Interactive Brokers Vs. Fidelity: Get In-depth Broker Comparison for 2020

Interactive Broker is a top choice for experienced traders. The firm is known for its low fees, powerful trading platform, and discounts. The company experiences 1.1 million trades per day and it offers three basic tiers:

1. Interactive Advisors: This is an algorithm based Robo advisor platform having reasonable fees ranging from 0.08% to 1.50%.
2. IBKR Lite: It is suitable for casual traders as there is zero commission.
3. IBKR Pro: It offers fee advantages to traders of all levels.

IBKR Lite Vs IBKR Pro

Fidelity is the brokerage firm that took the top spot in both 2019 and 2020. The firm continues to enhance its services while also lowering the cost of investment. The trading platform offered by Fidelity is best suited for individual investors. Fidelity offers a wide range of tools, research, and resources to its traders. For active investors, the firm offers Active Trader Pro which is a downloadable program that streams live data and offers a customizable trading interface.

Fidelity Platform

Tradable Assets

Interactive Brokers

Fidelity

  • Stocks

  • Bonds

  • Mutual Funds

  • Options

  • ETFs

  • Metals

  • Forex

  • Fixed income

  • Hedge funds

  • Futures in Over 35 Market Centers

  • Stocks Long and Short

  • OTCBB

  • Mutual Funds>

  • Bonds: Corporate, Treasury, Municipal, CDs

  • Single-leg and Multi-leg Options

  • Forex (16 Currencies, 190 Trading Pairs, 4 via a Live Broker)

  • Fractional Shares on Mobile Apps

Types of Platform

Feature

Interactive Brokers

Fidelity

Desktop Platform (Windows)

Yes

Yes

Web Platform

Yes

Yes

Desktop Platform (Mac)

Yes

Yes

Trade Journal

Yes

Yes

Paper Trading

Yes

No

Watch Lists – Total Fields

494

91

Heat Mapping

Yes

Yes

AI Assistant Bot

Yes

Yes

Interactive Brokers Mobile App

Fees & Commissions

Interactive Brokers

Fidelity

Minimum Deposit

No

No

ETF Trade Fee

$0.01

No

Option Base Fee

No

No

Stock Trade Fee

No

No

Options Per Contract Fee

$0.65

$0.65

Broker Assisted Trades Fee

$30.00

$32.95

Mutual Fund Trade Fee

$14.95

$49.95

Security Regulations

Interactive Brokers

Fidelity

  • It is a member of NYSE – FINRA – SIPC

  • It is regulated by US securities and Exchange Commission and the Commodity Futures Trading Commission

  • Fidelity is an SEC registered broker-dealer and a member of NYSE, SIPC

Deposit & Withdrawal Methods

Interactive Brokers

Fidelity

  • Bank Wire Transfer

  • Cheques

  • US Automated Clearinghouse transfer initiated at Interactive Brokers

  • Direct Debit/ Electronic Money Transfer

  • Single Euro Payment Area

  • BACS/GIRO/ACH & More

  • Canadian Electronic Funds Transfer (EFT)

  • Bank Transfer

  • Electronic Wallets

  • A currency conversion fee is charged if deposits are made in the currency other than the base currency.

  • Fidelity supports 16 base currencies

Types of Account

Interactive Brokers

Fidelity

  • Retirement Savings Plan

  • Individual Account

  • Joint Account

  • Individual Retirement Account

  • UGMA/UTMA for Minors

  • Small Business Account

  • Traditional and Roth Individual Retirement Accounts

  • Rollover IRA Accounts

  • Brokerage Accounts for Business

  • SEP and SIMPLE IRAs

  • Cash Management Accounts

  • Custodial Accounts

  • Managed Accounts

  • Annuities

  • Charitable Giving Accounts

Customer Support

Interactive Brokers

Fidelity

  • 24-hour phone, email and chat support on five days of the week

  • Secure message center

  • IBot an AI to answer the queries of the traders

  • 24/7 phone line

  • Online chat with the real agent

  • FAQs mainly focused on trading related information

  • Live broker (additional surcharge is applicable)

Fidelity Customer Support

Conclusion

Interactive Brokers provide insurance under FDIC which Fidelity doesn’t offer. However, if your account has a fund lesser than $1.25 million, this should not be the problem. Fidelity is ideal for intermediate or semi-advanced traders and offers extensive research to its traders. Interactive Brokers are suitable for advanced trading professionals who want to trade forex, crypto, and metals.