Is E*TRADE or Fidelity better?

Fidelity is better for most investors — it has zero-expense-ratio index funds, no-minimum accounts, better retirement account options, a stronger mobile app, and superior research. E*TRADE (now Morgan Stanley) is better for active options traders who prefer Power E*TRADE's interface and for customers who want Morgan Stanley research and wealth management integration.

Did Morgan Stanley buy E*TRADE?

Yes. Morgan Stanley acquired E*TRADE in 2020 for $13 billion. E*TRADE accounts are now integrated into Morgan Stanley's platform. The E*TRADE brand and trading platforms have been largely preserved, but customers now have access to Morgan Stanley research and advisory services.

Does Fidelity have better index funds than E*TRADE?

Yes. Fidelity offers four zero-expense-ratio index funds (FZROX, FZILX, FZIPX, FNILX) that charge literally $0 in fees. No other brokerage matches this. E*TRADE offers access to third-party index funds (Vanguard, Schwab, etc.) but doesn't have its own zero-fee funds.

Which is better for retirement accounts?

Fidelity wins. It offers more retirement account types (solo 401(k), SIMPLE IRA, HSA), manages more 401(k) plans than any other provider (35,000+ workplace plans), and has the lowest-cost index funds for retirement savings. E*TRADE has standard IRAs but less retirement specialization.

Which has the better mobile app?

Fidelity's mobile app is rated slightly higher (4.8/5 vs 4.5/5 on iOS) and offers more features including stock screening, research, and Fidelity Spire retirement planning. E*TRADE's Power E*TRADE app is excellent specifically for options trading. For overall mobile investing, Fidelity is better.

E*TRADE vs Fidelity (2026): Which Brokerage Is Better for Your Portfolio?

ETRADE (now part of Morgan Stanley) and Fidelity are two of the most established brokerages in the US, each with decades of history and millions of accounts. ETRADE pioneered online trading in the 1990s and now brings Morgan Stanley’s research muscle. Fidelity is the largest brokerage by client assets and leads on low-cost investing. Here’s how they compare in 2026.

TL;DR: Fidelity wins for most investors — zero-expense-ratio index funds, more retirement account types, better research, stronger mobile app, and lower overall costs. E*TRADE wins for active options traders (Power E*TRADE is excellent) and investors who want Morgan Stanley research and advisory integration.

Side-by-Side Overview

Feature	E*TRADE (Morgan Stanley)	Fidelity
Stock/ETF commissions	$0	$0
Options per contract	$0.65 ($0.50 for 30+ trades/quarter)	$0.65
Mutual funds (NTF)	6,000+	10,000+
Zero-fee index funds	✗	✓ (4 funds at 0.00%)
Account minimum	$0	$0
Robo-advisor	Core Portfolios (0.30%)	Fidelity Go (free under $25K)
Trading platform	*Power ETRADE**	Active Trader Pro
Mobile app (iOS)	4.5/5	4.8/5
Fractional shares	✗	✓ (starting at $1)
Banking	✓ (E*TRADE Bank)	✓ (Fidelity Cash Management)
International stocks	✗	✓
Crypto	✓ (select coins)	✓ (Fidelity Crypto)
Branch locations	Morgan Stanley branches	200+ Investor Centers
Customer accounts	7M+	43M+
Total client assets	$500B+ (E*TRADE portion)	$12T+

Commission and Fee Comparison

Fee Type	E*TRADE	Fidelity
US stocks/ETFs	$0	$0
Options (per contract)	$0.65 ($0.50 with volume)	$0.65
Mutual funds (NTF)	$0	$0
Mutual funds (transaction)	$19.99	$49.95
Broker-assisted trade	$25	$32.95
Treasury bonds	$0	$0
Account transfer (ACAT)	$75	$0
Wire transfer	$25 outgoing	$0 (incoming) / $10 (outgoing)
Account maintenance	$0	$0

Options Pricing Detail

Volume	E*TRADE	Fidelity
Standard rate	$0.65	$0.65
30+ trades/quarter	$0.50	$0.65
Exercise/assignment	$0	$0
Monthly cost (50 contracts)	$25-$32.50	$32.50
Monthly cost (200 contracts)	$100-$130	$130

E*TRADE rewards active options traders with a lower $0.50/contract rate — a meaningful savings at scale.

