Fidelity's Investment Fees: Low-Cost Or High-Cost?

Fidelity is a well-known brokerage service that offers a range of low-cost index funds and actively managed funds with competitive fees. The company has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds, including its Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. In addition, Fidelity offers $0 trading commissions on US stocks, ETFs, and options trades. The company also provides a selection of over 3,300 no-transaction-fee mutual funds and top-notch research tools. With its low costs, advanced trading features, and excellent customer support, Fidelity is a great choice for investors looking for both active trading and beginner retirement accounts.

Zero account minimums and fees for retail brokerage accounts

Fidelity offers zero account minimums and fees for retail brokerage accounts. This means that investors can open an account without any money and not worry about account fees eating into their returns. This is especially appealing to new or younger investors, as many other fund families require hundreds or even thousands of dollars to get started.

Fidelity also offers $0 transaction fees for its funds, meaning investors can buy and sell mutual funds without worrying about added costs eating into their returns. This is a clear advantage over time.

Fidelity is also unique in offering zero-expense-ratio index mutual funds. These funds, which track proprietary Fidelity indexes, allow investors to invest effectively free of charge. Whether investors want exposure to U.S. or international stocks, Fidelity's zero-expense-ratio funds are incredibly affordable.

Fidelity's zero account minimums and fees for retail brokerage accounts are part of the company's commitment to providing value to its customers. With an industry-leading delivery on value, nothing stands between investors and their money.

In addition to zero account minimums and fees, Fidelity also offers a range of other low-fee investment options, including mutual funds and exchange-traded funds (ETFs). The company is known for its online brokerage service and its selection of no-expense-ratio index funds and competitively-priced actively-managed funds.

Fidelity's zero account minimums and fees for retail brokerage accounts make it a great choice for investors looking for a low-cost option to invest their money.

Zero expense ratio index funds

Fidelity offers zero expense ratio index funds, which means that investors do not have to pay any fees to invest in these funds. These funds are:

• Fidelity® ZERO Large Cap Index Fund (FNILX)
• Fidelity® ZERO Extended Market Index Fund (FZIPX)
• Fidelity® ZERO Total Market Index Fund (FZROX)
• Fidelity® ZERO International Index Fund (FZILX)

These funds have a 0% expense ratio and no minimum investment requirement. They are available to individual retail investors who purchase their shares through a Fidelity brokerage account.

Fidelity's zero expense ratio index funds are designed to provide investment results that correspond to the total return of a broad range of companies or stocks. For example, the Fidelity® ZERO Large Cap Index Fund (FNILX) seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies.

The benefits of investing in zero expense ratio index funds include lower management and transaction costs than actively managed funds, no sales charges, broad diversification of investments, and lower portfolio turnover.

It's important to note that while these funds have no expense ratio, there may still be other expenses or commissions associated with investing in them, such as investment expenses or transaction costs. Additionally, these funds are not portable to another brokerage, so investors should consider their long-term plans before investing.

Zero commission trades

Fidelity offers $0 trading commissions on US stocks, ETFs, and options trades. Options trades carry a $0.65 per-contract charge, which is relatively high compared to other brokers.

Fidelity has eliminated nearly all account fees, including transfer and account closure fees. There is also no inactivity fee, even if you leave your account idle for a long time.

Fidelity offers a range of no-load mutual funds with no minimum investment amounts. Several of the Fidelity ZERO funds also feature 0% expense ratios.

Fidelity's trading fees for international stocks are relatively high. There is also a small charge on sell orders, as they are subject to an activity assessment fee of $0.01-$0.03 per $1,000 of principal.

Fidelity's basic withdrawal fee is $0, but some transactions may cost more. Non-USD wire withdrawals cost 3% of the amount withdrawn.

Fidelity's margin rates are volume-tiered. At the time of writing, the base rate was 12.075%, resulting in the following financing rates:

• 0-25k: Base rate + 1.25%
• Under $10,000: Base rate + 2.50%
• Above $10,000: Base rate + 1.25%

Low mutual fund fees

Fidelity also offers over 3,300 no-transaction-fee mutual funds, including funds with expense ratios of 0.50% or less. These funds are available from Fidelity and other mutual fund companies.

In addition to low mutual fund fees, Fidelity also offers $0 trading commissions, top-notch research tools, and a highly-rated mobile app. The company has a strong reputation for its mutual funds and has been managing index funds for almost 30 years.

• Zero expense ratio index funds: Fidelity offers four index funds with a 0% expense ratio and no minimum investment requirement, providing investors with a balanced and virtually free retirement portfolio.
• No transaction fees: Fidelity offers over 3,300 mutual funds with no transaction fees, allowing investors to buy and sell without incurring additional costs.
• Low expense ratios: Fidelity offers nearly 950 funds with expense ratios of 0.50% or less, which is lower than the industry average.
• Broad selection: Fidelity provides a wide range of mutual funds from different companies, giving investors various options to choose from.
• Educational resources: Fidelity offers educational resources and research options for both beginner and active investors, helping them make informed investment decisions.

With its low mutual fund fees and other features, Fidelity provides investors with a well-rounded and cost-effective platform for their investment needs.

Low international stock trade fees

Fidelity offers international stock trading in 25 countries, allowing customers to settle in either U.S. dollars or the local currency. The company's international trading offering includes the ability to exchange between 16 different currencies, which may allow customers to capitalise on foreign exchange fluctuations.

International stock trades are subject to a commission that covers clearing and settlement costs and local broker fees. There may also be additional fees or taxes charged for trading in certain markets. These include:

• Hong Kong Transaction Levy: 0.004% of principal per trade
• Trading Fee: 0.005% of principal per trade
• Stamp Duty: 0.10% of principal per trade
• United Kingdom PTM Levy: 1 GBP per trade where principal amount is > 10,000 GBP
• Stamp Duty: 0.50% of principal only on purchases
• Singapore Clearing Fee: 0.04% of principal per trade
• South Africa Securities Transfer Tax: 0.25% of principal on purchases
• France Financial Transaction Tax: 0.30% of principal on purchases of French securities, including ADRs
• Spain Financial Transaction Tax: 0.20% of principal on purchases of Spanish securities, including ADRs
• Ireland Stamp Tax: 1.00% of principal per trade on purchases of Irish securities
• Italy Financial Transaction Tax: 0.10% of principal on purchases of Italian securities, including ADRs

Fidelity also charges a foreign currency exchange fee if U.S. dollars are chosen as the settlement currency.

Frequently asked questions