E*TRADE vs Fidelity: Which Broker Should You Choose?
E*TRADE and Fidelity both charge $0 for online stock and ETF trades. Where they really differ is in who owns the platform, how much the robo-advisor costs, and the depth of their research tools.
Morgan Stanley owns E*TRADE, which built its active-trader tools around Power E*TRADE. Fidelity remains independently owned and combines its trading platform with genuinely free index funds and a far larger research library. If you often trade options or futures, or want a big-brand advisor relationship behind your account, that ownership difference alone can tip the decision.
E*TRADE vs Fidelity: Side-by-Side
| E*TRADE | Fidelity | |
|---|---|---|
| Commission on stock/ETF trades | $0 | $0 |
| Options contract fee | $0.65 per contract, or $0.50 for accounts placing 30+ trades a quarter | $0.65 per contract, flat |
| Futures trading | Yes, 8 market categories including equity indices and crypto futures, from $1.50/contract | Not offered for direct retail trading |
| Robo-advisor | Core Portfolios: $500 minimum, 0.30%/year on every balance | Fidelity Go: $0 minimum, free under $25,000, 0.35%/year above |
| Fractional shares | From $5, an expanding list built around S&P 100 stocks and ETFs | From $1, roughly 7,000 stocks and ETFs (Stocks by the Slice) |
| Zero-expense-ratio index funds | No 0% funds offered | Yes, 4 Fidelity ZERO funds (FZROX, FZILX, FNILX, FZIPX) |
| Parent company | Morgan Stanley (acquired 2020) | Independently owned (Johnson family since 1946) |
| Default uninvested cash yield | A bank-style cash sweep by default, generally lower-yielding, though competitive money market funds are available if selected manually | A money market fund by default (commonly SPAXX), which tracks prevailing short-term rates automatically |
Which should you choose?
Choose Fidelity if research depth, a genuinely free index fund lineup, or a $0-minimum robo-advisor matter most to you, especially as a buy-and-hold investor who rarely touches options. Choose E*TRADE if you trade options or futures regularly and want Power E*TRADE's dedicated tools, or you're comfortable banking under the Morgan Stanley umbrella for a future advisor relationship.
An investor who wants direct futures trading inside the same account as their stocks shouldn't expect that from Fidelity. Fidelity doesn't offer it.
Someone who wants a fund priced at an actual 0.00% expense ratio shouldn't expect that from E*TRADE either. Only Fidelity's ZERO funds hit exactly 0%.
Who Owns Each Platform
Morgan Stanley completed its acquisition of E*TRADE in October 2020, folding the discount broker into its larger wealth-management business. That ownership shapes E*TRADE today: Morgan Stanley's own research, and, for qualifying balances, access to a Morgan Stanley financial advisor, now sit behind the E*TRADE login.
Fidelity has stayed privately held and independently run since its founding in 1946, with the Johnson family still controlling the company. That independence shows up in decisions like Fidelity's ZERO index funds, priced at an actual 0.00% expense ratio, a pricing move a publicly accountable parent company would find harder to justify.
Neither structure is automatically better. An investor who eventually wants a human advisor relationship might value Morgan Stanley's reach behind E*TRADE. An investor who wants a firm's incentives pointed only at its own brokerage clients might prefer Fidelity's independence instead.
Options and Futures Cost Different Amounts at Each
E*TRADE and Fidelity both charge $0.65 per options contract on top of a $0 base commission, so an occasional options trader pays roughly the same at either firm. E*TRADE discounts that rate to $0.50 per contract for accounts placing 30 or more trades a quarter, a volume discount Fidelity doesn't match.
Futures trading is the sharper split. E*TRADE offers futures across eight market categories, including equity indices, energy, currencies, and Bitcoin and Ether futures, priced at $1.50 per contract per side plus exchange fees. Fidelity doesn't offer direct futures contract trading to retail investors, though it has launched a managed futures ETF for investors who want futures-style exposure without opening a dedicated futures account.
An active options trader clearing 30-plus trades a quarter saves real money at E*TRADE over a year. Anyone who wants to trade futures contracts directly has exactly one of these two firms to pick.
Core Portfolios Versus Fidelity Go
E*TRADE's Core Portfolios requires a $500 minimum and charges a flat 0.30% annual advisory fee on every balance, no matter how large the account grows. Fidelity Go charges nothing for balances under $25,000, needs no minimum to open, and moves to a 0.35% annual fee once your balance crosses $25,000, at which point you also gain access to one-on-one coaching.
A new investor with a small balance starts for less at Fidelity Go, since $0 beats any account that requires $500 to even open. Once a balance grows large enough, Core Portfolios' flat 0.30% eventually runs cheaper than Fidelity Go's 0.35% tier, so the cheaper robo-advisor really depends on where your balance sits today and where you expect it to land.
Research Tools and the Trading Platforms Themselves
Power E*TRADE is built for active traders, with options-specific analytics, a strategy scanner, and, since the Morgan Stanley acquisition, access to Morgan Stanley's own research alongside E*TRADE's existing third-party providers. It's a platform designed around watching positions and executing trades quickly.
Fidelity's research library reaches wider. Independent research from firms like Zacks and CFRA sits alongside Fidelity's own analysts inside Active Trader Pro, Fidelity's advanced desktop platform, next to a large education center for investors still learning the basics. An investor who wants to read several independent analysts' takes on one stock before buying generally finds more of that depth at Fidelity.
