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Robinhood vs Fidelity for investing and your Roth IRA in 2026

Nicolas StrautBy Nicolas StrautLast updated 7 min read
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Key takeaways

  • IRAs held $19.9 trillion in assets at the end of the second quarter of 2026, up 9.2% from the first quarter.1
  • When choosing between Robinhood and Fidelity, start with whether a contribution match or index mutual funds matters more to you before comparing fees.
  • Robinhood is the stronger fit for a margin borrower or an ETF saver who wants the IRA match, while Fidelity fits a fund investor who wants 0% expense ratio index funds and no fee to transfer out.
In this article

Robinhood vs Fidelity comes down to a match vs flexibility: Robinhood pays up to 3% on IRA contributions and charges less to borrow, while Fidelity offers 0% expense ratio index funds and a $0 transfer-out fee.2 Both charge $0 commissions on US stocks and ETFs, so the differences are in margin, cash, funds, the IRA match, and the cost of transferring out. This guide compares Robinhood and Fidelity across trading costs, funds, margin, and cash, prices a year for two kinds of investor, then covers the Roth IRA.

Robinhood vs Fidelity at a glance

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RobinhoodFidelity
Stock and ETF commissions$0$0
Options$0 commission, $0 per contract on stock and ETF options$0 commission, plus $0.65 per contract
What you can buyStocks, ETFs, options, crypto, event contractsStocks, ETFs, options, mutual funds, Treasuries, bonds
Margin rate5.25% up to $50,000; first $1,000 free with Gold12.075% under $25,000; base rate 10.825%
Uninvested cash3.6% APY on eligible brokerage cash with GoldSPAXX 7-day yield 3.49% (October 5, 2026)
SubscriptionGold, $5 a month, optionalNone
IRA contribution match1%, or 3% with GoldNone
Managed accountRobinhood Strategies, 0.25%Fidelity Go, $0 under $25,000, 0.35% of the whole balance from $25,000
Transfer out$100$0

What is Robinhood?

Robinhood is an app-first broker for stocks, ETFs, options, crypto, and event contracts, built around one simple app rather than a research platform. Its paid tier, Robinhood Gold, costs $5 a month and adds a higher cash rate, the first $1,000 of margin interest-free, and the larger IRA match.

The Robinhood review covers Robinhood's fees, safety, and Gold in full. Gold is optional, not a condition of the base 1% match.

What is Fidelity?

Fidelity is a full-service broker with $0 online commissions on US stocks, ETFs, and options, and no account fee or minimum.3 Fidelity sells its own index funds, Treasuries, and bonds. It charges nothing to transfer an account out, and its retirement lineup includes traditional, Roth, and rollover IRAs.

The Fidelity IRA review covers Fidelity's retirement accounts and Fidelity Go. There's no subscription tier to weigh.

Robinhood vs Fidelity features compared

Robinhood wins on borrowing and the match, while Fidelity wins on funds and transfers out. Cash is close.

Stock, ETF, and options trading costs

Stock and ETF investors pay $0 commission at both brokers, so trading costs differ only on options, where Fidelity adds $0.65 per contract.4 Robinhood charges $0 per contract on stock and ETF options, plus a $0.04 regulatory pass-through. Index options at Robinhood cost $0.50 a contract, or $0.35 with Gold. A buy-and-hold investor pays nothing at either.

Mutual funds and bonds

Fund investors get Fidelity's four ZERO index funds at a 0% expense ratio with no minimum. Treasuries trade at $0 online, and secondary bonds cost $1 each. Robinhood's lineup is built around stocks, ETFs, options, and crypto. If funds and bonds are the core of your plan, Fidelity is the better fit.

Margin rates

Margin borrowers pay far less at Robinhood, where rates as of September 17, 2026 start at 5.25% and fall as the balance grows. Gold members borrow the first $1,000 free.5 Fidelity's base rate is 10.825%, effective September 18, 2026, and a balance under $25,000 pays 12.075%. Even Fidelity's lowest published rate, 7.75% above $1,000,000, is higher than every tier on Robinhood's table.

