Deciding to use Interactive Brokers or Fidelity can be a tough choice since both online trading platforms offer valuable features. Understanding each forum better will help when choosing which one to trust.
At a Glance
Interactive Brokers is the better online trading platform overall. It offers trading options around the world and relevant trading tools that make it a powerful choice.
Interactive Brokers is the best choice for all users due to its ability to connect to global markets and tools, particularly for experienced users. On the other hand, Fidelity is an excellent pick for beginner American investors looking to get into stocks.
Keep reading for a deeper look at Fidelity vs. Investment Brokers and which platform is best for you.
It is easy to get bogged down in a knowledge overload. Let’s take a look at which platform provides better tools that suit your needs.
International Stock Trading
International stock trading is a vital feature for investing in foreign stocks. Foreign resources, big tech companies, and more become available with a few clicks. This feature helps users curate a diverse portfolio with a variety of different stocks.
Fidelity offers global trading in 25 countries globally with 16 currencies. For newer traders, 25 markets may be more than enough to start investing in.
Interactive Brokers offers trading in 33 countries with 23 currencies. For users who want to invest in a wide variety of markets, this will probably be a better option.
Having more markets and currencies available makes Interactive Brokers a more relevant and practical choice. People who are new to the market and established pros alike have more options and can control their trading.
Risk Assessment Tools
Analytical tools are vital when choosing which stocks to trade. These tools can be the difference between a wrong decision and a profitable decision. The tools analyze market data to provide helpful insight.
Fidelity offers limited analytical tools for market risk assessment, primarily a calculator for users. While these tools may benefit a beginner or someone who does not have a thorough grasp of the market, they lack versatility and depth.
Interactive Brokers has a robust Interactive Analytics tool that collects market data and generates risk assessment information for the user without a complicated calculator to manage.
Once again, Interactive Brokers comes out on top. This sophisticated tool is faster and better for making solid decisions the second they arise.
Portfolio analysis is a process that assesses a portfolio and calculates how to minimize risk and maximize return. For buyers looking to get into hot stocks, this can be a valuable and crucial service.
Fidelity offers portfolio analysis services for anyone, even people who do not use Fidelity to trade. Clients can see a breakdown of their assets and view their account balance and internal rate of return in real-time.
Interactive Brokers offers a full portfolio analysis service for clients. Clients can view their assets and compare their portfolio to 200 global benchmarks. The Portfolio Checker tool breaks down ETFs and mutual funds for further understanding.
Tax Analysis Tools
Tax analysis tools are tools that allow clients to manage their stock gains and losses for taxes. When some clients trade a lot and quickly, this tool is vital.
Fidelity does not offer this service at the time of writing. For clients looking to invest in a wide range of stocks, potentially on the global stage, this is a significant downside. Most online trading platforms offer this service.
Interactive Brokers offers a tool called Tax Optimizer that helps manage gains and losses for taxes. This tool is a vital service for experienced clients who want to diversify their portfolios.
Interactive Brokers comes out the winner in this section. Most major platforms offer this tool, so Fidelity lacks a vital tool for experienced clients. Taxation is something everyone has to worry about, and having an integrated tax analysis tool should be standard.
Educational Resources help clients understand the ins and outs of trading. This builds financial literacy and helps create an educated, informed client base for the platform.
Fidelity’s Online Learning Center is made for beginners. Having a solid base of reliable information can be the difference between profit and loss. Fidelity also offers a mobile app called Fidelity Aspire geared to educating young people about financial health. The website has 600 educational resources available for every step of the buying and selling process, both in-house and third-party.
Interactive Brokers has many educational resources. One tool, Traders Academy, breaks down all the crucial elements of trading and has quizzes for clients to test their understanding as they continue to learn.
Both platforms have a real focus on education, but Fidelity comes out on top with educational resources. The amount of information that is covered on Fidelity and Fidelity Aspire is massive. While Interactive Brokers is a strong candidate overall, its design for more experienced clients puts it at a loss in this category.
Interactive Brokers vs. Fidelity: The Winner
When it comes down to Interactive Brokers vs. Fidelity, only one platform can be the top choice. Interactive Brokers is the winner because it offers comprehensive tools and services that provide a reliable, profitable trading experience.
Ultimately, Interactive Brokers is best for people with experience in stocks, but it is a solid choice for people just now getting into stocks because of its breadth of tools. Someone with more experience may want a more in-depth view of their portfolio and choose to use Interactive Brokers.
Fidelity is optimized for people who are just beginning to buy stocks and learn about the market. The online educational resources may end up being a real help for the beginner. Overall, this is a weaker option, but beginner client education is Fidelity’s greatest strength.
Interactive Brokers is the top choice for people with experience in the stock market. If Interactive Brokers is looking like the correct choice for you, you may want to consider joining online. Check out their website and find out more about what sets this online trading platform apart from the crowd.