Margin Rates

Loan Amount	E*TRADE	Fidelity	Lower
$25,000	12.20%	11.325%	Fidelity
$50,000	11.70%	10.575%	Fidelity
$100,000	10.70%	9.075%	Fidelity
$250,000	10.45%	8.325%	Fidelity
$500,000+	10.20%	7.575%	Fidelity

Fidelity offers significantly lower margin rates, especially at higher balances. The gap widens as your margin balance increases.

Index Funds and ETFs

Fidelity’s Zero-Fee Advantage

Fund	Ticker	Expense Ratio	Equivalent E*TRADE Option	Its Expense Ratio
Fidelity ZERO Total Market	FZROX	0.00%	Vanguard Total Market (VTI)	0.03%
Fidelity ZERO International	FZILX	0.00%	Vanguard Total Intl (VXUS)	0.07%
Fidelity ZERO Large Cap	FNILX	0.00%	Vanguard S&P 500 (VOO)	0.03%
Fidelity ZERO Extended Market	FZIPX	0.00%	Vanguard Extended Market (VXF)	0.06%

Cost Savings on $100,000 Portfolio

Scenario	Fidelity ZERO Funds	Comparable at E*TRADE	Annual Savings
$100,000 portfolio	$0/year	$30-$70/year	$30-$70
$500,000 portfolio	$0/year	$150-$350/year	$150-$350
$1,000,000 portfolio	$0/year	$300-$700/year	$300-$700

Over a 30-year career, these savings compound significantly.

Trading Platforms

ETRADE — Power ETRADE

Feature	Rating
Options chain layout	★★★★★
Risk/reward analysis	★★★★½
Charting	★★★★☆
Mobile options trading	★★★★★
Strategy builder	★★★★½
Ease of use	★★★★½
Snap ticket (trade from any screen)	★★★★★

Power E*TRADE is one of the most intuitive options trading platforms. The visual risk/reward charts and snap ticket feature make complex options strategies accessible.

Fidelity — Active Trader Pro

Feature	Rating
Real-time analytics	★★★★☆
Directed trading	★★★★☆
Charting	★★★★☆
Options trading	★★★½☆
Multi-monitor support	★★★★☆
Customization	★★★★☆
Ease of use	★★★½☆

Active Trader Pro is solid but not as polished for options as Power E*TRADE. It excels in directed trading (choosing exchanges) and real-time analytics.

Platform Head-to-Head

Feature	E*TRADE	Fidelity	Winner
Options trading	★★★★★	★★★½☆	*ETRADE**
Stock screening	★★★★☆	★★★★½	Fidelity
Research integration	★★★★☆	★★★★★	Fidelity
Mobile app (overall)	★★★★½	★★★★★	Fidelity
Mobile options	★★★★★	★★★½☆	*ETRADE**
Charting	★★★★☆	★★★★☆	Tie
Ease of use	★★★★½	★★★★☆	*ETRADE**

Research and Education

Feature	E*TRADE	Fidelity
Proprietary research	Morgan Stanley research	Fidelity Equity Research
Third-party providers	Morgan Stanley, TipRanks	20+ providers incl. Argus, Ned Davis
Stock screener	✓ (good)	✓ (excellent)
ETF research center	✓	✓ (superior)
Fixed income tools	✓	✓ (extensive)
Educational content	Good	Fidelity Learning Center (extensive)
Webinars/events	✓	✓ (daily live events)
Retirement planning tools	✓	✓ (best-in-class)

Fidelity’s research ecosystem is broader — 20+ third-party research providers versus E*TRADE’s Morgan Stanley-centric approach. Fidelity’s learning center and retirement planning tools are industry-leading.

