Fidelity Investments: Will They Call You Back?

Fidelity Investments is a financial services company that offers a range of products and services to help individuals, businesses, and institutions with their financial goals. The company provides investment advice, financial planning, and educational resources to its customers, including young and first-time investors. With no account fees, no minimum balance requirements, and commission-free trades, Fidelity makes investing accessible to everyone. The company also offers a variety of investment options, such as stocks, bonds, mutual funds, ETFs, and cryptocurrencies. In addition to their online presence, Fidelity has a global network of over 200 investor centers where customers can receive in-person advice and support. The company's commitment to innovation and customer-centricity has made it a trusted name in the financial industry.

Fidelity's customer service

Fidelity's customer support options also include a network of over 200 branches for in-person advice and educational resources. The company's Online Learning Center uses machine learning to provide customised educational materials based on customers' investing behaviour.

Overall, Fidelity's customer service is designed to provide accessible and knowledgeable support to its customers through a variety of channels, ensuring that investors can get the help they need in a timely manner.

Fidelity's virtual assistant

The Virtual Assistant is not meant for personal or account-specific information. The information a user inputs is not stored or reviewed for any purpose other than to provide search results. The responses provided by the Virtual Assistant are meant to help navigate the website, and customers are advised to carefully review the results. Fidelity does not guarantee the accuracy of the results or their suitability for a customer's specific situation.

The Virtual Assistant can be used to close a brokerage or cash management account as long as it has a zero balance and is not linked to a crypto account. All other types of accounts can be closed by calling a Fidelity representative.

Fidelity also offers a customized mobile app experience for the Fidelity Youth Account, an investment account designed for teenagers (aged 13 to 17).

Fidelity's investment options

Fidelity offers a wide range of investment options to help you reach your financial goals. Whether you're an active trader or investing for the future, here are some of the investment options available to you:

Stocks:

Fidelity allows you to trade shares of publicly traded companies in both domestic and international markets. This gives you the opportunity to own a piece of a public company, with stock prices fluctuating based on various factors such as company performance and news.

Bonds:

Investing in bonds is like lending money to companies or governments that promise to pay you back with interest. Bonds are typically considered lower risk compared to stocks and are graded to help you understand the risk of the issuer defaulting on their promise to repay.

Exchange-Traded Funds (ETFs):

ETFs are investment bundles that allow you to invest in a group of securities (such as stocks or bonds) at once. They are often created to follow a specific theme or category, like a sector or market index. ETFs offer diversification and are considered less risky than investing in individual stocks.

Mutual Funds:

Mutual funds pool money from multiple investors to purchase a collection of stocks, bonds, or other investments. Like ETFs, mutual funds spread your money across various investments and can be actively managed by professionals. Mutual funds trade once daily at the end of the market day, so you'll see price changes after the market closes.

Retirement Accounts:

Fidelity offers retirement planning solutions, including the Fidelity Roth IRA, which provides flexibility in saving for retirement while balancing long-term goals with short-term needs. You can also transfer retirement funds from former 401(k) and workplace accounts into a single account without taxes or penalties.

Cryptocurrency:

Fidelity Crypto® offers trading in Bitcoin, Ethereum, and Litecoin, with the ability to start investing with as little as $1. However, it's important to note that crypto is a highly volatile asset class and is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation.

Fidelity provides industry-leading research tools and resources to help you make informed investment decisions. You can also work with a dedicated advisor to create a customized plan that aligns with your financial goals.

Fidelity's fees

Fidelity Investments offers a range of services with different fee structures. Here is a detailed overview of the fees associated with Fidelity:

Account Fees

Fidelity does not charge any fees or minimums to open a retail brokerage account, making it easier for customers to start investing without incurring initial costs. This feature is particularly beneficial for those who want to start investing with a small amount of money.

Trading Fees

Fidelity offers commission-free trades on online US stocks, ETFs, and options. There is no charge for buying or selling US stocks, ETFs, or options trades made online. However, there is a $0.65 per contract fee for options trades, which is considered relatively high compared to other brokers.