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Margin balanceRobinhood rate
Up to $50,0005.25%
$50,000 to $100,0005.05%
$100,000 to $1 million4.75%
$1 million to $10 million4.5%
$10 million to $50 million4.45%
Above $50 million4.20%

Interest on uninvested cash

Cash earns slightly more at Robinhood with Gold, which pays 3.6% APY on eligible brokerage cash. Fidelity's SPAXX money market fund showed a 3.49% seven-day yield as of October 5, 2026, with no subscription. The two figures measure different things, and a seven-day yield is a snapshot, not an annual promise. Both rates change over time. Interactive Brokers vs Fidelitycompares SPAXX with a broker that pays nothing on the first $10,000 of idle cash.

Cost to transfer out

Investors who might move pay nothing at Fidelity, which charges $0 to transfer an account out, vs $100 at Robinhood. Robinhood does reimburse up to $75 of another broker's fee on incoming transfers of $7,500 or more, so moving into Robinhood costs less than moving out. Inside a Robinhood IRA, moving matched money out within 5 years can add an early removal fee.

Fidelity vs Robinhood fees for two kinds of investor

Fidelity vs Robinhood fees come out close for a buy-and-hold investor and far apart for a borrower. The two examples below show where the fees differ. Both examples assume the rates above hold for a full year, though real rates will change. Your own balance changes the answer.

A buy-and-hold investor with idle cash

A buy-and-hold investor keeps about $49 more at Fidelity on the cash in this example, because Gold's yearly cost outweighs its higher rate at this balance. Gold's rate covers its cost vs SPAXX only once idle cash passes about $54,500. Below that balance, Gold pays for itself only through the match or margin savings, not the cash rate.

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$10,000 of idle cash for a yearRobinhood with GoldFidelity
Interest at the rate shown$360 (3.6% APY)$349 (3.49% 7-day yield)
Subscription$60$0
Commissions on ETF purchases$0$0
Net$300$349

A margin borrower

A margin borrower pays less than half as much at Robinhood, because Fidelity charges 12.075% on a loan under $25,000. Gold doesn't pay for itself at this balance, since the interest it saves is smaller than its yearly cost. Robinhood charges daily interest on a 360-day year, and the table reflects that. Fidelity's figure applies its annual rate without a day-count adjustment.

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$10,000 borrowed for a yearRobinhood, no GoldRobinhood with GoldFidelity
Rate5.25%5.25%, first $1,000 free12.075%
InterestAbout $532About $479About $1,208
Gold$0$60$0
TotalAbout $532About $539About $1,208

Robinhood vs Fidelity for a Roth IRA

A saver who maxes out a Roth IRA every year comes out $825 ahead at Robinhood with Gold after five years, before any fee to transfer out. The table assumes the limit stays at the 2026 amount for all five years. Fund costs and returns aren't modeled, and the Roth IRArules themselves are identical at both brokers. The match is the entire difference.

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Five years of maxing a $7,500 Roth IRARobinhood, no GoldRobinhood with GoldFidelity
Match earned$375$1,125$0
Gold cost$0$300$0
Net$375$825$0
Fee to transfer out afterward$100$100$0

The match and its holding rules

Robinhood's Gold page words the offer as a "3% boost on annual IRA contributions, up to $225 based on the 2026 maximum," with no end date stated as of October 6, 2026. You keep the match only if you leave it alone. Matched money has to stay 5 years or Robinhood can charge a removal fee, and cancelling Gold within a year takes back the extra 2%. Fidelity pays no match, so it has nothing to take back. TheRobinhood IRA review walks through both ways Robinhood can take the match back.

Managed Roth IRA options

Hands-off savers with less than $25,000 get a free managed Roth at Fidelity, since Fidelity Go charges no advisory fee below that. Fidelity Go charges 0.35% on the whole balance once the balance reaches $25,000, and Wealthfront vs Fidelitycompares that fee with Wealthfront's 0.25%. Robinhood Strategies charges 0.25%, and the fee is waived above $100,000 with Gold. A managed Robinhood IRA earns no match, though. The match is for savers who pick their own investments, not for robo accounts.

