Fidelity vs Betterment? Who is better? Fidelity is a well-known investment firm that has been around for many years. They offer a wide range of investment options, including stocks, bonds, and mutual funds. They also offer a wide range of account options, including individual and joint accounts, retirement accounts, and trusts.
Betterment is a newer investment firm gaining popularity in recent years. They offer a limited range of investment options, but they specialize in low-cost ETFs. They also offer a wide range of account options, including individual and joint accounts, retirement accounts, and trusts.
Let's make a comparison of Fidelity vs Betterment in this article to make sure you are getting the best investment platform according to your preference.
It's going to be a neutral comparison. AtoZ Markets is in no way responsible for any information given by the writer.
About Fidelity
image credit: Fidelity
Fidelity is one of the oldest financial service providers that makes it trustworthy. It was founded in 1946 by Edward C. Johnson II. Also, It is one of the largest trading platforms in the market. And it has $2.1 trillion in assets under management.
It has plenty of branches all over the world and headquarters in Boston, Massachusetts. Now, Edward "Ned" C. Johnson III leads the company with more than 45,000 employees.
You Can Also Read Fidelity vs Vanguard Comparison
About Betterment
image credit: Betterment
Betterment is the largest and fastest-growing automated investing service in the world. The company offers a seamless, sophisticated, and easy-to-use platform that helps people save for their future and meet their long-term financial goals.
The company has more than 350,000 customers and has raised more than $275 million in funding from leading investors, including Bessemer Venture Partners, Goldman Sachs, and IA Ventures.
Fidelity vs Betterment: Trading Experience
In the matter of trading experience, Betterment is the clear winner. With its simple, easy-to-use interface, Betterment makes it easy for anyone to get started trading. On the other hand, Fidelity can be a bit overwhelming for beginners. Its complex interface can be difficult to navigate, and it can be difficult to find the information you need.
Desktop Trading Platforms
In terms of desktop trading experiences, Fidelity and Betterment are two very different beasts. Fidelity's desktop platform is a fully-featured trading experience, with all the bells and whistles you'd expect, including streaming data, technical analysis tools, and extensive charting capabilities.
On the other hand, Betterment is a more streamlined experience, with a focus on providing users with the most important information and tools needed to make informed investment decisions. This includes real-time data and analysis and a wide range of portfolio options to choose from.
Layout
At Fidelity, you have a traditional layout with the main toolbar across the top, followed by a list of active and recent orders, your account summary, and a list of all your positions. Beneath this, you'll find a detailed chart for each security in your portfolio, as well as a news feed and a list of recent filings.
Betterment takes a more modern approach, with a simplified layout that puts your account balance and portfolio performance front and center. For example, active and recent orders are hidden behind a menu bar on the left, and you'll find detailed charts and news feeds below each security. Betterment also offers a unique tool called "Goal Planning" that can help you set and track specific savings goals.
Features
When it comes to features and tools, Fidelity offers a wider range of options, but Betterment's offerings are more streamlined and easy to use. For example, Fidelity offers a variety of order types, including market, limit, stop, and stop-limit orders. You can also use margin to borrow money from Fidelity to purchase additional securities. Betterment does not offer margin, but it does have a unique feature called "Tax Loss Harvesting+" that can help minimize your tax liability.
Mobile Trading Apps
An important deciding factor when choosing a brokerage is the mobile trading experience. Fidelity and Betterment both offer excellent mobile apps with a host of features, but there are some important differences.
Fidelity's mobile app offers a wide variety of features, including the ability to trade stocks, options, and ETFs. It also offers a wealth of research and analysis tools and integrated account management. The app is well-designed and easy to use, with a user-friendly interface.
Betterment's mobile app is also excellent, with a wide range of features that include the ability to trade stocks, options, and ETFs. It also offers a wealth of research and analysis tools and integrated account management. However, it is not quite as user-friendly as Fidelity's app, with a slightly less intuitive interface.
Fidelity vs Betterment: Usability
Fidelity's platform is more difficult to use than Betterment's. With Fidelity, you must manually input the stock tickers for each investment you want to make, while Betterment's platform automatically populates the tickers for you. Fidelity also doesn't have an automatic rebalancing feature, while Betterment does.