Mutual Funds Fees

Fidelity offers a wide range of mutual funds, including the Fidelity ZERO Total Market Index Fund, the Fidelity ZERO International Index Fund, the Fidelity ZERO Large Cap Index Fund, and the Fidelity ZERO Extended Market Index Fund. These funds have no expense ratio and no minimum investment requirement, making them a cost-effective option for investors.

Additionally, Fidelity provides over 3,300 mutual funds with no transaction fees and nearly 950 funds with expense ratios of 0.50% or less. This selection gives investors a diverse range of choices to build their investment portfolios.

Planning and Advice Fees

Fidelity offers digital managed accounts, such as Fidelity® Wealth Management and Fidelity® Personalized Planning & Advice, which come with advisory fees based on the account balance. For example, the gross advisory fee for Fidelity® Personalized Planning & Advice is 0.50% for accounts with a balance of $25,000 or more.

Regulatory and Activity Assessment Fees

Fidelity also mentions a regulatory fee on sell orders, known as an activity assessment fee, which ranges from $0.01 to $0.03 per $1,000 of principal. This fee is charged by the Securities and Exchange Commission (SEC) and applies to all national securities exchanges based on the volume of securities sold.

Other Fees

While Fidelity offers commission-free trades on US stocks, ETFs, and options, there may be other fees associated with specific types of transactions. For example, there is a minimum markup or markdown of $19.95 for trades made with a Fidelity representative. Additionally, certain types of accounts, such as retirement accounts, may have specific fees associated with them.

In conclusion, Fidelity's fee structure is relatively straightforward and transparent. They offer commission-free trades on various investments and a wide range of no-transaction-fee mutual funds. However, it is important to carefully review their fee schedule and understand the potential costs associated with specific types of transactions or accounts.

Fidelity's history

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946, but its roots go back to 1930 when "Fidelity Fund" was created. During the Great Depression, the "Fidelity Fund" was the only fund approved by John C. Hull, the Securities Director for Massachusetts, due to widespread bank failures in 1930.

In 1943, Edward C. Johnson II, a Boston lawyer, bought the fund, which had $3 million in assets under management, and became its president and director. Johnson's objective was to make money, and he did so by investing in stocks with growth potential rather than blue-chip stocks. He also believed that the management of a mutual fund should rely on one person's instincts and knowledge, going against the traditional management by committee approach.

In 1946, Johnson formed Fidelity Management & Research Company, the predecessor of Fidelity Investments, to serve as an investment advisor to the Fidelity Fund. This marked the beginning of Fidelity Investments as we know it today. The company has since grown to become one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

Fidelity has a history of innovation, being the first to offer mutual funds with check-writing services, hourly updates on the net value of a mutual fund, and same-day trading of fund shares. They were also the first major financial institution to offer discount brokerage services when they formed Fidelity Brokerage Services Inc. in 1978.

The 1960s and 1980s were decades of significant growth for Fidelity, with the establishment of new funds and services, such as the Magellan Fund, which eventually became the largest mutual fund in the world. The firm also expanded internationally, forming Fidelity International in Bermuda in 1969 to serve non-U.S. markets.

In 1972, Edward C. Johnson III (Ned) succeeded his father as president of Fidelity Investments. During his tenure, the company faced challenges due to a dormant financial market, but Ned Johnson successfully steered the firm towards new aspects of the business, including vertical integration and direct sales.

In 2014, Abigail Johnson, the granddaughter of Edward C. Johnson II, became president and CEO of Fidelity Investments, and chairman of Fidelity International. Under her leadership, the company has continued to innovate and expand, offering new products and services, such as cryptocurrency trading and institutional cryptoasset custody.

Today, Fidelity Investments operates as a brokerage firm, manages a large family of mutual funds, and provides a range of financial services to millions of individuals, businesses, and institutions worldwide.

Frequently asked questions