Interactive Brokers vs Fidelity for active traders and fund investors in 2026
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Key takeaways
- 41% of IRA assets, or $8.0 trillion, was invested in mutual funds at the end of the second quarter of 2026.1
- When choosing between Interactive Brokers and Fidelity, start with where your idle cash will sit and whether you buy mutual funds before you compare trading features.
- Fidelity is the stronger fit for a fund investor who wants 0% index funds, a money market yield on cash, and a $0 transfer-out fee, while Interactive Brokers fits an active trader who wants per-share pricing and order routing on IBKR Pro.
In this article
- Interactive Brokers vs Fidelity at a glance
- What is Interactive Brokers?
- What is Fidelity?
- Interactive Brokers vs Fidelity features compared
- Interactive Brokers vs Fidelity fees for three kinds of investor
- Interactive Brokers vs Fidelity for a Roth IRA
- Should you choose Interactive Brokers or Fidelity?
- Run your own numbers before you pick a broker
- Frequently asked questions about Interactive Brokers vs Fidelity
Key takeaways
- 41% of IRA assets, or $8.0 trillion, was invested in mutual funds at the end of the second quarter of 2026.1
- When choosing between Interactive Brokers and Fidelity, start with where your idle cash will sit and whether you buy mutual funds before you compare trading features.
- Fidelity is the stronger fit for a fund investor who wants 0% index funds, a money market yield on cash, and a $0 transfer-out fee, while Interactive Brokers fits an active trader who wants per-share pricing and order routing on IBKR Pro.
Interactive Brokers vs Fidelity is a tie on the basic trade: IBKR Lite and Fidelity both charge $0 online for US stocks and ETFs and $0.65 per options contract.2 The decision comes down to cash, funds, and margin. Fidelity pays a money market yield on idle cash, while Interactive Brokers pays nothing on the first $10,000. Interactive Brokers also sells a per-share Pro plan built for heavy traders. This guide compares Interactive Brokers and Fidelity across trading costs, cash and margin, mutual funds, and what each charges inside an IRA.
Interactive Brokers vs Fidelity at a glance
Interactive Brokers and Fidelity charge the same for a trade and differ on nearly every other cost a long-term account pays. Fidelity's figures were read on fidelity.com between September 30 and October 6, 2026, and Interactive Brokers' figures on its pricing pages on October 6, 2026.
| Interactive Brokers | Fidelity | |
|---|---|---|
| Online US stock and ETF commissions | $0 on IBKR Lite; per share on IBKR Pro | $0 |
| Options | $0.65 per contract, $1.00 minimum per order | $0.65 per contract |
| House index funds | Not part of this check | ZERO index funds at a 0% expense ratio, no minimum |
| Idle cash | 0% on the first $10,000; 3.380% above it on Pro, 2.380% on Lite, scaled down in accounts under $100,000 | SPAXX 7-day yield of 3.49% as of October 5, 2026 |
| Margin | Tiered by balance off a benchmark rate | 10.825% base rate; 12.075% under $25,000; as low as 7.75% above $1,000,000 |
| Robo advisor | Not part of this check | Fidelity Go: $0 under $25,000, 0.35% of the whole balance at $25,000 and up |
| Account minimum | None | $0 |
| IRA match | None listed | None |
| Full account transfer out | Not confirmed on IBKR's site | $0 |
What is Interactive Brokers?
Interactive Brokers is a broker built for active traders, and it sells two plans: IBKR Lite, with $0 commissions on US stocks, and IBKR Pro, which charges by the share and adds direct order routing and volume pricing. Pro also pays a full point more on idle cash. Which plan you hold changes most of the costs below.
What is Fidelity?
Fidelity is a full-service broker with no account fee and no minimum to open. Fidelity's own fund family includes four ZERO index funds that charge a 0% expense ratio with no minimum investment. Fidelity also runs Fidelity Go, a robo advisor that charges no advisory fee on balances under $25,000.
Interactive Brokers vs Fidelity features compared
Each section below opens with the broker that comes out ahead, and says so when only one side's number could be confirmed.
Stock and ETF trading
Neither broker wins on a plain stock trade, because IBKR Lite and Fidelity both charge $0 online.3 You pay a stock commission only on IBKR Pro. A trader chooses Pro for routing control and volume discounts, not to save money on a single order.
| IBKR Pro US stock pricing | Rate |
|---|---|
| Fixed | $0.005 per share, $1.00 minimum per order, maximum 1% of trade value |
| Tiered, up to 300,000 shares a month | $0.0035 per share |
| Tiered, above 100 million shares a month | $0.0005 per share |
Options trading
Fidelity costs slightly less for a one-contract trader, because both brokers charge $0.65 per contract and Interactive Brokers adds a $1.00 minimum per order. From two contracts up, the price is identical. Interactive Brokers' rate applies to options priced at $0.10 or more, up to 10,000 contracts a month.
