Fidelity vs Interactive Brokers 2026: Which Broker is Better?

Regulation & Safety

Fidelity is a well-established broker founded in 1946 and is headquartered in Boston, USA. It is regulated by prominent US regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Fidelity's long-standing presence in the financial industry, managing assets under management (AUM) of $11 trillion, instils a high level of trust and security for investors.

In contrast, Interactive Brokers, founded in 1978 and based in Greenwich, USA, is subject to a broader range of regulatory oversight. It holds licences from the SEC and CFTC in the US, the Financial Conduct Authority (FCA) in the UK, the Monetary Authority of Singapore (MAS), and the Australian Securities and Investments Commission (ASIC). This global regulatory framework enhances its appeal for international traders and offers a more comprehensive fund protection scheme.

Fees & Spreads

Fidelity offers a competitive fee structure with spreads starting from 0 pips. The broker charges zero commissions on US stocks and ETFs, making it an attractive option for investors focused on the US market. Moreover, there are no account fees and the minimum deposit requirement is $0, which lowers the barrier to entry for new investors. However, Fidelity does not offer leverage beyond 1:2, limiting its appeal to those seeking higher leverage trading opportunities.

Interactive Brokers provides low-cost trading with spreads beginning at 0.2 pips and a commission of $0.005, which can be especially advantageous for high-frequency traders. The absence of a minimum deposit requirement is a shared benefit with Fidelity, but Interactive Brokers offers a higher leverage cap of 1:4. Despite these advantages, traders should be aware of potential inactivity fees for small accounts.

Trading Platforms

Both brokers offer proprietary web and mobile trading platforms. Fidelity's platforms are known for their robust research tools and screeners, which are beneficial for investors who value comprehensive analysis. However, the platforms can be challenging for complete beginners. Interactive Brokers, on the other hand, provides advanced trading tools suitable for professional traders. Its platform supports access to over 150 markets in 33 countries, but its complexity may deter novice traders.

Who Should Choose Fidelity?

• Investors focused on the US market.
• Traders looking for zero commissions on US stocks and ETFs.
• Users interested in fractional share trading from $1.
• Investors who value excellent research and screeners.

Who Should Choose Interactive Brokers?

• International traders seeking access to 150+ markets.
• Professional traders needing advanced tools.
• Investors requiring top-tier global regulation.
• High-frequency traders benefiting from low commissions.

Our Verdict

For beginners, Fidelity is the preferred choice due to its zero commission on US stocks and ease of entry. Professionals will find Interactive Brokers more suitable with its advanced tools and extensive market access. When it comes to fees, Interactive Brokers offers a more competitive structure for frequent traders.