Platform Comparison

Fidelity vs Interactive Brokers

Compare Fidelity and Interactive Brokers on fees, DRIP, fractional shares and research for dividend investing.

Higher Rated
FD

Fidelity

★4.9

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

Full Review
IB

Interactive Brokers

★4.5

The professional-grade platform with access to 150+ global markets, industry-leading margin rates, and powerful screening tools.

Full Review

Fidelity vs Interactive Brokers: Fees, Minimums & DRIP Compared

FeatureFidelityInteractive Brokers
Our Rating4.9/54.5/5
Trading Commissions$0$0 (Lite)
Account Minimum$0$0
Fractional SharesYes10,000+ stocks
DRIPAutomaticSmall fee
Research ToolsExcellentGood
Best ForLong-Term Dividend InvestorsInternational Dividend Investors

Fidelity vs Interactive Brokers: Pros and Cons

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)

Interactive Brokers

Pros

  • + Access to 150+ markets across 33 countries in 27 currencies
  • + Commission-free US stock and ETF trading with IBKR Lite
  • + Industry-leading low margin rates (5.83% Pro, 6.83% Lite)
  • + Fractional shares on 10,000+ US, Canadian, and European stocks
  • + Powerful dividend yield screeners with 50+ factors

Cons

  • - Steep learning curve—platforms built for professionals
  • - DRIP charges a small commission (unlike most competitors)
  • - Account-level DRIP only—can't select specific stocks
  • - Customer service wait times can be long during peak hours

Which Is Better for Dividend Investors: Fidelity or Interactive Brokers?

Choose Fidelity if you...

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

Choose Interactive Brokers if you...

  • Are in Interactive Brokers's core audience: international dividend investors

Want the full breakdown of fees, DRIP, and research tools? Read our Fidelity review and Interactive Brokers 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.