Fidelity vs Interactive Brokers

• Features and Platforms
• Available Markets
• Typical Spreads and Fees
• Security and Trust
• Pepperstone vs Vantage - Verdict

Fidelity and Interactive Brokers are leading global multi-asset brokers, but which one should you trust for your Forex portfolios?

I have conducted an in-depth review of Fidelity vs. Interactive Brokers to determine which broker is the better overall choice and which traders will benefit most from each.

Headquarters	United States	United States
Regulators	FINMA, SEC	ASIC, Central Bank of Ireland, CFTC, FCA, MAS, SEBI, SEC
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	1946	1978
Execution Type(s)	Market Maker	Market Maker
Minimum Deposit	$1	$0
Negative Balance Protection
Trading Platform(s)	Proprietary platform, ATpro platforms	Proprietary platform
Average Trading Cost EUR/USD	Not applicable	Account and account-tier dependent
Average Trading Cost GBP/USD	Not applicable	Account and account-tier dependent
Average Trading Cost WTI Crude Oil	Not applicable	Account and account-tier dependent
Average Trading Cost Gold	Not applicable	Account and account-tier dependent
Retail Loss Rate	Undisclosed	Undisclosed
Minimum Raw Spreads	Not applicable	0.1 pips
Minimum Standard Spreads	Not applicable	Not applicable
Minimum Commission for Forex	Not applicable	$2.00
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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Here is a snapshot of the most notable advantages of Fidelity:

• Excellent trading technology
• The Active Trader Pro platform, including Trade Armor, allowing clients to visualize trade and risk management strategies
• Daily Dashboard, displaying data relevant to open positions
• Top-notch research, including Social Sentiment Score, helping traders navigate social media trends
• Independent research reports

Here is a snapshot of the most notable advantages of Interactive Brokers:

• 3.34M+ accounts with $3.52M+ daily revenue trades
• An average order execution speed between 95 and 250 milliseconds
• $12.4B in excess regulatory capital
• 160 markets across 36 countries in 28 currencies
• Margin rates ranking among the lowest industry-wide, with rates as low as 4.83%
• A Stock Yield Enhancement Program paying income on the fully-paid shares of stocks

Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons	N/A
cTrader
Proprietary Platform
Automated Trading	N/A
Social/Copy Trading	N/A
DOM?
Guaranteed Stop Loss	N/A
Scalping	N/A
Hedging	N/A
One-Click Trading
OCO Orders	N/A
Interest on Margin	N/A
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Available Markets

Currency Pairs
Cryptocurrencies
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds
ETFs
Options
Futures
Synthetics
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Interactive Brokers offers 160 markets across 36 countries in 28 currencies. Fidelity is primarily an equity, ETF, option, mutual fund, and IPO broker.

Here is why Interactive Brokers is a better choice for most traders:

• 43,000 mutual funds, including 18,000 without transaction fees, and ETFs listed on 28 exchanges, including commission-free ETFs

Typical Spreads and Fees

Average Trading Cost EUR/USD	Not applicable	Account and account-tier dependent
Average Trading Cost GBP/USD	Not applicable	Account and account-tier dependent
Average Trading Cost WTI Crude Oil	Not applicable	Account and account-tier dependent
Average Trading Cost Gold	Not applicable	Account and account-tier dependent
Average Trading Cost Bitcoin	1% maximum spread	Account and account-tier dependent
Minimum Raw Spreads	Not applicable	0.1 pips
Minimum Standard Spreads	Not applicable	Not applicable
Minimum Commission for Forex	Not applicable	$2.00
Deposit Fee
Withdrawal Fee
Inactivity Fee	no
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Fidelity offers commission-free accounts versus commission-based ones at Interactive Brokers, but which is cheaper?

Interactive Brokers fees are more competitive. The broker levies commissions on assets like cryptocurrencies and equities but maintains many commission-free assets. Fidelity is mostly commission-free, but option and bond traders pay contract fees. Overall, Interactive Brokers has lower costs, with volume-based rebates.

Account Types

All Fidelity accounts are commission-free, with contract fees for select sectors. Interactive Brokers accounts include one commission-free account, but geographic restrictions apply. Otherwise, the Interactive accounts are commission-based with many commission-free assets.

Are there any other noteworthy differences in the account structure between Fidelity vs. Interactive Brokers?

Here is what stands out the most:

• Interactive Brokers has more trading tools
• Interactive Brokers includes 2,000+ services across five categories

Minimum Deposit

How Difficult Is It to Deposit at Fidelity Vs. Interactive Brokers?

Fidelity and Interactive Brokers rely heavily on bank-related deposit methods. Fidelity includes e-wallets like PayPal and Venmo, while Interactive Brokers added Wise as a payment processor. While neither caters well to active traders, Fidelity has more trader-friendly choices, while Interactive Brokers accepts deposits in all fiat currencies, granting it an overall edge.

Minimum Withdrawal

Which Withdrawal Process Is Better: Fidelity or Interactive Brokers?

Interactive Brokers offers one free monthly withdrawal, before a fee applies. At Fidelity, bank-related options via ACH, which are free, are the cheapest and fastest method, but the lack of modern payment processors is unfortunate. Neither broker maintains a trader-friendly infrastructure, but Interactive Broker withdrawals have quicker processing times. Requesting a withdrawal is equally simple at Fidelity and Interactive Brokers.

Security and Trust

Country of the Regulator	United States	Australia, Canada, Hong Kong (SAR), Ireland, India, Japan, Singapore, United Kingdom, United States
Name of the Regulator	FINMA, SEC	ASIC, Central Bank of Ireland, CFTC, FCA, MAS, SEBI, SEC
Regulatory License Number	8-23292, 7784	36418/8-47257, undisclosed but confirmed, C423427, 208159, 433554, undisclosed, INZ000021730, undisclosed, CMS100917
Regulatory Tier	1	1,1,1,1,1,1,2,1,1
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Which Broker Is More Secure and Trustworthy?

Both brokers have an exceptional regulatory track record and have earned a superb reputation. Fidelity ranks among the most dominant global asset managers with $4.3+ trillion in assets under management. Interactive Brokers ranks among the leading brokers globally based on the number of daily average revenue trades and is an S&P400 member. Therefore, I rank both equally in security and trust.

Fidelity versus Interactive Brokers Verdict

Fidelity

Interactive Brokers

Which Forex Broker Is Better?

Fidelity and Interactive Brokers are industry-leading brokers, and I recommend traders test the trading environments in their respective demo accounts.

Here is my verdict:

Fidelity is the leading US stockbroker for retirement planning and wealth management, with an outstanding educational section and a user-friendly mobile app for beginners. Interactive Brokers offers cutting-edge infrastructure, ultra-low trading fees, and industry-leading asset selection. I rank Fidelity better for unleveraged investment portfolios, but Interactive Brokers is the better choice overall for diversification, leveraged trading, and algorithmic traders.

FAQs

What is the 25k rule for Interactive Brokers?

Pattern day traders must have a minimum account balance of $25,000. Otherwise, Interactive Brokers temporarily blocks their accounts, if they violate PDT rules.

What is the downside to Fidelity?

Fidelity has expensive margin rates for traders and limited payment processors.

Is Fidelity or Interactive Brokers better?

Fidelity is better for unleveraged investment portfolios, but Interactive Brokers is the better choice overall for diversification, trading fees, leveraged trading strategies, and algorithmic traders.