However, Fidelity does have some advantages over Betterment. First, Fidelity offers a wider range of investment options, including options for individual stocks and bonds. Second, Fidelity offers a higher level of customer support, with more phone and email support options than Betterment.
Overall, Betterment is the more user-friendly platform, but Fidelity offers more investment options and better customer support.
Fidelity vs Betterment: Fees
When you invest your money, you want to make sure that as much of it as possible goes towards growing your portfolio rather than towards fees and commissions. So it's important to understand the different types of fees and commissions that may be associated with your investment account.
Trading fees and commissions
Fidelity charges a $ 0.65 commission for each online trade when it comes to trading fees and commissions. There is no commission charged for trades placed over the phone. In addition, Fidelity does not charge annual fees for any accounts.
In contrast, Betterment does not charge a commission for any of its account types. Instead, it charges a flat annual fee of 0.25% of your account balance. So, for example, if you have a $10,000 account balance, you would be charged a $25 annual fee. There are no account fees for Roth and traditional IRA accounts.
Inactivity Fees
Fortunately, both trading platforms don't charge any money for being inactive. And, that is a great option for brokers to come back whenever they want. Yet, you don't have to lose any money and start trading right at that moment.
Non-Trading/Other Fees
Fidelity charges $75 for transferring an account to another platform, while Betterment offers free transfer. Also, closing an account that is older than 90 days can cost money in Fidelity, but Betterment does not charge any money.
In addition, both platforms do not charge any for withdrawal or deposit. However, exchanging can cost both platforms.
Overall, Betterment is a cheaper option than Fidelity. Yet, you can rely on Fidelity's experience.
Fidelity vs Betterment: Investment options
Fidelity and Betterment are both popular investment platforms that allow you to invest your money in a variety of different options. Unfortunately, they both offer a wide variety of investment options, so it can be tricky to decide which platform is right for you.
Fidelity is a traditional investment firm that offers a wide range of investment options, including stocks, bonds, and mutual funds. Also, that includes Retirement and IRAs, Options, Sustainable Investing, Cash Management & Credit Cards, Managed Accounts, 529 College Savings, Health Saving Accounts, Annuities, Life Insurance, Charitable Giving and more. Every product comes with various options and features that are suitable in a certain situation.
On the other hand, Betterment is a newer investment company that offers a unique investment product: automated investing. With Betterment, you simply tell them how much you want to save, and they will automatically invest your money in a mix of low-cost ETFs. This can be a great option for people who don't have time to research different investment options. Also, it has IRAs and 401(k), Portfolio options, Socially responsible investing, and Crypto investing.
Overall, Fidelity is indeed the better option for various investment products; however, having crypto investment makes Betterment unique.
Fidelity vs Betterment: Regulations
Fidelity is a brokerage firm that is regulated by the SEC. This means that they are subject to various rules and regulations related to the products they offer and the way they do business. For example, Fidelity is required to disclose their fees and investment options clearly and concisely. They are also required to ensure that their products and services are appropriate for their customers and that they are providing accurate information about the risks and potential rewards associated with each investment. Also, it is regulated by FINRA, ensuring better security of your money. In addition, it is covered by SIPC and FSCS as well.
On the other hand, Betterment is a registered investment advisor (RIA). This means that they are regulated by the SEC and the state in which they operate. RIAs are required to adhere to a fiduciary standard, which means they must always act in the best interests of their clients. They are also required to disclose all of their fees and investment options and the risks and potential rewards associated with each investment.
Fidelity vs Betterment: Account Types
Fidelity offers a wide range of account options, including individual and joint accounts, Roth and traditional IRAs, and 401(k)s. Betterment offers a narrower range of account options, but these accounts are more tailored to retirement planning. Betterment offers Roth and traditional IRAs and SEP and SIMPLE IRAs.
Here are a few Fidelity account types
- Brokerage accounts
- Retirement accounts (rollover and traditional)
- Managed accounts
- 509 accounts
- Health Saving accounts
- Annuities accounts
- Life insurance accounts
And, Better offers the following account types
- Investing
- IRAs and 401(k)s
- Roth IRAs
- Cash Reserve
- Checking
- Trusts
In terms of account types, Fidelity is undoubtedly a better option. However, Betterment is not that far. As a new player in this industry, it is doing pretty well and offers quite a variety of account types.
