Fidelity Investment Advisors: Are They Worth Your Money?

Fidelity is a full-service brokerage firm that offers a wide range of financial services, including investment management, retirement planning, life insurance, and brokerage services. They provide investors with access to financial advisors and wealth management services, either through their physical branch offices or online platforms. Fidelity's advisory services are designed to cater to a diverse range of clients, from small investors to high-net-worth individuals, offering various account minimums and investment strategies to suit different needs. Their investment philosophy centres around clients' goals, investment preferences, and tax situations, with a focus on diversification and asset allocation. While generally well-regarded, some users have reported mixed experiences with the quality of advice provided by Fidelity advisors.

Fidelity offers a free trading platform and zero-fee banking

Fidelity offers a wide range of services, including a free trading platform and zero-fee banking.

Fidelity's trading platform is highly customisable and user-friendly, with features such as real-time market data, research ideas, and trade execution. The platform also offers advanced tools for more sophisticated traders, such as level II quotes, heat mapping, and multi-leg options trading. In addition, Fidelity provides a wide range of screeners, third-party research reports, and analysis tools to help investors make informed decisions.

Fidelity also offers zero-fee banking with its Cash Management Account. This account offers features such as no account fees or minimum balance requirements, free reimbursements for ATM fees worldwide, and the ability to easily transfer funds between brokerage and cash management accounts.

Fidelity's services are designed to cater to a wide range of investors, from beginners to sophisticated traders, and the company has a strong reputation for its mutual funds and no-commission trades. The company also provides 24/7 customer support and has over 140 branch offices across the US.

Overall, Fidelity's free trading platform and zero-fee banking make it a compelling choice for investors seeking a combination of robust features and low costs.

Fidelity's robo-advisor service, Fidelity Go, allocates your portfolio depending on your goals, timeline and risk tolerance

Fidelity Go is a robo-advisor service that automates investing for its users. To get started, users answer a few questions about their financial goals, timeline, and risk tolerance. Fidelity Go then suggests an investment strategy and builds a portfolio based on the user's responses. There is no minimum amount required to open an account, but there must be at least $10 in the account for Fidelity Go to start investing.

Fidelity Go offers a range of investment strategies, from conservative to aggressive. The most conservative strategy targets 20% stocks and 80% bonds and short-term investments, while the most aggressive strategy targets 100% stocks. The service then monitors the markets and automatically rebalances the portfolio to keep users on track.

For accounts with balances under $25,000, Fidelity Go charges no advisory fee. For accounts with balances of $25,000 or more, there is an advisory fee of 0.35% per year, which includes unlimited access to financial coaching sessions with trained advisors. These coaching sessions can cover topics such as budgeting, managing debt, and retirement planning.

Fidelity Go was awarded the Best Robo out of ten online brokers in 2023, demonstrating its effectiveness as a robo-advisor service. The service provides an affordable, automated investment solution for users, allocating their portfolios based on their individual goals, timelines, and risk tolerance.

Fidelity's fees start at zero

Fidelity's zero expense ratio index mutual funds are also available with no minimum investment. The company offers four zero-fee funds: the Fidelity ZERO Total Market Index Fund, the Fidelity ZERO International Index Fund, the Fidelity ZERO Extended Market Index Fund, and the Fidelity ZERO Large Cap Index Fund. These funds are designed to provide investment results that correspond to the total return of a broad range of publicly traded companies, both domestic and foreign.

In addition to its zero-fee funds, Fidelity also offers thousands of other commission-free mutual funds and ETFs. The company has a comprehensive suite of tools, research, and investment assets, making it a great choice for both beginner and advanced investors.

While Fidelity's fees start at zero, it is important to note that there may be other costs associated with investing, such as management fees, transaction fees, and other expenses. However, Fidelity's commitment to providing value to its customers makes it a compelling choice for those looking for a low-cost investment option.

Fidelity is ideal for value-fund investors

Fidelity distinguishes itself with professional-grade research, screening, and trading tools. Its lack of account management fees is a significant advantage, and its zero-commission trading of stocks and ETFs is in line with the industry standard. Fidelity also offers four zero expense ratio, zero minimum investment index funds. The company provides an extensive selection of managed portfolios, with accompanying coaching and financial advisor guidance, making it ideal for investors seeking both DIY tools and advisor-led guidance.

The Fidelity Value Fund, which launched in 1978, uses a multi-manager system, with each manager employing a distinct methodology to run a sleeve. As of November 27, 2023, the fund had assets totaling almost $7.17 billion invested in 256 different holdings. Its portfolio consists primarily of domestic stocks of various market capitalizations, and it also holds a significant stake in non-U.S. stocks. Managers focus on companies they believe are undervalued relative to future potential. The fund has returned 9.79% over the past five years and 8.03% over the past decade.

Fidelity's zero-expense-ratio index funds, which track proprietary Fidelity indexes, allow investors to invest effectively free of charge. The company offers a wide range of funds, including the Fidelity 500 Index Fund (FXAIX), the Fidelity ZERO Large Cap Index Fund (FNILX), and the Fidelity Total Market Index Fund (FSKAX). These funds provide exposure to U.S. and international stocks with incredibly affordable expense ratios, some as low as 0.015%top-notch research and educational resources. The platform offers professional-grade research reports from 17 providers, including Zacks Investment Research and Argus Media. Fidelity's research offerings are among the best available from major financial companies, making it an excellent choice for value-fund investors seeking comprehensive information and analysis.

Fidelity offers dedicated financial advisors and premium management services for investors with minimum balances ranging from $25k to $10m

Fidelity offers a range of investment advisory services, with dedicated financial advisors and premium management services for investors with varying minimum balances.

For investors with a minimum balance of $25,000, Fidelity offers its Personalized Planning and Advice service, which combines the Fidelity Go robo-advisor platform with access to live financial advisors for a more customised experience. This service offers a diversified investment portfolio and automatic rebalancing, with a fee of 0.50% of assets under management (AUM) per year.

For investors with a higher minimum balance of $50,000, Fidelity provides its Portfolio Advisory Services, which grants access to a dedicated team of financial advisors for a 1.10% AUM annual fee. This service includes in-depth strategies, estate planning, insurance, and more.

Fidelity's Wealth Management service is available to investors with a minimum balance of $250,000. This service offers a dedicated financial advisor and comprehensive financial planning and investment management. Fees for this service range between 0.50% and 1.5% AUM annually.

For those with a minimum of $2 million in managed assets and $10 million or more in total investable assets, Fidelity offers its Private Wealth Management service. This premium service provides a dedicated wealth management team, led by a Fidelity advisor, to deliver comprehensive financial planning and investment management.

Fidelity's investment advisory services are designed to cater to a wide range of investors, from those just starting to those with substantial assets. These services offer a combination of digital and human advice, providing investors with customised plans, investment strategies, and ongoing support to help them achieve their financial goals.

Frequently asked questions