Retirement Accounts

Account Type	E*TRADE	Fidelity
Traditional IRA	✓	✓
Roth IRA	✓	✓
Rollover IRA	✓	✓
SEP IRA	✓	✓
SIMPLE IRA	✗	✓
Solo 401(k)	✗	✓
529 plan	✗	✓
HSA	✗	✓ (Fidelity HSA)
Inherited IRA	✓	✓
Custodial IRA	✓	✓
Workplace 401(k) plans	✗	✓ (35,000+ employer plans)

Fidelity wins on retirement account variety. If you’re self-employed (solo 401(k)), have a small business (SIMPLE IRA), or want an HSA alongside your brokerage, Fidelity is the only option between these two.

Banking and Cash Management

Feature	E*TRADE Bank	Fidelity Cash Management
Checking account	✓	✓
Debit card	✓	✓
ATM fee reimbursement	✓ (select network)	✓ (all ATMs)
Foreign transaction fees	1%	$0
Bill pay	✓	✓
Mobile check deposit	✓	✓
FDIC coverage	$250,000	$5M+ (through sweep)
Savings APY	3.00%-4.00%	2.69%
Brokerage integration	✓	✓

Fidelity offers unlimited ATM reimbursement worldwide and no foreign transaction fees — excellent for travelers.

Fractional Shares

Feature	E*TRADE	Fidelity
Fractional share investing	✗	✓
Minimum investment	Full share price	$1
Dollar-based investing	✗	✓
Fractional ETFs	✗	✓
Dividend reinvestment (DRIP)	✓ (fractional through DRIP)	✓ (fractional buying + DRIP)

This is a significant Fidelity advantage for smaller investors. You can buy $50 of Amazon stock instead of needing the full share price. E*TRADE has not added fractional share trading.

Who Should Choose Each

Choose E*TRADE If You…

Scenario	Why E*TRADE Wins
Trade options frequently	Power E*TRADE is outstanding for options
Want Morgan Stanley research	Institutional-quality research
Trade 30+ times/quarter	$0.50/contract options rate
Prefer visual risk/reward tools	Power E*TRADE’s visual strategy builder
Want Morgan Stanley advisory access	Integrated wealth management path
Use mutual funds heavily	Lower transaction fee ($19.99 vs $49.95)

Choose Fidelity If You…

Scenario	Why Fidelity Wins
Want the lowest-cost index funds	Zero-fee funds (FZROX, FZILX, etc.)
Need fractional shares	Start investing with $1
Need retirement account variety	Solo 401(k), SIMPLE IRA, HSA, 529
Want a free robo-advisor	Fidelity Go (free under $25K)
Use margin	Lower rates at every balance level
Travel internationally	Free ATM reimbursement + no FX fees
Want the best mobile app	4.8/5 rated, full-featured
Need international stock access	Fidelity offers global trading

Decision Matrix

Your Priority	Best Choice	Confidence
Options trading platform	*ETRADE**	High
Lowest fund costs	Fidelity	Very High
Fractional shares	Fidelity	Very High
Retirement accounts	Fidelity	Very High
Research depth	Tie	—
Mobile app	Fidelity	High
Margin rates	Fidelity	Very High
Banking/cash management	Fidelity	High
High-volume options	*ETRADE**	High
Wealth management path	*ETRADE (Morgan Stanley)**	Moderate

The Bottom Line

Factor	Winner
Stock/ETF commissions	Tie ($0)
Options trading	*ETRADE (platform + volume discount)**
Index fund costs	Fidelity (0.00% funds)
Margin rates	Fidelity
Fractional shares	Fidelity
Trading platform (options)	ETRADE (Power ETRADE)
Mobile app	Fidelity
Research	Tie
Retirement accounts	Fidelity
Banking	Fidelity
Robo-advisor	Fidelity (free under $25K)
Overall: Options-focused traders	*ETRADE**
Overall: Long-term investors	Fidelity

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy