Personal Finance · head to head
Fidelity vs Betterment
The short version
- Each has a real cost: Fidelity options trades carry a 0.65 USD per contract fee on top of zero commission; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
- They diverge on capability: Fidelity covers Commission-free trading, Betterment covers Automated investing.
Where they differ
Only the attributes on which Fidelity and Betterment actually diverge.
| Attribute | Fidelity | Betterment |
|---|---|---|
| Starting price | On request | $5/month |
| Pricing model | transaction | subscription |
| Founded | 1946 | 2008 |
Identical on both: free tier (No), platforms (Web, IOS, Android), user rating (Not yet rated), category (Personal Finance).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Fidelity
- Commission-free trading
- Advisory services
- Research tools
Only in Betterment
- Automated investing
- Financial advisory
- Goal tracking
Both cover
- Retirement planning
- Bank accounts
- Investment accounts
- Web support
- IOS support
- Android support
What people use each for
The jobs each tool is most often brought in to do.
Fidelity
- Commission free trading of US stocks and ETFsnot Betterment
- Holding IRAs, 401(k) plans and taxable brokerage accountsnot Betterment
- Trading bonds, options and mutual funds from one accountnot Betterment
Betterment
- Small investors starting with automated investing at no minimum balancenot Fidelity
- Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Fidelity
- Premium advisory access for high-net-worth individuals with $100,000+ balancenot Fidelity
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Fidelity
- Options trades carry a 0.65 USD per contract fee on top of zero commission
- Non Fidelity mutual funds carry a 49.95 USD transaction fee per purchase
- Secondary market bonds cost 1.00 USD per bond, while new issues are free
- A foreign settlement fee of 50 USD applies per trade
- Margin rates are tiered by debit balance, from 11.825 percent below 25,000 USD down to 7.50 percent at 1 million USD or more, against a base rate of 10.575 percent effective 12 December 2025
- Margin liquidation by the broker costs 32.95 USD per liquidation
Betterment
- Digital automated investing charges $5 per month fee for accounts under $24,000 balance
- Premium advisory service requires minimum balance of $100,000 in eligible investments
- Foreign transaction fees apply to checking account (though reimbursed after the fact)
- High-balance fee discounts only available above $1,000,000 account balance
Pricing, plan by plan
Fidelity
On request- Brokerage$undefined/month
- Commission-free trading
- Research tools
- Advisory$undefined/month
- Personal advisor
- Wealth management
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Which should you pick?
Choose Fidelity if
- You need commission-free trading.
- You work on Web, IOS, Android.
- You also want advisory services.
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want financial advisory.
Questions people ask
- Is Fidelity or Betterment better?
- Neither clearly leads. Fidelity starts at On request and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Fidelity or Betterment?
- Fidelity starts at On request and Betterment at $5/month.
- Does Fidelity or Betterment run on more platforms?
- Fidelity runs on Web, IOS, Android. Betterment runs on Web, iOS, Android.
- What is Fidelity best used for?
- Fidelity is most often used for commission free trading of us stocks and etfs, holding iras, 401(k) plans and taxable brokerage accounts, trading bonds, options and mutual funds from one account. Of those, commission free trading of us stocks and etfs and holding iras, 401(k) plans and taxable brokerage accounts are not what Betterment is typically brought in for.
- What can Fidelity do that Betterment cannot?
- Fidelity covers Commission-free trading, Advisory services, Research tools. Betterment covers Automated investing, Financial advisory, Goal tracking. Both handle Retirement planning, Bank accounts, Investment accounts, Web support.