Both firms' mobile apps are well reviewed. Power E*TRADE's mobile app is built specifically for options and futures traders, while Fidelity's general app is frequently ranked among the top overall investing apps across a broader range of account types.
Fractional Shares and Everyday Investing
Fidelity's Stocks by the Slice lets you buy a slice of roughly 7,000 stocks and ETFs starting at $1. You enter a dollar amount instead of a share count. E*TRADE's fractional-share program covers a narrower, expanding list built around S&P 100 stocks and ETFs, with a $5 minimum notional amount per trade.
On a $100 monthly investment split across five different stocks, Fidelity's broader list and lower minimum make it easier to build a diversified basket of smaller positions. E*TRADE's list skips the smallest names. It still covers most of the largest, most commonly traded stocks, so the gap matters more to an investor chasing a specific smaller-cap name than to one sticking with well-known blue chips.
Where Uninvested Cash Earns Something
Fidelity defaults new brokerage accounts into a money market fund, most commonly SPAXX (Fidelity Government Money Market Fund), which pays a yield close to prevailing short-term rates rather than a low, fixed bank rate. That default applies automatically. Cash sitting in the account between trades keeps earning close to what a dedicated money market fund pays, with no extra step required.
E*TRADE's default cash sweep historically pays less than Fidelity's money market default, and independent brokerage reviews have flagged it as one of the lower-paying cash sweep options in the industry. E*TRADE does give account holders access to a wider shelf of third-party money market funds, including options from Federated Hermes and American Century, but capturing that higher yield means manually moving cash into one of those funds instead of leaving it in the default sweep.
Check each firm's current published rate before assuming either default is competitive, since money market and bank sweep rates move with short-term interest rates. The structural point holds regardless of the exact number: Fidelity's default requires no action to earn a market-linked rate, while E*TRADE's default does.
Where Fidelity Falls Short for an Active Trader
Fidelity doesn't offer direct futures trading. Its options tools inside Active Trader Pro also don't match the dedicated strategy scanner and options analytics built into Power E*TRADE. An investor running frequent, complex options strategies, or one who wants futures contracts in the same account as their stocks, finds E*TRADE's tools built more specifically for that job.
That gap would close only if Fidelity adds direct futures trading or expands Active Trader Pro's options analytics to match Power E*TRADE, and neither has happened as of 2026. Start at E*TRADE if futures matter to you now.
Managing two brokers just to cover both needs rarely pays off. Compare the two side by side with our investment growth calculator before you commit, since the robo-advisor fee gap alone compounds meaningfully over a long holding period.
Frequently asked questions
What are the disadvantages of e-trade?
E*TRADE doesn't offer direct cryptocurrency trading, only crypto futures for eligible margin accounts, and its fractional-share program covers fewer names than Fidelity's roughly 7,000-stock list. Independent brokerage reviews also flag E*TRADE's default cash sweep as one of the lower-paying options in the industry, though moving uninvested cash into one of E*TRADE's third-party money market funds fixes that. Since Morgan Stanley's 2020 acquisition, some longtime users also say the brand feels less like a standalone discount broker and more like an entry point into a larger wealth-management relationship.
What is the downside of Fidelity?
Fidelity doesn't offer direct futures trading, and its options tools inside Active Trader Pro are less specialized than Power E*TRADE's dedicated options analytics and strategy scanner. An investor who wants futures contracts inside the same brokerage account as their stocks needs to look elsewhere, since Fidelity doesn't support that today.
Which brokerage account is better for me, Fidelity or E*TRADE?
It depends on how you trade. Fidelity usually fits a buy-and-hold investor who wants deep independent research, a $0-minimum robo-advisor, and genuinely free index funds. E*TRADE usually fits an active trader who wants futures alongside stocks and options, or who values Morgan Stanley's research and advisor network behind the account.
What are the top 3 brokerage firms?
There's no single official ranking, but Fidelity, Charles Schwab, and Vanguard are the three U.S. brokerages most often cited as the largest by client assets, each managing several trillion dollars for its own customers. E*TRADE is smaller by that measure, though it remains one of the most-used online brokers for options and futures trading specifically.
Is my money protected if E*TRADE or Fidelity ever failed?
Yes. Both firms are members of the Securities Investor Protection Corporation (SIPC), which protects customer securities and cash up to $500,000 per account, including a $250,000 cash sublimit, if the brokerage itself fails. SIPC doesn't protect against an investment losing value. It only steps in when a broker can't return assets it was holding for you.
Does E*TRADE offer cryptocurrency trading?
Not directly. E*TRADE offers cryptocurrency exposure only through Bitcoin and Ether futures contracts in a margin-enabled account, not spot crypto trading the way some other brokers allow. An investor who wants to buy and hold actual coins, rather than trade futures contracts tied to their price, needs a dedicated crypto platform alongside either E*TRADE or Fidelity, since neither broker offers direct spot crypto trading today.
Can I transfer my account from E*TRADE to Fidelity, or the other way around?
Yes. Both firms accept an Automated Customer Account Transfer (ACAT), which moves your existing positions from one broker to the other without selling anything, typically within about a week. Selling first at your old broker before transferring can trigger capital gains taxes you'd otherwise avoid, so an ACAT transfer is almost always the better route if you're switching between E*TRADE and Fidelity.
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Sources
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