Platform Comparison

E*TRADE vs Fidelity

Compare E*TRADE and Fidelity on fees, DRIP, fractional shares and research for dividend investing.

ET

E*TRADE

★4.6

Morgan Stanley's full-service brokerage pairs $0 commissions and free dividend reinvestment with institutional-grade research—and in 2026 it finally added direct fractional shares and crypto trading.

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Higher Rated
FD

Fidelity

★4.9

The gold standard for dividend investors seeking zero commissions, exceptional research, and automatic DRIP.

Full Review

E*TRADE vs Fidelity: Fees, Minimums & DRIP Compared

FeatureE*TRADEFidelity
Our Rating4.6/54.9/5
Trading Commissions$0$0
Account Minimum$0$0
Fractional SharesYes (phased rollout)Yes
DRIPFreeAutomatic
Research ToolsExcellentExcellent
Best ForResearch-Driven Dividend InvestorsLong-Term Dividend Investors

E*TRADE vs Fidelity: Pros and Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional shares, enrollable per security
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Direct fractional-share purchases now rolling out (started Q2 2026)
  • + Crypto trading live at a 0.50% fee—cheaper than Coinbase, Schwab, and Fidelity

Cons

  • - Fractional-share purchases are still in a phased rollout—not every stock is eligible yet
  • - No dollar-based orders yet; fractional buys are share-quantity only
  • - Low interest rate on uninvested cash
  • - Website navigation can be confusing

Fidelity

Pros

  • + Completely free trading for stocks, ETFs, and options
  • + Automatic dividend reinvestment on all eligible securities
  • + Industry-leading research and screening tools
  • + Fractional shares starting at $1
  • + Excellent customer service with 24/7 phone support

Cons

  • - Platform interface can feel overwhelming for complete beginners
  • - Mobile app less intuitive than newer competitors
  • - Some advanced features require desktop platform
  • - Mutual fund minimums can be high ($0-$2,500 depending on fund)

Which Is Better for Dividend Investors: E*TRADE or Fidelity?

Choose E*TRADE if you...

  • Are in E*TRADE's core audience: research-driven dividend investors

Choose Fidelity if you...

  • Are in Fidelity's core audience: long-term dividend investors
  • Need automatic dividend reinvestment
  • Prefer a higher-rated overall platform

Want the full breakdown of fees, DRIP, and research tools? Read our E*TRADE review and Fidelity review.

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Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.