Should you choose Robinhood or Fidelity?

Choosing between Robinhood and Fidelity usually depends on how you'll use the account. If you borrow on margin, want to be paid to contribute, and expect to stay put for at least 5 years, Robinhood's prices are hard to beat. If you want index funds, a free managed account, or the freedom to transfer out without a fee, Fidelity charges less for what you'll use. If the account is a Roth and neither fits, thebest Roth IRA accounts list covers more providers.

Choose Robinhood if

  • You borrow on margin and want the lower published rate of the two
  • You buy your own ETFs, contribute to an IRA every year, and can leave matched money alone for 5 years
  • You'd pay for Gold anyway, for the match or the margin

Choose Fidelity if

  • You want index mutual funds, Treasuries, or bonds in the same account
  • You want a managed account with no advisory fee under $25,000
  • You might move the account later and don't want to pay $100 to do it

Price your own year before you open an account

Price your own year from the examples above, then run the Tweed retirement calculator for the Roth IRA, once with the match and once without. Then check the best brokerage accountsroundup to compare other brokers. If Robinhood fits, open a Robinhood account through Tweed's referral link.

Frequently asked questions about Robinhood vs Fidelity

Can I roll a 401(k) into Robinhood or Fidelity?

Yes, you can roll a 401(k) into an IRA at either broker, but only Robinhood pays a match on the rollover. Robinhood adds 1% on 401(k) rollovers with no cap, so a $50,000 rollover earns $500, which must stay in the account for 5 years. Fidelity charges nothing to open or hold a rollover IRA but pays no match on the money you bring.

Why stay away from Robinhood?

Critics of Robinhood point to its reliance on payment for order flow, its emphasis on options, crypto, and event contracts, and the fee to transfer out. None of these is a safety problem, since accounts are SIPC-protected. They matter to an investor who trades often or expects to move accounts.

Is it worth transferring from Robinhood to Fidelity?

Transferring from Robinhood to Fidelity is worth it if Fidelity's funds or $0 transfer-out fee matter more to you than the $100 Robinhood charges to transfer out. Selling first in a taxable account can trigger capital gains tax, so an in-kind ACATS transfer is usually cleaner. Wait to move an IRA until any recent match has passed its holding period.

Is Robinhood or Fidelity safer?

Robinhood and Fidelity are equally protected against a broker failing, because both hold brokerage accounts covered by SIPC, up to $500,000 per customer, including $250,000 in cash. Neither protects you against market losses. Fidelity also runs an FDIC-Insured Deposit Sweep Program for cash held at its program banks.

Can you have a Roth IRA at Robinhood and Fidelity?

Yes, you can have a Roth IRA at both Robinhood and Fidelity, but the IRS limit covers all your IRAs combined, not each account. In 2026 that's $7,500 in total before the age-50 catch-up, split however you like. Anything above the combined limit is an excess contribution.

Which is better, Fidelity or Roth IRA?

Fidelity and a Roth IRA aren't alternatives to each other. A Roth IRA is a type of retirement account, and Fidelity is one of many brokers where you can open one, as is Robinhood. The choice is which broker should hold your Roth IRA, and that depends on fees, funds, and whether a match matters to you.

Is $200 a month enough for Roth IRA?

$200 a month is a real start on a Roth IRA, and at Robinhood it earns a $24 yearly match without Gold. Gold would add $48 a year, less than its $60 cost, so the base match is the better deal at this level. Whether $200 a month is enough for retirement depends on your age and goals.

Sources

  1. https://www.ici.org/statistical-report/ret_26_q2
  2. https://robinhood.com/us/en/support/articles/ira-match-faq/
  3. https://www.fidelity.com/why-fidelity/pricing-fees
  4. https://www.fidelity.com/trading/commissions-margin-rates
  5. https://robinhood.com/us/en/support/articles/margin-rates/
Nicolas Straut
Nicolas Straut

Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.

nicstraut.com

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