Is Fidelity or E*TRADE better for beginners?

Fidelity gets our vote for most beginners. It's intuitive, offers fractional shares so you can start with any dollar amount, and has over 200 physical branches if you ever want face-to-face help.

Do Fidelity and E*TRADE charge commissions?

No, both offer commission-free trading on U.S. stocks and ETFs. They also both offer a few zero-expense mutual funds which most other brokers do not.

Can I switch from E*TRADE to Fidelity (or vice versa) later?

Absolutely! And it's easier than most people think. Both brokers support ACAT transfers, which let you move your investments in-kind without having to sell everything first. One heads up though: if you own either broker's proprietary zero-expense-ratio funds, you'd need to sell those before transferring since they can't move to another brokerage.

Fidelity vs. E*TRADE: Which Online Broker Should You Choose?

Picking your first brokerage is kind of a big deal -- it's the on-ramp to your whole investing future. The good news is you really can't go wrong with either E*TRADE from Morgan Stanley or Fidelity. Both are legit, well-established platforms with zero-commission trading and enough features to keep you busy for years.

I'll be upfront: I personally use Fidelity for multiple accounts across my family, and it's typically the first broker I recommend to people just getting started.

That said, E*TRADE has real strengths worth knowing about -- especially if you're the type who loves to stay active in the market.

Let's break it down so you can make the call that's right for you.

Fidelity vs. E*TRADE: At a glance

Comparing fees: Both are low-cost brokers

Both E*TRADE and Fidelity have done away with commissions on standard stock and ETF trades, so the days of paying $10 every time you buy a share of something are long gone. For most everyday investors, you're looking at $0 to get in and $0 to get out.

Where things differ slightly is in the details for some mutual funds and options trades.

Broker	Stock Trades	Option Trades	Mutual Funds (No-Load)
E*TRADE	$0	$0 + up to $0.65 per contract	$0
Fidelity	$0	$0 + $0.65 per contract	$49.95

Data source: E*TRADE and Fidelity.

For mutual funds, both platforms offer thousands of no-transaction-fee options. But if you wander outside that list, Fidelity charges $49.95 per purchase compared to E*TRADE's $0.

Mutual fund access: Both have plenty to choose from

Good news for mutual fund fans: you're not going to feel shortchanged at either broker.

Fidelity leads with a massive selection of over 10,000 funds, while E*TRADE offers more than 5,000. In practice though, both numbers are so large that unless you're hunting for something very specific, you'll find what you need on either platform.

Here's where it gets interesting -- both brokers now offer their own zero-expense-ratio index funds. Fidelity's been doing it for years with its popular ZERO fund lineup, and E*TRADE quietly joined the party in April 2025 with five of its own no-fee index funds. That's genuinely great news for cost-conscious investors on either side of this comparison.

One heads-up worth mentioning: both brokers' no-fee proprietary funds come with a catch -- they can't be transferred to another brokerage. If you ever switch platforms down the road, you'd have to sell those funds first, which could trigger a taxable event. Something to keep in mind before going all-in!

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Minimum to invest: Fidelity offers fractional shares

Both Fidelity and E*TRADE have zero minimum deposits, so there's literally nothing stopping you from opening an account today.

The one edge Fidelity has here is that it offers fractional shares. So if you want to own a slice of Amazon or Nvidia without buying a full share, Fidelity lets you do that with as little as $1.

For beginners working with smaller amounts and wanting to pick their own stocks, that's a meaningful feature.

Trading tools and research: Both are well-equipped

Honestly, you won't feel shortchanged on research at either broker. Both offer access to independent research from multiple providers.

As for trading platforms, both brokers have dedicated tools for more active investors. Fidelity's Active Trader Pro and E*TRADE's Power E*TRADE are both solid platforms.

That said, if you're just starting out and building a long-term portfolio (which is honestly what I'd recommend for most people), you probably won't need either one right away. The standard online or mobile platforms are more than enough to get going.

Cash management and ATM access: It's a tie here

Both Fidelity and E*TRADE offer cash management accounts with debit cards and unlimited ATM fee reimbursements. So if that's a priority for you, you really can't go wrong with either one.

In-person help: Fidelity wins this one

Let's be real -- one of the best things about online brokerages is that you don't need to walk into a branch. Both brokers have solid phone support, educational resources, and easy-to-navigate platforms that make investing pretty painless from your couch.

That said, sometimes you just want to sit across from a real human and talk through your finances. If that's you, Fidelity is the clear winner. It has over 200 branches across the United States, so there's a good chance one isn't far from you.

E*TRADE, on the other hand, is fully online -- and while the Morgan Stanley merger has its perks, you can't walk into a Morgan Stanley branch to discuss your E*TRADE account.

For most beginners this won't be a dealbreaker. But it's a nice safety net to know is there.

So, which one should you choose?

Both Fidelity and E*TRADE are excellent brokers -- there's a reason millions of people use them.

But if you're asking me to just tell you what to do (and as someone who uses Fidelity personally for multiple accounts), here's my honest take: most beginners will be better served by Fidelity.

The fractional shares, the massive research library, the branch access, and the overall simplicity of the platform make it a natural fit for anyone just getting started.

That said, here's a quick cheat sheet:

Choose Fidelity if:

You're just starting out and want a beginner-friendly experience
You want fractional shares so you can invest any dollar amount
You'd like the option of walking into a branch someday
You're a buy-and-hold investor focused on the long game

Open your account with Fidelity today.

Choose E*TRADE if:

You're an active trader who wants powerful tools and charts
You trade options frequently (especially if you hit 30+ trades per quarter to qualify for a reduced per-contract rate)
You're already in the Morgan Stanley ecosystem

Get started now and sign-up with E*TRADE.

Either way, the best brokerage is the one you actually open and start using. Don't let the decision slow you down -- both are great places to begin your investing journey. 🙌

2026 Award Winner

E*TRADE from Morgan Stanley

Our Rating:

4.90/5

Bottom Line

E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.

Read Full Review

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Open and fund a brokerage account and get up to $1,500. Terms apply.

Learn More for E*TRADE from Morgan Stanley

On E*TRADE's Secure Website.

FAQs

Fidelity gets our vote for most beginners. It's intuitive, offers fractional shares so you can start with any dollar amount, and has over 200 physical branches if you ever want face-to-face help.
No, both offer commission-free trading on U.S. stocks and ETFs. They also both offer a few zero-expense mutual funds which most other brokers do not.
Absolutely! And it's easier than most people think. Both brokers support ACAT transfers, which let you move your investments in-kind without having to sell everything first. One heads up though: if you own either broker's proprietary zero-expense-ratio funds, you'd need to sell those before transferring since they can't move to another brokerage.

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