocurrency trades and offers a large selection of no-load, no-transaction-fee mutual funds.

For an investor simply choosing one brokerage for stocks, ETFs, retirement investing and general portfolio management, Fidelity gets our overall recommendation.

Fees and yields can change.

Fidelity vs E*TRADE at a glance

Both Fidelity and E*TRADE have no minimum funding requirement for a standard brokerage account and offer $0 online commissions on US-listed stocks and ETFs.

Which is better overall, Fidelity or E*TRADE?

The gap is not enormous. E*TRADE from Morgan Stanley is a very capable brokerage, and some traders should actively choose it instead.

The decision is easiest when broken down by investor type:

• Choose Fidelity for long-term investing, smaller recurring investments, idle cash, Fidelity mutual funds, automated investing below $25,000 and a broad all-purpose brokerage relationship.
• Choose E*TRADE for futures, frequent options trading, lower-cost direct crypto trading and investors who specifically value Power E*TRADE.
• Either works well for ordinary stock and ETF investing because both charge $0 commissions on online US stock and ETF trades.

That distinction matters more than giving both brokers arbitrary scores out of ten.

Fidelity vs E*TRADE fees

For basic stock and ETF investors, there is effectively a tie.

Fidelity charges $0 for online US stock and ETF transactions. E*TRADE also charges $0 for online US exchange-listed stock and ETF trades. Neither brokerage requires investors to deposit a minimum amount to open a standard self-directed brokerage account.

The more meaningful fee differences appear once you move beyond ordinary shares and ETFs.

Options trading fees

Fidelity charges $0.65 per options contract. Fidelity does, however, waive the contract fee on qualifying buy-to-close transactions priced at $0.65 or less.

E*TRADE normally charges $0.65 per options contract, but the rate falls to $0.50 for customers making at least 30 qualifying trades per quarter. E*TRADE also offers its Dime Buyback Program, which removes the contract fee when closing eligible short options priced at $0.10 or less.

The headline difference is only $0.15 per contract for active E*TRADE customers. That equals:

For occasional options trading, this is unlikely to determine which brokerage you should use. At larger volumes, it starts to matter.

Is Fidelity or E*TRADE better for fractional shares?

Fidelity allows investors to buy fractions of US stocks and ETFs from $1, using dollar-based orders. Fidelity says fractional trading is available across more than 7,000 US stocks and ETFs.

E*TRADE now also offers direct fractional shares, which makes older comparisons claiming it lacks the feature outdated. Eligible listed Reg NMS securities can be purchased to three decimal places, with a minimum notional order of $5.

Both platforms therefore support fractional investing in 2026, but Fidelity's $1 entry point and dollar-based workflow make it better suited to investors making small or recurring contributions.

Which broker has better mutual funds?

Fidelity offers access to more than 10,000 mutual funds. Fidelity's own funds trade without a Fidelity transaction fee, and the company offers four Fidelity ZERO index mutual funds with a 0% expense ratio.

Fidelity also has a large No Transaction Fee network. However, some non-Fidelity transaction-fee funds cost $49.95 when purchased online.

E*TRADE advertises more than 6,000 no-load, no-transaction-fee mutual funds.

So there is no useful one-word winner here.

If your portfolio is built around Fidelity index funds, Fidelity makes obvious sense. If you already know the third-party mutual funds you want to own, compare those exact funds on both platforms rather than comparing the headline number of funds available.

Fidelity vs E*TRADE for active trading

E*TRADE's Power E*TRADE platform is designed for active stock and options trading. More importantly, E*TRADE provides direct access to futures listed on exchanges including CME, ICE US and CFE. Futures cost $1.50 per contract, per side, before applicable exchange and regulatory fees.

Fidelity does not offer futures trading.

Fidelity's active-trading platform has also changed. Fidelity Trader+ is the company's newer web, mobile and desktop trading environment, with Fidelity transitioning functionality from the older Active Trader Pro platform. Trader+ includes advanced charting, Level 2 data, options tools and multi-monitor desktop functionality.

For active stock traders, either platform deserves consideration.

For someone who specifically trades futures, the comparison is over: E*TRADE wins because Fidelity does not offer the product.

Which is better for uninvested cash?

Fidelity brokerage accounts can use the Fidelity Government Money Market Fund, ticker SPAXX, as a core position for uninvested cash. Cash automatically moves through the core position when securities are bought or sold.

SPAXX had a 3.34% 7-day yield as of September 9, 2026. That yield changes with market conditions and SPAXX is a money market mutual fund, not an FDIC-insured bank deposit.

E*TRADE instead operates a Bank Deposit Program for eligible free credit balances, sweeping the money into interest-bearing accounts at participating FDIC-insured banks. Its deposit rates are tiered and can change.

The distinction is important.

Someone who remains almost fully invested may barely care about the cash sweep. Someone who regularly holds $20,000, $50,000 or $100,000 waiting for opportunities should care a lot because even modest yield differences compound into real money.

This is one reason Fidelity wins the overall comparison despite the two brokers looking similar on stock commissions.

Fidelity Go vs E*TRADE Core Portfolios

Fidelity Go has no advisory fee while the account balance is below $25,000. Once the account reaches $25,000, Fidelity charges 0.35% annually. Fidelity begins investing once at least $10 is available. Accounts at $25,000 or more also gain access to financial coaching, and eligible taxable accounts receive tax-loss harvesting.

E*TRADE Core Portfolios requires $500 to begin and charges a 0.30% annual advisory fee.

For example:

The arithmetic therefore changes at $25,000.

