$277,000 vs $7,700: The Account Size Gap Nobody Talks About
The average Fidelity account holds 36x more than the average Robinhood account. This single statistic explains why these brokers are completely different businesses—and why they treat you differently.
Average Account Size by Broker
Estimates based on total assets under custody divided by account counts. 2024 data.
What This Gap Really Means
These aren't just statistics—they reveal fundamentally different businesses serving fundamentally different customers.
Fidelity/Schwab: Wealth Management
When your average customer has $250,000+, you can afford to:
- Hire 24/7 phone support with knowledgeable reps
- Provide comprehensive research from 20+ sources
- Operate physical branches across the country
- Skip payment for order flow (because order revenue is irrelevant)
- Pay competitive interest rates on cash
The math works because even a small percentage of $250,000 generates significant revenue—without charging commissions or selling orders.
Robinhood/Webull: Transaction Factories
When your average customer has $7,700, you need volume:
- Maximize trading frequency (gamification, push notifications)
- Monetize every order through PFOF
- Keep customer service minimal (chat only, long waits)
- Use aggressive promotions to acquire customers cheaply
- Extract value from cash spreads and margin interest
This isn't evil—it's economics. You can't provide Fidelity-level service on $7,700 accounts. The revenue isn't there.
The Hidden Implication: You're Different Customers
Consider what a $50,000 account means at each broker:
$50K at Fidelity
- ✓ Below-average account (they have many larger)
- ✓ Still valuable—you might grow
- ✓ Same service as $5M accounts
- ✓ Long-term relationship mentality
$50K at Robinhood
- ✓ 6x their average—you're a whale!
- ✓ Very valuable for PFOF and margin
- ✓ But still same minimal service
- ✓ Transaction revenue mentality
Why This Matters for Broker Selection
If You Have Under $25,000:
Robinhood and Webull are designed for you. Their features (simple apps, free options, crypto integration) match your needs. The service level is appropriate for account size. Just understand the trade-offs.
If You Have $25,000 - $100,000:
You're in the sweet spot where you might benefit from traditional broker advantages without being ignored. Fidelity and Schwab will treat you well—you're below average but not insignificant.
If You Have Over $100,000:
Using Robinhood makes little sense. You're leaving real money on the table through worse execution, minimal service, and lower cash yields. The "free" benefits are overwhelmed by the hidden costs.
The Median vs. Mean Problem
Average account size is misleading because a few large accounts skew the mean. The median is more revealing:
- Robinhood median: Estimated under $1,000
- Fidelity median: Still probably $50,000+
Half of Robinhood accounts have less than $1,000. These are people dabbling, gambling, or learning. That's fine—but the broker is optimized for this behavior, not for building wealth.
The Age Gap Too
Account size correlates with age:
- Robinhood median age: ~31 years old
- Fidelity/Schwab median age: ~50+ years old
Robinhood serves younger, smaller accounts. Fidelity serves older, larger accounts. Both are rational strategies for different markets.
The Bottom Line
Neither model is "right" or "wrong." But you should choose a broker whose economics align with your situation:
- Small account, learning to invest? Robinhood's simplicity makes sense
- Building serious wealth? Graduate to Fidelity or Schwab
- Active trader regardless of size? Consider Interactive Brokers for cost efficiency
The 36x gap between Fidelity and Robinhood isn't a flaw—it's a feature. They're different businesses for different people.
Know which one you are.