Cash on hand
Fidelity wins on idle cash, because its SPAXX money market fund showed a 3.49% 7-day yield as of October 5, 2026. Interactive Brokers pays nothing on the first $10,000 of idle US dollar cash and 3.380% above that on IBKR Pro, scaled by net asset value divided by $100,000 in any account worth less than $100,000.4 IBKR Lite pays 2.380%. All of these rates change over time, so this comparison reflects the rates on the dates above.
Margin rates
Neither broker wins outright on margin, because only Fidelity's schedule could be confirmed. Fidelity's base rate is 10.825%, effective September 18, 2026, but the rate you pay depends on the size of the loan. Interactive Brokers prices loans off a benchmark rate in tiers that step down as the balance grows, but IBKR's tier table couldn't be read for this update. Small loans cost the most.
| Fidelity margin balance | Rate |
|---|---|
| Under $25,000 | 12.075% |
| $25,000 to $49,999 | 11.575% |
| $50,000 to $99,999 | 10.625% |
| $100,000 to $249,999 | 10.575% |
| $250,000 to $499,999 | 10.325% |
| Above $1,000,000 | 7.75% |
Mutual funds and managed accounts
Fidelity wins for a fund investor, because its ZERO index funds cost nothing to hold and need no minimum. Fidelity Go charges no advisory fee under $25,000 and 0.35% of the whole balance once the balance reaches $25,000. Interactive Brokers' fund lineup and any managed account weren't part of this check, so this page doesn't score them.
Transferring an account out
Fidelity wins on transfers out, since it charges $0 to transfer an account out and $0 to close an IRA.5 Interactive Brokers' transfer-out fee wasn't confirmed on its own site. Ask Interactive Brokers about the fee before you count on a free transfer.
Interactive Brokers vs Fidelity fees for three kinds of investor
Interactive Brokers vs Fidelity fees differ depending on how you use the account, so the tables below price a year for three investors. Commissions and interest are modeled from each broker's published figures; returns, fund expense ratios, and pass-through regulatory fees aren't.
An investor holding idle cash
An investor holding cash earns more at Fidelity at every balance below, though the gap narrows as the balance grows. The table holds SPAXX's 7-day yield flat for a year and applies IBKR's rates only to the balance above $10,000. The table also assumes the cash is the whole account, so IBKR's scaling applies under $100,000.
| Idle cash balance | Fidelity SPAXX at 3.49% | IBKR Pro at 3.380% | IBKR Lite at 2.380% |
|---|---|---|---|
| $10,000 | $349 | $0 | $0 |
| $25,000 | $872.50 | $126.75 | $89.25 |
| $50,000 | $1,745 | $676 | $476 |
| $100,000 | $3,490 | $3,042 | $2,142 |
An options trader who buys one contract at a time
An options trader placing single-contract orders pays $0.35 more each time at Interactive Brokers, and nothing more once orders reach two contracts.
| Orders per year | Contracts per order | Interactive Brokers | Fidelity |
|---|---|---|---|
| 100 | 1 | $100 | $65 |
| 250 | 1 | $250 | $162.50 |
| 100 | 5 | $325 | $325 |
An active stock trader on IBKR Pro
An active trader on IBKR Pro Fixed pays per share for the routing and volume pricing, while Fidelity and IBKR Lite charge $0 per online trade. The table assumes each trade's dollar value is large enough that the 1% cap never applies.
| Order size on IBKR Pro Fixed | Cost per order | Cost for 250 orders a year |
|---|---|---|
| 100 shares | $1.00 (the minimum) | $250 |
| 500 shares | $2.50 | $625 |
| 1,000 shares | $5.00 | $1,250 |
| Fidelity or IBKR Lite, any size | $0 | $0 |
Interactive Brokers vs Fidelity for a Roth IRA
Interactive Brokers vs Fidelity for a Roth IRA leans toward Fidelity on everything Tweed could confirm: no opening fees or minimums, investing from $1, a $0 IRA closeout, and ZERO index funds. Interactive Brokers offers IRAs as well, but IBKR's account types and IRA fees weren't confirmed on its own site for this update. The Interactive Brokers IRA review covers them. Neither broker pays a match.
