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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.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Commissions
Commissions
$0 commission for online U.S. stock and ETFs*. No account fees****.
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!
TIP
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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.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2026.
Broker
Best For
Commissions
Learn More
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Full-service investing at every experience level
$0 commission for online U.S. stock and ETFs*. No account fees****.
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Low-cost investing with a full-featured platform
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
4.80/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Low fees on stocks, ETFs, crypto, and options
$0 on trades of stocks, ETFs and their options. Other fees may apply.
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
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. 🙌
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
Fidelity makes investing easy with $0 commission trades, powerful tools, and 24/7 support. Trade stocks, ETFs, options, and even crypto -- all in one place. Get expert insights, automate your investing, and potentially earn more on uninvested cash.
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
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.
Open and fund a brokerage account and get up to $1,500. Terms apply.
Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash credit of up to $1,500, depending on the size of your deposit. Offer good for one use per customer, on a single account. Please read full terms and conditions on our website.
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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Terms may apply to offers listed on this page.
E*TRADE services are available just to U.S. residents.
Motley Fool Stock Disclosures
Joel O'Leary has positions in Target. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Best Buy, Intuit, and Target. The Motley Fool has a disclosure policy.
Fidelity Disclosure:
Fidelity disclosure Investing involves risk, including risk of loss
* - $0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
**Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request. ****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
E*TRADE from Morgan Stanley Disclosure:
E*TRADE services are available just to U.S. residents.
Robinhood Disclosure:
Robinhood disclosure
Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. Robinhood Financial can change its maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. For more information please see Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information.
Margin trading involves risk and may not be suitable for all investors. Borrowing on margin increases your level of market risk and can amplify both gains and losses.
Robinhood Financial may change maintenance margin requirements at any time without prior notice. If the equity in your account falls below minimum maintenance requirements, you may need to deposit additional cash or collateral. If those requirements are not met, Robinhood Financial may sell securities in your account without prior approval.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
Robinhood Strategies charges an annual management fee of 0.25% on the net portfolio value of each managed account. Eligible Robinhood Gold subscribers pay no management fees on the portion of their managed account net portfolio value that exceeds $100,000, thereby limiting the annual management fee to $250. Other fees apply.
All investments involve risk and loss of principal is possible.
Brokerage services are offered through Robinhood Financial LLC, ("RHF") a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC).
RHF and RHS are not banks. All are separate but affiliated entities. Securities offered by RHF are not FDIC insured and involve risk, including possible loss of principal.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC.
Portfolio management of managed accounts by Robinhood Asset Management, LLC (“Robinhood Strategies”), an SEC-registered investment advisor.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before trading options.
Cryptocurrency trading is offered through Robinhood Crypto, LLC (NMLS ID 1702840). Trading and holding digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
*Trading and owning digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency trading is offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the
New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
** Network fees may apply. Availability may be subject to regulatory approval in certain states.
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