Betterment vs Fidelity: Security
When it comes to security, Fidelity Investments is the clear winner. The company has a long history of safeguarding customer data and has implemented many security measures to protect its users. On the other hand, Betterment has had a few security breaches in the past, which could leave customers' data vulnerable.
Fidelity Investments has several features that make it a more secure option than Betterment. For starters, the company has a comprehensive privacy policy, which outlines the ways in which it protects customer data. Additionally, Fidelity has implemented many security measures, including firewalls, intrusion detection systems, and data encryption. On the other hand, Betterment does not have a comprehensive privacy policy and has had several security breaches in the past.
Overall, Fidelity Investments is the more secure option for investing. This is because the company has a long history of safeguarding customer data and has implemented many security measures to protect its users. On the other hand, Betterment does not have a comprehensive privacy policy and has had several security breaches in the past.
Betterment vs Fidelity: Customer support
Better customer support is slightly better due to having fewer customers and responding quite faster. Contrarily, Fidelity is not bad, but sometimes it takes time to solve an issue.
Cost
Both platforms do not charge any money to provide customer support. Instead, they include that in the annual maintenance fee.
Availability
When it comes to customer service availability, Betterment shines. They offer phone support Monday-Friday from 8 am to 8 pm EST, and their chat support is available 24/7. So if you need to speak to someone on the phone, you can generally get ahold of someone within a few minutes.
On the other hand, Fidelity offers phone support Monday-Friday from 8 am to 8 pm EST, with a response time of an hour. They also offer chat support, but it's not available 24/7.
Speed
Fidelity's customer service is notoriously slow, often taking days or even weeks to resolve an issue. On the other hand, Betterment responds to customer inquiries within minutes, ensuring that you get the help you need quickly and efficiently.
Both Fidelity and Betterment offer high-quality customer support. However, Fidelity's extensive network of branch locations makes it a better choice for investors who need personal assistance. Betterment's online chat and email support are equally as good as Fidelity's, so they are a good choice for investors who prefer to communicate electronically
Betterment vs Fidelity: Research and Tools
When deciding between Fidelity and Betterment, it's important to look at the research and tools available to each. Fidelity offers comprehensive research tools, while Betterment offers various investment options.
Fidelity offers a wide variety of research tools, including analyst reports, portfolio analysis tools, and retirement planning tools. You can also access Morningstar ratings and reports for individual stocks and mutual funds.
Betterment offers a wide variety of investment options, including stocks, bonds, and ETFs. You can also choose from various risk levels, so you can find the investment that's right for you. Betterment also offers various tools, including retirement planning tools, goal-setting tools, and tax-loss harvesting tools.
Is Fidelity better than Betterment?
Fidelity is older than Betterment, but you will have a sleek experience in Betterment. And, that makes the question, which one is better? Well, there are a few factors to consider before concluding a decision.
Fidelity is a well-known investment company that has been around for a long time. They offer a wide range of investment options and customer support and resources. Betterment is a newer company, but it has quickly become popular because of its low fees and easy-to-use platform.
So, which one is better in the battle of Betterment vs Fidelity? It depends on your needs and preferences. For example, Fidelity may be a better option if you want more control over your investments and work with a human advisor. On the other hand, Betterment may be a better option if you want to invest in a diversified portfolio and don't want to worry about managing your investments.
Ultimately, the best option is the one that fits your needs and preferences best. If you're not sure which option is right for you, consult a financial advisor to help you make the best decision for your unique situation.
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Conclusion
At the end of the Betterment vs Fidelity comparison, I'd suggest Fidelity for their reputations. Also, the various investment products will help you choose the best possible option for you. It's also good for advanced investors. But, Betterment is easy to use and has faster customer support. Yet, it is a better option for retirement accounts and crypto trading. Fidelity does not have crypto trading features, and the user experience is slightly lower than Betterment. But, you can not withstand their experience and reputations in the trading industry. It is one of the longest-running brokerage platforms that ensure the better safety of your money.