| Roth IRA | Interactive Brokers | Fidelity |
|---|---|---|
| IRA match | None listed | None |
| Opening fees and minimum | Not confirmed | $0, invest from $1 |
| Managed Roth | Not part of this check | Fidelity Go, $0 under $25,000, 0.35% of the whole balance from $25,000 |
| Interest on idle cash | 0% on the first $10,000 under IBKR's published schedule | Money market yield |
| Fee to close or transfer out | Not confirmed | $0 |
A new Roth IRA funded at the 2026 limit of $7,500 sits under IBKR's $10,000 cash line at first. Any money waiting to be invested there earns nothing under the published schedule. The same dollars waiting at Fidelity sit in a money market fund. This is why a small Roth tends to fit Fidelity better. Check whether IBKR applies the same tiers inside an IRA before you leave cash idle.
Should you choose Interactive Brokers or Fidelity?
The choice between Interactive Brokers and Fidelity depends on how much you trade and how much cash you hold. The headline commission is $0 at both. If Schwab is also in the running, Interactive Brokers vs Schwab andSchwab vs Fidelity cover those pairings.
Choose Interactive Brokers if
- You trade in enough volume that IBKR Pro's per-share pricing and routing are worth the commission
- You borrow on margin and want a schedule that steps down by balance, and you're willing to read IBKR's tier table yourself
Choose Fidelity if
- You want index funds at a 0% expense ratio with no minimum
- You keep cash at the broker and want a money market yield on all of it, not only the slice above $10,000
- You want to know today that moving the account later costs $0
Run your own numbers before you pick a broker
The dollar value of a cash yield or a commission depends on the balance behind it. Price your year with the three examples above, then run theTweed retirement calculator to see what a few hundred dollars a year compounds to by the time you retire. A cost you pay every year for decades adds up to far more than the yearly amount. If neither broker fits, thebest IRA accounts list includes brokers that pay a match. If Interactive Brokers fits, you can open an Interactive Brokers account through Tweed's referral link.
Frequently asked questions about Interactive Brokers vs Fidelity
What is the downside of Fidelity?
The downside of Fidelity is that its costs come from funds, not trades. Funds from other companies that carry a transaction fee cost $49.95 per purchase. No-transaction-fee funds charge the same $49.95 if you sell within 60 days. Fidelity also pays no IRA match.
Is anything better than Fidelity?
No, nothing is better than Fidelity across the board, but a few brokers beat it on one cost. Robinhood pays up to 3% on IRA contributions with Gold, while Interactive Brokers gives heavy traders per-share pricing and routing control on Pro. For a long-term fund investor, Fidelity's $0 fee to transfer an account out is hard to match.
What is the best brokerage account for IRA?
The best brokerage account for an IRA depends on what you want the account to do. Robinhood, Webull, Public, and SoFi pay a match on contributions. Fidelity and Schwab pay none but offer far more funds. Compare each broker's fee to transfer out before you commit, because transferring out can cost $75 to $100.
Can I have a Roth IRA at both Interactive Brokers and Fidelity?
Yes, you can hold a Roth IRA at both Interactive Brokers and Fidelity, but every IRA you own shares one IRS limit. For 2026 that's $7,500 in total, or $8,600 at 50 and older, split however you like. Money paid in above the limit owes a 6% excise tax for each year it stays uncorrected.
Is Fidelity or Vanguard better?
Fidelity or Vanguard comes out better depending on how you invest, since both suit index investors. Vanguard charges a $25 annual account service fee per brokerage account unless you sign up for e-delivery of statements, and most of its index funds need $3,000 to start. Fidelity has no account fee, and its ZERO funds need no minimum.
Who is better, Fidelity or Schwab?
Neither Fidelity nor Schwab is better across the board, because both charge $0 online for stocks and ETFs and $0.65 per options contract. Fidelity charges nothing to transfer out and sells index funds at a 0% expense ratio. Schwab's robo advisor charges no advisory fee once you have $5,000 in it.
Why can't I withdraw all my money from IBKR?
You can't always withdraw all your money from IBKR because some of it may be committed: a trade that hasn't settled, a deposit still on hold, or cash supporting a margin loan or open position. Most brokers work the same way. Inside an IRA, IRS rules on early withdrawals apply as well.
Sources
- https://www.ici.org/statistical-report/ret_26_q2
- https://www.fidelity.com/trading/commissions-margin-rates
- https://www.interactivebrokers.com/en/pricing/commissions-stocks.php
- https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php
- https://www.fidelity.com/why-fidelity/pricing-fees
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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