Below that level, Fidelity Go is the obvious fee winner. Above that level, E*TRADE's 0.30% headline fee is cheaper, although the services included are not identical.

Fidelity vs E*TRADE for cryptocurrency

E*TRADE introduced direct cryptocurrency trading through a linked account powered by zerohash. It currently supports Bitcoin, Ethereum and Solana and charges a 0.50% commission on the notional value of each trade with no additional E*TRADE spread or markup.

Fidelity Crypto currently supports Bitcoin, Ethereum, Litecoin, Solana and Fidelity Digital Dollar. Fidelity Digital Assets charges a 1% fee on crypto purchases and sales.

Fidelity also offers Fidelity Crypto IRAs supporting Bitcoin, Ethereum, Litecoin and Solana.

So the choice depends on what you need:

Choose E*TRADE for lower direct crypto transaction costs. Choose Fidelity if its additional supported assets or crypto IRA structure matter more.

Neither brokerage should be chosen primarily as a specialist cryptocurrency exchange. The crypto offering is more useful as an integrated feature for existing brokerage customers.

Which brokerage is better for retirement accounts?

E*TRADE offers Traditional, Roth, Rollover, SEP and SIMPLE IRAs, along with Individual 401(k) accounts and other small-business retirement options. E*TRADE says its retirement accounts have no maintenance fees.

Fidelity similarly offers a broad range of IRA and workplace retirement products. Fidelity also offers its own HSA investing platform with no account fee or investment minimum for the self-directed Fidelity HSA.

For a straightforward Traditional or Roth IRA invested in stocks and ETFs, there is little reason to reject either brokerage.

Fidelity becomes more attractive when the objective is to consolidate several parts of a financial life, such as brokerage investments, retirement assets, an HSA and cash management, with one provider.

Fidelity vs E*TRADE banking and cash management

Both companies extend beyond traditional brokerage accounts.

Fidelity's Cash Management Account combines spending and cash-management functionality with features such as debit-card access and reimbursement of ATM fees charged by other institutions. Fidelity allows Cash Management Account users to choose between an FDIC-insured deposit sweep and SPAXX as the core position.

E*TRADE integrates brokerage accounts with banking products from Morgan Stanley Private Bank, including Premium Savings and Max-Rate Checking.

If you want a conventional savings account alongside your brokerage account, E*TRADE's Morgan Stanley banking integration is attractive.

If the priority is keeping cash operationally close to your investments while still earning money-market yield automatically, Fidelity has the stronger setup.

A fee most comparisons miss: transferring your account out

Fidelity's current commission and fee schedule lists transfers of assets at $0.

E*TRADE's pricing page lists a $75 charge for a full outgoing account transfer.

This should not outweigh hundreds or thousands of dollars of other costs, but it is worth knowing before committing to a brokerage.

Who should choose Fidelity?

Fidelity is the better choice if you:

• primarily invest for the long term
• buy stocks and ETFs with recurring contributions
• want fractional investments starting from $1
• use Fidelity index funds or Fidelity ZERO funds
• routinely hold uninvested cash
• want Fidelity Go with less than $25,000
• want brokerage, retirement, HSA and cash-management accounts under one provider
• do not need futures trading

For this broad group of investors, Fidelity offers the better all-round package.

Who should choose E*TRADE?

E*TRADE is the better choice if you:

• trade futures
• execute at least 30 qualifying trades per quarter and want the reduced $0.50 options-contract fee
• prefer the Power E*TRADE trading platform
• want access to E*TRADE's large selection of no-load, no-transaction-fee mutual funds
• want direct Bitcoin, Ethereum or Solana trading at a 0.50% commission
• want brokerage and Morgan Stanley Private Bank products integrated in one ecosystem

E*TRADE is not a weaker Fidelity clone. For an active derivatives trader, it can be the better brokerage.

Is Fidelity better than E*TRADE for beginners?

Both platforms have $0 brokerage minimums and commission-free online US stock and ETF trading. Fidelity gets the advantage because fractional investments can start at $1, Fidelity Go charges no advisory fee below $25,000, and the platform provides a straightforward route from basic investing into retirement, cash management and more advanced investing later.

E*TRADE remains a good beginner brokerage, particularly for someone who expects to become a more active trader.

Is Fidelity or E*TRADE better for day trading?

Power E*TRADE provides an established active-trading environment, and E*TRADE supports futures. Fidelity Trader+ now gives Fidelity a modern advanced platform for stocks, ETFs, options and crypto, so Fidelity should not be dismissed as a buy-and-hold-only brokerage.

Very high-volume traders should also compare specialist platforms such as Interactive Brokers rather than limiting the decision to Fidelity and E*TRADE.

Is Fidelity or E*TRADE better for an IRA?

Both offer major IRA account types without annual maintenance fees. Fidelity gets the edge from its proprietary mutual-fund range, broader financial-account ecosystem and availability of Fidelity Crypto IRAs for investors specifically seeking cryptocurrency exposure inside an IRA.

Final verdict: Fidelity wins for most investors

The two brokers are almost identical on the basics. Both provide $0 online US stock and ETF trades, $0 standard brokerage minimums, retirement accounts, research, mobile apps, options and direct cryptocurrency access.

The differences become obvious once you look beyond those headline features.

Fidelity wins on fractional-share accessibility, idle-cash management, Fidelity funds, Fidelity Go for portfolios below $25,000 and overall account breadth.

E*TRADE wins on futures, discounted options pricing for sufficiently active traders and lower direct cryptocurrency trading fees.

For the average investor building a diversified portfolio over years rather than trading derivatives every week, Fidelity is the better brokerage in 2026.