Robinhood vs. Fidelity: Which Is Better for New Investors?

When it comes to investing, the brokerage you choose can shape your entire financial journey. For new investors, two names often stand out: Robinhood and Fidelity. Both offer commission-free trading, mobile apps, and user-friendly platforms, but they cater to very different investing styles. Robinhood is the flashy, tech-driven app that made investing feel as simple as scrolling social media. Fidelity is the trusted, decades-old financial giant that has guided generations of investors toward their long-term goals.

For beginners, the choice can feel overwhelming. Do you go for the sleek, gamified experience that promises quick access to stocks and cryptocurrencies, or do you lean toward a comprehensive financial institution with research, retirement accounts, and robust planning tools? The answer depends on your investing goals, learning style, and preferences. In this guide, we’ll compare Robinhood and Fidelity across multiple factors to help you decide which platform is best for your first investment steps.

User Experience and Ease of Use

Robinhood built its reputation on a simple, minimalistic mobile app. The interface is clean, with easy navigation and instant access to buying and selling stocks. The app is particularly appealing to younger investors who want to invest from their phones without dealing with complex menus or overwhelming data. You can open an account in minutes, link your bank, and start trading right away.

Fidelity, on the other hand, offers a more traditional web-based and mobile experience. While the platform is not as minimal as Robinhood, it’s still beginner-friendly, especially if you stick to the mobile app. However, Fidelity packs in far more research tools, account options, and educational resources—which can feel overwhelming at first but becomes a strength as you grow as an investor.

Verdict for Beginners: Robinhood wins for pure simplicity, but Fidelity offers a better long-term learning curve.

Investment Options

Robinhood started with just stocks and ETFs but has expanded to include options trading, fractional shares, and cryptocurrencies. You can buy Bitcoin, Ethereum, and other popular coins without needing a separate crypto exchange account. However, Robinhood does not offer mutual funds, bonds, or retirement accounts, which limits its appeal for investors looking for a full financial portfolio.

Fidelity offers virtually everything: stocks, ETFs, mutual funds, bonds, CDs, options, fractional shares, and retirement accounts like IRAs and 401(k) rollovers. Fidelity also provides access to international markets, something Robinhood doesn’t offer. This makes Fidelity far better for building a diversified, long-term portfolio.

Verdict for Beginners: Robinhood is fine for stock and crypto enthusiasts, but Fidelity is the clear winner for long-term and diversified investing.

Fees and Commissions

Both Robinhood and Fidelity offer $0 commission trading for stocks, ETFs, and options. Both also allow fractional share investing with no additional fees, making it easy to start with small amounts of money.

The difference is in other fees:

• Robinhood has no account minimums but charges for Robinhood Gold ($5/month) if you want advanced research tools and larger instant deposits.

• Fidelity has no monthly fees for research and offers premium tools for free.

In cryptocurrency trading, Robinhood doesn’t charge a commission, but it builds a small markup into the trade price. Fidelity, while not known for crypto, offers Bitcoin trading for retirement accounts through Fidelity Digital Assets.

Verdict for Beginners: Tie for stock trading, but Fidelity is better if you want research tools without paying extra.

Research and Education

Robinhood provides basic market news, price charts, and analyst ratings, but it’s not designed for deep investment research. This minimalist approach works for people who prefer external research sources or quick trades without diving into detailed data.

Fidelity offers comprehensive research tools—including analyst reports from Morningstar, CFRA, and more—along with interactive charts, stock screeners, and portfolio analysis tools. Its educational resources are robust, with beginner-friendly guides, webinars, and video tutorials that explain everything from basic investing concepts to advanced trading strategies.

Verdict for Beginners: Fidelity wins easily. The depth and quality of its research and education far surpass Robinhood’s offering.

Customer Service and Support

Robinhood has historically struggled with customer service, offering only email-based support for years. Recently, it introduced phone support callbacks for certain issues, but many users still report long wait times and limited resolution options.

Fidelity has long been known for excellent customer support. You can call them 24/7, visit one of their many branch locations, or use their online chat service. This makes a big difference for new investors who may need guidance when making important financial decisions.

Verdict for Beginners: Fidelity is the clear winner here.

Retirement and Long-Term Investing

If your goal is long-term wealth building, Robinhood is not the ideal platform. It lacks retirement account options like IRAs, and while you can invest in individual stocks or ETFs for long-term growth, you won’t have access to the same tax-advantaged strategies you get with Fidelity.

Fidelity specializes in retirement planning. You can open a traditional IRA, Roth IRA, SEP IRA, or roll over an old 401(k) directly into Fidelity. It also offers retirement calculators, planning tools, and professional guidance to help you map out your future.

Verdict for Beginners: Fidelity dominates in retirement investing.

Crypto and Alternative Investments

Robinhood offers one of the most seamless crypto trading experiences among traditional brokerages. You can buy, sell, and hold cryptocurrencies directly in the same app you use for stocks. However, your coins remain on Robinhood’s platform—you can’t transfer them to a private wallet without selling.

Fidelity has been cautious with crypto, offering limited options primarily geared toward retirement investors. If you want to invest heavily in cryptocurrencies, Robinhood is the more convenient choice.

Verdict for Beginners: Robinhood wins for crypto trading, but Fidelity is better for regulated, retirement-focused investing.

Safety and Regulation

Both Robinhood and Fidelity are SIPC-insured up to $500,000 for securities and $250,000 for cash, protecting your investments in the event of brokerage failure. Both are also regulated by the SEC and FINRA.

However, Fidelity’s long-standing reputation and conservative approach to investing make it feel more secure to some investors. Robinhood’s history includes high-profile outages during volatile markets, which can shake confidence for new investors.

Verdict for Beginners: Fidelity feels safer for conservative investors, while Robinhood is still secure but has had operational hiccups.

Who Should Choose Robinhood?

Robinhood is ideal if you:

• Want an extremely simple mobile-first investing app.

• Plan to focus mainly on stocks, ETFs, and crypto.

• Value instant deposits and quick access to trading.

• Don’t need advanced research tools or retirement accounts.

Who Should Choose Fidelity?

Fidelity is ideal if you:

• Want to build a diversified, long-term portfolio.

• Value research tools, education, and customer support.

• Need retirement accounts like IRAs and 401(k) rollovers.

• Prefer a trusted financial institution with decades of experience.

Final Verdict: Which Is Better for New Investors?

If you’re a brand-new investor looking for the easiest way to buy your first stock, Robinhood is incredibly user-friendly. Its mobile-first design makes investing accessible to anyone, even if you’ve never bought a stock before.

However, if you’re serious about building long-term wealth, Fidelity offers the better overall package. Its robust research, retirement options, customer support, and wide investment selection give you the tools you need to grow beyond your first trades.

The truth? You don’t have to choose just one. Many investors start with Robinhood for quick, simple investing and later open a Fidelity account for retirement and more advanced strategies. Your investing journey may evolve, and so should your tools.